Michigan Capitol CapCon is a product of the Mackinac Center Confidential for Public Policy

A review of the votes and proposals of the — Vol. 7 No. 1 April 2013 Daily Online Coverage at MichCapCon.com Lawsuit Filed To Protect Teachers’ Rights Mackinac Center Legal Foundation files on behalf of three Taylor school district teachers who disagree with 10-year clause that forces them to pay dues or fees to keep job By Tom Gantert “union security agreement” that Three Taylor Public School expires in 2023 and signed by the teachers sued the union that Taylor Federation of Teachers represents them, the school board Local 1085 and the school district and the school administration over is illegal. The agreement prevents an agreement that forces them to union members from exercising pay dues or fees to the union for 10 the right to leave the union without years or be fired for not doing so. paying fees or dues as allowed Special education teacher under Michigan’s recently passed Angela Steffke, special education right-to-work law. teacher Nancy Rhatigan and The decade-long extended English teacher Rebecca Metz are payment requirement is outside being represented by the Mackinac the five-year contract the school Special education teacher Angela Steffke (r), English teacher Rebecca Metz (c) and special education teacher Nancy Rhatigan Center Legal Foundation in a board and union reached, which is are being represented by the Mackinac Center Legal Foundation in a lawsuit charging that the 10-year “union security lawsuit charging that the 10-year See “Teachers’ Rights,” Page 8 agreement” that expires in 2023 and signed by the Taylor Federation of Teachers Local 1085 and the school district is illegal.

INSIDE THIS ISSUE Union Will Use ‘Any Legal Three Cheers Back Page Means’ To Combat Members for House Who Want To Leave Democrats By Tom Gantert take legal action against members A Right-to-Work By Michael D. Lafaive Michigan Education Association or fee payers who chose not to pay Visual Timeline President Steve Cook said his union their dues/service fees. House Democrats in Lansing Page 6 will use “any legal means at our Patrick Wright, senior legal recently called on the Michigan disposal” to combat members who analyst for the Mackinac Center Economic Development Corp. A sampling of want to leave the union. for Public Policy, said there is a to be more transparent and proposed state laws Cook made his statement Michigan Employment Relations accountable in a press release, in a letter he sent to MEA local Commission ruling that supports saying the organization is presidents, board members and the MEA’s hardline stance. “notoriously secretive.” staff. MEA Spokesman Doug Pratt “I don’t think it makes a ton of The latest salvo against the didn’t respond to a request for sense,” Wright said. “The union’s MEDC was inspired, at least comment. administrative concerns shouldn’t in part, by the organization’s The MEA said if members want trump people’s freedoms.” use of state money to buy an to resign, they have to do so in Two former public school advertisement under the “Pure August, “and only August,” Cook teachers’ union presidents Michigan” label that featured wrote. questioned how the MEA was Michigan’s new right-to-work “We are sticking to that,” Cook handling the “August only” legislation.

wrote. “Members who indicate resignation window. This is not the first time Midland, Michigan 48640 Michigan Midland,

Permit #1776 Permit

P.O. Box 568 568 Box P.O. they wish to resign membership in “I don’t like it,” Dusty Fairfield, Democrats in Lansing have

Fenton, MI Fenton,

140 West Main Street Main West 140 March, or whenever, will be told

PAID PAID a former Ravenna teachers’ union

Mackinac Center for Public Policy Public for Center Mackinac complained about the lack of

U.S. POSTAGE POSTAGE U.S. they can only do so in August.” he

Capitol Confidential Capitol president, said in an email. “First NONPROFIT ORG. NONPROFIT transparency at Michigan’s wrote, adding that the union will See “Any Legal Means,” Page 8 See “Three Cheers,” Page 8 Michigan Capitol Confidential April 2013 | 2

Thanks for reading Michigan Capitol Confidential, the state’s premier investigative news source covering issues that affect you and your neighbors. We go to great lengths to dig up daily news stories that keep you informed about the actions of your legislators in Lansing and officials across the state. We are committed to bringing you the best news and reports on education, labor, the environment, fiscal policy and other issues, often delivering stories that the general media doesn’t cover, but which have a significant impact on your lives. You’ve been selected to receive the quarterly printed edition of Michigan Capitol Confidential because of your interest in liberty, sound economics, public policy and interest in ensuring that your tax dollars are spent wisely. This newspaper spotlights the key stories we’ve covered the past few months and highlights the daily work we do online at www.MichCapCon.com. Many of you have already emailed, written or phoned us to say that you’d like to remain on the mailing list for Michigan Capitol Confidential. If you haven’t contacted us yet, but would like to remain on our mailing list, please let us know. Subscriptions are FREE. If this is the first issue you are receiving and want to remain on our mailing list you must let us know by sending your name, email and home address. Enclosed is a postage-paid business reply envelope to make this easier. Even easier still, just put the same information in an email and send it to: [email protected]. When you write to us, please feel free to include the names and addresses of family and friends who you think also will enjoy Michigan Capitol Confidential. Additionally, you can help us keep Michigan Capitol Confidential coming to households just like yours by joining the Mackinac Center for Public Policy. The Center is dedicated to providing a free-market perspective on public policy issues that impact the Michigan economy. We provide that perspective through timely policy studies, commentaries, interaction with media and policymakers, and events for targeted audiences throughout the state. Our issues are economic in focus, but as diverse as taxation; government budgeting; science, environment and technology policy; labor policy; privatization; property rights and general economic education. The Mackinac Center’s mission is to educate Michigan residents on the value of entrepreneurship, family, community, private initiative and independence from government. We believe, as our nation’s Founders did, that liberty and sound policy can never be taken for granted. Their preservation requires vigilance during each generation from both us and citizens like you. If you share this goal, we welcome your contribution to the Mackinac Center in any amount. Even a $40 donation is a tremendous help. The Mackinac Center is a 501(c)(3) educational institute, and your donation is deductible on your federal income taxes. Thank you for any help you may be able to give. And don’t forget to check us out daily online at: www.MichCapCon.com.

Sincerely,

Manny Lopez, Managing Editor, Michigan Capitol Confidential

[email protected] Michigan Capitol Confidential April 2013 | 3 ad liberties Reform Starts in the States, Not in Washington

By Joseph G. like ours are now in every state, As I predicted last quarter Lehman and the states are where we on this page, the unions’ (Editor’s note: are seeing progress. Here is overreaching November ballot some very good news from the The following is proposals unleashed a loud and November elections. an edited version overdue public conversation Three former state think tank of a commentary leaders were just elected to a about the role of unions in our written by Mackinac Center governorship and two U. S. Senate economy and government. I President Joseph G. Lehman in the seats in Indiana, Arizona and wrote the unions would likely January/February issue of Impact, Texas, respectively. the Center’s newsletter.) lose control of the conversation Free! they started and that is exactly The Mackinac Center’s Join us for an It’s downright discouraging what happened. The political to consider how hard it is to founders understood momentum of the unions’ Issues and Ideas Forum start reforming Washington. that you can’t make 15-point loss on Proposal 2 with Avik Roy That’s why we have to remember headway in Washington helped transform Michigan into that reform doesn’t begin in the nation’s 24th right-to-work TOPIC: Medicaid, Obamacare and more! Washington at all; it begins in by ignoring where state. Mr. Roy is a senior fellow at the Manhattan Institute. the states. Washington is where people in Washington Thursday, April 18, 2013, reform ends. Look for a two-year battle Noon – 1:00 p.m. in Lansing The Mackinac Center’s come from — the to defend the law from union Lunch will be served founders understood that states. attempts to overturn it. If the RSVP today! Call 989-631-0900. www.mackinac.org/18414 you can’t make headway in More than 20 state Legislature decides to keep Washington by ignoring where governments (including pushing freedom-friendly people in Washington come Michigan’s) continue to resist the reforms, look for plenty of ideas from — the states. Nearly Obamacare takeover. Voters in from our shop on how to do so. every elected official in DC four more states passed specific For both defense and offense, the cuts his or her political teeth at measures to limit Obamacare’s Mackinac Center is needed now the state level. They field test implementation. Meet the Staff policies and political strategies Washington state voters more than ever before. there, accumulating legislative rebuked public school employee And ask yourself, now that records that sometimes read unions by approving that state’s right-to-work is law in Michigan Manny Lopez is managing editor of more like rap sheets than actual first charter public school law. — of all places — then can anyone accomplishments. Michigan Capitol Confidential. He may be Georgia voters also expanded doubt it is also possible to turn State-level politicians who charter public school options. reached at [email protected] around the federal government? It win elections in spite of their Wisconsin voters reaffirmed is possible, maybe even inevitable, support for anti-taxpayer policies Gov. Scott Walker’s reform take their habits with them to as long as freedom fighters in the agenda by returning control Tom Gantert is the senior capitol correspon- the federal level. Free-market of the Senate to his party and states keep working with your + dent for Michigan Capitol Confidential. He may reformers shouldn’t then be retaining his party’s majority in support. be reached at [email protected]. surprised when it’s difficult to the Assembly. reform the federal government, This issue of Impact contains Joseph G. Lehman is president of the because the die was cast in the the good news about Michigan Mackinac Center for Public Policy. states. voters’ verdicts on two ballot The original version of this story was Jack Spencer is capitol affairs specialist for Federal fallout is one big measures that would have posted online on Dec. 20, 2012. It is Michigan Capitol Confidential. He may be reason it’s utterly essential to enshrined costly union privileges available with hyperlinks and more reached at [email protected]. info at www.mackinac.org/18136. study state policy and keep an eye into the constitution. Two on those who enact it. state Supreme Court justices The Mackinac Center was committed to the rule of law Jarrett Skorup is research associate for one of the first free-market think were re-elected. And, of course, Michigan Capitol Confidential. He may be tanks established outside the the monumental news that the reached at [email protected]. DC beltway. From very humble Legislature got serious about a beginnings in the 1980s, institutes right-to-work law. Proposal 1

Michigan Capitol Confidential April 2013 | 4

Right-to-Work legislation

Applauding Michigan Legislators Who Supported Republican Senators Against Workplace Freedom and Liberty Right-to-Work By Manny Lopez By Jack Spencer headlines across the nation and Gov. Rick Snyder never lied about right-to-work legislation in Michigan. In 2009, he said For nearly two years, many sparked union protests at the State he’d sign a bill if it reached his desk. doubted a right-to-work bill had Capitol. But, he also said then and stuck to his preference that a right-to-work bill not reach his desk enough support in the State Senate Sens. Casperson and Nofs stood because he said he thought it was too divisive. That didn’t matter to Michigan’s union bosses, for passage. In December, the by their votes when contacted. Snyder who ignored Gov. Snyder and pushed Proposal 2 to protect their own perks at the expense of measure passed easily. Sens. Green and Rocca didn’t the majority of Michigan residents. Republicans, led by Gov. Rick respond to requests for comment. In response, Michigan legislators passed a package of bills that give workers the choice as to whether they Snyder, resoundingly approved Of the four, Sen. Nofs might want to pay dues or fees to a union as a condition of employment. Gov. Snyder signed it Dec. 11. the bill, which became a reality have gone out on a limb the most The legislation does not do away with unions. Nor does it eliminate collective bargaining. after unions in Michigan tried to by voting against the right-to work It allows workers to decide if they want to give a portion of their yearly income to union bosses who have used pass Proposal 2 in November. Four legislation. He represents the most of that money supporting political activities and candidates that some union members don’t support. Republican State Senators, however, 19th Senate district, which covers The governor and the following legislators voted for freedom and liberty in the workplace and should be voted against giving workers the Barry, Calhoun and Ionia counties. commended for their efforts. freedom to choose whether they According to an Inside Michigan Politics analysis published in July Senators: Rep. Kevin Cotter, R-Mt. Pleasant Rep. Peter MacGregor, R-Rockford want to pay union dues or fees as a condition of employment. 2011, the 19th District has a 55.6 Sen. Darwin Booher, R-Evart Rep. Hugh Crawford, R-Novi Rep. Greg MacMaster, R-Kewadin They were: Sen. Tory Rocca, Republican base. Sen. Jack Brandenburg, R-Harrison Rep. , R-Attica Rep. Tom McMillin, R-Rochester Hills R-Sterling Heights; Sen. Mike “I think that, in general, Sen. Bruce Caswell, R-Hillsdale Rep. Kurt Damrow, R-Port Austin Rep. Chuck Moss, R-Birmingham Green, R-Mayville; Sen. Mike Nofs, working-class workers will not Sen. Patrick Colbeck, R-Canton Rep. Cindy Denby, R-Fowlerville Rep. Paul Muxlow, R-Brown City R-Battle Creek; and Sen. Tom benefit from this,” Sen. Nofs said. “When you go to apply for a job, Sen. Judy Emmons, R-Sheridan Rep. Jeff Farrington, R-Utica Rep. , R-Lawton Casperson, R-Escanaba. Michigan becoming the nation’s you know it’s a union job. If you Sen. Geoff Hansen, R-Hart Rep. Frank Foster, R-Pellston Rep. Margaret O’Brien, R-Portage 24th right-to-work state made See “Republican Senate Opposition” Page 10 Sen. Dave Hildenbrand, R-Lowell Rep. Ray Franz, R-Onekama Rep. Rick Olson, R-Saline Sen. Joe Hune, R-Hamburg Rep. Robert Genetski, R-Saugatuck Rep. Paul Opsommer, R-Dewitt Sen. Mark Jansen, R-Cutlerville Rep. Jud Gilbert, R-Algonac Rep. Mark Ouimet, R-Scio Township Republican House Members Who Sen. Rick Jones, R-Grand Ledge Rep. Ben Glardon, R-Owosso Rep. , R-Six Lakes Sen. Roger Kahn, R-Saginaw Rep. Joseph Grave, Rep. Peter Pettalia, R-Presque Isle Voted Against Right-to-Work Sen. Mike Kowall, R-White Lake R-Argentine Township Rep. Earl Poleski, R-Jackson By Jack Spencer R-Vulcan; Pat Somerville, R-New Sen. Jim Marleau, R-Lake Orion Rep. Gail Haines, R-Waterford Rep. Phil Potvin, R-Cadillac Republicans in the Michigan Boston; and , R-Ida. Five of the GOP House Sen. Arlan Meekhof, R-West Olive Rep. Joseph Haveman, R-Holland Rep. Amanda Price, R-Holland House widely supported giving members who voted against right- Sen. John Moolenaar, R-Midland Rep. Kurt Heise, R-Plymouth Rep. Al Pscholka, R-Stevensville workers the freedom to choose whether they wanted to financially to-work are starting a new term in Sen. John Pappageorge, R-Troy Rep. Thomas Hooker, R-Byron Center Rep. Bruce Rendon, R-Lake City support a union as a condition of the House. Horn is no longer in the Rep. Holly Hughes, R-Montague Sen. Phil Pavlov, R-St. Clair Rep. Bill Rogers, R-Brighton employment. Legislature due to term limits. Sen. John Proos IV, R-St. Joseph Rep. Matt Huuki, R-Atlantic Mine Rep. Roy Schmidt, R-Grand Rapids But six GOP members voted At times, legislative caucuses allow some members to vote Sen. Randy Richardville, R-Monroe Rep. Bradford Jacobsen, R-Oxford Rep. , R-Traverse City against legislation (House Bill 4003 against the majority position of Sen. David Robertson, R-Grand Blanc Rep. Nancy Jenkins, R-Clayton Rep. Deb Shaughnessy, R-Charlotte and Senate Bill 116) that made Michigan the nation's 24th right- the caucus. This can take place Sen. Tonya Schuitmaker, R-Lawton Rep. Joel Johnson, R-Clare Rep. , R-Clark Lake to-work state. particularly when leadership Rep. Marty Knollenberg, R-Troy Sen. Howard Walker, R-Traverse City Rep. , R-Midland On both bills, 58 Republicans knows ahead of time that there are Rep. Eileen Kowall, R-White Lake Rep. Sharon Tyler, R-Niles voted “yes” and six Republicans already enough guaranteed “yes” Representatives: votes for passage of a bill. Rep. Kenneth Kurtz, R-Coldwater Rep. John Walsh, R-Livonia joined the Democrats in voting Rep. Dave Agema, R-Grandville “Often they’ll let some Rep. Andrea LaFontaine, R-Richmond + “no.” These six were: Reps: Rep. James “Jase” Bolger, R-Marshall Rep. Ken Yonker, R-Caledonia members off, especially on some Rep. Matt Lori, R-Constantine Anthony Forlini, R-Harrison Rep. , R-Newaygo The original version of this story was Township; Ken Goike, tough votes,” said Jud Gilbert, a Rep. Pete Lund, R-Shelby Township posted online on Dec. 21, 2012. It is Republican from Algonac who Rep. Mike Callton, R-Nashville available with hyperlinks and more R-Ray Township; Ken Horn, Rep. Lisa Lyons, R-Alto info at www.MichCapCon.com/18086. R-Frankenmuth; Ed McBroom, See “Republican House Opposition” Page 10 Michigan Capitol Confidential April 2013 | 5

SEIU ‘Skim Tracker’ Stops Ticking Consumers Are Best After seven years and more than $34 million taken from home-based caregivers, union contract officially ends Arbiters of the Market By Jack Spencer sends to home-based Relations Commission By Manny month of December alone sold more caregivers will be to try and get about The SEIU “skim tracker” has lopez than 2,200 a day. By comparison, finally stopped. mailed on March 4. $3 million returned DETROIT — Ford sold 245,922 Focuses last year. The scrolling money ticker These are the checks to home-based Government bu- Auto executives I talked with said had been calculating the amount the SEIU was taken caregivers. That case is reaucrats who think they expect most consumers will con- of money the Service Employees money from. The ongoing. they know best what tinue buying big, with a move among International Union was taking from checks mailed in As a result of the people should buy and drive need to first-time buyers to smaller vehicles. home-based caregivers because of a March are expected to scheme, the SEIU spend some time at the Detroit auto But even those buyers trade up to forced unionization scheme that was be the last ones from took more than $34 show. bigger vehicles as they get older and orchestrated in 2005 when Jennifer which union dues will million, mostly from If they did, they’d see that people earn more. Granholm was governor. be deducted. unsuspecting workers spend about as much time looking However, to a person, the execu- As of March 1, Michigan’s “It has been a long, winding and who are taking care of family and at hybrid and electric cars as they do home-based caregivers were no courageous battle,” said Pat Wright, friends in their own homes. tives I spoke with said that if the gov- flossing. longer are unionized. The contract senior legal analyst at Mackinac The skim tracker won’t be ernment’s long-term fuel restrictions That was between the union and the dummy Center for Public Policy. “I’m glad removed until the end of the dues + evident again at employer used for the scheme to see that justice is finally being skim can be fully verified in April. Cobo Center at officially ended Feb. 28. reached.” The original version of this story was the North Ameri- According to the Michigan The Mackinac Center Legal posted online on Mar. 1, 2013. It is can International Department of Community Health, Foundation has filed a legal action available with hyperlinks and more Auto Show. They the February Medicaid checks it with the Michigan Employment info at www.MichCapCon.com/18344. flocked to the new Corvette Stingray and kicked a lot of House Rep Wants To Force Homeschool Parents truck tires. Occasionally, To Report Attendance to the State someone stopped By Tom gantert could know truancy is growing in Michigan if the state has the to see what was in homeschools since the state A Flint State Representative same percentage of homeschooled plugged in. doesn’t require registration of children as the 3 percent national whose district has conventional Therein lies the 2014 Corvette Stingray homeschool students or that such average. public schools that have among state of the automo- records be kept. “Public education is a service the highest absentee rates in the tive industry in America. Despite are not adjusted, consumers will see “There’s that the state offers to people, just state has introduced legislation what environmental activists and the price of cars and trucks increase more evidence like bus transportation,” said Karen some members of Congress want, that would mandate parents who by far more than the $2,500 the that truancy is a Braun, a Canton woman who has consumers are king and they’re still homeschool their children be government estimates the standards problem in the homeschooled her six children. “I mostly interested in sedans, SUVs required to report attendance will cost. public school am not required to report my daily and trucks. to the state. By 2025, vehicles will have to meet system than driving attendance to the MDOT. “Ultimately, it’s the market that Rep. Woodrow Stanley, D-Flint, an average of 54.5 miles per gallon, there is among I should not be required to report matters,” said David Cole, chairman said in a press release that “there double the current standard. That Stanley homeschoolers,” my school attendance to the state emeritus of the Center for Automo- are a growing number of kids will add $5,000 or more to the price Van Beek said. schools. The state and those in the tive Research in Ann Arbor and of new cars and trucks, depending on becoming truant” in homeschools. “There is evidence to suggest this is a schools work for the parents, not the chairman and co-founder of Auto- “Kids must be in school in problem for public schools in Flint.” other way around. The state schools Harvest Foundation. “The consumer the make and model, executives said. order to learn,” Rep. Stanley The City of Flint Public School’s are accountable to the taxpayers but is the voter.” Automakers are working to meet said in a press release. “This bill attendance rate was 91.8 percent taxpayers (including homeschool The numbers back that up. Ford fuel rules that were designed without requires parents to report their in 2009-10, which ranks 529th taxpayers) are not accountable to Motor Co., for example, sold more regard to market or consumer child’s attendance records, giving out of 550 districts. Flint Beecher the state schools. The taxpayer is the F-150 trucks last year than any other demands, and they’ll continue to do homeschools the same standards district’s attendance rate was 91 boss and the state is the employee. vehicle in its portfolio and the truck so. But the industry and the economy as public schools. Passing this bill percent in 2009-10, which was Understand that and Rep. Stanley has been the nation’s No. 1 selling will be much better served if govern- is a no-brainer, it’s necessary for 535th out of 550 districts. will understand why this legislation vehicle for almost every month of the ment gets out of the way and quits + Michigan students.” Rep. Stanley’s office didn’t is absurd.” last 30-plus years. For 2012, three of driving blind. Michael Van Beek, education respond to questions sent in the top five best-selling vehicles were The original version of this story was policy director at the Mackinac The original version of this story was an email. posted online on Feb. 19, 2013. It is pickups. posted online on Jan. 15, 2013. It is Center for Public Policy, There is an estimated 45,000 available with hyperlinks and more Ford sold more than 645,000 available with hyperlinks and more questioned how Rep. Stanley children being homeschooled info at www.MichCapCon.com/18297. F-150 pickups last year, and in the info at www.MichCapCon.com/18167. Right-to-Work in Michigan: A Visual Time Line

1. April 20, 1992 4. JAN. 8, 1996 7. MArch 1999 Mackinac Center Adjunct Scholar Reed publishes a Viewpoint Senior Mackinac Center Policy George C. Leef calls for right- titled “Michigan Needs Analyst Dr. William T. Wilson, to-work for federal employees Discussion of Right-to-Work.” a vice president and economist and greater freedom for all union for Comerica Bank, is fired after members, including a Michigan testifying before a committee of law that would make political the Michigan Legislature about union dues expenses voluntary in the benefits of voluntary union a Viewpoint titled “Protecting the membership. His firing comes Political Freedom of Workers.” after several unions threatened to close their 5. MArch 1, 1997 accounts with the bank. He was given the Mackinac Robert P. Hunter, former Center’s “Lives, Fortunes and Sacred Honor Award.” Mackinac Center director of 2. Oct. 5, 1993 labor policy and President Gov. John Engler tells a Ronald Reagan’s first joint session of Michigan’s appointment to the National 8. Aug. 24, 1999 legislature, “No public-school Labor Relations Board, predicts Hunter calls for a right-to-work law in a study titled teacher should be compelled to in a Michigan Privatization Report interview that “Michigan Labor Law: What Every Citizen Should be in the union to teach in the Michigan would become a right-to-work state within Know.” classroom.” a decade.

9. MArch 7, 2001 3. NOv. 15, 1994 6. Aug. 3, 1998 Reed promotes a right-to-work Former Mackinac Center President Mark Fischer, former Mackinac Center labor policy law with a commentary in the Michigan Information Lawrence W. Reed and former research assistant, addresses & Research Service (MIRS). Senior Vice President Joseph the advantages right-to-work P. Overton call for right-to-work in the states have over Michigan in labor law reform section of a study a Viewpoint titled “In Wake titled “Political Drift or Paradigm of Daimler-Chrysler Merger, Shift?” Michigan Needs Labor Law 10. April 19, 2001 Reform.” Sen. Glen Steil, R-Grand Rapids, introduces Senate Bills 398 and 399, the first such legislation aimed at making Michigan a right-to-work state.

15. JAN. 6, 2006 19. Aug. 28, 2007 LaFaive and Adjunct Scholar Mackinac Center Labor 11. Sept. 25, 2001 Michael Hicks point out that Policy Director Paul Kersey Oklahoma voters approve a Michigan’s out-migration releases a study titled “The right-to-work statute. population is heavily bound for Economic Effects of Right- right-to-work states. to-Work Laws.”

June 2002 12. JuNe 25, 2002 16. Feb. 8, 2006 A Mackinac Center Report Wilson releases a study titled 20. Aug. 29, 2007 The Effect of Right-to-Work Laws on Mackinac Center Senior Economic Development “The Effect of Right-to- Patrick J. Wright, director

William T. Wilson, Ph.D. Work Laws on Economic Economist David Littmann of the Mackinac Center

A Comparative Analysis of Economic Performance in All 50 States and the Implications for Michigan Development.” tells the Michigan House Tax Legal Foundation, releases Committee on Restructuring “A Model Right-to-Work that the state must adopt a Amendment to the right-to-work law. Michigan Constitution.” 13. Aug. 28, 2002 | A Mackinac Center poll found substantial support Michigan Capitol Confidential April 2013 6 for a right-to-work law among Michigan voters. The data showed 73 percent favored requiring 17. Sept. 3, 2006 21. Oct. 2007 annual financial reports from government employee Detroit Free Press poll shows 56 percent of likely Ron Weiser, RNC finance chair, and unions; 72 percent of self-identified union members voters favor right-to-work, including 42 percent of Dick DeVos, The Windquest supported union financial disclosure. union households. Group president, commission a poll and discover more than 40 percent of union members favored a right-to-work law. 14. NOv 14, 2005 18. JuNe 28, 2007 Michael D. LaFaive, director The Mackinac Center of the Morey Fiscal Policy creates a “Right-to-Work Right-to-Work comes to Michigan: A VisualInitiative, Time suggests a right-to- Line FAQ” page. 22. April 28, 2008 work law would aid Michigan’s failing economy in a James Hohman, assistant director commentary titled “Michigan: The France of North of fiscal policy at the Mackinac For more detailed information on these events, America.” Center, points out the economic benefits right-to-work states enjoy. including links to essays, commentaries, studies and Op-Eds, go to MichCapCon.com/18301 23. Aug. 22, 2008 27. July 2010 32. JuNe 1, 2011: Mackinac Center President Gubernatorial candidate Rick Snyder tells Wendy Stephen Moore of The Wall Street Joseph G. Lehman writes in the Day, president of Common Sense in Government, Journal says a right-to-work law is Detroit Free Press about the need if a right-to-work bill crossed his desk, “I would “the single most important thing” for a right-to-work ballot measure. sign it.” to help Michigan.

24. Sept. 13, 2008 28. July 14, 2010 33. JuNe 15, 2011 The West Michigan Mike Bouchard, candidate for UAW Ford worker Terry Bowman Policy Forum holds its governor, embraces right-to-work. creates Union Conservatives first meeting and calls for union members who support for a right-to-work law, right-to-work. Right-to-Work in Michigan: A Visual Time Line including the first public call by the group for such 4. JAN. 8, 1996 7. MArch 1999 29. Sept. 3, 2010 Senior Mackinac Center Policy an action by Dick Haworth, 1. April 20, 1992 Reed publishes a Viewpoint The Grand Rapids Press Analyst Dr. William T. Wilson, president and CEO of Haworth Mackinac Center Adjunct Scholar titled “Michigan Needs conducts a survey that finds 34. JuNe 30, 2011 a vice president and economist Inc. and a member of the George C. Leef calls for right- Discussion of Right-to-Work.” 51% of Michigan voters support Michigan Freedom to Work is for Comerica Bank, is fired after Mackinac Center’s board of to-work for federal employees a right-to-work law. established. The grass roots testifying before a committee of directors. and greater freedom for all union organization holds several press the Michigan Legislature about members, including a Michigan conferences around the state. law that would make political the benefits of voluntary union

membership. His firing comes Unions: the Good, union dues expenses voluntary in the Bad and the Ugly a Viewpoint titled “Protecting the after several unions threatened to close their 25. Feb. 26, 2009 30. Oct. 2010 Political Freedom of Workers.” accounts with the bank. He was given the Mackinac Democrats in the Michigan House, with the help Americans For Prosperity Foundation

How forced unionization has Michigan commissions a right-to-work 35. Aug. 3, 2011 5. MArch 1, 1997 Center’s “Lives, Fortunes and Sacred Honor Award.” of 14 Republicans, vote down a right-to-work bill. harmed workers and Michigan Robert P. Hunter, former study. Dr. Richard Vedder, a professor of economics at Mackinac Center director of Ohio University and an adjunct scholar with the Mackinac 2. Oct. 5, 1993 labor policy and President Ronald Reagan’s first Center, testifies before the Gov. John Engler tells a 8. Aug. 24, 1999 appointment to the National Indiana General Assembly joint session of Michigan’s Hunter calls for a right-to-work law in a study titled 31. MAy 10, 2011 Labor Relations Board, predicts 26. Feb. 24, 2010 about the benefits right-to-work legislature, “No public-school “Michigan Labor Law: What Every Citizen Should The New Hampshire Legislature approves in a Michigan Privatization Report interview that Kersey says right-to-work has entered the states experience. teacher should be compelled to Know.” a right-to-work bill (although later vetoed by Michigan would become a right-to-work state within Overton Window. be in the union to teach in the the governor). a decade. classroom.”

9. MArch 7, 2001 Reed promotes a right-to-work 3. NOv. 15, 1994 6. Aug. 3, 1998 law with a commentary in the Michigan Information 36. Sept. 9, 2011 Former Mackinac Center President Mark Fischer, former Mackinac Center labor policy 40. Sept. 13, 2012 44. Dec. 6, 2012 research assistant, addresses & Research Service (MIRS). Senate Majority Leader Randy Lawrence W. Reed and former The Michigan Chamber of Gov. Rick Snyder announces his support of the advantages right-to-work Richardville, R-Monroe, Senior Vice President Joseph Commerce releases the right-to-work legislation for states have over Michigan in announces support for right-to- P. Overton call for right-to-work in the “2012 Michigan Economic Michigan. Right-to-work legislation a Viewpoint titled “In Wake work for teachers. labor law reform section of a study Competitiveness Study,” is introduced the same day and of Daimler-Chrysler Merger, titled “Political Drift or Paradigm 10. April 19, 2001 conducted by Northwood passed. Michigan Needs Labor Law Shift?” Sen. Glen Steil, R-Grand Rapids, introduces University, that says a Reform.” Senate Bills 398 and 399, the first such legislation right-to-work law would make

aimed at making Michigan a right-to-work state. 37. NOv. 14, 2011 Michigan more competitive. Timothy G. Nash, a Mackinac Center adjunct scholar, led the study. The Mackinac Center hosts more 45. Dec. 11, 2012 than 600 guests at a gala in Lansing Gov. Rick Snyder signs right- to hear Indiana Gov. Mitch Daniels, to-work legislation. 19. Aug. 28, 2007 where he encourages Gov. Rick 15. JAN. 6, 2006 Mackinac Center Labor Snyder to act “swiftly and decisively” 41. NOv. 6, 2012 LaFaive and Adjunct Scholar Policy Director Paul Kersey in bringing about reform in Michigan. Michigan voters reject Michael Hicks point out that releases a study titled “The Proposal 2 by 15 points. The 11. Sept. 25, 2001 Michigan’s out-migration Economic Effects of Right- constitutional amendment Oklahoma voters approve a population is heavily bound for to-Work Laws.” would have banned a right-to- “This right-to-work victory right-to-work statute. right-to-work states. 38. Feb. 1, 2012 work law. Indiana Gov. Mitch Daniels signs right-to-work legislation. shows the power an idea can

June 2002 have when it is pursued with 12. JuNe 25, 2002 20. Aug. 29, 2007 16. Feb. 8, 2006 42. Dec. 3, 2012 Wilson releases a study titled Patrick J. Wright, director A Mackinac Center Report principle and persistence.” The Effect of Mackinac Center Senior The Michigan Chamber of Commerce announces Right-to-Work Laws on “The Effect of Right-to- of the Mackinac Center Economic Development Economist David Littmann 39. MArch 7, 2012 its support for right-to-work legislation. . Joseph G. Lehman, William T. Wilson, Ph.D Legal Foundation, releases Work Laws on Economic tells the Michigan House Tax Mackinac Center Adjunct Scholar

e A Comparative Analysis of Economic Performanc in All 50 States and the Implications for Michigan “A Model Right-to-Work Mackinac Center president Development.” Committee on Restructuring Michael Hicks, a Ph.D. economist Amendment to the that the state must adopt a and associate professor at Ball Michigan Constitution.” right-to-work law. State University, appears at an Issues & Ideas forum hosted 43. Dec. 4, 2012 by the Mackinac Center to discuss his November Gov. Rick Snyder says right-to-work legislation is 13. Aug. 28, 2002 “on the agenda.” A Mackinac Center poll found substantial support 2011 study titled “The Puzzling Differences Between 21. Oct. 2007 Michigan and Indiana in This Recession” one month for a right-to-work law among Michigan voters. 17. Sept. 3, 2006 The data showed 73 percent favored requiring Ron Weiser, RNC finance chair, and after Indiana became a right-to-work state. Detroit Free Press poll shows 56 percent of likely Dick DeVos, The Windquest annual financial reports from government employee voters favor right-to-work, including 42 percent of Group president, commission unions; 72 percent of self-identified union members union households. a poll and discover more than supported union financial disclosure. 40 percent of union members favored a right-to-work law.

18. JuNe 28, 2007 14. NOv 14, 2005 The Mackinac Center Michael D. LaFaive, director creates a “Right-to-Work of the Morey Fiscal Policy FAQ” page. 22. April 28, 2008 Initiative, suggests a right-to- James Hohman, assistant director work law would aid Michigan’s failing economy in a of fiscal policy at the Mackinac commentary titled “Michigan: The France of North Center, points out the economic

America.” benefits right-to-work states enjoy.

32. JuNe 1, 2011: 27. July 2010 23. Aug. 22, 2008 Stephen Moore of The Wall Street Gubernatorial candidate Rick Snyder tells Wendy Mackinac Center President Journal says a right-to-work law is Day, president of Common Sense in Government, Joseph G. Lehman writes in the “the single most important thing” if a right-to-work bill crossed his desk, “I would Detroit Free Press about the need to help Michigan. for a right-to-work ballot measure. sign it.”

28. July 14, 2010 33. JuNe 15, 2011 24. Sept. 13, 2008 Mike Bouchard, candidate for UAW Ford worker Terry Bowman The West Michigan creates Union Conservatives governor, embraces right-to-work. Policy Forum holds its for union members who support first meeting and calls right-to-work. for a right-to-work law, including the first public call by the group for such 29. Sept. 3, 2010 an action by Dick Haworth, The Grand Rapids Press 34. JuNe 30, 2011 president and CEO of Haworth conducts a survey that finds Michigan Freedom to Work is Inc. and a member of the 51% of Michigan voters support established. The grass roots Mackinac Center’s board of a right-to-work law. organization holds several press directors. conferences around the state.

Unions: the Good, the Bad and the Ugly 30. Oct. 2010 25. Feb. 26, 2009 Americans For Prosperity Foundation 35. Aug. 3, 2011 Democrats in the Michigan House, with the help How forced unionization has Michigan commissions a right-to-work harmed workers and Michigan Dr. Richard Vedder, a professor of economics at of 14 Republicans, vote down a right-to-work bill. study. Ohio University and an adjunct scholar with the Mackinac Center, testifies before the Indiana General Assembly 31. MAy 10, 2011 about the benefits right-to-work 26. Feb. 24, 2010 The New Hampshire Legislature approves states experience. Kersey says right-to-work has entered the a right-to-work bill (although later vetoed by Overton Window. the governor).

40. Sept. 13, 2012 44. Dec. 6, 2012 36. Sept. 9, 2011 The Michigan Chamber of Gov. Rick Snyder announces his support of Senate Majority Leader Randy Commerce releases the right-to-work legislation for Richardville, R-Monroe, “2012 Michigan Economic Michigan. Right-to-work legislation announces support for right-to- Competitiveness Study,” is introduced the same day and work for teachers. conducted by Northwood passed. University, that says a right-to-work law would make Michigan more competitive. Timothy G. Nash, a 37. NOv. 14, 2011 Mackinac Center adjunct scholar, led the study. 45. Dec. 11, 2012 The Mackinac Center hosts more Gov. Rick Snyder signs right- than 600 guests at a gala in Lansing to-work legislation. to hear Indiana Gov. Mitch Daniels, where he encourages Gov. Rick 41. NOv. 6, 2012 Snyder to act “swiftly and decisively” Michigan voters reject in bringing about reform in Michigan. Proposal 2 by 15 points. The constitutional amendment would have banned a right-to- “This right-to-work victory work law. 38. Feb. 1, 2012 shows the power an idea can Indiana Gov. Mitch Daniels signs right-to-work legislation. have when it is pursued with 42. Dec. 3, 2012 principle and persistence.” The Michigan Chamber of Commerce announces Joseph G. Lehman, its support for right-to-work legislation. 39. MArch 7, 2012 Mackinac Center president Mackinac Center Adjunct Scholar Michael Hicks, a Ph.D. economist and associate professor at Ball State University, appears at an 43. Dec. 4, 2012 Issues & Ideas forum hosted Gov. Rick Snyder says right-to-work legislation is by the Mackinac Center to discuss his November “on the agenda.” 2011 study titled “The Puzzling Differences Between Michigan and Indiana in This Recession” one month after Indiana became a right-to-work state. Proposal 2

Michigan Capitol Confidential April 2013 | 7

Average Michigan Government Employee Hathaway Pension: Compensation Exceeds Six Figures For The First Time First Check Due By Jack Spencer employee has increased 75 percent comment. Before Sentencing since 1998-99. Overall, average The cost of a state employee has The Michigan Civil Service By Jack Spencer compensation has risen 31 percent risen steadily since 1998-99, when her retirement paperwork in to Commission’s website boasts: over the past 13 years. the average cost of pay and benefits the Office of Retirement Services "Invest your talent with the state Between The 2011-12 fiscal year was the was $79,409, when adjusted for on Dec. 20, in the midst of the of Michigan. The rewards are now and when first involving Gov. Rick Snyder. inflation. she's sentenced fraud scandal. Less than three enormous." The number of state full-time jobs That state's full-time workforce for bank fraud, weeks later, on Jan. 7, Hathaway In fact, for the first time, the remained almost the same. There has dropped from 60,066 in 1998- former state announced her resignation from average salary and benefit package were 47,818 full-time equivalent 99 to 47,802 in 2011-12. However, Supreme Court the court, effective Jan. 21. for state employees surpassed employees in 2010-11. That the state’s cost for benefits has risen Justice Diane "It hasn't been processed $100,000 a year in 2011-2012. dropped to 47,802 in 2011-12. from $1.23 billion in 1998-99 when Hathaway Hathaway yet,” Department of Technology, The average combined cost The state's total base pay factoring inflation to $2.16 billion in will have an Management and Budget of salary and benefits for a state decreased from $2.87 billion in 2011-12, a 76 percent increase. income thanks to her first pension Spokesman Kurt Weiss said worker jumped to $104,067 in 2010-11 to $2.81 billion in 2011- Hohman said the costs for the check from the state of Michigan Wednesday, regarding Hathaway's 2011-12, increasing from $97,883 12. However, the cost of benefits state are going to increase if it doesn’t scheduled to arrive in February. pension. "It will need to be in 2010-11. increased from $1.8 billion to $2.2 cut retiree health care. Hohman Hathaway, 58, pleaded guilty to finalized by February 12, in order James Hohman, assistant billion in 2011-12. A little more said employees won’t see any extra bank fraud for concealing assets, to have her February check sent director of fiscal policy with the than $350 million of the increased money, but the state will pay much including a home in Florida, while out.” Mackinac Center for Public Policy, costs of benefits was attributed more to make up for past years when claiming financial hardship in a Hathaway was elected to the did the analysis using the Michigan to the state starting to pre-fund retiree health care wasn't pre-funded. Michigan real estate deal. The high court in 2008 in an upset Civil Service Commission’s employees' retirement health care, financial hardship claim allowed victory over then-Chief Justice certified aggregate payroll. The original version of this story was her to use a short sale to unload a Hohman said. posted online on Feb. 12, 2013. It is Cliff Taylor. Her campaign was When factoring in inflation, Gov. Snyder's spokespeople available with hyperlinks and more Michigan house at a price below highlighted by ads labeling Taylor info at www.MichCapCon.com/18281. the cost of benefits for a state didn't respond to a request for what she and her husband owed as the "sleeping judge," based on on it. Reportedly it wiped out a a false claim that he had dozed off $600,000 debt. on the bench during a case. May 28 has been set for Before her time on the state's Hathaway’s sentencing. She is Government Workers Average Twice As Many Sick Days highest court, Hathaway was a facing up to 18 months in prison Wayne County Circuit Court Per Year As Private-Sector Employees for the fraud. Hathaway likely will Judge. She was first elected to that have received additional pension By TOM Gantert position in 1992. of Independent Business. "I don't Service Commission. Fedorchuk checks by that time. The average state worker in think that would be sustainable in said sick days can't be cashed out Although estimated at around The original version of this story was Michigan is taking as many as five the private sector." at severance for employees hired $98,766, the exact amount of after 1980. posted online on Feb. 1, 2013. It is times more sick days than a worker Private industry workers in the Hathaway's annual pension has available with hyperlinks and more in the hospitality and leisure financial activities, information Government union yet to be confirmed. She turned info at www.MichCapCon.com/18233. industry or a construction worker, industry, trade, transportation representatives did not respond to and more than twice as many sick and utilities and professional and a request for comment. days as many other workers in the business services used about four In 2011-12, the average state private sector, according to state sick days a year, according to a employee used 11 sick days on top and national reports. Bureau of Labor Statistics report. of 18.2 vacation days. State workers have called in Workers in the leisure and The sick days drive up the cost issues policy news sick on average between 9.4 to hospitality industry and those in of government, said Leon Drolet, 11 days a year over the past five the construction industry used chair of the Michigan Taxpayers years, according to the Michigan about two sick days a year. Alliance. Civil Service Commission annual Jason Ford, an economist with "It's an incredibly high average," the Bureau of Labor Statistics, said Drolet said of the number of days “Like” CapCon on facebook and get the workforce report. The report day’s stories and highlights. applies only to workers directly the study was based on 2009 data sick. "I would hope for the sake of employed by the state; not and was the most recent available the workers that they really aren't on private industry. sick that much." public school teachers or local Informative. Investigative. Daily. Online. government workers. State employees can get as MichCapCon.com many as 12 sick days a year, said The original version of this story was "That's good work if you can posted online on Jan. 22, 2013. It is A news service for the people of Michigan from get it," said Charles Owens, state Matt Fedorchuk, acting deputy available with hyperlinks and more the Mackinac Center for Public Policy director of the National Federation director for the Michigan Civil info at www.MichCapCon.com/18199. Michigan Capitol Confidential April 2013 | 8

Teacher’s Rights Three Cheers It can be found in Appendix from Page One from Page One B of the study “MEGA: A Retrospective Assessment.” a violation of the Michigan Public department of corporate welfare. Employment Relations Act, said In 1999, then-state Sen. Alma We followed up that treatment Derk Wilcox, senior attorney for Wheeler Smith complained of with a 2009 Policy Brief with a the Legal Foundation. He said trying to obtain information from long list of complaints against it’s illegal to have two separate the MEDC. “I don’t think the the department titled MEGA, the contracts running at the same with Legislature should have to FOIA MEDC and the Loss of Sunshine. different expiration dates. The 10- a department or agency to find Remarkably, the latest year clause also binds future school out how money is spent,” she told boards that have no control over attention being paid to MEDC the costs of the deal made before Gongwer News Service 14 years openness — or lack thereof — new school board members were ago this month. follows hard on the heels of yet In 2000, Democrat Joseph elected. more criticism of the agency by was available. AFT-Michigan March 28 and any contracts signed Rivet actually argued the MEDC “This is clearly an attemp to the Auditor General of Michigan. circumvent the law, and it’s just Secretary Treasurer Lois before then are grandfathered. should lose its funding over its The Auditor General recently bad policy,” Wilcox said on the Loftin Doniver had her total Some unions have rushed secretive behavior: “Every time Frank Beckmann show on WJR compensation increase from multi-year agreements specific to we try to hold these guys at the found that the MEDC was taking radio. $111,716 in 2006 to $162,899 in dues collection to protect union MEDC accountable to taxpayers, credit for 12,000 jobs created coffers amid the fear that members Steffke said she thinks the 2011. Hecker had an annual salary they claim to be a private agency by a program that cannot be of $131,122 in 2011 while Doniver will leave the union when the law union’s own interests have been outside the realm of scrutiny.” verified. The Auditor General made an annual salary of $117,704. takes effect. put above its members, especially The great news here is also criticized state development as it relates to the increasing Meanwhile, Taylor teachers “This is really a union insecurity that House Democrats have officials in 1993 for overstating compensation of top union officials had to take an immediate 10 clause because rather than Republican colleagues in Lansing while she is taking a 10 percent pay percent pay cut when their new proving its worth to members, jobs claims in a job-training who also are troubled by the cut. contract was passed, Steffke said, the union is forcing all teachers to program and again in 2003 over “The so-called ‘security adding that when she asked union continue paying dues or agency MEDC’s lack of transparency its claim of job creation.* fees through 2023,” Wilcox said, and accountability. State Rep. clause’ guarantees nothing for representatives if they were going Maybe the MEDC does have to lower dues accordingly she in a press release. “This is a Bob Genetski, R-Saugatuck, State the teachers except that dues will something to hide. continue to increase,” Steffke said. said she was told no and that dues desperate attempt by the union Rep. Mike Shirkey, R-Clarklake, Mackinac Center scholars “Their money will continue to flow would probably increase. to circumvent Michigan’s right- and State Rep. Tom McMillin, into union coffers, to pay inflated “This suit ... won’t change to-work law and preserve its own R-Rochester Hills, have all taken have recommended the wholesale salaries of state and national union my salary one way or another,” power at the expense of teachers.” issue with the MEDC’s lack of elimination of the MEDC. It Union and school officials cronies.” she said. “It is about fighting for transparency. is unnecessary, inefficient and did not respond to requests for The AFT-Michigan’s top two my freedom of association and In a November 2012 Michigan maybe even harmful to state union officials have seen their freedom from coercion, allowing comment. However, in an AFT email that was sent by Progress Capitol Confidential article economic growth. At a minimum total compensation increase 28 me to advocate for myself and titled, “MEDC Questioned About determine what is best for me and Michigan, Hecker said the lawsuit it should be more transparent. percent and 46 percent in the past Its Transparency” Rep. Shirkey five years, according to documents my family.” was “frivolous.” A bi-partisan collection of reported that he introduced the union filed with the Internal Michigan became the 24th The Mackinac Center Legal lawmakers in Lansing needs to Foundation filed its lawsuit in amendments to make the agency Revenue Service. right-to-work state on Dec. 11. + open the MEDC up wide and Wayne County Circuit Court. more transparent, but that the AFT-Michigan president The law prohibits employers and let in the disinfecting rays of David Hecker has seen his total unions from signing contracts MEDC lobby “watered down” the The original version of this story was sunshine. They can’t do it soon compensation increase from that require financial support reforms. + posted online on Feb. 28, 2013. It is enough. $137,570 in 2006 to $176,195 in of a union as a condition of available with hyperlinks and more Moreover, they are not the 2011, the last year financial data employment. The law takes effect info at www.MichCapCon.com/18340. only Republicans to complain about MEDC transparency, *Note: For details and sources or in recent years. Sen. Jack on these stories please see page “Any Legal Means” “If members wish to no longer Ellsworth said. “If a member resigns Brandenburg, R-Harrison 40 of the Mackinac Center from Page One be members, then those wishes in March, then I believe the MEA Township, and Republican study “The Michigan Economic should be honored,” he said in an or local should tell the member former State Senator Nancy Development Corporation: A of all, have fun finding signed email. “Honoring those wishes that the resignation will be made Cassis have introduced several Review and Analysis.” membership forms that are current. pieces of legislation to open up may not happen instantly, but they effective in August when drops in Secondly, you’re going to come the secretive department. The original version of this story was should be honored at the next membership are processed, but the out publicly and threaten the very member should not have to take Mackinac Center analysts posted online on Feb. 1, 2013. It is appropriate window. I hope that the + same people who have supported further action.” have led this charge. In 2005 available with hyperlinks and more the MEA financially for their entire MEA and locals approach it that this author detailed just one info at www.MichCapCon.com/18243. careers.” way. The original version of this story was set of problems with MEDC John Ellsworth, a former Grand “It is never appropriate to ignore posted online on Jan. 21, 2013. It is available with hyperlinks and more info secretiveness attempting to Ledge teachers’ union president member requests, even if it is a at www.MichCapCon.com/18197. obtain the simplest information agreed. request to resign membership,” from the recalcitrant agency. Michigan Capitol Confidential April 2013 | 9

Is Repeal In The Cards For Balance Increased Road Spending with Cuts Michigan’s Prevailing Wage Law? Tax, spending cuts should be pursued Issue is on the legislative agenda By Michael D. The Snyder administration Lafaive delayed that rollback until 2013 By Jack Spencer Rep. Amanda Price, R-Holland, law in 1965 by former Gov. George The Michigan and canceled the subsequent If Chris Fisher is right, there’s would repeal the law statewide. Romney,” Fisher added. “But it Senate recently reductions. Especially in light of a a good chance that the Michigan House Bill 4173, sponsored by Rep. was almost a completely different tabled a proposal proposed gas tax hike, Michigan Legislature will pass a bill to repeal Peter MacGregor, R-Rockford, world back then — a much higher workers deserve better. Lowering by Gov. Rick the state’s prevailing wage law. is a technical bill to facilitate the percentage of the workers were the personal income tax rate by Snyder to raise the state gas tax and “I believe the votes are there repeal. House Bill 4174, sponsored $1.2 billion, the amount of the in unions. Now, overwhelmingly, vehicle registration fees. Republican in both the House and Senate to by Rep. Brad Jacobsen, R-Oxford, proposed transportation spending non-union construction employees lawmakers have reportedly do it,” Fisher, the president of the would exempt schools from the increase, would imply a new rate of prevail in Michigan.” countered with a tax increase Associated Builders and Contractors prevailing wage requirement. approximately 3.6 percent. Gov. Rick Snyder’s current proposal of their own. of Michigan, told Michigan Capitol Can the Legislature cut $1.2 position regarding a repeal of the Both sides are right to propose Confidential. “We just need to make “In this era, when billion in general spending? The prevailing wage law is reminiscent of more road spending. State sure we get all three pegs of the stool we’re trying to answer is yes. State Rep. John Proos, his former position on right-to-work. legislators, however, should ensure — the Governor, the House Speaker, R-St. Joseph, has already proposed save taxpayer that any increase in transportation and the Senate Majority Leader.” “This is not at all an issue we earmarking an estimated $130 dollars, keeping the taxes is offset by cuts in taxes and Michigan’s prevailing wage law are looking at or working on,” said million for road spending from prevailing wage law spending elsewhere. mandates that union-scale wages be Kurt Weiss, a spokesman for the current general fund dollars raised The governor’s proposal is a paid on construction work funded just doesn’t make governor’s office. through sale taxes on fuel. mixed bag. To his credit, he is by taxpayer dollars, regardless of sense.” The Senate bills have been And legislators clearly think making Michigan’s roads a legislative the winning bidder on a contract. money is available elsewhere. For assigned to the Senate Committee priority, and he is tying new monies Typically, universities and public instance, the Senate has passed “It hasn’t come up in committee on Government Operations, which to gas taxes and registration fees school districts are where the bulk bills designed to effectively lower yet,” Rep. Price said of her bill. “A is chaired by Senate Majority — items akin to user fees for road of such projects take place. the 6 percent general sales tax for lot of my colleagues are in support Leader Randy Richardville, use. Unfortunately, he would simply “We’re very encouraged,” cars and recreational vehicles only. of it. Studies have shown that the R-Monroe. The House bills have charge Michigan taxpayers an said Fisher, whose group has The Senate Fiscal Agency estimates prevailing wage adds from 10 to been assigned to the House additional $1.2 billion a year: $728 opposed the prevailing wage law that this exemption will lower 15 percent to the cost of a project. million from a motor fuel tax hike for years. “The legislation (Senate Commerce Committee, which revenues by $41 million in the first In this era, when we’re trying to (including a gas tax increase from Bills 157, 158 and 159) that was is chaired by Rep. Frank Foster, year alone and by as much as $233 save taxpayer dollars, keeping the 19 cents to 33 cents per gallon), and introduced in the Senate already R-Pellston. million in fiscal 2023. Presumably, prevailing wage law just doesn’t $508 million from an estimated has 15 cosponsors. In the House Groups that support keeping lawmakers could forgo creating this make sense.” 60 percent increase in the typical of Representatives, the action plan Michigan’s prevailing wage law, tax loophole and redirect the $41 Sen. Meekhof could not be driver’s vehicle registration fees. issued by the Republican caucus such as the Michigan Building and million in implicit spending cuts to reached for comment. Levying the tax without at the start of the year included roads instead. Fisher’s organization cites Construction Trades Council, say other reforms is problematic. It repealing the prevailing wage law. With this $171 million dedicated a state of Michigan report that the law doesn’t really add to the digs into taxpayer pockets when Usually, that sort of thing mentions to roads, the state would not need to shows the average construction cost of projects. offsetting spending cuts are possible appointing a blue ribbon panel to find the entire $1.2 billion to provide wage in the state is $23 an hour F. Vincent Vernuccio, director elsewhere, permitting reductions look into it, or something along offsetting tax cuts. In particular, if when the prevailing wage is not of Labor Policy at the Mackinac to, say, the sales tax on gasoline those lines. But this year it was a the $171 million discussed above applied. When a project is subject (currently dedicated to non-road very strongly worded statement Center for Public Policy, said an were deployed to lower the $508 to the prevailing wage law, the spending) or the state’s personal about doing it.” abundance of studies have clearly million taxpayer burden produced income tax. At the bottom of page 16 of the wages can go up by as much as 60 demonstrated that the prevailing by the proposed registration fees, Cutting the income tax is House Republican action plan it percent or more for some trades. wage makes projects more the Legislature would need to find overdue. Recall that in 2007, the states: “We will repeal Michigan’s “In 43 other states there either expensive. only $337 million more to offset the isn’t a prevailing wage law or Legislature hiked personal income Prevailing Wage Law to save the “The fact is that a prevailing wage fee increase. state and local units of government the prevailing wage is based on taxes from 3.9 percent to 4.35 contract costs more and those added The following six suggestions are almost $250 million every year.” the average of all construction percent — an 11.5 percent increase costs come right out of taxpayers’ one way to fill this gap: The Senate package of bills was workers,” Fisher said. “But in + — with the promise that in 2011, pockets,” Vernuccio said. introduced by Senate Majority Michigan, under this stupid law, it the rate would be rolled back 0.1 • Repeal Michigan’s prevailing Floor Leader Arlan Meekhof, is based on the 18 percent (who are The original version of this story was percentage points per year until it wage law: estimated savings, R-West Olive. In the House, a three in unions). posted online on March 5, 2013. It is reached 3.95 percent. It was then $107 million. This state bill package has been introduced. “Believe it or not, Michigan’s available with hyperlinks and more scheduled to drop to 3.9 percent in law punishes taxpayers by House Bill 4172, sponsored by prevailing wage was signed into info at www.MichCapCon.com/18369. 2015. See “Balance,” Page 12 Proposal 3

Michigan Capitol Confidential April 2013 | 10

Republican house opposition Republican Senate Opposition from Page 4 from Page 4 was just termed out after serving "The bottom line is that I voted don’t like unions, don’t apply for the Western and Central Upper and government intruding in our 14 years in both the House and my district,” Rep. Forlini said. "My a union job. There are plenty of Peninsula and according to the lives. But now it seems that some Senate. “Typically, the situation old district stretched all the way other non-union jobs.” Inside Michigan Politics report, people want to make it be about arises when some members could down to the southernmost part Sen. Rocca represents the 10th had a 53. 8 percent Democratic being anti-union. Whether it’s be hurt politically by voting against of Macomb County. Regarding Senate district, which is located base. their districts or when they have my new (current) district, both a in Macomb County, and is 52.6 “My position on this issue working to get rid of unreasonable tough seats to hold onto.” Republican House member and percent Republican, according to has been consistent both as a DNR (Department of Natural Michigan's House districts were a Democrat House member, who Inside Michigan Politics. candidate and after I was elected,” Resources) regulations or on other redrawn in 2011. House members previously represented parts of it, Sen. Green represents the 31st Sen. Casperson said. “If people issues, I’m willing to work with Senate district, which includes disagree with me on this, that’s could argue that, theoretically, also voted against right-to-work — anyone. In my district I work well all the votes they made in 2012 as did a Republican Senator. Bay, Lapeer and Tuscola counties. all right. Not everyone is going to with the unions and, to me, that’s were as representatives of their "I hold meetings with my According to the Inside Michigan agree with me on every vote. district as it was constituted in constituents twice a month," he said. Politics analysis, it has a 50.8 “I was very active back when doing my job. Some people may the 2010 elections. However, the "I've listened to what they've said at Republican base. the tea party movement started. not like that, but I think that’s the + partisan bases presented in this those meetings. Before we knew we Of the GOP senators who I went to rallies and I have always way it should be.” article are for the new (current) would actually be voting on right- voted against right-to-work, Sen. supported what it was all about,” districts. It will be the constituents to-work, I stated my position on the Casperson is the only one who he said. “When it began, it was The original version of this story was of these current districts that hold issue at various events. I even talked contends in a Democrat-leaning all about government becoming posted online on Jan. 16, 2013. It is lawmakers accountable for votes about it in front of the Chamber of district. He represents the 38th too big. It was about government available with hyperlinks and more taken in 2012 and in the future. Commerce." Senate district, which covers overreach, unfair regulations info at www.MichCapCon.com/18173. Right-to-work prohibits anyone Rep. Forlini also said he would from being forced to financially have preferred that the bills go support a union as a condition of through the regular committee issue, I didn't find a strong enough discussion. I appreciate those who work state. It is my responsibility employment. Michigan Capitol process and said he believes it reason to go against my district. reached out to me from industry to represent the ideals of all of my Confidential contacted the offices would have been better if the issue This job can be a balance between and businesses who are concerned constituents. Without a majority of the five remaining House had been left up to the voters. your constituents' beliefs and your about workplace productivity of them asking for this to pass, I Republicans who voted against "My preference was always that own opinion. But in this case, I'm because of employee divisions. could not in good conscience offer right-to-work and asked them to this be presented to the voters as comfortable with my vote." a 'yes' vote on this bill package." explain their reasoning. a referendum," Rep. Forlini said. Rep. McBroom said he opposes Rep. Zorn said he voted in Of the five, Rep. Goike might "I think there would have been a right-to-work, but supports union opposition of the right-to-work have taken the biggest risk by voting lot of wisdom in letting both sides reforms. legislation based on concerns from “no.” According to the Michigan present their arguments and then "I support union reforms, such both large and small companies. Information and Research Services let the voters decide." as allowing members to vote more "They had real concerns that it is 2012 Election Guide, Rep. Goike's Rep. McBroom represents often on union certification," he a disruptive issue that could divide current 33rd House district has a the 108th district, which is in said. "I think there's a problem employees and cause worker morale 55.4 percent Republican base. the Upper Peninsula. It includes when there hasn't been a problems that will in turn cause "I've got a Ronald Reagan the counties of Delta, Dickinson, certification vote in 30 years. productivity problems," he said. "In district," Rep. Goike told The and Menominee, and has a 50.5 However, that wasn't the legislation this time of rebuilding our economy, Voice, a northern Macomb County Republican base. we were presented with. I am afraid it may do nothing but and St. Clair County publication. "It really boils down to voting "Right-to-work is an issue on create conflicts in our communities." "We have a lot of union workers my district," Rep. McBroom said. which I hope I am proven wrong," Of the Republican House up there and they did not feel "Whether I was knocking on doors Rep. McBroom said. "I really hope it members who voted against the bills, that it was something that they or at events, the message I heard ends up doing the good things that its Rep. Somerville was the only one with wanted. I am in trouble with a few from the voters of my district supporters claim it will. I'm skeptical, a current district that has a majority people but at least they respect me was loud and clear. They don't but I really do hope it is turns out to Union members protested at the Capitol Democratic base He represents the because I said 'You know what? I support right-to-work. I even have be something good for Michigan." in December 2012 against right-to-work. 23rd House District. It is located in a have to vote my district and I know businesses in my district with union Rep. Dale Zorn represents the portion of Wayne County and has a what this district is. I have worked shops that don't support this. They 56th House District, which is located "I have spoken with union 52.1 Democratic base. in this district my whole life'. like having one entity to work with in a portion of Monroe County. It members, non-union members, "We are no strangers to making "They know my reputation and believe that benefits them. has a 51.1 Republican base. company CEOs and citizens tough decisions in the state House, now," he said. "Once I decide on "I began hearing that my "The right-to-work issue has concerning right-to-work and which is partly why Michigan something I don't flip." constituents were opposed to right- been, and continues to be, a very have listened to the many sides of is starting to see some success Rep. Forlini represents the 24th to-work as early as when I first ran divisive issue for Monroe County this issue," Rep. Zorn continued. again," he said. "When faced with House District, which is located in 2010 — even before I knew what and Michigan," he said. "It is true "The residents of District 56 are such decisions, I always take into in a portion of Macomb County. It right-to-work was," Rep. McBroom that if the economy was good, evenly divided on whether or not account the impact on policy, has a 50.8 percent Republican base. said. "When I researched the we would not be having this Michigan should be a right-to- See “House Opposition,” Page 12 Michigan Capitol Confidential April 2013 | 11

were forced to miss school when Union President Receives ‘Outstanding the teachers chose to protest Taylor School Board instead of teach classes. Approves Contract As of 2011, the Taylor School Organizing’ Award For Shutting Down District paid for the local union Forcing Teachers To head to spend most of his time Pay Union working exclusively on union By Tom Gantert School To Protest Right-To-Work Law business and not teaching in the classroom. Former local union Taylor Public Schools has By Tom Gantert head Jeffrey Woodford made become the first public organization to approve a contract with a union On Dec. 11, the Taylor School $96,419 in total compensation that prohibits union members from District closed because so many of to spend 75 percent of his time exercising their right to not pay dues its teachers skipped school to go to on union business while only or fees to the union as a condition of Lansing to protest right-to-work 25 percent of his time teaching. employment. legislation. As a result, about 7,500 Current local union president That right became available to students in Taylor were forced to Linda Moore made $88,016 to union members across the state miss classes that day. spend half her time teaching and March 28 if their current contract For organizing that “sick out” half her time on union business. had expired by then. Michigan protest, the American Federation became the nation’s 24th right-to- of Teachers-Michigan gave Taylor The district has a $6 million work state late last year. teachers’ union president Linda deficit it is trying to eliminate. The “union security clause” Moore an award for “outstanding Taylor school district and expires July 1, 2023. It was organizing.” union officials were invited by approved by the Taylor School Public Act 112 in Michigan Rep. Tom McMillin, R-Rochester, Board and ratified by the Taylor makes public school employees to explain at a hearing of the Federation of Teachers AFT Local strikes and/or lockouts illegal. House Oversight Committee 1085 AFL-CIO members. In a Jan. 28 announcement how the extended security clause Numerous other colleges posted on Facebook, AFT benefits students, but they chose and public school districts are Michigan boasted that so many Taylor local union head Linda Moore receives an award from AFT-MI president David not to attend. They sent written considering similar agreements union members took Dec. 11 off Hecker and Secretary-Treasurer Lois Lofton Doniver. information instead, but that didn’t with their unions. The unions are “that Taylor schools shut down.” answer questions, Rep. McMillin not extending the entire contracts, The photo (see nearby) shows they belong. For the union to heap employment. Taylor Public Schools said in a statement. just the portion that forces AFT-Michigan President David praise on these individuals only became the first district to approve members to have to continue “I can’t understand why they Hecker and Secretary-Treasurer tells me where their priorities lie.” such contractual language when it paying dues or fees as a condition are scared to come explain it to Lois Lofton Doniver with Moore Bogaert said the Taylor was approved by the Taylor School of employment. during the presentation of the teachers’ union has shown a Board and ratified by the Taylor us since, apparently, they believe Taylor School Board President plaque. Hecker and Moore didn’t pattern of misdeeds. Not only did Federation of Teachers AFT Local it’s a great deal,” Rep. McMillin’s John Reilly said negotiations with return requests for comment. the teachers play hooky, she said, 1085 AFL-CIO members. statement said. “Unless, maybe unions have to have “some give “I don’t think it is good thing but the union also negotiated for Taylor was one of three public it’s not so great after all. I’ve never and take.” to reward people for misbehavior,” and received a 10-year “security school districts to close because heard of any school having a 10- “We don’t have a lot to give. It clause agreement” that skirted the + said Rose Bogaert, chairwoman not enough employees showed year contract with teachers.” was one of the things they wanted,” of the Wayne County Taxpayers state’s recently signed right-to- up to work. Warren Consolidated he said. “It doesn’t really impact Association. “And I think it is work law. Schools, which has schools in The original version of this story was our school district financially. It misbehavior to abandon your That security clause agreement, Macomb and Oakland County, posted online on Feb. 27, 2013. It is was something we could give the students in the classroom for your which expires July 1, 2023, forces and Fitzgerald Public Schools in available with hyperlinks and more info union they really, really wanted own personal gain. They should school employees to pay money Macomb County also were shut at www.MichCapCon.com/18332. without costing us something.” have been in the classroom where to the union as a condition of down. More than 26,000 students The Taylor Federation of Teachers didn’t tell union members what was in their contracts until Informative. Investigative. Daily. Online. after the union leadership approved MichCapCon.com a tentative deal with the school A news service for the people of Michigan from issues policy news the Mackinac Center for Public Policy board. Then, they were given the + contract to vote upon.

The original version of this story was posted online on Feb. 16, 2013. It is “Like” CapCon on facebook and get the day’s stories and highlights. available with hyperlinks and more info at www.MichCapCon.com/18292. Michigan Capitol Confidential April 2013 | 12

to county sheriffs: estimated Extension Service: estimated Balance savings, $65 million. The state savings, $54 million. Three Bill Would Require One Year Of from Page Nine could transfer its road patrol different Mackinac Center state duties to counties, offer the budget studies, beginning in Residency To Qualify For Welfare mandating that contractors counties a grant equal to sheriff- 1995, have recommended ending on government construction related patrol costs and still save these unnecessary items. The By Jack Spencer projects pay an artificially tens of millions. The $65 million appropriations figure is based Legislation that would require one year of residency in Michigan to qualify high, union-related “prevailing estimate comes from 2003, on last year’s budget as passed. for welfare assistance from the state has been introduced in the Senate. wage.” The dollar estimate when a Mackinac Center analyst These cuts provide a total of provided here comes from a The measure, Senate Bill 70, is sponsored by Sen. Tonya Schuitmaker, first proposed the concept. $344 million in money that can 2007 Mackinac Center study R-Lawton. • Redirect 21st Century Jobs be reassigned to roads, more than and represents savings from Under current law, a person has to prove only his or her residency Fund money to road repair: offsetting the remaining $337 state and local construction to qualify to receive welfare. The length of time they’ve been a resident estimated savings, $75 million. million in proposed registration fees. aside from schools and doesn’t matter. The MEDC’s Jobs Fund was Of course, the $728 million in state projects subject to the “Actually, I got the idea for this bill from a local judge who believes conceived as a way to create motor fuel taxes remains. We’ll federal Davis-Bacon Act. high-technology employment, we should be promoting a culture of independence, not a culture of deal with spending cuts equal to • Redirect Indian gaming money but reports on the program’s dependence,” Schuitmaker said. “We’ve just introduced the bill. It’s in the that amount in subsequent pieces; from the Michigan Economic performance by the Detroit Free preliminary investigating stage.” Development Corp. to road Press and the Mackinac Center’s dozens of other ideas are available. The key language in the bill states that someone is not considered a repair: estimated savings, Michigan Capitol Confidential There’s a lot of good news resident of this state “unless he or she has lived voluntarily in the state for $43 million. This figure is the have not been positive. surrounding the debate over road not less than one (1) year before the date of the application for benefits.” MEDC’s own conservative Indeed, underperformance is repair. Roads are now a priority, Sen. Vincent Gregory, D-Southfield, the ranking Democrat on the estimate of gaming revenue the theme of this and other and lawmakers are not sold on a net Senate Families, Seniors & Human Services Committee, said he didn’t available. The MEDC oversees MEDC programs, meaning tax and fee hike. The ideas listed need to analyze the bill much because he thinks it has already been ruled the state’s “jobs” creation that additional MEDC- above — with more to come — are unconstitutional. programs and has a long + related spending cuts could designed to help keep it that way. “I’m not sure this bill will even be brought up in committee,” Gregory history of failure. Redirecting easily be justified in order to said. “The point is that some other states have already tried to do this. this money to road repair may finance road improvements. The original version of this story was posted online on Mar. 1, 2013. It is It has gone to the U.S. Supreme Court, which has already ruled that it is actually help the state’s economy. • Eliminate the Agricultural available with hyperlinks and more unconstitutional, based on the Fifth and 14th Amendments. • Devolve State Police road patrols Experiment and Cooperative info at www.MichCapCon.com/18348. “Under the Fifth Amendment the bill would violate due process,” Gregory said. “Under the 14th Amendment it would violate equal protection.” Patrick Wright, senior legal analyst for the Mackinac Center for Public Policy, said he is familiar with the issue from reading court decisions that pertain to it. “There are probably too many legal obstacles to this bill,” Wright said. “A better plan for reducing dependence on government assistance might be to continue working to improve the economy so there would be more jobs Visit www.MichCapCon.com/Subscribe + to sign up for our daily email and less people relying on welfare.”

The original version of this story was posted online on March 5, 2013. It is available with hyperlinks and more info at www.MichCapCon.com/18369.

House Opposition from Page 10 the state finances and the economy, as well as my personal beliefs and feedback from constituents. In the case of freedom-to-work laws, I personally supported much of the concept, however I heard from many constituents in my district that the issue was not a priority for them and they could not support the bills in their final form." Managing Editor: Manny Lopez Designer: Daniel Montgomery Ken Horn is no longer a member of the legislature. However, he is still eligible to run for state Senate. He voted “no” on right-to-work as Michigan Capitol Confidential is published quarterly by the Mackinac Center for Public Policy, a nonprofit, nonpartisan, tax-exempt research and educational institute devoted to analyzing Michigan public policy issues. Michigan Capitol Confidential is distributed to Michigan residents a Representative of the old 94th District. He told reporters that when who have expressed an interest in public policy matters, as well as members of the media and lawmakers and policy staff in the Michigan House, he voted “no,” he was voting his district. The new 94th House District and Office of the Governor. All rights reserved. Permission to excerpt or reprint is hereby granted provided that Michigan Capitol is represented by Rep. Tim Kelly, R-Saginaw. It has a 56.2 percent + Confidential, the author and the Mackinac Center for Public Policy are properly cited. Republican base.

140 West Main Street, Midland, Michigan 48640 989-631-0900 www.mackinac.org MichiganVotes.org MichCapCon.com The original version of this story was posted online on Jan. 24, 2013. It is available with hyperlinks and more info at www.MichCapCon.com/18208. Michigan Capitol Confidential April 2013 | 13

MVotes banner Proposed Law Would Prevent Unemployment Legislators Chip Away at Benefits For Certain Drug Users

Proposal A Property Tax Limits By Tom Gantert can collect unemployment. Legislation would break 1994 promise to taxpayers A state representative is If Rep. Goike's bill passed and proposing a bill that would prevent someone failed a drug test, they By Jarrett Skorup operational spending items attempts, and how they all chip people who lose a job because of would have to get hired elsewhere, and Jack McHugh restricted by the Proposal A away at the Proposal A promise,” a failed drug test from receiving work 18 weeks and then lose that promise. Some of these bills said Mackinac Center Fiscal In 1994, Michigan voters unemployment benefits. job before being eligible to proposed very broad expansions Policy Director Michael LaFaive. approved the constitutional Rep. Ken Goike, collect unemployment. and some were less broad. LaFaive said he thinks that amendment known as Proposal R-Ray Township said the Charles Owens, state Among the latter was a 2009 members of the public school A to both overhaul school inspiration for House Bill director of the National measure to let schools use establishment are well aware of financing and cut-and-cap 5412 came from a story he Federation of Independent sinking fund dollars to buy the history of these bills — and Business, said his property taxes. Among many was told by a relative. Rep. buses, computers and software, that they will use almost any organization didn’t have an changes, the measure restricted Goike said his brother-in- which in private sector business excuse to get around the Proposal official stance on the bill, school districts from asking law is a plant manager in accounting are generally A tax limitation promise. but said his own opinion voters to increase property taxes Macomb County and was Owens considered operational expense “In the current environment, was that it seemed fair. for ongoing school operating set to hire 100 employees. items rather than long-term slipping-in ‘technology’ under The state's unemployment law expenses. Rep. Goike said his brother-in-law capital assets. cover of the highly emotional states people have to be actively But over the years, lawmakers told him that half of the applicants In 2013, two bills expanding issue of school ‘security’ is seeking work to collect benefits. from both parties have couldn't be hired because they the use of sinking fund millages questionable at the very least,” he "You are not actively seeking proposed bills chipping away failed the drug test necessary to run have been introduced, both by said. work if you are having problems at the initiative’s property tax the equipment. Republicans. The first, Senate Not surprisingly, Rep. with controlled substances where it limitation promises, which they Rep. Goike said he's not Bill 99, was introduced by Sen. McCready highlights the security requesting everyone who files for shows up at the work place," Owens may do with a 3/4 supermajority Howard Walker, R-Traverse City, provision of his bill, but also unemployment benefits be drug said, adding that recreational drug vote in the House and Senate. on Jan. 29, just six weeks after argues it will save taxpayer tested. The bill would apply only use becomes a workplace issue Frequently the attempts have the horrific school shooting money by giving local citizens an when you fail a mandated drug test to people whose job requires drug + revolved around another state incident in Newtown, Conn. It option that doesn’t put them in that's required for safety. law that allows schools to levy testing. He said his own trucking would add school security to debt for technology. “A millage and excavating business also up to 5 mills in property taxes the allowable sinking fund uses. for school security or technology The original version of this story was for “sinking funds.” Traditionally, requires federally-mandated drug posted online on Feb. 23, 2013. It is This presumably would include will be subject to a vote of the tests to run certain equipment. He available with hyperlinks and more info these were special accounts at www.MichCapCon.com/18322. ongoing expenses of the type residents — the same as it has said if people fail those tests, they used to pay off the debt incurred covered by Proposal A millage always been,” he said. “Bond acquiring long-lived assets like limitations. proposals create future debt. land and buildings. Three weeks later House Bill A sinking fund millage raises long-term liabilities on the balance describes, in almost half the The current statute narrowly 4281 was offered by Rep. Michael X amount each year without sheet for assets with a short state’s school districts (the ones restricts allowable sinking fund McCready, R-Bloomfield Hills, borrowing and paying interest.” shelf life, like technology, which with sinking funds) the bill uses to preclude spending on which would also permit sinking However, this sidesteps the rapidly becomes obsolete, is not would quietly subvert Proposal regular operating expenses of fund revenue for school security, real issue of adding technology an acceptable practice in the real A’s promise to limit new school the type covered by Proposal but then adds the “acquisition or to the allowable uses of sinking world of accounting and financial operating expense millages. A’s restrictions on new upgrading of technology.” funds that have already been management.” Going forward, the legislative millage requests. According As mentioned, sinking fund approved by voters for more Rep. McCready is correct that promise-breaking would expand to a 2009 House Fiscal Agency expansions for technology and limited purposes — in effect a his bill would not authorize new every time an additional district analysis, nearly half the state’s other things have been attempted bait-and-switch. It also raises debt for technology — something asks voters to approve a sinking conventional school districts many times by legislators, the issue of whether technology that schools are already allowed fund millage that under this have sinking funds (which is but have never before been (mostly computers and software) to do with specific disclosures legislation would include an item up from less than 20 percent in attached to what has become the are long-lived capital assets and voter approval (a practice properly considered a recurring 2001). emotionally-freighted issue of that justify incurring long-term Owens calls “sloppy management expense rather than a long-term + In the past decade, more school security. taxpayer debt. and careless planning at best, and capital asset. than a dozen bills have been “As a freshman, it’s very On that point, Charles Owens, at worst it is borderline fraud to the taxpayers”). The original version of this story was introduced to expand the possible Rep. McCready is not Michigan state director of the posted online on March 2, 2013. It is allowable uses of these local aware of the long legislative National Association of Independent But under the proper available with hyperlinks and more sinking fund taxes to include history of sinking fund expansion Business, said in an email, “Creating accounting procedures Owens info at www.MichCapCon.com/18339. Michigan Capitol Confidential April 2013 | 14 Employees In Right-to-Work States Are Richer By Tom gantert have a purchasing power of arguments repeated time and $49,700 in the state of New York time again by right-to-work Scores of right-to-work in 2007, according to Hohman’s opposition is that Michigan is critics ranging from politicians analysis. New York’s per-capita going to lose income by passing to economists have cited lower income was $47,852. this law,” Hohman said. “That per-capita incomes in right-to- Hohman found that in just isn’t the case. When you work states as why the new law terms of Michigan dollars in adjust for what a dollar can get is not good for Michigan. 2000, right-to-work states had you, the difference reverses However, not factoring in 4.1 percent higher per-capita itself." cost-of-living exposes a flaw personal incomes than non- Hohman used the cost of in that analysis, said Mackinac right-to-work states when living index done by political Center for Public Policy Fiscal factoring in cost of living. scientists William Berry, Richard Analyst James Hohman. Once $3.37 in Michigan. Connecticut’s other goods are also higher (see Michigan was considered a non- Fording and Russell Hanson. + that is considered, Hohman said right-to-work state because the They adjusted for cost-of-living gas tax is 6.1 cents higher than chart). the per-capita income is higher law was passed in late December in every state from 1960 to 2007. Michigan’s and Connecticut’s The original version of this story in right-to-work states than non- 2012. Hohman said the right- The idea is that costs vary sale tax is .35 percent higher was posted online on Jan. 28, right-to-work states. work-states didn’t surpass non- state to state. For instance, gas than Michigan’s. Prices on items 2013. It is available with hy- For example, Texas per-capita right-to-work states until 2003. on Friday in Connecticut was like milk, eggs, peanut butter, perlinks and more info at www. income was $37,098 but would “One of the most basic $3.66 per gallon compared to Tylenol, detergent, diapers and MichCapCon.com/18222.

Hazards of Long-Term Union Security Agreements By Derk vantage of a provision in the bill that usually about three years. to collect for purposes other than a long-term dues requirement? Wilcox grandfathers in existing contracts at This attempt to circumvent the collective bargaining. Employees voting on such the time the law takes effect. new right-to-work law is sure to be In at least one court case involv- As Michi- extensions should think long and In other words, union bosses are tested in the courts, and therein lays ing a union security agreement, a gan’s right- hard about funding the legal costs trying to maintain the status quo by one of the dangers for employees local school district refused to fire of their employer. Could the local to-work law flouting a law that was enacted by a and employers. To induce the em- an employee who would not pay union even bear such a cost, or is set to take democratically elected Legislature ployer, such as Western Michigan union dues. The union, which had would it require further financial as- effect in March, and signed by a democratically University, into entering such an ar- granted the district indemnification sistance that may or may not come unions — primarily representing elected governor and trying to forc- rangement, the union is proposing in the first place and agreed to pay from the union’s national office? The public employees — are scrambling ibly collect money from employees that it will pay the legal costs of the the district’s legal fees, went on to employees will also have to consider to get contract extensions passed who do not wish to support the employer when this scheme is chal- challenge the scope of the school the forced reduction in take-home that would prevent their members union just so Big Labor can con- lenged in court. The apparent hope district’s indemnification and sued pay that will result from the security from exercising this new freedom tinue to pad its political coffers. is that the employer will see this the district for breach of contract. agreement as they would be placing and continue to extract financial The Mackinac Center has been agreement as reducing its financial Even with an indemnification provi- themselves on the hook for the dues support from them as a condition of provided with various versions of liability and therefore acquiesce in sion in place, the employer still faces and fees for the next decade. employment. these agreements. One such notable the hopes of avoiding labor strife. the distinct possibility of having to And lastly there is a ques- This attempt to skirt the law agreement is being proposed by the The very fact that this indem- represent itself in court and bear the tion about the fairness of locking uses a legal strategy that is risky for Western Michigan University Chap- nification against legal challenges cost of its own legal fees as a result employees into paying union dues employers and employees alike. It ter of the American Association of is being offered ought to set of of the union security agreement. and fees regardless of whether they remains to be seen whether either University Professors and would warning bells for all the parties. This Employers face a number of oth- support the union’s actions or how side will join with the unions and lock its employees into financially novel attempt will undoubtedly be er factors that would weigh against it is representing them. The benefit endorse this ploy. supporting the union until Septem- tested in court and might take years entering into such a union security of the right-to-work law is that it The unions are drafting decade- ber 2023. The Berkley Education of costly litigation. Even where the agreement. Why would an employer is supposed to make unions more long “union security agreements” Association is considering the same union local promises to pay the em- want to lose a good employee just accountable to their members, or “agency fee agreements” that, tactic. ployer’s related legal costs, the em- because that employee doesn’t want who would then be more willing to if valid, would continue requiring Such agreements are unprece- ployer may still have to bear its own to fund the union? Prior to right-to- voluntarily give the union financial employees to pay full union dues + dented in Michigan. Union security court costs to determine the scope work, the employer had little choice. support. or agency fees as a condition of clauses are generally a provision of the agreement’s indemnification, But now, why would the employer employment. If these dues or fees in the larger collective bargaining as well as have to defend itself if the voluntarily give up the ability to Derk Wilcox is senior attorney at the are not paid, a union could force the agreement entered into between the union accuses it of breaching the retain good employees? And why Mackinac Center for Public Policy. The original version of this story was employee to lose his or her job. By employer and the union, and lasts security agreement. This also means would the employer want to force posted online on Jan. 31, 2013. It is pushing for these last-minute exten- only for the length of the current the union is committing to using the on its employees a reduction in available with hyperlinks and more info sions, the unions hope to take ad- collective bargaining agreement — forced dues and agency fees it hopes take-home pay by locking them into at www.MichCapCon.com/18232. Michigan Capitol Confidential April 2013 | 15

UAW President Bob King Admits Proposal 2 Was About Right-to-Work By JAck Spencer litany of complaints the unions had wingers — the Koch brothers were in the Michigan Legislature for years the last minute in lame duck either So much for union claims that about Gov. Snyder leading up the also involved. So it was our leadership and the issue has been widely debated had their head buried in the sand or is Proposal 2 on the 2012 ballot wasn’t announcement of the proposal on responsibility to try and head this off. in union halls, at universities, with in denial,” Rep. Shirkey said. “I’ve said about right-to-work. United Auto March 2. Then he started talking So we put together Proposal 2. business groups and in communities from the beginning, my interest in Workers President Bob King says it about right-to-work. TheMetro Times then asked King across Michigan. right-to-work goes back many years. was. “So he [Snyder] talks this the following: “So if Gov. Snyder had King also said in the interview “Further, there has been an almost Michigan voters soundly rejected moderation, but every extremist publicly committed not to sign right- that two “much more serious” laws immeasurable number of studies that Proposal 2 in November, 58 percent bill that [the Republican-controlled to-work, Prop. 2 would not have been passed by the legislature related to an show right-to-work will be good for to 42 percent. In December, Gov. Legislature] passes — there are pursued?” attempt to unionize graduate student Michigan’s economy,” he said. “The Rick Snyder asked the legislature one or two exceptions — but “That’s right,” King answered. research assistants at the University of debate had been going on for a long for right-to-work legislation. The overwhelmingly, he signs them,” Proposal 2 would have locked Michigan and home-based caregivers time.” legislature passed the bills and Snyder King is quoted as having said in the a myriad of union perks and who were forced into a union by Another strong proponent of signed them into law. interview. “So we said, ‘Jeez, this guy advantages into the state constitution. the SEIU. The Mackinac Center for the law is Sen. Patrick Colbeck, As the right-to-work measures says it’s not on his agenda, right- Chief among them would have been Public Policy filed lawsuits relating to R-Canton. He said Michigan’s right- began moving, the unions bused to-work, yet he’s signing legislation a ban on Michigan ever becoming a those two instances. to-work law should be judged on protesters to the Capitol building. that’s more harmful to workers than right-to-work state. In right-to-work Nearly a year ago, when King its merits, not on distractions and They screamed that right-to-work right-to-work.’ So he didn’t have any states, workers can not be forced to announced the proposal, he rhetoric. hadn’t been discussed enough. And credibility with us at that point.” contribute dues or fees to a union as a described it as being to ban right-to- “That’s interesting,” Colbeck when Proposal 2 was defeated, they Later in the interview King condition of employment. Michigan work in Michigan. said, regarding King’s remarks in claimed the proposal hadn’t been made it even clearer that right-to- is the 24th state in the nation to give Rep. Mike Shirkey, R-Clark Lake, the interview. “But when it comes about right-to-work. work was the issue the unions were workers the freedom to choose if they began pushing for the legislature to down to it, this really isn’t about a But King’s initial announcement concerned about when they came up want to belong to a union. take up right-to-work more than lot of backroom discussions and of the proposal and his recent recap with Proposal 2. In that context he King’s comments about right- a year ago. After being informed maneuvers the unions might have to the Metro Times of why the union concluded: to-work in the Metro Times are of the King interview, Shirkey said been involved with. To most people + pursued Proposal 2 exposes exactly So we in labor said, ‘You know, important because the unions now that claims that the right-to-work this is about jobs and basic rights.” the opposite. we can’t just sit and wait for the are saying that there was no debate issue appeared out of nowhere in The original version of this story was TheMetro Times published its lame duck, we know it’s coming, this about the issue and that the law arose December are disingenuous. posted online on Feb. 18, 2013. It is interview with King the week of has been a 10-year, at least, effort and was signed quickly. In fact, right- “Anyone who thinks this was available with hyperlinks and more Feb. 3-8. In it, King offered up a by [Dick] DeVos and other right- to-work bills have been introduced something that was just ginned up at info at www.MichCapCon.com/18284.

nationwide where in the past few rises, politicians are urged to spend The Facts on Subsidized College Degrees decades colleges have raised tuition more as universities become more twice as much as every dollar lost in empowered and invested in making By Jarrett SKorup the 10 states with the most rapid research and data regarding the state support. sure those appropriations keep economic growth expanded their value of a college degree.” In response to my article on And direct appropriations are coming. spending on higher education on Haglund, however, does not say why state government shouldn’t only one of many ways the public Students also are less likely to pay average at a modest pace, from 1.31 what “claims” are countered by this subsidizes higher education — subsidize higher education, several attention to their ability to actually proponents of more state funding percent to 1.44 percent of personal research and data or where it comes students receive direct grants and afford what they are purchasing, let for universities disputed the claims income. In the 10 slowest growing from. artificially capped, taxpayer-backed alone have a sense of the value of but presented no actual evidence to states, higher education spending In a separate article, Haglund loans while schools receive a host their degree. counter the points. grew rapidly on average, from 1.80 wrote: “University officials cite of direct subsidies, property tax As I wrote: percent to 2.21 percent of personal declining state support as a major abatements and tax breaks. Michigan taxpayers spent $1.3 There is no link between higher income.” reason why tuition costs have So what was the reason for billion this past year on direct education subsidies and economic Doug Rothwell, president of the exploded.” But it is only in recent sharp tuition increases cited appropriations to its 15 public growth, and none between college Business Leaders for Michigan, cited years that Michigan has significantly by university officials during universities. In the long run, the degrees and job creation. In recent my article and told MIRS News cut the appropriation amount previous decades? Why is a college state and federal government decades, Michigan spent much that reducing funding to higher to state universities. While there education so expensive? One have increased direct and indirect more than other states on college education “would be a travesty. was a slight drop in per-pupil significant reason is because the subsidies to colleges and students, It would affect one of the most appropriations from 1980-2000, appropriations, but faltered in government subsidizes it. yet college has not become more important assets the state has. The during the same time period the When the government subsidizes economic growth. And states do not affordable. In fact, it is fast becoming grow by adding college degrees — last thing we should do is defund it.” state increased its commitment higher education, it becomes + unaffordable for more people. the increase in graduate population Rothwell presented no evidence to universities to the sixth highest cheaper for people to access, so compared to personal income for his opinion. proportion in the nation. But tuition more people apply. The demand The original version of this story was growth yields no correlation. Reporter Rick Haglund wrote costs skyrocketed, increasing by for college rises, which in turn posted online on Feb. 20, 2013. It is Economist Richard Vedder notes: that the article “makes a number about 60 percent in real dollars. drives the price of tuition up. At the available with hyperlinks and more info “Nationwide, from 1980 to 2000, of claims that run counter to most That matches the trend same time, as the price of college at www.MichCapCon.com/18307. Michigan Capitol Confidential April 2013 | 16

A sampling of proposed state laws, as described on MichiganVotes.org

House Bill 4369 House Bill 4042 Senate Bill 78 Codify “education achievement authority” for Require match of welfare applicants Restrict setting aside state land for “biological failed schools: Passed 57 to 53 in the House against incarceration lists: Passed diversity”: Passed 26 to 11 in the Senate Introduced by Rep. Lisa Lyons (R) 109 to 1 in the House Introduced by Sen. Tom Casperson (R) To codify in statute the powers and structure of a Introduced by Rep. Tim Kelly (R) To prohibit the Department of Natural Resources state “education achievement authority” (already To require the Department of Human Services to from designating an area of state land specifically created by means of an administrative “interlocal perform a monthly jail and prison “incarceration for the purpose of achieving “biological diversity;” agreement”), which is an office in the Department match” and Social Security “death match” to help no longer require the DNR to manage forests in a of Education tasked with managing, overseeing determine eligibility for a welfare and food stamp manner that promotes “restoration;” and remove or contracting-out the operations of public schools benefit “bridge cards,” and revoke the card of a from statute a legislative “finding” that most losses deemed to have failed academically. person on those lists. This would codify in statute of biological diversity result from human activity. what is reportedly current department practice. House Bill 4320 Senate Bill 61 Expand forest property tax breaks: Senate Bill 94 Convert Blue Cross to non-profit Passed 94 to 16 in the House Prohibit Michigan National Guard “regular” insurance company: Introduced by Rep. Andrea LaFontaine (R) executing federal “indefinite detention”: Passed 36 to 0 in the Senate Passed 37 to 0 in the Senate To expand the eligibility for property tax breaks Introduced by Sen. Joe Hune (R) granted to owners of smaller forest property Introduced by Sen. Rick Jones (R) To convert Blue Cross Blue Shield into a “mutual parcels (a separate program gives breaks to To prohibit members of the Michigan National insurance company” and make it subject to the large “industrial” forest tracts and requires those Guard or other state and local government same regulations as regular health insurers. owners to allow public recreational access). The employees from participating in the investigation, Although it would remain a non-profit, current bill would also double the number of acres eligible prosecution, or detention of any person under a restrictions on the entity’s ability to own for-profit for these smaller “qualified forest” tax breaks from recent federal law giving the current or a future subsidiaries would be reduced, and it would no 1.2 million to 2.4 million statewide, authorize a President the power to order the indefinite longer be subject to close oversight by the state new 2 mill property tax on property in this program detention of persons arrested on U.S. soil, without Attorney General. In return for being granted this that would go to proposed “Private Forestland charge or trial (“Section 1021 of the National conversion, BCBS would pay “up to” $1.56 billion Enhancement Fund” to subsidize private Defense Authorization Act for Year 2012”). over 18 years (meaning it could be less) into forestland management activities, and revise other a fund that would supplement various health- details of this program. related government programs, with specific spending items selected by a board of political appointees. The bill does not include abortion restrictions that caused Gov. Snyder to veto the same measure when passed late last year.