A new article on the Heritage Foundation’s “Daily Signal” website highlights the problem with civil asset forfeiture, which is the subject of several bills currently being considered in the Michigan Legislature. The piece, “9 Times the Government Stole Americans’ Cars, Cash” features a case study that originated in Detroit:
Earlier this year, Michigan Capitol Confidential broke the story of MEA President Steve Cook spiking his public school employee pension. He will be able to collect over $100,000 a year from the underfunded system when he retires, despite working only part time as a paraprofessional in the Lansing School District over twenty years ago.
Should taxpayers be forced to pay for union leaders working on union business? Or should education dollars go to education?
Senate Bill 280, sponsored by Sen. Marty Knollenberg, R-Troy, recently passed out of committee and will go to the full Senate. As noted by MichiganVotes.org, the bill would “ban government employee union contracts that pay employees who are union officials for time they spend on the job conducting union business (which they call ‘release time’). Among other government employers, many public school districts give local union officials full teacher salary and benefits but do not require them to teach or perform any other educational function.”
A Senate panel has voted to eliminate Michigan’s film incentive program from the state budget beginning next year. The bill will move on to the full Senate.
Senate Majority Leader Arlan Meekhof, R-West Olive, told the Detroit Free Press that roads are a higher priority for the state.
Some lawmakers are considering state-based health exchanges (SBE) as “insurance protection.” An upcoming U.S. Supreme Court ruling in King vs. Burwell could strike down the ACA insurance subsidies in states that have not established a state exchange (including Michigan). State lawmakers should be cautious as this “solution” has a well-established track record of costly failure.
By Jack McHugh
House Bill 4605, House GOP road package: Passed 62 to 47 in the House
To earmark a portion of state income tax revenue to road funding, starting with $192 million in 2016 and increasing to $717 million in 2019.
According to the House Fiscal Agency, this and other bills in the House package would generate an additional $1.163 billion in annual road repair funding by 2019 with just modest tax increases (see House Bill 4615 below). Given projected increases in income tax revenue over that period, with the road funding package the amount of general fund dollars available for other (non-road) spending would increase by $355 million in 2019, versus an increase of $1.137 billion without the package.
Imagine a couple new startups begin offering a brand new service in Michigan. These companies innovatively use new technologies to meet consumers’ needs in real-time and transform ordinary workers into entrepreneurs. Pretty soon, however, some raise concerns about customer safety regarding this new service. Now imagine the Michigan Legislature quickly jumps into action (a stretch, I know) and proposes new regulations aimed at protecting consumers.
A new report from the Citizens Alliance on Prisons and Public Spending lays out some quality reforms that would help pare down Michigan’s vast criminal system. Many of the ideas would save taxpayer money and are commonsense reforms that will not endanger the public. In total, the report estimates that Michigan could reduce its prison population by around 10,000 and save $250 million annually.
As the Michigan Legislature has a real discussion about how much money in special tax credits and subsidies it should be handing out, supporters of the Michigan Economic Development Corporation are defending its existence.
The entity has agreed to deals that return little to the state, though it argues that things have changed.
Staff at Gawker Media recently announced plans to unionize, launching speculation on the role of unions in today's economy.
F. Vincent Vernuccio contributed to the New York Times June 9 “Room for Debate” on the subject, arguing that the union will be most successful if it abandons traditional union practices and acts in a way that will reward creativity and individuality.
Gov. Scott Walker recently announced plans to reform the tenure system at public universities in Wisconsin, allowing tenured professors to be fired if budget cuts or other issues require it.
F. Vincent Vernuccio, director of labor policy at the Mackinac Center, joined Fox Business June 8 to discuss the changes and what they would mean for the University of Wisconsin.
The largest portion of the Michigan House Republican road funding plan earmarks a portion of state income tax revenue. This has been criticized as unfeasible because it allegedly relies on future revenue growth. The plan, however, is not contingent on revenue increases. Growth is expected, but the plan does not rely on it.
Recent numbers indicate the Pure Michigan campaign doesn't deliver the return on investment suggested by organizations like the MEDC -- in fact, Director of Fiscal Policy Michael D. LaFaive suggests the hotel and motel industry sees $0.01 of increased business for every $1.00 spent on Pure Michigan.
Last month, the Missouri General Assembly passed right-to-work legislation. Although Gov. Jay Nixon vetoed the bill earlier in June, the General Assembly is poised for a possible override this fall to make Missouri the 26th right-to-work state in the union.
A joint study released earlier this year by the Mackinac Center and the Manhattan Institute discusses the problem of overcriminalization in Michigan. Michigan has more than 3,000 criminal statutes, making it difficult for the average citizen to know if their actions are illegal.
Michigan spends $1.5 billion per year on public universities, with most of the money coming out of the general fund. These funds are appropriated to the state’s 15 public universities in an arbitrary way, with huge disparities in the amount handed out per pupil.
By Jack McHugh
Senate Bill 133, Adopt state budget for next year: Passed 22 to 16 in the Senate
The non-education portion of the state government budget for the fiscal year that begins on Oct. 1, 2015. This would appropriate $38.6 billion, compared to $37.3 billion this year. Of this, $17.4 billion comes from state tax and fee revenue (compared to $17.5 billion this year) and the rest is federal money. With education spending (next bill) this comes to $54.4 billion, up from $53.1 this year.
According to Bridge Magazine, some teacher accountability advocates are upset at a proposal to give school districts more control over how teachers are evaluated. The issue, reports Bridge writer Ron French, is that legislation put forward by Sen. Phil Pavlov, R-St. Clair, would not impose statewide criteria for districts to use when evaluating teachers.
The Michigan Lodging and Tourism Industry Association has issued a statement disagreeing with the Mackinac Center for Public Policy over an argument that the center did not make. The association says it is responding to a new Mackinac Center analysis that finds government tourism promotion an ineffective use of taxpayers dollars.
Michigan House Republicans are advancing a road funding plan that partially relies on cutting $185 million in corporate welfare. The Michigan Economic Development Corp. oversees about $400 million – mostly going to select subsidies for businesses and industries – and does not want to see that cut.
Michigan has a flat income tax — where everyone pays the same rate (4.25 percent) — but there is a movement afoot to change that. One argument used by proponents of establishing a graduated income tax (different rates for different incomes) is that doing so would help alleviate income inequality. But the data doesn’t back this up.
Michiganders may soon have the opportunity to repeal the state's prevailing wage law, which mandates that government projects pay union wages to all laborers, regardless of market wages.
Jarrett Skorup recently debated the issue with Pat Johnston and answered listener questions on WSGW. The audio is available in three parts on his website.
F. Vincent Vernuccio's new Worker's Choice study was featured in the June 1 edition of the Washington Examiner and the June 5 edition of The Detroit News.
Vernuccio was also a guest on the Frank Beckmann Show June 2.
The study offers a solution to the free/forced rider issue that exists in right-to-work states: Current law requires unions to represent all workers in a bargaining unit — even those who have left the union.
The Michigan Lodging and Tourism Association says promotional spending, using Michigan tax dollars, results in large returns on investment, but Mackinac Center research suggests the opposite.
Fiscal Policy Director Michael LaFaive joined Michael Patrick Shiels on Michigan's Big Show to discuss and explain the vast difference in figures.
The Michigan Economic Development Corporation spends hundreds of millions of dollars every year to attract business investment in Michigan, but studies show the benefits don't justify the costs.
Last week, Mackinac Center President Joe Lehman spoke at the Mackinac Policy Conference showing how the money going to MEDC would be better spent on roads.
