Two years ago, the city of Grand Rapids denied the Acton Institute a local tax exemption. But the free-market think tank demonstrated in court it was indeed a charitable organization, and therefore eligible under state statute to be exempt from certain taxes.
Rep. Pat Somerville (R-New Boston) introduced a bill last week that would prevent local government employees from using overtime and other extra compensation to boost their taxpayer-funded pension benefits. The bill could can lower the costs of those benefits and make them more predictable, but unfortunately it will do little to contain the runaway costs of an underfunded pension system.
The Detroit News today published an op-ed by Mackinac Center for Public Policy Executive Vice President Mike Reitz calling on lawmakers to make Michigan government more accountable.
In the piece, Reitz says, “The Flint water crisis provides a vivid and tragic reminder about the importance of open government.” Referring to a recent article in Michigan Capitol Confidential, Reitz shares that the Mackinac Center received a bill from the City of Flint for $172,000 when it asked to see two years’ worth of city emails that include the word “lead.”
In 1950, only about one in 20 workers needed to be licensed to work legally. Today that has risen to nearly one out of three – and for at least 800 occupations across the nation, citizens must pay fees, pass tests, and attain educational requirements to hold a job.
By Jack McHugh
Senate Bill 776, End challenges of "stale" ballot issue petition signatures: Passed 26 to 10 in the Senate
To establish that signatures on a petition to amend the state constitution must be collected within the 180 days before the measure is submitted. Under current law there is a presumption that an older signature is "stale and void," but this can be rebutted in an administrative procedure. The bill would make older signatures void without qualification.
The Mackinac Center’s F. Vincent Vernuccio joined Chuck Stokes and Dave LewAllen for WXYZ’s prime time election webcast Tuesday night.
Just before the first round of primary election results were released, Vernuccio, director of labor policy at the Center, spoke to ABC 7 about labor issues and how they have factored in to the 2016 presidential election. When asked about whether or not right-to-work has been good for Michigan, Vernuccio explained it has forced unions to provide value to members.
A new national report further undercuts the case for creating a politically appointed commission to dictate school enrollment decisions across the Motor City.
The Detroit Education Commission has been touted as part of the solution to rescue a failing education system. Proponents want to give the commission jurisdiction over all public schools within the city, including the ability to close charters it deems unsuccessful. In effect, the new governmental body would be empowered to take away options parents believe to be safer or otherwise better for their children.
The North American Free Trade Agreement’s influence on the state economy is being argued in both Republican and Democratic parties. (National Public Radio recently interviewed me on Bernie Sanders’ claims.) The presumption is that Michigan’s economic history is a prime example of the downside to free trade.
The Wall Street Journal published a letter by the Mackinac Center’s Ben DeGrow this week, setting the record straight on what caused the financial demise of Detroit Public Schools.
DeGrow, education policy director at the Center, responded to claims made in an earlier letter by American Federation of Teachers President Randi Weingarten that the district’s financial troubles were caused by “state intervention, financial ‘austerity’ and ‘outsourcing’” DeGrow paraphrased. In reality, he explained, the hardships in Detroit originated with irresponsible school boards:
NPR recently turned to the Mackinac Center to set the record straight on claims made by Bernie Sanders that free trade is responsible for Detroit’s blight.
In its Break It Down fact-checking series, NPR corrected Sanders’ claims that the North American Free Trade Agreement is the reason Detroit and surrounding areas have dilapidated, abandoned buildings. Mackinac Center’s James Hohman, assistant director of fiscal policy, weighed in on the matter, pointing out that the empty buildings featured in Sanders’ tweet were likely vacant prior to NAFTA’s adoption in 1993.
According to the latest revenue estimates, Michigan state government expects to pay out $1.03 billion this fiscal year to companies awarded refundable business tax credits under programs that were repealed in 2011. Even for Lansing, this is a huge transfer of taxpayer resources to favored interests.
By Jack McHugh
Donald Trump and Michigan Gov. Rick Snyder may be aligned on the issue of increasing the number of work visas issued to foreigners with college degrees.
Trump startled his supporters by appearing to reverse course on the issue during a March 3 candidate debate in Detroit.
Government pension systems around Michigan are a mess, by and large, and there’s no better example than the public school employee pension system. It is need of reform, carrying $26.5 billion in unfunded liabilities. Unfortunately, some lawmakers and local officials do not understand how pension systems work and believe the only way to catch up on underfunding is to rope more people into the system, namely charter school employees.
By Jack McHugh
Senate Bill 332, Reduce minor in possession of alcohol sanctions: Passed 36 to 2 in the Senate
To remove the misdemeanor penalties for a first violation of the minor-in-possession of alcohol law, but not on second or third violation, which carry potential 30 and 60 day jail sentences. First-time offenders would instead be subject to a $100 civil fine. The bill also repeals police authority to require a minor to take a chemical breath test. Senate Bill 333 applies similar treatment to first offenses of minors transporting alcohol in a vehicle or anyone having an open alcohol container in a vehicle.
The Michigan Freedom of Information Act provides a compelling declaration in favor of government transparency: “It is the public policy of this state that all persons … are entitled to full and complete information regarding the affairs of government and the official acts of those who represent them as public officials and public employees, consistent with this act. The people shall be informed so that they may fully participate in the democratic process.”
A recent proposal to raise excise taxes in Maryland by one dollar — an increase of 50 percent — is irresponsible in light of the evidence suggesting a large increase in the cigarette tax is associated with an increase in crime. The criminal activity could include but not be limited to rampant smuggling, violence against police (and other people) and public corruption.
A newly-introduced bill would allow a majority of employees in a workplace to vote to force their colleagues to pay money to a union. The Detroit Free Press covers the issue here: “Bills would allow employees to vote on right-to-work.”
“If the employees are upset that they have to pay, then they can vote no,” Rep. Robert Kosowski, D-Westland, told the Freep. “It gives full authority to the union people.”
Legislation currently before the West Virginia House would raise cigarette excise taxes by a dollar per pack and with it the amount of illicit smuggling of cigarettes to the Mountain State.
We have been estimating the degree to which cigarettes are smuggled from state to state since 2008, working in recent years with the Tax Foundation of Washington, D.C. Typically cigarettes are moved by individuals and organized crime units from low-tax states to higher-taxed states. Some states permit a small amount of legal cross-border cigarette shopping, so not all cross-border activity counts as illicit smuggling, though those transactions are swept up into our model.
By Jack McHugh
House Bill 5105, Extend Medicaid health insurance claims tax: Passed 21 to 17 in the Senate
To extend until 2020 the 2017 sunset on a 0.75 percent tax on health insurance claims, which is designed to game the federal Medicaid program in ways that result in higher federal payments to Michigan’s medical welfare establishment.
Mackinac Center Vice President for Legal Affairs and Director of the Mackinac Center Legal Foundation Patrick Wright joined the Let it Rip show on Fox 2 last week to discuss the death of Justice Antonin Scalia and the process of appointing a replacement.
By Ben DeGrow
The National Cherry Festival in Traverse City is more than four months away, but when it comes to the record of charter schools, Education Trust-Midwest has started picking early.
Ed Trust tried to stake a claim in the debate about Michigan's lackluster educational performance by aiming squarely at a small sector of public education: charter schools. It's appropriate to have a discussion about what more charter schools could do to help drive improvements. And reasonable observers can express frustration that charters haven't raised the bar high enough.
Mackinac Center research was used to inform two Wall Street Journal articles in as many weeks.
The first article, announcing West Virginia’s move to become the nation’s 26th right-to-work state, cites Mackinac Center research showing that worker freedom has a positive impact on jobs and income.
Michigan’s economy performed poorly during the 2000s, only to be hit hard by the recession near the end of the decade. While growth in the current decade has been tepid in Southeast Michigan, the Grand Rapids area is a boomtown. The region fully recovered from the recession and has grown beyond its peak in 2000.
The Michigan Public Elementary and Middle School Context and Performance Report Card released by the Mackinac Center last week garnered media attention across the state of Michigan.
Ben DeGrow, education policy director at the Center, explained to The Times Herald that the CAP report card is unlike many other school rankings because it adjusts for student poverty level to provide the most accurate assessment of performance.
Every month, the Mackinac Center publishes three essays on timely public policy issues. Find out more about February's selections below:
Michigan Worker's Compensation Reforms Have Succeeded by Gerald M. Marcinkoski
Reforms made in 2011 to Michigan’s workers’ compensation law have been successful, reducing premiums and establishing a solid legal framework for everyone.
