Michigan has thousands of businesses that are constantly responding to people’s changing wants and needs. This means that the state economy is gaining and losing jobs simultaneously. But it also means that the state’s economic development strategies are unfit to meet their stated goals of improving Michigan’s job picture.
By Jack McHugh
Since the Jan. 15 opening day, members of the new 98th Legislature have introduced 196 bills and proposed 12 amendments to the state constitution. It will be several weeks before any bills get a vote so this report describes some new bills of interest.
Some legislators have introduced fiscally sound ideas to fix Michigan’s projected deficit. The budget hole was created by select tax credits largely approved by a previous Legislature with Gov. Jennifer Granholm.
State Rep. Sam Singh, D-East Lansing, told MIRS News (subscription required) that the Legislature may want to scale back funding for the Michigan Economic Development Corp. to deal with the problem.
President Obama recently announced his goal to provide two years of “free” community college for American workers. This has been met with cheers from community college leaders, high school administrators, and plenty of Americans.
Such cheers, however, are not such a clear sign that President Obama would have us believe in the wisdom of providing free community college education. First, let’s not pretend that this is going to result in saving the country money on education — it merely changes who foots the bill. Instead of people attending community colleges paying for their own education, the American taxpayer will be tasked with doing this. Second, there is no reason to suspect that this policy will actually help anyone.
Michigan became the 26th state 178 years ago today. Here are some commentaries that give a glimpse into the state’s early days.
Michigan: Privatization Pioneer
Education Policy Director Audrey Spalding was a guest on “Current State” on WKAR-AM90.5 this morning, discussing school choice ahead of Tuesday’s celebration of National School Choice Week at the Michigan Capitol. The discussion included charter public school performance and why families utilize the Schools of Choice program. Also on the show was Rep. Sarah Roberts, D-St. Clair Shores, who introduced anti-school choice legislation last year.
An important if usually under-the-radar public policy issue is occupational licensing – state rules that require residents to meet various criteria (and pay for them) before they may earn a living in a particular profession.
Rolling back licensure mandates requires taking on groups with a vested interest in preserving these restrictions on opportunity (and potential competitors). To its credit the previous Legislature did do some good if still-modest work in this area. In a bipartisan manner, legislators eliminated rules having to do with dieticians and nutritionists, interior designers, auctioneers, community planners, carnival workers, ocularists, school solicitors and immigration clerical assistants. It also tweaked some licensing requirements for barbers.
Although union membership in Michigan fell 7.6 percent from 2013 to 2014, the full effect of the state’s right-to-work law has yet to be seen, according to Labor Policy Director F. Vincent Vernuccio.
“Right-to-work still has not kicked in for many Michigan workers,” he told The Detroit News. “As the contracts with the Big Three expire later this fall, tens of thousands of UAW autoworkers will be eligible for right-to-work. This includes many second-tier workers who are being paid far less than their co-workers because of UAW negotiated contracts. Past deals favoring older workers at the expense of new ones may come back to haunt to the UAW when younger workers are able to choose whether or not to support a union that short-changed them.”
By Jack McHugh
In the four regular session days so far, members of the new 98th Legislature have introduced 88 bills. It will be several weeks before any substantive non-procedural votes are taken, so this report describes some new bills of interest.
House Bill 4032: Regulate Uber, Lyft, etc.; preempt local bans
(Editor’s note: Jack Spencer is capitol affairs specialist for Michigan Capitol Confidential and a veteran Lansing-based reporter. His columns do not necessarily represent the views of Michigan Capitol Confidential or the Mackinac Center for Public Policy.)
In studies, essays and blog posts since 2008, we have noted the raft of unintended consequences associated with Michigan’s illicit trade in cigarettes. Often we zero in on smuggling itself. A quarter of all the cigarettes consumed in Michigan in 2013 were contraband.
Michigan’s prevailing wage law sets an arbitrary mandate for what public entities (like schools) have to pay for construction projects.
Top Republicans in Lansing rightly want to eliminate these mandates, as the Mackinac Center has recommended for years. This is estimated to save taxpayers more than $200 million per year.
Dear Commissioners:
By now you may know that the Mackinac Center for Public Policy has filed a lawsuit against the Michigan Liquor Control Commission over illegal costs associated with a Freedom of Information Act request I submitted. The suit arose out of my investigations into your so-called “post and hold ” rules for distributors and wholesalers of alcoholic beverages. Previous empirical research has shown these rules may artificially raise prices paid by consumers between 6.4 to 30 percent, depending on the product.
News reports today tell of a Macomb County tobacco store burglary by four men who stole cigarettes and escaped capture after a police chase. This unlawful behavior is a direct and unintended consequence of the high excise taxes imposed on Michigan cigarettes ($2 per pack) statewide.
Attorney General Eric Holder last week limited local and state law enforcement from using federal asset forfeiture laws to seize property and funds without proof that a crime has occurred.
According to the most recent state report, Michigan seized $8.8 million worth of property in federally shared asset forfeitures in 2013. Michigan statute allowed agencies to take another $15 million that was officially reported.
By Jack McHugh
As required by the state Constitution, Michigan’s 98th Legislature opened on the second Wednesday in January, Jan. 14. It will be several weeks before any substantive non-procedural votes are taken, so this report describes some bills of interest introduced during the first week.
(Editor’s note: Jack Spencer is capitol affairs specialist for Michigan Capitol Confidential and a veteran Lansing-based journalist. His columns do not necessarily represent the views of the Mackinac Center for Public Policy or Michigan Capitol Confidential.)
New research by Mackinac Center experts on the effect of high tobacco excise taxes on cigarette smuggling rates is featured in The Washington Post. The study was also cited by WLUC TV-6 in Negaunee, WWMT-TV3 in Kalamazoo, WKZO AM-590 in Kalamazoo and WSJM FM-94.9 in Benton Harbor, as well as Hot Air.
Senate Majority Leader Arlan Meekhof, R-West Olive, said today that the Michigan Legislature will seek to repeal the state’s costly prevailing wage law.
Here is more information on why such a policy change would benefit Michigan.
With little discussion, legislators extended Gov. Granholm’s $75 million-a-year “Blown Away” program. It has never lived up to expectations.
There are allegations that Michigan lawmakers are suffering a bout of “tax cut fever” and have slashed taxes over the past decade. These accusations are a way of denigrating the desire of people who would rather keep more of their money than be forced to give it to Lansing. Considering the state’s financial situation, there is more of an outbreak of tax cut phobia than fever.
The Mackinac Center’s focus is policy, not politics. But since all policy moves through a political process, even a policy institute must exhibit sensitivity to important political developments.
On Monday, Jan. 5, shortly after Michigan Republican National Committeeman Dave Agema posted offensive material to his Facebook page, the Mackinac Center withdrew from a Jan. 9-10 activist event headlined by Mr. Agema. We had intended our withdrawal to speak for itself. But instead of letting our action speak louder than words, we granted interviews that produced reports that confused, rather than clarified, our apparent position.
Michael LaFaive, director of the Morey Fiscal Policy Initiative, was a guest live in-studio this morning on “The Wayne Powers Show” on WKZO AM590 in Kalamazoo, discussing a wide range of topics including migration data, legislators’ priorities and road funding.
Last April, Michigan Capitol Confidential published “From Detroit to the Ivy League: One Student’s Journey,” about Cesar Chavez Academy student Daniel Felix, who comes from a poor community but achieved high academic scores and letters of acceptance from many of the top universities in the country.
Media statewide are reporting on the 2014 Missed Votes Report, including MLive, Midland Daily News, Ludington Daily News, WOOD Radio in Grand Rapids, the Holland Sentinel, WZZM-TV13 in Grand Rapids and WCHT-AM1600 in Marquette.
The Detroit News also editorialized on the matter.
