The Newsletter of the Mackinac Center for Public Policy www.mackinac.org FALL 2010 Center Upends State Incentive for Suspicious Film Studio Deal

n her 2010 State of the State address last February, She could not have known that four months later, Gov. dramatically a firestorm fueled by Mackinac Center findings would I listed the new business endeavors in the lead to an attorney general investigation, a felony state she saw as instrumental to the charge, a lawsuit, the resignation of a key Lansing state’s economic recovery. Her speech staffer and possibly the loss of a state senate bid. read like an economic victory lap for the Mackinac Center Fiscal Policy Director Michael administration. D. LaFaive and Communications Specialist Kathy Many of the new projects highlighted had Hoekstra were tipped off that the Hangar42, being been offered generous state tax breaks from refurbished at a former Lear plant in Walker, the Michigan Economic Development Corp. Mich., may not have been worth the $45 million and Michigan Film Office. Among other projects, it reportedly sold for. Digging into the deal’s inner Granholm referenced “Hangar42,” a new film studio in workings, they learned that the building had sat Kent County. In doing so, she drew Mackinac Center on the market for months while listed for under analysts’ attention to a large state incentive deal. see “Film Studio” Page 6 Exploiting a Window of Opportunity

t’s not every day that a signature idea of a think tank becomes the title of a best-selling novel. So whenI we got wind earlier this year that radio and television talk show host was working on a political thriller with the Overton Window as its main plot element, we knew we had a unique window of opportunity. Contents The Overton Window of Political Possibility 2 President’s Message is a theory of change developed in the 1990s by 3 Granholm Role in Day Care the Mackinac Center’s late vice president, Joseph Unionization Exposed Overton. The “window” represents the narrow “The theory explains how think tanks like 3 Analyst Debunks MSU range of policy options acceptable to policymakers ours promote ideas that shape the environment Consolidation Study at any point in time. Contending ideas, Overton in which lawmakers act,” Lehman would 4 MichCapCon: Breaking and observed, shift the window toward, or away from, explain. “Today’s unacceptable ideas become Making News . His point was to show how think tanks can acceptable. Yesterday’s acceptable policies become 7 Media Impact influence public policy. unacceptable. You change ideas to shift the 7 Debate Workshop After Overton died, Mackinac Center Overton Window of Political Possibility. Shift the Essay Winners colleagues renamed his theory “The Overton window, and you change policy.” 8 Passion and Mettle Window.” Joe Lehman, then-executive vice The fact that a media giant’s best-selling novel 8 Freedom’s ‘Hometown president of the Mackinac Center and a long-time would bear the title “The Overton Window” Connection’! colleague and friend of Overton’s, taught and seemed the very embodiment of Overton’s theory 10 Fundamentals presented the theory to hundreds of participants on the power of ideas. In the book, a concept 11 Free-Market Library of the Center’s Leadership Conferences and at birthed at “a think tank in the Midwest,” as Beck’s 12 Education Transparency workshops around the country. see “Window of Opportunity" Page 9

“GREAT segment. One of the most intelligent conversations I’ve heard on .” Genevieve Wood, broadcaster, media commentator and vice president of Leadership for America Operations at , regarding Mackinac Center President Joe Lehman’s discussion of the Overton Window on the .

www.mackinac.org Fall 2010 1 Mackinac Center IMPACT President’s Message Board of Directors D. Joseph Olson, Chairman Phil F. Jenkins Retired Senior Vice President Chairman, Sweepster Inc. The Real Work Is After the Election and General Counsel, R. Douglas Kinnan Amerisure Companies Senior Vice President and CFO, eople sometimes ask if the Mackinac Center gets busier Joseph G. Lehman, President Amerisure Insurance Mackinac Center for Public Policy Edward C. Levy Jr. around election time. My answer is: “Not really. The real Joseph J. Fitzsimmons President, Edw. C. Levy Co. P Retired President, Rodney M. Lockwood Jr. University Microfilms work is keeping the rascals accountable after they get elected.” President, Lockwood The Mackinac Center has two main functions. First, Dulce M. Fuller Construction Company, Inc. Owner, Woodward and Maple Joseph P. Maguire we analyze public policy and recommend new policies Hon. Paul V. Gadola President, Retired U.S. District Court Judge Wolverine Development consistent with free-market principles. We do this because Corporation Kent B. Herrick Joseph G. overwhelming evidence indicates such policies are the President and CEO, Thermogy Richard D. McLellan Attorney, McLellan Law Offices Lehman Richard G. Haworth President most likely to foster a free, virtuous and prosperous society. Chairman Emeritus, Lawrence W. Reed Haworth, Inc. President Emeritus, Second, we get the word out. We do this because the Mackinac Center for Public Policy world’s best studies and reports would be worthless sitting on a shelf col- Board of Scholars lecting dust. We educate and inform as many of the most influential people Dr. Donald Alexander Dr. Dale Matcheck we can, including lawmakers, journalists and tens of thousands of residents Western Michigan University Northwood University who are the most civically engaged and interested in free-market ideas. Dr. William Allen Dr. Paul McCracken Michigan State University (ret.) Both functions fill gaping voids. We can’t rely on our public universi- Dr. Thomas Bertonneau Charles Meiser Writer and Independent Scholar ties or government itself to recommend much in the way of limiting gov- Lake Superior Dr. Brad Birzer State University (ret.) ernment’s size and power, so we do it. Since the legacy news media has Glenn Moots Dr. Peter Boettke Northwood University a proclivity to promote policy ideas that require ever more government, George Mason University Dr. George Nastas III we have essentially become our own media outlet by publishing jour- Dr. Theodore Bolema Marketing Consultants Anderson Economic Group Dr. John Pafford nals, newspapers and video reports; conducting seminars for students, Dr. Stephen Colarelli Northwood University teachers and policymakers; and creating unique databases of public Central Michigan University Dr. Mark Perry Andrew Coulson University of Michigan - Flint documents, including legislative voting records, school spending, school Cato Institute Gregory Rehmke Robert Crowner Economic Thinking/ performance data and public employee union contracts. Eastern Michigan University (ret.) E Pluribus Unum Films We even find real-life stories that illustrate the government failures Dr. Richard Cutler Dr. Steve Safranek University of Michigan (ret.) Ave Maria School of Law our studies predict, just like the investigative reporters that newspapers Dr. Jefferson Edgens Louis Schimmel Jr. Mackinac Center for Public Policy once had on staff. Morehead State University Dr. David Felbeck Dr. Howard Schwartz There is no shortage of candidates’ rhetorical fealty to free-market University of Michigan (ret.) Oakland University Dr. Burton Folsom James Sheehan principles before elections, but there is a scarcity of free-market action Hillsdale College Deutsche Bank Securities after elections. Even liberal President sold his massive Dr. Wayland Gardner Rev. Robert Sirico Western Michigan University (ret.) for the takeover of health care by claiming it would reduce health costs and Study of Religion and Liberty John Grether Northwood University Dr. Bradley Smith not force anyone to leave a health plan they liked. Neither claim is true. Capital University Law School Dr. Michael Heberling Conservatives are likewise guilty of overpromising and under-delivering Baker College Dr. John Taylor Grand Valley State University when they campaign as free-marketers but then won’t restrain spending Dr. Ormand Hook Mecosta-Osceola Intermediate Dr. Richard K. Vedder or stand up to unions and other big-government promoters. School District Ohio University Robert Hunter Prof. Harry Veryser Jr. Keeping promises isn’t automatic for most lawmakers. They need to Mackinac Center for Public Policy University of Detroit Mercy be kept in line by their constituents — and that’s where the Mackinac Prof. Harry Hutchison John Walter Jr. Mason School of Law Dow Corning Corporation (ret.) Center’s information and educational outreach comes in. Dr. David Janda Dr. William Wilson Institute for Preventative Economic Consultant One legislator complained that when we published his voting record along- Sports Medicine Mike Winther side our analysis of the policy he supported, constituents demanded he explain Annette Kirk Institute for Principle Studies Center for Dr. Gary Wolfram his vote. I replied that we were doing him a favor – how else would he have the Cultural Renewal Hillsdale College David Littmann opportunity to explain if no one told the folks back home how he voted? Mackinac Center for Public Policy A lawmaker’s chief of staff lamented that we could cost his boss re- election by publishing his voting record. I replied that getting his boss re-elected wasn’t our job, but it was our job to provide the free-market perspective along with a record of legislative actions. When I ran into two Republican legislators recently, I asked what they liked best about the Mackinac Center. They told me we “keep them hon- est” and provide “accountability.” One added that sometimes Republicans don’t even introduce “bad bills,” because they know the Mackinac Center will “come down on them.” Of course, it isn’t so much the Mackinac Center who “comes down on them,” it’s engaged residents armed with our policy research, Michigan-

Votes.org voting records and Michigan Capitol Confidential news and 140 West Main Street, P.O. Box 568, Midland, Michigan 48640 investigative reports. Whether your candidates win or lose in November, 989-631-0900, Fax 989-631-0964 www.mackinac.org [email protected] remember it won’t much matter if Mackinac Center IMPACT is a quarterly publication of the Mackinac Center for you don’t keep them accountable Public Policy, a nonprofit, nonpartisan, tax-exempt research and educational institute classified under section 501(c)(3) of the IRS code. to their promises. I Michael D. Jahr Editor Daniel E. Montgomery Graphic Designer Mackinac Center IMPACT 2 Fall 2010 www.mackinac.org Granholm's Role in Day Care Unionization Exposed

espite Gov. Jennifer Granholm’s year-long, glaring public silence on the stealth unionization of Michigan’sD home-based day care providers, all roads seem to lead to her office. For more than a year, Mackinac Center Communications Specialist Kathy Hoekstra has been investigating the mechanism by which Michigan’s private, home-based day care providers were forced into a public employees union. Along the way, Hoekstra uncovered several nuggets that hinted the scheme was Gov. Granholm has been quiet at home about her role in the unionization hatched at the top of the administration, in collusion of child care providers, but she bragged openly about "the partnership" with the United Auto Workers and the American between AFSCME and her office at the union's 2008 convention. Federation of State, County and Municipal Employees. When she discovered a little-viewed video online, Hoekstra incorporated this portion of Gov. Granholm’s Hoekstra’s suspicions were confirmed. speech into a video that laid out the rest of the evidence that The video was from 2008 and showed Gov. Granholm points to the governor’s administration as being complicit speaking at AFSCME’s 38th international convention. In with the UAW And AFSCME in conjuring up a way to turn light of her office’s later insistence that they merely complied private business owners and independent contractors into with the unionization request procedure, the governor’s public employees for the sake of boosting union ranks. boast in the opening lines of the video was quite startling: The video made a big splash in the blogosphere as well “In Michigan because of the partnership between as Detroit radio waves. WJR 760AM’s Frank Beckmann AFSCME and the governor's office, this means that 45,000 interviewed Mackinac Center Legal Foundation Director new AFSCME members, quality child care providers, will Patrick Wright, who said, ”This footage forever ties this be on the ground providing care to children.” scheme to the executive branch.” I Center Analyst Debunks MSU School Consolidation Study

n August, several newspapers overly simplistic. It used results from add some of the missing citations. around the state headlined a a study of 12 district consolidations But the study’s author dismissed Inew Michigan State University in rural New York and applied the problems, telling Michigan study claiming taxpayers could save those findings to the entire state Capitol Confidential: “This is for $612 million by combining school of Michigan. One author the newspapers. It districts. Editorial boards opined on of the original New York is not for scholarly the topic for weeks. There was only study called this attempt publication.” one problem: The MSU report was “extremely naïve.” Studies can completely erroneous. Aside from these serious influence public policy, The study, authored by MSU problems, the report’s regardless of who Education Policy Center senior savings predictions are still writes or publishes scholar Sharif Shakrani, appears exaggerated. Although the them. Fortunately, to have contained a significant author states that charter groups like the amount of plagiarized material. public schools shouldn’t Mackinac Center help While reading the study, Mackinac be part of the consolidation debate, keep poorly conceived and sloppily Center Education Policy Director with his calculations included researched studies out of the debate. Michael Van Beek discovered that charter spending. The study also For a more comprehensive look entire paragraphs in the report failed to consider capital costs, at the issue, see “School District were near-verbatim matches of which usually increase after districts Consolidation, Size and Spending: text from other sources, and that consolidate. an Evaluation,” a 2007 study by only one source was cited at all. Since Van Beek pointed out Andrew Coulson, director of the MSU says it’s investigating. the apparent plagiarism, two Center for Educational Freedom at If that weren’t bad enough, different versions of the study the Cato Institute and a Mackinac Van Beek found that the study’s have reappeared on MSU’s Center adjunct fellow, at methodology was haphazard and website, both of which tried to www.mackinac.org/8530. I

www.mackinac.org Fall 2010 3 Mackinac Center IMPACT MichCapCon.com: Breaking Stories on Tea Party Shenanigans, Municipal Finance Mischief and More

he daily mission of Michigan Capitol Mike LaFaive, director of the Mackinac Center’s Confidential, the Mackinac Center’s online Morey Fiscal Policy Initiative, was quoted in the Tnews service, is to provide readers with a unique, article, noting that local governments too often “cry free-market perspective on politics and policy news. poverty” and make threats to “dismiss firefighters” The big-picture mission of MichCapCon.com is for while protecting “golf courses, wave pools and art.” this information to be used to drive substantive and Both the Channel and the much-needed progress. Channel interviewed LaFaive about the water Three examples from July show Michigan Capitol sculpture the day after the article appeared. The Fox Confidential is accomplishing both missions. News Channel had invited the Ann Arbor mayor to appear and provide a counterpoint to LaFaive, but the mayor backed away from the opportunity. With articles like these, Michigan Capitol Confidential has helped change the terms of debate about whether local governments have enough of the taxpayers’ money and whether they spend it wisely. And all local governments are now on notice that somebody is watching and will notice if they try to fund arts and crafts while claiming that they need to cut public safety programs. Political operatives in Oakland County trying to

Source: AnnArbor.com muck up the state’s elections also have MichCapCon. com to worry about. On July 28, with a solid news Michigan Capitol Confidential broke the story of the city of Ann Arbor constructing a pricey sculpture while laying off firefighters. tip from Michigan blogger Jason Gillman of Traverse City, MichCapCon.com broke a story that has led to A mainstream news narrative throughout the last a criminal investigation. several years portrays Michigan’s local governments Gillman discovered and told MichCapCon.com and schools as hapless victims of a state economy that the political director of the Oakland County that can no longer afford to properly fund the vital Democratic Party, Jason H. Bauer, appeared to have services that they provide. MichCapCon.com readers notarized nine of the statements of identity for have regularly found a more complete picture, in candidates seeking ballot access with the mysterious which many of these public bodies are still paying “The Tea Party” political party that sprung up this substantially more than what other states are, and summer as a result of a secretive petition drive. what the marketplace will bear, for the same services. Gillman noted that his discovery was the “smoking But nothing drives the point home like a water gun” that proved the long suspected belief that sculpture. the embryonic political party was a manufactured On July 22, MichCapCon.com Senior Capitol creation of partisan Democrats and not a genuine Correspondent Tom Gantert wrote an article expression of the grassroots headlined “The Art of the Ann Arbor City Budget.” taking place in Michigan. Gantert reported that while the city of Ann Arbor was laying off firefighters as a way of balancing a budget overspent by several million dollars, the city was also paying $850,000 for a water sculpture to sit outside a new police and courts building. That morning, the picked up the story and posted a MichCapCon.com link on its page. Over the first two days, more than 272,000 individuals from across the country had checked out the story. Many other national bloggers and news outlets picked it up as well, including Instapundit, , The Fiscal Policy Director Michael LaFaive discusses "Sculpturegate" American Spectator, USA Today and more. on Fox News on July 23, 2010.

Mackinac Center IMPACT 4 Fall 2010 www.mackinac.org As a result of other work MichCapCon.com did in July, the public may also get to know exactly how their tax money is allocated to political operatives. Currently, an exemption in Michigan’s Freedom of Information Act allows state lawmakers and the governor’s office to conceal the names and salaries of the political appointees that they hire and supervise. MichCapCon.com ran repeated stories exposing this special exemption, noting that while the Legislature is often willing to voluntarily release the information, the governor has refused to do so and invokes the FOIA exemption as cover. MichCapCon.com put a question to each of the An attempt by Oakland County political operatives to place faux "Tea Party" candidates on the ballot was exposed by Michigan Capitol candidates for governor, asking them to state whether Confidential and led to a criminal investigation. they would sign a bill to repeal the exemption, and also whether they would voluntarily turn over the The revelation was picked up by news outlets all information if asked. Every candidate except House over Michigan and across the nation. Gillman appeared Speaker answered in the affirmative. on WJR 760AM’s Frank Beckmann Show and credited With Dillon’s loss to Lansing Mayor Virg Bernero MichCapCon.com and its staff by name for helping in the August primary election, this means that the him to make his discovery into something that got the nominees for governor from both major parties are on attention it deserved. record pledging to repeal the exemption due to pressure The office of Oakland County Clerk from MichCapCon.com’s stories. I then began investigating and discovered that at least one candidate statement of identity notarized by Bauer may have had the signature of the candidate forged as well. She produced a signed statement from the person who was the supposed candidate declaring no knowledge of his candidacy, no desire to be a candidate, and an eagerness to discover who was using his name and identity improperly. A grand jury has since been assigned by Oakland County to look into the matter, and Bauer has resigned. In their updates to the about the progress of this investigation, both Johnson and Oakland County Executive L. Brooks Patterson have Gubernatorial candidates Virg Bernero (D) and (R) both told Michigan Capitol Confidential that they support expanding credited Michigan Capitol Confidential for pointing Michigan's Freedom of Information Act to state lawmakers and the everyone in the direction of the wrongdoing. governor's office.

This issue of Impact provides opportunities to access content directly using your smartphone.

Look throughout Impact for these Step 1: Step 2: Step 3: Quick Response codes, scan with your smartphone, and watch exciting video clips, like this coverage of sculpturegate. This bar code can If you do not have a scan app, be scanned using Download a Scan with your Phone you can download one at your camera phone QR reader app. phone’s camera. automatically accesses website! www.tinyurl.com/axk6u6. and a QR reader app

www.mackinac.org Fall 2010 5 Mackinac Center IMPACT Film studio from Page One

after that “intervention,” an online video Before retiring, Michigan Film turned up in which that same aide was Office Director boasting of his own early involvement in Janet Lockwood acknowledged the Hangar42 deal. The staffer was asked Hangar42 was to resign shortly thereafter. a disappointment. This same lawmaker later lost his primary bid for state senate and publicly legislators to once again take up and pass Communications Specialist Kathy Hoekstra blamed the loss on the developing these measures. Several newspapers, interviews developer Jack Buchanan Jr. in the Hangar42 scandal. including The Detroit News, cited the Hangar42 Studio. The fallout continued with several Mackinac Center’s investigation as builders filing liens against the property reason for more film office transparency. $10 million. How could the value of the owner for payment of work they Also amidst all of this, Michigan building leap from less than $10 million completed but were never paid for. The Film Office Director Janet Lockwood to more than $40 million overnight? contractors, whose companies performed announced her retirement after 18 The massive price increase is construction-related work on the years at the helm. She claimed her important because, as local media Hangar42 property, insisted they were told retirement had been in the works reported, the studio’s new owner was in payment would come once the state tax since January 2010, long before the line to receive an “assignable” tax credit credits came through. The matter is now Hangar42 scandal erupted. (one he could sell for cash) equal to 25 the subject of a lawsuit by 11 contractors Before her departure, however, the percent of his “investment.” If the price who want the property sold in order to Center obtained an e-mail exchange was goosed up, so too would be the get at least $2 million in compensation for between Lockwood and others in subsidy available to the buyer. In this their supplies and services. the MEDC regarding Hangar42. case, the higher price brought In the meantime, Hoekstra and Lockwood told the recipients that a whopping $10 million credit. LaFaive continued to try to obtain she felt “completely responsible” for Hoekstra and LaFaive left no stone documents from the state regarding having encouraged the governor to unturned in their effort to discover the the Hangar42 tax credit application, as include Hangar42 in her State of the status of the tax credit application and well as simply confirm the application’s State address, and offered to deflect the nature of the real estate deal. Neither existence. Finally, on June 17, after the blame from the “front office.” But representatives of the Michigan Film stalling tactics and excuses by state the final words of Lockwood’s e-mail Office nor the MEDC would confirm or agencies, the Mackinac Center called were perhaps the Scan to deny approval of the Hangar42 tax credit on both the Legislature and law most telling: “So view video application. Worse, neither the buyer nor enforcement to formally investigate disappointing, it key seller would return phone calls when the deal. U.S. Rep. Pete Hoekstra looked so promising. the Mackinac Center analysts sought quickly followed the Center’s lead. But it’s not. This time answers. Later that same day, Michigan Attorney I am agreeing with Ultimately, Hoekstra and LaFaive were General Mike Cox announced the Mac Center.” I forced to go public with the questions they he had indeed opened a criminal couldn’t answer through dogged research. investigation into the Hangar42 deal. The Center raised the questions May 20 That investigation has resulted in with a Hoekstra-produced video and one criminal charge of false pretense, LaFaive-penned essay. announced on Aug. 2 against the buyer Studio Probed Over Tax Credit Effort Grand Rapids-area media of the property. He’s due back in court immediately picked up on the story, with in November for a preliminary hearing. same-day coverage on two TV stations According to the Attorney General’s (WOOD-TV and WZZM) and in The office, the investigation is ongoing. Grand Rapids Press. Press reporter Chris All the while, bills to require more Knape aggressively leapt into the story transparency with film office dealings Does Hangar42 Studios in Walker and continued the investigation into had been languishing in the Michigan deserve $10 million in tax credits? many angles on a local level. House Tax Policy Committee. The State Rep. Robert Dean aide Noah One such story included state Rep. Mackinac Center’s investigative work, Seifullah resigns in wake of Hangar42 Robert Dean, who sent his chief of staff combined with the diligence of other questions to investigate the hold-up in the film reporters, drove many news outlets office tax-credit approval. Not long around the state to put pressure on

Mackinac Center IMPACT 6 Fall 2010 www.mackinac.orgwww.mackinac.org Media Impact Budgets, Bargaining and Biofuels Film studio from Page One

What began as analysis of savings figures City Record-Eagle and WLNS-TV6 A Michigan Capitol Confidentialstory in a Michigan State University study on in Lansing. The State News, MSU’s about the city of Ann Arbor’s decision school consolidation quickly turned into campus newspaper, reported Sept. 1 that to spend $850,000 on public art while a national media story about plagiarism an internal MSU review is ongoing. at the same time announcing budget and flawed methodology. AKalamazoo cuts that included layoffs for firefighters series exploring school Gazette story on Aug. 15 outlined the Van Beek’s reached millions of readers when it study, authored by Sharif Shakrani, funding myths was cited by The was posted at the Drudge Report senior scholar at MSU’s Education Policy Grand Rapids Press on July 20, July 22. (See related story, Page 4.) Center. The Gazette also mentioned while his analysis of the East Lansing LaFaive also wrote an Aug. 19 Op-Ed for Mackinac Center analysis that found teachers contract was mentioned in the about the failures the Lansing State Journal the same that school district consolidation of the Michigan film subsidy program. savings would be minimal and that day. Paul W. Smith, a talk show host on The Grand Rapids Press on Aug. 2 WJR AM760, mentioned the myths privatizing noninstructional services and WZZM TV13 in Grand Rapids on series in a Detroit News column is one of the best ways to save schools Aug. 4 detailed charges being filed in July 30, and Van Beek’s Op-Ed on the money. Education Policy Director the Hangar42 movie studio deal, a story Michael Van Beek, in examining same topic appeared in the Aug. 7 LaFaive and Communications Specialist Shakrani’s work, found large sections of Oakland Press. An Aug. 10 Detroit Kathy Hoekstra broke in May after a apparently plagiarized material as well Free Press column cited the Center’s months-long investigation. The Detroit as questionable findings.The Grand school insurance database in calling for News July 8 cited James Hohman, Rapids Press and AnnArbor.com on teachers to pay their fair share of their fiscal policy analyst, who found that Aug. 19 reported on the plagiarism own health insurance costs. Michigan two years and millions of dollars in concerns, followed a day later by The Public Radio on Aug. 12 invited subsidies later, there were 10 percent Detroit News, Detroit Free Press, USA Van Beek to explain why Michigan fewer film-related jobs in Michigan Today, Lansing State Journal, Traverse public schools do not lack funding. than when the program started. I Debate Workshop ‘Grand’ Prize Winners rand Rapids has long been known as the “furniture In 2009, sophomores Samuel Ryskamp and Paul Freswick Scan to capital” of the nation, but it’s also the capital of of Grand Rapids Zion Christian both won on the topic of view video MichiganG when it comes to students winning the Mackinac alternative energy, and earlier this year Erik Kraayeveld and Center’s High School Debate Workshop essay contest. Scott Holsema, then juniors at Zion Christian, won after writing In the past five years, nine students about social services and poverty. in the Grand Rapids area have won Holsema said this year’s topic $1,000 college scholarships from — America’s military presence the Mackinac Center, including the around the globe — “renewed only double-winner. Each fall, the my vigor and challenged me to Center conducts high school debate consider U.S. foreign policy.” workshops around the state to help Lisa Russcher, debate coach at debaters prepare for their upcoming Zion Christian, said her students look Studio Probed Over Tax Credit Effort season. Students who write an Four Grand Rapids Zion Christian Debate Workshop forward to the workshop each year and opinion-style essay about the topic essay winners were acknowledged at the Oct. 6, 2010, find it a valuable experience. Workshop at Grand Valley State University. —picked annually by the National Scholarship winners have gone on Forensics League and argued nationwide — can win one of to attend King’s College (New York), University of Michigan, four scholarships worth $1,000 toward college. Hillsdale College, Denison University (Ohio), Johns Hopkins Following the 2005 workshops, Catherine Leiber and University (), Baldwin-Wallace College (Ohio), Ryan Orzechowski of Grand Rapids Catholic Central and Grand Valley State University, John Carroll University (Ohio) Does Hangar42 Studios in Walker Daniel Overbeek of Grand Rapids Northview won, writing and Central Michigan University. deserve $10 million in tax credits? on the topic of privacy and security. Jessica Wilson of Grand Wilson, now studying medicine at Denison University, State Rep. Robert Dean aide Noah Seifullah resigns in wake of Hangar42 Rapids Forest Hills Central won two years in a row, 2007 said she recommends debate for all high school students, questions and 2008, writing about national service and public health regardless of what career path they want to follow. assistance for sub-Saharan Africa. Ian Blodger of Lowell also “It teaches you to think things out and organize your won in 2008. thoughts,” she told Michigan Education Report in 2008. I

www.mackinac.org Fall 2010 7 Mackinac Center IMPACT Advancement Impact Passion and Mettle

ulce Fuller says she learned the importance of On Oct. 14, 2010, Fuller and her husband, liberty from her father, a general surgeon who Ted, served as co-chairmen of “An Evening with leftD his native Cuba for the United States in the 1940s. the Mackinac Center for Public Policy,” a program “I am completely a product of my upbringing. featuring guest speaker L. Brooks Patterson, My father just loved this country and embraced it Oakland County executive. Over 200 people completely,” the Birmingham resident and business attended this first-time event at the Townsend owner says. “I think I have his passion for freedom Hotel in Birmingham. and .” Fuller also is chairman of the Southeast Following the Cuban revolution, more of her Michigan Committee for Heritage, part of The extended family left behind friends and homes to Heritage Foundation’s community-based network come to this country, Fuller says. of business and civic leaders, as well as owner of the Dulce Fuller “They each, in their own way, made their Birmingham boutique Woodward & Maple Inc. escape,” she says. “They came with literally the The Mackinac Center program and similar clothes on their back. They had to start over.” gatherings are important ways for people who Fuller tells that story by way of explaining share the values of liberty, limited government what motivates her to work on behalf of freedom and self-reliance to come together in Michigan, and limited government in Michigan, including Fuller says. supporting the Mackinac Center for Public Policy. “I say that we have to make some noise,” A member of the Mackinac Center’s Detroit-area she says. “We are altogether too polite. It’s Board of Advisers since 2004 and a longtime exciting to me to see these Tea Party activists. generous donor, Fuller joined the Center’s Board It’s marvelous that we’re finding our voice and of Directors in April. our mettle.” I

Be Freedom’s ‘Hometown Connection’!

very day, we at the Mackinac Center hear their friends and colleagues to our October from Michigan residents who care deeply meetings. Through such gatherings, we will aboutE this state and are gravely concerned about build strong ties with many more like- its future. minded people. In the last issue of IMPACT, I shared with To bring the Mackinac Center to Metro you a few of the many encouraging comments Detroit, we are holding An Evening with the we have received from Michigan residents who Mackinac Center in Birmingham on Oct. 14 believe in free markets, personal liberty and — less than a week away as of this writing. The limited government. event will feature Oakland County Executive The Mackinac Center has excellent resources L. Brooks Patterson, who will speak on “What Darryl M. White, on these issues, but many people in Michigan Michigan’s Next Governor Can Learn From Vice President for who would enjoy our work are unfamiliar with Oakland County.” It should be a dynamite topic Advancement us. To best help Michigan, the Mackinac Center from a dynamic chief executive, and we expect needs to connect with these folks in their more than 230 people to attend! hometowns. The building excitement over this event is due With this in mind, the Mackinac Center has to individuals like Dulce Fuller (see article above): been reaching out to Michigan communities. freedom fighters who are passionate about Let me share a few examples. The Mackinac introducing their friends and neighbors to the Center has met twice yearly with leaders in Mackinac Center. seven regions to share the latest impact of But we need to reach out to many more folks Your estate plans reflect the values you our work. The members of these Boards of in Michigan who believe in the same principles hold dear and hope to perpetuate. Advisors are from Grand Rapids, Traverse City, we do. Join the Mackinac Center’s Legacy Society by calling Darryl White at 989-631-0900 Holland/Zeeland, Metro Detroit, Ann Arbor, Would you help us connect with like-minded and including the Center Battle Creek/Kalamazoo and the mid-Michigan people in your hometown? If so, call me at (989) in your bequest today. area. In response to these leaders’ suggestions 631-0900, or e-mail me at [email protected]. earlier this year, we invited them to bring Let’s make freedom ring! I

Mackinac Center IMPACT 8 Fall 2010 www.mackinac.org Window of opportunity from Page One protagonist described, had reached In May, Beck’s creative director than 1,500 new Mackinac Center the attention of one of the nation’s top sent Lehman an advance copy of The subscribers, from throughout Michigan opinion leaders. Clearly, the publicity Overton Window. Based on pre-order and from New Hampshire to Hawaii. generated by the book would provide sales, the book was already a best-seller, Contributors old and new sent checks the Mackinac Center numerous even though it would not be released to help the Center capitalize on the opportunities to explain to a national until June 15. unprecedented publicity. audience the power of our ideas to On June 9, Lehman travelled to New Lehman did follow-up interviews advance sound public policy. York City to be an in-studio guest on around the state and around the In anticipation of the countless Beck’s radio program. During the live, country. Columns highlighting the role thousands of people likely to search 11-minute segment, Beck said, “It is of the Mackinac Center appeared in online for information on the book, amazing to me that people don’t know publications as diverse as Center staff created a dedicated Web what the Overton Window is, because Online and the Detroit Free Press. page and secured related domain names, we use it instinctively.” Beck Writes such as theovertonwindow.com. The The interview was carried live on A concept developed by the Mackinac Center’s Joe page included a brief definition of the 400 radio stations nationwide, including Overton inspired Glenn Overton Window, lengthier essays on the 15 in Michigan. The interview could Beck’s best-selling novel. theory, a section addressing frequently also be viewed online at GlennBeck. asked questions, an interactive window com. Subscribers to Beck’s “Insiders and examples of Mackinac Center Extreme” were e-mailed a more robust materials that advance ideas in the way video version of the radio interview the Overton Window describes. The and a separately produced video that The marketing effort proved a prime Washington Post included a link to the included segments where Lehman example of cooperation within the site in its review of Beck’s book. explained the Overton Window and free-market movement. The Mackinac Using search engine optimization discussed it in the context of school Center partnered with the State Policy techniques, we improved search choice. Subscribers were also e-mailed Network, the Institute for Justice, rankings to ensure placement in the top a transcript of the radio interview. the Franklin Center, the Heritage five search results on Google and other Later that day, Lehman recorded Foundation, the Evergreen Freedom engines. We updated and enhanced a segment for Fox News that aired on Foundation, the Pacific Research the Overton Window Wikipedia entry, June 16. Keeping with the program’s Institute and others to maximize the created a page and purchased style, Lehman explained the theory impact and reach the most people with Google and facebook ads to steer using a pointer and animated graphics our message. At least a dozen sister readers to Mackinac Center resources. that showed the spectrum of possible organizations prominently posted education and welfare policies. During a link to theovertonwindow.com on the six-minute segment, Lehman and their home pages, raising its visibility, Beck exchanged ideas about how the directing traffic and improving the Overton Window concept applied to search rankings. Several e-mailed political debates old and new. On June 17, members about the page and Lehman’s GlennBeck.com featured additional appearances. In the same vein, the footage of Lehman discussing the history Overton Window page and follow-up of the Overton Window. e-mails included a link to the State

In a June 15 column posted on AOL News, Beck In the final segment, posted on the Policy Network’s directory of state- wrote, “The Overton Window is a political theory Fox News website, Beck and Lehman based think tanks to introduce out-of- developed by the late Joseph Overton, a brilliant discussed “Overton’s Revenge,” the state visitors to the free-market think public policy strategist and ardent free-marketer.” concept that politicians will pay a price tanks in their states. While this preparation was taking if they stray outside the window. Lehman What began as a simple think tank place, Beck’s team was working out the returned to the digital screen to explain theory of explaining how ideas affect details to have Lehman appear as the how facts and logic, appeals to morality, culture ended up becoming a media Overton Window “resident expert” on emotional appeals and other factors phenomenon itself. As Lehman told both the nationally syndicated radio show, contribute to the shifting of the window. Beck’s radio audience, “There’s nothing The Glenn Beck Program, and the Glenn The response to this publicity that Joe Overton would have liked more Beck show on Fox News. The combined bonanza was phenomenal. than to know that one of his concepts audience would be between 10 million TheOvertonWindow.com drew nearly was making it smack dab in the middle and 12 million viewers and listeners. 30,000 unique visitors and led to more of popular culture.” I

www.mackinac.org Fall 2010 9 Mackinac Center IMPACT Free-Market Fundamentals

What Did You Do For Liberty Today? By Lawrence W. Reed

hen a woman asked Ben Franklin as he was departing the Constitutional Convention in 1787, “Well, Doctor, what have we got — a Republic or a Monarchy?” the old sage replied, “A Republic, if you can keep it.” Franklin knew that even the best wordsW on paper can never resolve the age-old struggle between liberty and power. People must understand liberty’s fundamentals, practice and preach them, pass them on to the next generation, and even sacrifice their lives for them on occasion. Use this checklist to help make sure you’re doing your part for freedom (put a check mark next to any that apply).

I raised it in a conversation and hopefully turned on a light in at least one person’s mind.

I defended it when it was challenged by error.

I improved my own knowledge of the literature of liberty so as to become a better advocate.

I wrote a letter-to-the-editor in defense of liberty, limited government or personal responsibility.

I recommended a good article, book or film that advances values consistent with a free and civil society.

I sent a personal check to an organization I know to be working for the advancement of liberty ideas.

I resisted temptation to subvert liberty by accepting something from government that didn’t belong to me and that required the government to take from someone else.

I took action to clean up my own act so that I can be a solid exemplar of the virtues necessary for a free society to flourish.

I checked out at least one textbook my son or daughter was assigned in school, explained to my children any fallacies I found and complained to the school about any that were especially egregious.

I told at least one of my representatives that if he or she ever voted for more government again, I would pull out all the stops to see him or her defeated in the next election.

I told my college alma mater that if they didn’t start hiring faculty who know how to present and defend the case for free enterprise and create some intellectual balance on campus, they’ll never, ever, get another dime from me.

I did nothing at all for liberty, except enjoy the fruits of it while leaving the battle for its restoration and preservation to others. I was essentially a liberty freeloader today.

Lawrence W. Reed is president emeritus of the Mackinac Center for Public Policy and president of the Foundation for Economic Education (www.fee.org) based in Irvington, N.Y., and , Ga.

What We Do For Liberty: Pass it on to the Next Generation 2010 Interns from left to right: Jonathan VanDerhoof, Wesley Reynolds, David Dietsche, Clint Townsend, Michael Mayday, Alana Lazowski, Shelli Cammenga, Dustin Anderson, Eric Imhoff

Mackinac Center IMPACT 10 Fall 2010 www.mackinac.org Free-Market Library

VIEWPOINTS The School Employee STUDIES ‘The Overton Window’: Concession Myth Made in Michigan September 2010 Environmental Regulation in July 2010 V2010-19 V2010-25 Michigan: A Blueprint for Reform The title of a new best- School employees on the whole have not S2010-04 selling novel, saved taxpayers money through contract Russ Harding, senior environmental “The Overton Window,” concessions and have remained relatively analyst and director of the Property Rights draws on a concept shielded from Michigan’s economic Network, lays out the problems Michigan created by the late Joseph downturn. Michigan’s teachers are the faces in attracting and retaining jobs due Overton, formerly senior nation’s highest-paid when compared to to faulty environmental permitting and vice president state wealth. regulatory abuses and how to correct of the Mackinac Center. http://www.mackinac.org/13567 those problems. http://www.mackinac.org/13075 www.mackinac.org/13789 The Sales Tax and Lottery Myth Are Public Schools Underfunded? No September 2010 V2010-26 VIDEO July 2010 V2010-20 Over the last 15 years, the portion of Figures disprove claims that Michigan total school revenues from the 6 percent Sculpturegate public schools are “underfunded.” state sales tax and the state-run lottery Michael LaFaive, director of the Morey http://www.mackinac.org/13076 has steadily decreased. In 1995, they Fiscal Policy Initiative, on Fox News Tax Hikes Kill Jobs and contributed 32 percent and 5 percent, discussing the city of Ann Arbor’s plans Tax Cuts Create Them respectively. In 2010, they’re expected to to spend $850,000 on a sculpture to be July 2010 V2010-21 make up just 21 percent and 3.5 percent of placed across the street from a fire station New economic projections suggest Gov. all school funds. – after the city announced budget cuts and http://www.mackinac.org/13568 Jennifer Granholm’s proposed tax increases firefighter layoffs. www.mackinac.org/13236 will destroy thousands of jobs and billions The Unstable Funding Myth of dollars in wages. September 2010 V2010-27 The Foundation Allowance Myth http://www.mackinac.org/13077 For the past century, funding for public A look at how the foundation allowance MEA Lawsuit on Retiree schools has moved in one steady works and the myths surrounding public Benefits Misguided direction — up. Despite some policies school funding. August 2010 V2010-2 that make school budgeting more difficult A Michigan Education Association than it needs to be in Michigan, school lawsuit arguing that public school funding has proven to be remarkably retirees’ health benefits are a right stable. protected by the Michigan Constitution http://www.mackinac.org/13569 flies in the face of a century of court Common School Funding Myths decisions. September 2010 V2010-28 http://www.mackinac.org/13341 Public school funding in Michigan is Oakland County Gives Local complex, often generating myths about Governments Something to Shoot For how the various pieces fit together. An ongoing series by Mackinac Center August 2010 V2010-23 www.mackinac.org/13362 Michigan’s Public Employment Relations Education Policy Director Michael Van Act constrains municipal government Beek examines these myths and separates The Overton Window and costs taxpayers money, but Oakland fact from fiction. Mackinac Center President Joseph G. County has shown that there are effective http://www.mackinac.org/13570 Lehman discussing the Overton Window ways to work around it. with talk show host Glenn Beck on his http://www.mackinac.org/13343 JOURNALS radio and television programs. www.mackinac.org/12996 Michigan Capitol The Unequal Funding Myth www.mackinac.org/12951 Confidential August 2010 V2010-24 Scan to www.mackinac.org/13214 One of the common myths in public MCC2010-02 view video education is that funding between Key stories: Public The Granholm- districts is not equitable. Proposal A employee pay, AFSCME Partnership was meant to greatly reduce funding stimulus spending, wind energy, Michigan Evidence — including disparities and has succeeded; spending film subsidies. footage of Gov. Jennifer differences between districts is smaller www.michigancapitolconfidential.com/13141 Granholm at a 2008 than ever before. AFSCME rally — shows the executive http://www.mackinac.org/13344 office was in fact deeply involved in the forced unionization of home-based day care providers. www.mackinac.org/13310

www.mackinac.org Fall 2010 11 Mackinac Center IMPACT 140 West Main Street, P.O. Box 568 Midland, Michigan 48640

New Education Transparency Law Follows Mackinac Model

ne of the chronic frustrations union contracts, annual budgets, a year-long push by the Mackinac of Michigan taxpayers has been breakdown of expenditures, health Center to encourage school districts understandingO how money is spent insurance information, association to post their checkbook registers in Michigan public schools. The and lobbying fees and a list of online. Nearly every newspaper Headlee Amendment and Proposal A compensation packages of their around the state weighed in on this are two landmark pieces of Michigan superintendent and employees making issue and commended the Mackinac constitutional reform that were more than $100,000. Center’s effort. So far, about 85 school inspired in part by public concern that Unfortunately, only about half districts have voluntarily made their escalating property taxes never seemed of Michigan school districts have registers publicly available. enough for the public education complied with the state’s requirements Some members of the state establishment. so far. Nevertheless, the impact is Legislature are doing their part and In response to this concern, already being felt. For example, WJRT opening up their budgets to the public Mackinac Center analysts have led the TV-12 in Flint used this newly available as well. Reps. Tom McMillin, Justin charge in encouraging school districts information to report on the Harbor Amash, Kevin Elsenheimer and Marty to make their spending information Beach school district’s superintendent, Knollenberg have all published the available online, as well as posted whose total compensation package names and salaries of their legislative information gathered through research exceeded $300,000. In a district of only staffs online. In fact, the Democrat- and Freedom of Information requests. 600 students, this alarmed many local controlled House also publishes online The state appears to be following residents, and the Harbor Beach board the spending accounts of each of its our example, with recent legislation of education is now trying to explain its members. requiring school districts to put key use of taxpayer dollars in this manner. A more transparent government is information online. This new transparency a first step toward a more responsive The new requirement includes requirement comes on the heels of and fiscally responsible government.

www.MichCapCon.com Mackinac Center IMPACT 12 Fall 2010 www.mackinac.org Mackinac Center Quick Reference Mackinac Center Quick Reference

You don't have to be a school professional to have access to It's easier than ever to some of the Center's most-used stay connected with research areas. the Mackinac Center! Much of the day-to-day life of Michigan’s public schools is shaped by districts' By using new social union contracts, spending choices and networking tools, not only available revenues. Michigan School are you able to tailor-design Databases, hosted by the Mackinac the information you want to Center, provides a revealing look at Michigan’s public school districts. receive, but you're also able District Collective to link up with other freedom Bargaining Agreements lovers from Michigan and This database contains PDF copies of each Michigan district’s collective bargaining agreements across the nation. for teachers, bus drivers, aides, office staff and other employees. Union contracts spell out not just Use this reference guide to get salaries and benefits, but also information about class size, employee evaluations, school calendars, started. and more. Also available: District-specific contract summaries and analysis.

District Health Insurance Information This Week at Mackinac email signup: This database contains information about 2008-2009 www.bit.ly/atjQmP district-provided employee health insurance. Users can find the insurance providers, plan types and titles, number and type of employees enrolled, monthly premium costs and the amount employees contribute www.facebook.com/MackinacCenter to the premium for nearly every district in the state.

District Revenue and Expenditure Report These data are taken from the National Public www..com/MackinacCenter Education Finance Survey and show major categories of revenue and expenditure for each public school district for fiscal 2004 through fiscal 2008. The figures appear as both dollar amounts per www.mackinac.org/MCPPrss category and dollar amounts per pupil. Each district is compared to the state average.

District Checkbook Register Report Part of the Mackinac Center’s ongoing government www.MichiganCapitolConfidential.com transparency project “Show Michigan the Money,” www.facebook.com/MichCapCon this database links users to the checkbook registers www.twitter.com/micapcon of the school districts that publish such data online. www.MichCapCon.com/MCCrss Users can track districts’ expenditures check by check at these sites. More districts are expected to publish their registers online in the months to come. Michigan Education Digest

District Categorical Grant Report E-mail signup: www.bit.ly/9ioIB6 In addition to per-pupil revenues, Michigan school www.EducationReport.org districts receive grant money for specific purposes www.EducationReport.org/ERrss independent of total student enrollment. The categorical grants database lists the amount each THE district received in fiscal 2007 in categories as Overton Window diverse as “at-risk students,” “math readiness” and “bilingual education.” The database permits district- Email signup: www.bit.ly/bWUwjP to-district comparisons. www.TheOvertonWindow.com www.facebook.com/OvertonWindow

Find it at mackinac.org/10361 www.mackinac.org Fall 2010 13 Mackinac Center IMPACT