A news service for the people of Michigan — Vol. 12 No. 2 June 2018 MICHIGAN CAPITOL CapCon is a product of the Mackinac Center CONFIDENTIAL.COM for Public Policy

Union Membership and Political Spending in Michigan Since Right-to-Work A Look at Unions in 200%

Michigan, Five Years After 150% Right-to-Work 100% Most of state’s largest unions have seen a collapse Political spending in members and political spending Membership 50%

SEIU UAW Nurses Healthcare BY JARRETT SKORUP must file reports with the federal government MEA Teamsters AFSCME UFCW AFT SEIU and have more than 10,000 participants have 0% Five years after Michigan ­— the historic Carpenters lost members and cut political spending. Operating bastion of union power —­ became a Engineers As a result, Michigan has dropped from right-to-work state, most of its largest the seventh-most unionized state to the -50% unions have seen a significant decline in 10th-most. membership and political spending. In 2013, Michigan began allowing workers Michigan’s largest unions have seen a net loss in membership of 85,000 people -100% to choose whether to be members and pay dues Source: Federal LM-2 documents, 2012 to 2017-18 for members numbers to unions. Since then, nine of the 11 unions that See “Five Years,” Page 8 and 2012 to 2016 for political/lobbying spending (presidential election years). mackinac.org

IN THIS ISSUE Pension Spiking, Early Payouts, Second Page 6 Page 12 Careers Make For High-Income Cops

BY TOM GANTERT helped spike his lifetime police pension to $91,000 a year. Former East Lansing Police Chief Jeff Immediately after retiring at age 51 with Murphy retired in 2017. In his last year on the job, Murphy collected $157,258 in total 30 years of police service, Murphy returned to Millions In Taxpayer Money Rise In State Revenue Far compensation. This included $24,257 in work nearby, earning $93,747 each year working For Pontiac Theater And Exceeds Cost Of Defeated accrued sick time he was allowed to cash out. in security at Michigan State University. Little To Show Income Tax Cut Another $28,853 in accrued paid time off also See “High-Income Cops,” Page 4

Overtime In Final Years Will Spike Ann Arbor Cop’s Lifetime Pension Payout

BY TOM GANTERT in overtime in his final year, boosting his base pay of $93,922 to a total of $151,618.

One Ann Arbor police detective with 31 years

NON-PROFIT ORGANIZATION NON-PROFIT The overtime pay Monroe received in

PERMIT # 338 # PERMIT

Midland, Michigan 48640 Michigan Midland, of experience would collect an annual pension

48838

P.O. Box 568 568 Box P.O. 2017 would permanently boost his pension

GREENVILLE, MI GREENVILLE, of $126,000 if he retired this year, according to

140 West Main Street Main West 140

PAID payout by $13,495 in every year of retirement.

Mackinac Center for Public Policy Public for Center Mackinac the city of Ann Arbor. US POSTAGE US

STANDARD PRESORTED Capitol Confidential Capitol Detective David Monroe is eligible for that That’s because the pension system Ann six-figure pension because he collected $47,491 See “Spiked Payout,” Page 4 Michigan Capitol Confidential JUNE 2018 | 2

Michigan Legislators voted to give HOW MUCH taxpayer money to corporations and developers?

- That is more than the value of the Lions, Tigers, Pistons and Red Wings with plenty leftover.

- It’s enough to cover the entire state employee pension debt for which taxpayers are liable.

- It’s enough to resurface nearly every highway in the state.

Learn more at mackinac.org/25589 Michigan Capitol Confidential JUNE 2018 | 3

LETTER FROM THE PRESIDENT The Perfect Time to Panic JOSEPH G. LEHMAN Court, plus the offices of secretary of state and attorney general. Editor's note: This article was first published in the Maybe all that sounds like Sheriff Woody's "perfect May/June issue of IMPACT Magazine. time to panic" for Republicans or those who see the MEET THE STAFF A colleague returned from a strategy meeting in GOP as the best political vehicle at the moment for Lansing and reported signs of panic setting in. Some of many desirable policy outcomes. But it's not. Consider our friends who depend on political victories for their this column to be a distant early warning to check the livelihood are losing their nerve because the party spread of panic from the inner circles of the political Tom Gantert is the managing editor for that usually favors free markets faces strong political class to Mackinac Center supporters and others who Michigan Capitol Confidential. He may be headwinds this year. I'm reminded of Buzz Lightyear put their trust in ideas. Panic, like pessimism, tends to reached at [email protected]. and Sheriff Woody facing apparent doom in the 1995 bring about bad outcomes. movie “Toy Story.” Buzz the heroic optimist admonishes There are solid reasons for optimism. The Woody, "... This is no time to panic!" Woody flails his strengthening economy is especially noticeable in arms and shouts in defiance, "This is the perfect time Michigan. (The current national economic expansion, Jarrett Skorup is content manager for to panic!" though weaker than others, is also the longest ever.) Michigan Capitol Confidential. He may be Woody had a point, but his panicking didn't save It's now almost too late for a recession to begin, and reached at [email protected]. the day. Historic patterns suggest this year's mid- be recognized as such, before November. President term elections were always going to be tough for Trump's support remains surprisingly strong in spite Republicans — and here are some more reasons why of his erratic behavior and speech. Many of his policies they are quaking. are helping the people he promised to help and they At the top of the list is Donald J. Trump. For better and Evan Carter is a reporter for Michigan know it. Eight years of Republican control in Michigan Capitol Confidential. He may be reached worse, and like it or not, any president is the face of his is still producing remarkable policy results that help at [email protected]. party for most voters, even for state-level elections. lift the entire state. Democrats are galvanized against And this president is almost uniquely divisive for those Republicans but far from united behind anyone on the left (and some on the right), and mercurial for all. or anything. The 2018 elections are shaping up as a referendum on As for us, if political insiders continue to panic, so DJT so anyone running as an “R” on the ballot, no matter what? They're not always right, as Trump's election so where they stand on policy, will be treated by voters as dramatically proved. a proxy for Trump. If the president is doing well at the Why must a policy institute concern itself with time of the election, his party is likely to do well. But if political considerations? Because all policy moves he isn’t, his party will likely do poorly. In this sense the through a political process. Michigan elections will be nationalized. If the political environment changes, our approach The GOP is divided and some within it are may change. But our goals won’t. Ideas are paramount, demoralized. Not completely and not irreparably, but not politics, parties or personalities. No one who follows VISIT US AT the situation seems new and unsettling to those with our work will confuse us with a reflexive defender or fewer years of experience in politics and those prone to opponent of any particular political party. A party may short-term thinking. shift to defense when it finds itself in the minority, but A number of special elections around the country of you can count on the Mackinac Center to stay on offense MICH late have produced Democratic victors or very strong for free markets, limited government and individual performances by Democrats. Several Republican liberty, no matter the party and no matter what. + members of Congress who face competitive races are retiring rather than risking defeat. House Speaker CAP Paul Ryan, one of the few politicians to produce a serious plan to control entitlement spending, will not seek re-election. The political opposition is motivated and energized CON Joseph G. Lehman to a fever pitch. And in Michigan, there is some level of President .COM plain old fatigue with nearly eight years of Republican control of the governor's office, both houses of the Legislature, the officially nonpartisan Supreme Michigan Capitol Confidential JUNE 2018 | 4

Detroit People Mover Maintenance Worker Paid $174,602 In 2017 Transit system loses nearly $10 per rider BY TOM GANTERT Three of the monorail’s four maintenance Altogether, there were 11 People Mover The 2.9-mile downtown Detroit shift supervisors also collected six-figure employees who were paid more than monorail loop lost an average of $9.89 on The highest-paid employee of the $100,000 by the city in 2017. Detroit People Mover monorail train last pay while having base annual salaries of every trip it provided in 2016. The cost $61,131. One individual collected $105,456, People Mover spokeswoman Ericka year wasn’t the general manager. It was Alexander said the 2017 earnings included per trip was $10.51 and the average fare another was paid $135,395 and the third a maintenance employee who had a base overtime and leave-time payouts. Alexander was 62 cents, according to a website that salary of $57,220 but ended up collecting made $161,368. also said the Detroit Transportation tracks transportation data. According the $174,602 in total. Four people with the job title of Company hasn’t overspent its budget. It did city of Detroit's 2017 consolidated annual The employee had the job title of “electronic “mechanical technician I” also were paid spend 16 times more than it collected as technician II.” The general manager of substantially more than their base salary of revenue from user fares, though. financial statement, the People Mover cost Detroit People Mover earned $119,565. $46,404. One made $111,182, another made “The majority of individuals earning $25.4 million to operate in 2017. The system The figures came in response to a Freedom $105,109 and the last two were paid $94,322 overtime are responsible for all facets of the is sustained by grants from the city, state and of Information Act request filed with the operations and maintenance of the Detroit + and $95,154 respectively. federal governments. city agency that operates the People Mover, People Mover (DPM),” Alexander said in but the information sent did not include Two “system control operators” had base an email. “There are 12 vacancies in these names. The agency is named The Detroit salaries of $53,144 but finished 2017 with divisions that DTC is seeking candidates The original version of this story was Transportation Corporation, but describes six-figure salaries. One collected $102,729 to fill. We have few employees who earn posted online on April 10, 2018 and is itself as a unit of the city of Detroit. while the other was paid $100,962. annual salaries of six figures.” available at MichCapCon.com/25520.

HIGH-INCOME COPS 2015. He was made the permanent police collecting a pension as young as age 50 or “I would also like to note that Mr. Murphy from Page One chief on Jan. 14, 2016. He would retire just even sooner. Like Murphy, some retired diligently and professionally served the 18 months later. police boost their income further by City of East Lansing for over 30 years, Just two years earlier, Murphy was a Murphy received the lump sum payments launching second careers. safeguarding the community by protecting captain in the East Lansing department for unused sick time and leave time in his Murphy didn’t respond to an email lives and property,” Lahanas said. with annual compensation of $96,362. The final year. Under state law, the $28,853 worth seeking comment. His current position is OpenTheBooks.com is a nonprofit that gap between that amount and Murphy’s of accrued leave time was used in the director of security for the MSU College of has posted several years’ worth of salary final gross pay of $157,258 highlights how formula that calculates Murphy’s annual Human Medicine. data for nearly every government worker in high-level police — and some other public pension payouts, which he was eligible to East Lansing City Manager George Michigan and other states. OpenTheBooks' officials — can use state and municipal begin collecting immediately. The leave salary information contributed to Lahanas said that he didn’t think that Murphy + retirement systems to their advantage and time boosted his annual pension payout by this story. how lucrative they can be. about $7,900. acted to maximize his retirement benefits. According to the city of East Lansing, It is not unusual for police retirement Lahanas said in an email that Murphy would The original version of this story was Murphy was a police captain before being systems to allow employees with sufficient have had a bigger pension had he stayed on posted online on April 5, 2018 and is promoted to interim police chief on July 1, seniority to stop working and begin for two more years as police chief. available at MichCapCon.com/25505.

SPIKED PENSION Monroe’s base pay his last year was from Page One $93,922, according to the city of Ann Arbor. If his pension benefit amount were Arbor created for its employees allows based on his base pay, his pension would overtime to be used in its benefit formula. be $80,000 a year. Monroe is the secretary and a trustee of These compensation and pension that system, representing members of the calculations are based on information police department. received from the city of Ann Arbor in No one disputes that Monroe worked the response to several Freedom of Information hours, or suggests that city rules or the union Act requests. contract limit this. Colleagues say he works Wendy Orcutt, the executive director as many extra shifts as he can, and the record of the City of Ann Arbor Employees’ Retirement System, did not return an shows that was not just in his last year with + the city. email seeking comment. The past 10 years, Monroe’s gross salary has The original version of this story was averaged $133,334 a year, boosted by tens of posted online on May 9, 2018 and is thousands in annual overtime. available at MichCapCon.com/25574. Michigan Capitol Confidential JUNE 2018 | 5 Ann Arbor’s $307,000 Firefighter Some city employees hit the jackpot upon retiring

BY TOM GANTERT A third example is Ann Arbor police officer Christopher Wooley, who retired in 2017 with When Gretchen Virlee-Wagner, an $158,839 in payments. Wooley’s base salary assistant training officer with the Ann was $83,345 that year. Arbor Fire Department, retired in 2017 she collected $307,516 in total compensation for All three of these individuals are also the year. eligible for city pensions. Virlee-Wagner’s annual base salary in 2017 The New York Times published a story this was $90,376, according to the city. But she week about how public sector employees are used payments for unused compensation losing their foothold in the middle class. time, vacation time and sick time to boost “It’s a tough time to be working in that final year’s income. government,” said Neil Reichenberg, “Ms. Wagner retired, and the salary shown executive director of the International includes the pay-outs for her accumulated Public Management Association for Human compensation time, sick pay, and vacation Resources, in the article. pay,” City Manager Howard Lazarus said Some of the salaries cited in this story came Virlee-Wagner began working for the city in compensation details. Amy Brow was in an email. “While the City has capped the from OpenTheBooks.com, which contains 1992 and benefited from a contract provision appointed as Ann Arbor’s assistant fire amounts for compensation time and vacation, the salaries of many of Michigan's public that ended in 1999, according to a source within chief in 2015. Brow was also the president and sick pay-out, there are a few long term university employees. OpenTheBooks.com the Ann Arbor fire department. Whenever of Ann Arbor firefighter union. She retired employees who have accumulated large is a nonprofit that has posted several years’ she worked overtime under that old rule, she in May 2017 and collected $179,157 in balances that will get paid-out at retirement.” worth of salary data for many government could take overtime pay, or bank two hours pay that year, which also included salary, According to OpenTheBooks.com, Virlee- workers in Michigan and other states it of compensation time (time off). The current vacation and sick day payouts. Brow’s base + Wagner’s salary in 2014 was $90,692. It jumped gathered through open records requests. to $102,592 in 2015 and $110,581 in 2016. contract trims allows only 1.5 hours of comp salary at that point was $106,870, according According to the city of Ann Arbor, time in lieu of taking overtime pay. to the city. The original version of this story was Virlee-Wagner retired in February 2017 with Virlee-Wagner is not the only recent Brow was then hired in 2017 to be the posted online on April 27, 2018 and is 25 years of service. Ann Arbor employee with noteworthy Ypsilanti Township fire chief. available at MichCapCon.com/25555.

Michigan’s Top School Pension Payouts These retired school officials collect more than twice the average teacher’s current pay BY TOM GANTERT Superintendent Jon Washburn was Iris Salters, a former Michigan Education JON WASHBURN ­— $161,124 collecting $136,027 in 2011. That was then Association president, had the fifth- Former superintendent of Forest Hills During Barbara Fowler’s final year the second-highest school pension payout highest MPSERS pension in 2016 at Public Schools working as superintendent of the Troy in the state. By 2016 Washburn’s payout $147,924 a year. Salters was allowed by School District in 2014, she had 42 years DONALD NEWPORT — $161,124 had grown to $161,124, a $25,097 increase Former president of Alpena of experience in public schools and was state law and the school district where she over a five-year period, making it the third had worked to plug her $235,447 union Community College earning a salary of $222,054. highest in the state. salary into the state pension formula IRIS SALTERS — $147,924 Now retired, Fowler collects an annual In comparison, the average Michigan used to calculate retirement benefits. Former president of the Michigan pension of $145,140 as a member of teacher salary was $62,280 in 2016-17. A The arrangement gives her the system's Education Association the Michigan Public School Employees teacher who worked in the public school Retirement System, or MPSERS. system for 30 years and then retired fifth-highest annual payout. BARBARA FOWLER — $145,140 Fowler’s annual pension payout is the earning that statewide average salary The pension information comes from Former superintendent of Troy sixth-highest currently being paid to a would get an annual pension of $28,026 OpenTheBooks.com, a nonprofit that tracks Public Schools retired public education employee in a year. salary and pension information for local MARK ECKHARDT — $144,012 this state. The annual pension payments of some governments around the country. Former superintendent of the Charlevoix- Albert Lorenzo, a former president of past Michigan school officials rival the Here’s a list of the top eight MSPERS Emmet Intermediate School District Macomb Community College, is collecting annual salaries paid to current top education pensions as of 2016: JAMES MCCANN — $142,728 the highest annual pension payout officials. For example, James McCann ALBERT LORENZO — $204,264 Former superintendent of the Lamphere at $204,264. collects an annual MPSERS pension of + Former president of Macomb School District Individual MPSERS pensions get a $142,728 a year. Before he retired, he was Community College 3 percent annual cost-of-living increase the superintendent of the Lamphere School every year. To illustrate the value of those District, which has about 2,500 students. THOMAS SVITKOVICH — $188,448 The original version of this story was increases, The Detroit News reported The current Lamphere superintendent was Former superintendent of Genesee posted online on April 2, 2018 and is that former Forest Hills Public Schools paid $162,111 in 2017. Intermediate School District available at MichCapCon.com/25497. Michigan Capitol Confidential JUNE 2018 | 6

Millions In Taxpayer Money For Pontiac Theater And Little To Show

BY TOM GANTERT While the theater provided some But the theater, which opened in early 2017, is around In 2015, the state of Michigan’s basic information on its events, it didn’t respond to requests for how due to a constant supply of flagship corporate welfare government subsidies. many full-time employees it has. agency heralded the prospect The city of Pontiac pumped of 150,000 visitors going to Despite the theater’s floundering, $7.5 million into it from 2002 to downtown Pontiac, thanks to a politicians have applauded and 2005 but had little to show for that $4.5 million loan it made. The given it recognition. investment. The renovation was not Michigan Economic Development Gov. Rick Snyder awarded the completed in that time, according Corporation loaned the money to the Michigan Economic companies involved in the theater’s to the Strand Theatre, which, it Development Corporation, and said, would provide 90 permanent restoration the Governor’s Award the building was sold in 2013 full-time jobs paying an average of for Historic Preservation, an to developers. $18 an hour. award created by the State Historic The city of Pontiac has also But millions of taxpayer dollars Preservation Office. provided the theater with a later, the theater has fallen short of State Sen. Jim Marleau, whose 12-year property tax abatement. the state’s aspirations. The theater also has received a Currently, the Pontiac theater district includes the theater, praised $3.5 million tax credit for historic that his brewery is located “in the Public Policy, said the state should has one event publicized on its the project in a May 2 press release. buildings, according to the state. heart of Pontiac, across from the leave investing in businesses to the website, a Michael Jackson tribute “This restoration project has The Illinois Facilities Fund, a Strand Theater.” private sector. show scheduled for June 2. It also increased the quality of life for Chicago-based nonprofit, provided “I don’t want to get into the “There is no reason to hosted a blues concert on May politics,” Roumaya said in a force taxpayers to subsidize Pontiac residents, and the theater the theater with a $750,000 19. A third party has rented the loan in 2016. The fund receives telephone interview, when asked entertainment, either through the is sure to be a destination for facility for a third event that will taxpayer money. about the theater. He said he artist or the theater in which they be held on June 8. According to the surrounding communities, bringing The Michigan Economic came to Pontiac based on his perform,” LaFaive said. "It is not only theater's Facebook page, there has additional economic activity to the Development Corporation gave own business concepts and unfair to transfer money from the been three events thus far in 2018. city,” said Marleau, R-Lake Orion. the theater a $4.5 million loan wasn’t concerned with how other many who do not enjoy the Strand And the Strand Theatre“This great city has struggled from in 2015 and said at that time businesses do. and its offerings to those who do, didn’t have a functioning phone the renovation would provide “a “Hopefully, [the theater] will + the economic downturn of 2008, it is economically unproductive.” number for at least four days in significant economic boost” to the pick up a little steam and be more but this restoration is representative May, something the sponsoring area once it was up and running. successful,” Roumaya said. The original version of this story was company said it was aware of and of Pontiac’s resurgence and Lee Roumaya owns the Fillmore Michael LaFaive, a fiscal policy posted online on May 23, 2018 and is eventually fixed. economic comeback.” 13 Brewery. His website states analyst at the Mackinac Center for available at MichCapCon.com/25601.

Detroit Teachers: Never Mind The $617 Million, What Have You Given Us Lately?

BY TOM GANTERT And according to the Michigan It’s not just Detroit’s Redford Union School District Department of Education, public school district that is received $7,249 per pupil in state In 2016, Detroit Public Schools operations at Detroit Public Schools receiving more money. funding in 2010-11 (not including received a $617 million bailout Community District are among the One Detroit Federation Teachers local or federal money). That approved by the state Legislature, best-funded in the state. union member held up a sign translates into $8,214 per pupil if wiping out the debt incurred by The Detroit public school that read: measured in 2018 dollars. years of the district spending more In the current school year, district received $14,754 per pupil “DEAR CANDIDATE: IF MY than it took in. Redford Union will receive in local, state and federal funds Just two years later, members of SCHOOL HAD MORE $9,075 in state funding for each the renamed system, the Detroit Some of the signs said teachers for its general fund in 2016-17, FUNDING, I could have smaller student. That’s an $861 per-pupil Public Schools Community could have smaller classes and the most recent year for which class sizes! I LIVE IN Redford” increase over 2010-11 when clean and safe buildings. District, were holding signs data is available. That was nearly That would be the Redford Union inflation is factored in. The average class size in the district complaining that the state isn’t $5,000 per pupil above the state School District, where the local Democratic gubernatorial this school year is 21.59 students. spending enough money on average of $9,910. union belongs to the Michigan candidate Mark Schauer made The median class size is a bit higher As candidates to be Michigan’s school funding one of his top public schools. at 24 students per classroom. In Education Association. next governor begin campaigning campaign themes in 2014, and it The Detroit Federation of addition to the overspending debt The AFT-Michigan union Teachers-Local 231 posted May in earnest, the American member holding up a sign that backfired when his claims of school covered by the bailout, the district budget cuts were widely debunked 10 on Twitter a series of pictures received a financial boost when, Federation of Teachers-Michigan states he lives in Redford should + in the media and elsewhere. featuring teachers holding signs in November 2009, local residents has started its own campaign — know that his school district is that said what they would be able approved a property tax increase to to claim that Michigan taxpayers receiving $5 million more in state The original version of this story was to do if the government “funded pay for $500.5 million in new debt are insufficiently funding their funds than it did in 2010-11, posted online on May 14, 2018 and is Michigan schools.” for building improvements. school districts. despite having 84 fewer students. available at MichCapCon.com/25585. Michigan Capitol Confidential JUNE 2018 | 7

Another Michigan Community Moving Toward Wind Farm Restrictions DTE turbine tower plans for Beaver Township stumble on proposed zoning board recommendation BY EVAN CARTER one of the latest communities to The people who spoke to the According to Gribbs, DTE Martis said the primary craft ordinances dealing with the board cited a number of concerns, has not signed leases with any responsibility of a local planning The Beaver Township Zoning prospective developments. including the environmental members of the Beaver Township commission is to protect the Board voted unanimously on In March, DTE Energy submitted impact of turbines and their government. Wagner said the Thursday to amend a proposed health, safety and welfare of a proposal to the Michigan Public possible effects on hunting as company does not have a rule that those in their communities, not wind farm zoning ordinance for the Service Commission to add well as Midland’s annual hot air would prevent it from doing so. Bay County community. More than broader concerns. 1,000 megawatts of renewable balloon festival. Speakers who In Isabella County, two members “Planning commissions don’t 300 residents from the community generation capacity by 2022. The opposed wind farms outnumbered of the county board signed leases sit down and contemplate how of 2,900, plus anti-wind activists, electricity would come mostly supporters by a 3-1 ratio. with Apex Clean Energy Inc. while to solve global warming,” he said. wind supporters and industry from hundreds of new wind In the weeks leading up to the the board was considering changes representatives packed the small turbines, with the balance coming meeting, both DTE and Great to its wind zoning ordinance. Last “Even if they find something that’s gym of a local church school where from solar collectors. Lakes Bay Region SOS, a group December, several people testified that great, it doesn’t mean they can the meeting was held. If the state commission approves which opposes wind farms, sent at a Michigan House committee place it irresponsibly.” The measure will be discussed the proposal, DTE estimates mailings to area residents. hearing that similar actions took The amendments adopted by at the next zoning board meeting, that it will surpass the amount of Details of the proposed wind place their communities. The the zoning board were suggested with a recommendation that it be renewable generation capacity it farms in the township have not been hearing was on a bill banning such in a document by Martis’ adopted by the Beaver Township needs to secure under the state finalized or approved by the MPSC. conflicts of interest. partner, Toledo-based attorney Board of Trustees, which has mandate. In 2016, the state enacted Matthew Wagner, DTE Energy’s Wagner said that for DTE to Joshua Nolan. the final say. According to wind a law requiring utilities to get manager of renewable energy consider a wind farm project Environmental activist and project opponent Kevon Martis, 15 percent of their electricity from development, told Michigan Capitol viable, it must be able to install Midland County resident Peter the revised zoning would make the renewable sources. Confidential that the company is two to three wind turbines per Sinclair did not attend the meeting township an unattractive place for DTE Energy Regional Manager looking for a development in Bay or square mile. The company also Thursday, but he told Michigan wind farm developments. Carla Gribbs attended the township Midland counties that could include prefers setbacks of 1,320 feet Capitol Confidential he supports The amendments require wind event and was disappointed by 50 to 60 wind turbines that produce from an inhabited dwelling and wind turbines in the area. turbines to have a property-line the outcome. 2.5 to 3 megawatts each. 550 to 750 feet from a property “We need a new business model setback that is four times the height “I think it’s unfortunate that Between July 10, 2017, and April line for a 500-foot-tall turbine. It for rural areas,” Sinclair said. “So of the tower. The requirement the planning commission voted 20, 2018, a subsidiary of DTE also wants noise limits with less would apply to how far the tower to accept the proposed language,” Energy secured 98 easements for restrictive requirements. for farmers who are struggling is from roads and communications Gribbs said. turbine towers from property These preferences are a point of to survive, not allowing them to and electric lines. Turbine towers Gribbs said that while she believes owners in Bay County. Wind leases contention with activists like Kevon make money from wind energy could not be taller than 500 feet the proposal is anti-wind, DTE will are often worth multiple thousands Martis, who has helped people in is unconscionable.” from base to blade tip, and they work with property owners as it of dollars each year. Michigan and Ohio oppose local Previous stories in Michigan could not emit noise greater than anticipates future developments. DTE says the process of getting wind farm development. Martis Capitol Confidential have 45 decibels at the property line. For more than an hour before the local approvals and signing long- suggests that for a 500-foot-tall reported on township elections Due in part to state mandates vote, numerous residents addressed term leases for turbine towers can turbine, setbacks of 1,250 feet that effectively prohibited wind + requiring utilities to use renewable the board, along with activists for and take two to three years. The exact from a property line and 1,750 feet farm developments. energy, the township is one of against wind, DTE representatives, location of the towers then must from an inhabited dwelling are many communities in or near the Bay County Commissioner Michael factor in noise levels, “shadow called for. He also recommends a The original version of this story was Thumb area of Michigan that have Duranczyk and State Rep. Gary flicker” falling on homes, setbacks 40- decibel noise limit as measured posted online on April 28, 2018 and is been eyed for wind farms. It is Glenn, R-Williams Township. and more. at a property line. available at MichCapCon.com/25559.

Kayak Tax Proponents Try to Disguise Cash Grab as Safety Measure BY KAHRYN RILEY Detroit News columnist Michigan. Anyone born before July would put Michigan in a class of teams, it certainly won’t be Daniel Howes describes how to 1, 1996, can legally drive a motorboat its own. While about half the states resolved by creating a new and Last fall, some Michigan overcome this apparent defeat by without completing any mandatory require a boater safety course for sheriffs began calling for a totally unprecedented tax on the using a different tack: “the tax- safety course. And for “personal some operators of motorboats or more than 600,000 people just new tax on nonmotorized the-paddlers crowd might have a watercraft” — jet skis, waverunners sailboats, according to U.S. Coast trying to enjoy Michigan’s great watercraft like kayaks, canoes more compelling argument if the and the like — a boating safety Guard, no state requires a and paddleboards. They say that proceeds from the registration fees certificate is only required for boater safety certification for the outdoors. Kayak tax proponents requiring Michiganders to register were earmarked for safety training.” people born after 1978. Howes operation of paddle craft. should seek other avenues for these boats will generate needed Howes cites the argument that if is essentially proposing creating Attempting to recast this naked identifying and remedying alleged + revenue. Although both the House motorboat operators must take stricter regulations for paddling a cash grab as a public health and funding shortfalls. and Senate have passed resolutions safety courses, paddlers should be kayak than for flying around in a safety measure is misguided. If opposing the “kayak tax,” some required to do the same. 300-horsepower Four Winns. there really is a problem with The original version of this story was proponents of the tax haven’t given But not all motorboat operators Further, requiring paddlers to funding Michigan’s water-related posted online on May 16, 2018 and is up on getting it passed. have to take safety courses in obtain a boater safety certificate infrastructure or first-response available at MichCapCon.com/25591. Michigan Capitol Confidential JUNE 2018 | 8

FIVE YEARS Union Membership and Political Spending in Michigan Since Right-to-Work election years of 2012 to 2016 has been more from Page One Membership Membership Membership Political/Lobbying Political/Lobbying Political/Lobbying than halved from $1.2 million to $442,882. Union 2012 2017-18 Change Spending 2012 Spending 2016 Spending Change The association has had constant infighting — 11 percent — and a decline in political UAW 382,513 430,871 13% $29.9 million $13.2 million -56% and allegations of waste in the past few years, spending of $26 million — or 57 percent. MEA 117,265 87,628 -25% $4.84 million $2.47 million -49% with several locals disbanding or switching to The UAW, an international union with other unions. Teamsters 45,625 38,659 -15% $150,660 $122,667 -19% many members in other states, has strongly Operating Engineers 324 had 15,007 dues rebounded with the auto industry. If AFSCME 48,625 32,595 -33% $3.5 million $240,010 -93% payers in 2012, but it was down to 13,810 in you remove its numbers from the count, UFCW 28,509 27,063 -5% $328,033 $54,697 -83% 2017. The union peaked at 16,298 in 2010. Michigan’s 10 largest unions have lost nearly Political spending from the presidential 137,000 members — 33 percent of their total AFT 24,976 18,426 -26% $844,766 $319,766 -62% election years of 2012 to 2016 more than — since right-to-work went into effect. From SEIU 47,805 21,919 -54% $1.2 million $442,882 -43% 2012 to 2016, these groups spent 59 percent doubled from $326,320 to $784,093. Operating Engineers 15,007 13,810 -8% $326,320 $784,093 140% less on politics, even though 2016 featured The Michigan Regional Carpenters had a much closer presidential election. (In Carpenters 14,010 13,613 -3% $473,403 $1.25 million 164% 14,010 members in 2012. It now has 13,613,

Michigan, Barack Obama beat Mitt Romney Nurses 10,424 11,413 9% $745,042 $565,354 -24% representing a modest decline, even as the by 9.5 points in 2012; Donald Trump beat number of construction workers in the state Hillary Clinton by less than 1 percent in 2016.) SEIU Healthcare 55,359 9,719 -82% $3.5 million $291,218 -92% increased by 34,600 jobs (27 percent) since Source: Federal LM-2 documents, 2012 to 2017-18 for members numbers and 2012 to According to federal survey data, the mackinac.org 2012, according to the federal Bureau of 2016 for political/lobbying spending (presidential election years). number of people who belong to public Labor Statistics. Its peak membership came in employee unions has declined, especially at • The United Food and Commercial Workers Membership has declined from 48,625 in 2001, at about 21,000. Political spending from the state and local level. (mostly Kroger and food service employees); 2012 to 32,595 today — down from a peak the presidential election years of 2012 to 2016 But the UAW — Michigan’s largest union increased from $473,403 to $1.25 million. • The American Federation of State, County of 58,550 in 2001, though right-to-work — has recovered, more than making up accelerated the decline. Political spending The Michigan Nurses Association had for other losses. As a result, private sector and Municipal Employees (state and local public workers). from the presidential election years of 2012 10,424 members in 2012 and 11,413 in 2017. union membership has increased by nearly to 2016 has plummeted from $3.5 million The association is the rare union that has been 12 percent since 2012, the year prior to right- Total UAW membership is up significantly, to $240,010. The union had surged in on a steady increase – from 7,703 members in to-work. Membership went from 375,163 to from 382,513 in 2012 to 430,871 today. The membership after entering a little-known 2001 up to a peak of 11,149 in 2013 and then 419,603. Total union membership, after rise has coincided with the increase in auto forced unionization arrangement with former a steady path since then. Political spending bottoming out in 2014, has increased by about jobs in the state, though membership is well Gov. Jennifer Granholm; membership and from the presidential election years of 2012 to 30,000 people in Michigan — from 628,798 in below the recent peak of 701,818 in 2002. funds fell significantly after the scheme 2016 has declined from $745,042 to $565,354. 2012 to 659,285 in 2017. Its political spending collapsed from a prior was disbanded. Employment in health care occupations has But the UAW is the rare union which presidential cycle to the latest one — declining UFCW 951 is composed of food workers been growing. According to the BLS, health hasn’t taken a significant hit. The number of from $29.9 million in 2012 to $13.2 million in in Michigan. Membership has declined from public sector union members has declined 2016. UAW Local 6000, a part of the union 28,509 in 2012 to 27,063 today, and political care and social assistance jobs in the state are from 253,635 in 2012, before right-to-work that represents state employees, does not spending from the presidential election up 38,400 jobs (about 7 percent). took effect, to 239,682 in 2017. The number report membership numbers, but the number years of 2012 to 2016 has plummeted from SEIU Healthcare Michigan, which was of state and local union members declined of Michigan state employees has held steady $328,033 to $54,697. composed almost exclusively of home by 15 percent, from 231,453 to 197,242. This around 47,000. About 16 percent of workers Michigan state government employees are caregivers, has had the largest total collapse decline happened despite the state economy have left the union. Other parts of the UAW, represented primarily by six different unions: in recent years. Most of that is the result of the rebounding, which has stopped the overall which is itself an affiliate of the AFL-CIO, the MSEA, MCO, SEIU Local 517, Troopers Michigan Legislature ending the “dues skim” decline in the number of employees across have also lost members. Association, AFSCME Council 25 and UAW (automatic unionization), the U.S. Supreme Michigan. The number of government The MEA, the second-largest union in Local 6000. Because they represent only Court ruling that caregivers could not be workers in the state, which had been a free fall Michigan, has lost 30,000 members — public sector workers, they do not report forced into a union and the state passage over the previous decade, has held steady at 25 percent — since right-to-work went numbers. But according to state documents of right-to-work. The union has seen an around 600,000 since Michigan went right- into effect. Membership peaked in 2005 at compiled by the Lansing State Journal, each 87 percent decline in membership since 2012, to-work. This signals that the state’s right-to- 130,882 before dropping to 117,265 in 2012 has seen an acceleration in the number of opt- from 55,000 members down to less than work law is the primary reason for a loss in and all the way down to about 87,000 today. outs, ranging from 7 percent to 32 percent. 10,000. Political spending and lobbying costs union membership and dues. (Note: The MEA counts retirees and students Other smaller unions in Michigan have have gone from $3.5 million in the presidential Below is a summary of union membership as membership; we only count full, dues- seen similar declines. election year of 2012 to $291,218 in 2016. in Michigan for most of the state’s largest paying, voting members). Political spending The American Federation of Teachers In the next month, the U.S. Supreme Court unions from 2012 to the current year. The from the presidential election years of 2012 Michigan, which had 24,976 members in information is based on a federal report to 2016 has plummeted from $4.84 million to 2012, is down to 18,426 today. Its membership will announce a decision in the case of Janus v. known as the LM-2, which unions have to file $2.47 million. peaked at 26,860 in 2005, with a decline AFSCME. This decision could grant right-to- if they represent any private sector workers. The next largest union in the state is accelerating strongly after right-to-work. work status to government union members Five unions have more than 25,000 members the Teamsters Local 43, a combination of Political spending from the presidential in nearly half the states, including California, in Michigan. They include: 13 Michigan locals. Membership has declined election years of 2012 to 2016 has plummeted New York, Illinois and Washington. While this • The UAW (state employees andfrom 45,625 in 2012 to 38,659 this year — a from $844,766 to $319,766. will not directly affect private sector workers, 15 percent drop. Reported political and SEIU Michigan is composed mostly of all public employees could be able to choose auto workers); + lobbying spending from the presidential private sector health care workers. The whether to pay dues or fees to their union. • The Michigan Education Association election years of 2012 to 2016 declined from union had 47,805 members in 2012, and (public school and college employees); $150,660 to $122,667. it has 21,919 today. It peaked in 2010 at The original version of this story was • The Teamsters (a variety of public and AFSCME Council 25 mostly represents 49,312 members and has been in collapse posted online on April 20, 2018 and is private sector workers); local government workers across the state. since. Political spending from the presidential available at MichCapCon.com/25539. Michigan Capitol Confidential JUNE 2018 | 9

The Michigan Politicians Who Approved $6 Billion In Business Subsidies New scorecard shows which legislators voted for how much BY TOM GANTERT scorecard’s business subsidy authorizations that came before them during their terms. Democratic and Republican lawmakers Beau LaFave is a first-term Republican state have approved handing out $16 billion in representative from the Upper Peninsula cash subsidies to businesses since 2001, $6 billion of which is included on a voting community of Iron Mountain. He has voted record scorecard attached to a new analysis “yes” on the three subsidy authorizations by the Mackinac Center for Public Policy. that have come before him since he entered The Mackinac Center tally includes office in January 2017. LaFave said the state 37 roll-call votes in both the state House and should be cutting taxes and regulations state Senate, going back to 2001. These were across all sectors of Michigan government on measures that directed the Michigan and make it easier for businesses to operate. Economic Development Corporation to “Generally, I’m not a fan of picking winners give out taxpayer-funded subsidies to a and losers,” LaFave said. relatively small number of select businesses However, LaFave compared selective and industries. business incentives to nuclear weapons The bills scored by the Mackinac proliferation, saying he wished no states Center show the amount of subsidies that For various reasons, not all of these $1.47 billion in business subsidies offered the incentives, but if the government lawmakers authorized, not all of which were measures could be included in the voting while the average Democrat approved in one state has the option to use them, so necessarily collected. Many subsidy deals record scorecard created for the analysis. $1.62 billion worth. should the others. signed with individual companies never Some were part of a much larger measure, Over 17 years, there were 22 lawmakers “Since other states that border mine, like came to fruition, and the money was never such as an omnibus state budget bill, or who voted against every business subsidy Wisconsin, are going to offer sweetheart paid by the state. deals, we have to be competitive as well,” The analysis did not include selective tax tacked onto a major business tax overhaul. approved while they served. In total, the LaFave said. “So if you are talking 1,000 jobs breaks, such as property tax abatements, But House and Senate votes for 37 new laws voting records of 498 Michigan legislators downstate or a couple 100 jobs in the U.P., I’d that don’t result in government writing authorizing $6 billion in subsidies were were scored, which is all of those who have + checks to beneficiaries. The $16 billion included in the legislator scorecard. held office since 2001. Missed votes by be interesting in making that possible.” in cash outlays it did score was spread The analysis shows that state-supported individual lawmakers were not included. The original version of this story was among 71 laws approved by legislators and corporate welfare is a bipartisan activity. There were 217 legislators since 2001 who posted online on May 24, 2018 and is the governor. The average Republican approved scored 100 percent in approving all of the available at MichCapCon.com/25603.

Supreme Court Eyes Unions Politicking With Fees Compelled From Workers Unions spent $1.7 billion on politics in 2016 cycle; a ruling this June could bring that down BY TOM GANTERT Similar stories often downplay that the outcomes relate directly to public policy the Citizens United ruling also struck decisions by government. In a 2014 Rolling Stone article titled, down restraints on political spending by If Janus prevails, government employee “Three New Ways The Koch Brothers Are labor unions. unions will lose their power to compel Screwing Americans,” the author wrote of Largely underreported is U.S. unions spent government employees to pay agency fees. This an “outpouring of money” from billionaires $1.7 billion during the 2016 election cycle, would be equivalent of adopting a nationwide Charles and David Koch. according to an analysis by the National right-to-work law for public employees. The article reflected fears prevalent on the Institute for Labor Relations Research. “The unions spent $1.7 billion on politics left and in the mainstream media related to the Some of that political spending was by in 2016, just about all of which went in a 2010 Supreme Court ruling in the case Citizens union political action committees, which leftward direction,” said Larry Sand, president United v. Federal Election Commission. It are funded by voluntary contributions by of the California Teachers Empowerment held that government restrictions on political union members and others. But 75 percent of Network. “If the Janus case is successful for spending by corporations — including union political spending came from what are the plaintiff, it will be interesting to see how nonprofit corporations organized by called “treasury funds.” This money does not much union political spending habits will individuals motivated by ideology or political come from voluntary contributions, but from be impacted. Will the union spend more views — infringe on free speech rights Mark Janus is an Illinois state employee union “agency fees" and dues. These are fees on right-of-center candidates to attract recognized by the First Amendment to the who sued because he believes these that workers in a unionized workplace are members? Will they be content to keep U.S. Constitution. compulsory union agency fees violate his free compelled to pay to the union as a condition spending on progressives but with fewer In 2016, The New York Times echoed the speech rights by making him pay for political + of employment. members/dollars? Only time will tell.” fears of the 2014 Rolling Stone article with a In June, another case before the Supreme activities he does not support. His lawyers report that the Koch political network planned Court, Janus v. AFSCME, could have major also argue that in the context of a government The original version of this story was to spend $900 million on a political campaign, impact on future political spending by workplace, union collective bargaining posted online on March 14, 2018 and is which the newspaper called “unparalleled.” big labor. itself is inherently a political act because available at MichCapCon.com/25441. Michigan Capitol Confidential JUNE 2018 | 10

Detroit Charters Send More Graduates to College Than Peers Do

BY BEN DEGROW somewhere from a few weeks to several months of additional learning. CREDO cited Detroit charter schools rightly merit charters in Detroit and three other cities attention for helping students improve on as "essential examples of school-level and math and reading tests. But they deliver system-level commitments to quality that other benefits that take longer to emerge. A can serve as models to other communities." new analysis says that a Detroit student who While Detroit’s charter schools deserve attends a charter high school is more likely congratulations for outperforming the local to pursue higher education. district, they should not be complacent. The Michigan Association of Public After all, that district has been rated lowest School Acade­mies, which represents in academic achievement among the nation's charter schools in the state, observed that major cities five straight times since 2009. eight of the top 10 schools in Detroit for The city needs more high schools achieving college enrollment were charter schools. results like Detroit Edison and Universal when enrolling students. All eight of the charter and district schools also completed The numbers come from the Michigan academies to raise the bar further and give charter schools on the list are as likely as two-year and four-year college degrees. Department of Education, and can be easily more students hopes of success. neighboring district schools to serve low- This evidence may begin to validate other As reported by MLive, Michigan charter accessed on an MLive searchable database. income students — if not more so. findings about the long-term benefits of schools outside the Motor City also Detroit Edison Public School Academy The fact that eight of the top 10 schools academic achievement. A recent Mackinac distinguished themselves in sending last and Universal Academy topped the list, in Detroit are charter schools doesn’t Center study estimated that each dollar year's graduates to college. Ann Arbor's with 76 and 75 percent of graduates, necessarily indicate a direct cause and spent by a Detroit charter school will yield Central Academy, which serves a largely respectively, pursuing a college education. effect between attending a charter about two-and-a-half times greater student poor and immigrant student population, Other notable examples of charter schools and enrolling in college. But more lifetime earnings than a dollar spent by the had the third-highest college enrollment helping students beat the odds include Jalen rigorous studies from Florida, one of Detroit school district. This finding results rate in Michigan — the highest, in fact, Rose Leadership Academy, Cornerstone charter schools and one of a tax-credit in part from the fact that the city's charter outside of public schools that get to exclude Health and Technology High School and scholarship program for low-income schools typically take in and spend about students with a poor academic record. Other the two University Prep high schools. students, both indicate that school choice $5,000 less per student. charters that had 2017 college enrollment Unlike the charters on the list, the boosts college enrollment. The increased college enrollment numbers rates above 80 percent were Arbor Prep, two schools run by the Detroit Public The Michigan Department of Education follow other research that highlights the Washtenaw Technical Middle College Prep Schools Community District that finished tracks postsecondary progress for each benefits Detroit students enjoy by enrolling + and International Academy of Flint. in the city’s top 10 — Renaissance and high school's graduates, starting with in a charter school. A 2015 analysis from Cass Tech — have selective standards for the Class of 2014. More evidence should the Center for Research on Educational The original version of this story was admission. But charter schools, like most be forthcoming in future years to show Outcomes at Stanford University found posted online on May 18, 2018 and is other public schools, cannot discriminate how many students who graduated from that each year in a charter gave students available at MichCapCon.com/25594.

Money For Roads Doesn’t Go Where It’s Needed The Most Roads in the worst condition are not a priority BY TOM GANTERT Council of Michigan calls it the “third rail” of The Citizens Research Council said the highway funding. state's system of divvying up the money In a recent social media post, state Sen. Jim doesn’t take into consideration which roads Ananich, D-Flint, indirectly pointed to one “The antiquated and inefficient formula need repairs the most. of the challenges to improving the condition used for sharing road funds with state and “Given the current PA 51 funding of Michigan roads. local road agencies guarantees that much distribution system, it is nearly impossible Ananich, who is the Michigan Senate’s of this funding will not go to those roads to address the funding needs of heavily minority leader, said in a March 20 Twitter experiencing the most traffic or those in traveled roads or roads in greater need of post: “MI Republicans: tossing a few pennies the worst condition,” the council stated in a repair without significantly increasing the in a pothole and making a wish won’t fix our report it released last month. allocation of revenues to those roads with roads. I tried it just to see. Now let’s work The law has not been changed in 67 years, less traffic or that have relatively lesser together to find a real solution.” mainly because in a big state there has never The formula also applies to $175 million in needs,” Craig Thiel, the council’s research Ananich also posted a short video in been a consensus on how to strike a balance general state tax dollars that legislators have director, said in an email. “Under this system, which he throws a handful of pennies into between connecting far-flung communities earmarked to fix roads this year, on top of gas an increase in funding, regardless if it is a pothole. and having smooth roads within them. one-time or ongoing in nature, will result in Michigan roads are funded through Public tax and vehicle registration tax revenue. Of the same percentage increase for each road Act 51 of 1951 (PA 51), which governs how Under existing law, 39 percent of the money that $175 million, $68 million will go to state + agency. This is inefficient.” money gets allocated between state, county available for Michigan roads each year goes roads, $68 million to county projects and and local road agencies. Enacted in 1951, the to the state Department of Transportation, $38 million to cities. The money not spent by The original version of this story was law represented a compromise between rural 39 percent goes to county road commissions the state is divided among 83 counties and posted online on April 11, 2018 and is and urban lawmakers. The Citizens Research and 22 percent goes to cities and villages. 533 cities and villages. available at MichCapCon.com/25521. Michigan Capitol Confidential JUNE 2018 | 11 Michigan Electricity Rates Since 2003: 15 Increases, 1 Cut Consumers Energy gets another rate hike BY EVAN CARTER DTE Energy, the state’s largest electric electricity costs among the 50 states and reliable utility service,” said MPSC spokesman utility, has imposed six rate increases since Washington D.C. Nick Assendelft. Consumers Energy electric utility was 2003, totaling $1.2 billion. During that time, Consumers Energy’s residential customers A spokesperson with Consumers Energy approved for a $65.8 million rate increase DTE implemented one rate decrease worth are getting monthly rate increases averaging told Michigan Capitol Confidential in a this week by the Michigan Public Service $79 million. $1.87 above the amount last approved by statement that even with the rate increases, Commission, the state agency that In 2016, residential customers in Michigan the average electricity rates for consumers is regulates Michigan’s electric and natural the MPSC. Because the commission only lower than the national average. gas monopolies. paid the highest price, on average, for approved about half the increase the utility "Since 2000, electric general rate cases were In addition to allowing Consumers Energy electricity in the Midwest, according to the had requested and began collecting last required periodically to reflect the ongoing to charge higher rates, the MPSC also federal bureau that tracks nationwide energy fall, customers who were already paying the costs of investment in new infrastructure approved the Jackson-based energy provider production and trends. higher amount will see their monthly bills earning a 10 percent return on equity — that The Energy Information Administration fall. Michigan law used to allow utilities to to address environmental compliance, is, profit — on its operations. The commission reports that Michigan’s residential raise rates without prior approval, but not any new cleaner and more efficient generation denied the utility’s request to collect a profit customers paid 15.26 cents per kilowatt- longer. But they get to keep that extra money (Zeeland and Jackson), system reliability and of 10.5 percent. hour in January 2018, the most recent month only if the state approves the increase. technology (SAP, smart meters and digital customer experience)," said Consumers This is the ninth time the commission for which data is available. Customers in “The Michigan Public Service Commission + has allowed the company to raise prices on Indiana and Ohio paid significantly less for approved a rate increase for Consumers Energy Energy Spokeswoman Katie Carey. consumers since 2005. The rate increases over a kilowatt-hour of electricity, at 11.09 cents based on expenses and new infrastructure The original version of this story was that period total $912 million. Consumers and 11.82 cents, respectively. As of January investments that the Commission believes posted online on April 3, 2018 and is Energy earned a profit of $616 million in 2016. 2018, Michigan has the 12th highest are reasonable and prudent to maintain safe, available at MichCapCon.com/25500.

Union Files Federal Complaint Against Company For Giving Its Members Raises BY EVAN CARTER $30 an hour. The union officials did not employee who kept working at the facility Derk Wilcox, senior attorney with agree to the wage increase, arguing that long enough to finish a probationary the Mackinac Center Legal Foundation, In one Michigan county, a union filed it would have to go through a collective employment period. The union local never believes the NLRB’s original decision will a federal complaint to stop an employer bargaining process. agreed to the bonuses. be upheld by the court. from giving raises, at least without The company raised wages anyway. The UAW filed charges against the “Even though taking away their raises its permission. In subsequent meetings between the company with the NLRB. It then issued a will hurt the workers, the UAW is likely The National Labor Relations Board company and the union, the two parties complaint, arguing that the auto supplier to win this legal battle,” Wilcox said. “The ruled that Lenawee Stamping Corporation couldn’t come to an agreements over labor law is designed to give the union must take back wage increases and a bonus had violated federal labor law. After a one- how to modify the existing collective control, even if it hurts the business. Here, offer it made in an attempt to attract more day hearing, an administrative law judge bargaining agreement. the stamping company desperately needs skilled workers. issued an order stating that the company In March 2016, the company again had violated federal law by raising to recruit and hire new employees to The matter is now in a federal appeals announced it planned to raise wages wages and offering bonuses without the meet demand, but the UAW would rather court, with the company pushing back without first consulting the union. This union’s consent. reward long-time union members than see against NLRB. The independent federal time, it raised the starting wage of a At the union’s request, the NLRB then the company grow and hire more people.” agency says the company violated its semiskilled worker from $10 per hour to Kirchhoff Automotive, the parent collective bargaining agreement with $10.75 per hour. In April it notified a union ordered the company to rescind the wage company of Lenawee Stamping, did the United Auto Workers union when it representative that it was going to raise the increases and offers of bonuses. not return a phone call or email offered the wage increases and bonuses starting wage of semiskilled workers again, “The Company insists that its decision requesting comment. without the union’s agreement. this time to $11.50 an hour. The union to increase wages was necessary given According to documents filed with didn’t agree to either raise. the Company’s inability to hire and retain A spokesperson with the UAW said in an email that the union does not comment on the NLRB, the plant manager met with In March 2016, the company also employees,” said the NLRB in an argument + two officials of the union local, including announced it would begin paying current to the U.S. Appeals Court. “The Company’s pending NLRB matters. its president in November 2015, to employees a $100 bonus for every new motive for modifying the agreement is The original version of this story was discuss raising the starting wage for employee they brought into the facility. irrelevant to determining whether the posted online on March 29, 2018 and is skilled employees from $22.19 an hour to It also promised $1,000 to any new modifications violated [federal labor law].” available at MichCapCon.com/25489.

Managing Editor: Tom Gantert Designer: Emily Kellogg

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 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, Michigan Senate and Office of the Governor. All rights reserved. Permission to excerpt or reprint is hereby granted provided that Michigan Capitol Confidential, the author and the Mackinac Center for Public Policy are properly cited.

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Rise In State Revenue Far Exceeds Cost Of Defeated Income Tax Cut Taxpayers would have saved $463 million; latest state revenue estimate up $827 million BY TOM GANTERT $22.9 billion. At a revenue estimating $200 million above the January estimate. conference in January, the consensus was None of these figures include federal money The amount of tax and other revenue that the amount would grow to $23.4 billion that flows into the state treasury. flowing into the Michigan state government for the 2017-18 fiscal year, which ends For context, that $827 million in extra this year and next is now projected to revenue the state is now projected to receive increase more than previously thought, in September. But at the May conference, held this in 2017-18 as compared to the previous year is marking a recurring pattern. far more than the costs of a proposed income The projected increase was announced past week, the agencies increased their tax cut that was defeated last year. The tax at a revenue estimating conference in May, revenue projection to $23.7 billion. That’s cut would have taken $463 million from one of two each year that combine the best $827 million more than those two main the state budget next year. But the proposal estimates of the Legislature’s fiscal agencies accounts received last year. was defeated in the Republican-controlled and Department of Treasury budget officials For the 2018-19 fiscal year, which begins + Michigan House in February 2017. into a consensus estimate. Oct. 1, the agencies’ January consensus Last year, the amount flowing into the was for the state to take in $23.8 billion in The original version of this story was state’s largest two accounts (the General those two funds. But in May, that number posted online on May 19, 2018 and is Fund and the School Aid Fund) totaled was revised upward to $24.0 billion, almost available at MichCapCon.com/25598. Recent Corruption Scandals Involving Some of Michigan’s Largest Unions Embezzlement, financial malpractice plague unions BY JARRETT SKORUP further restricting their growth and power Carpenters and Millwrights pleaded offices around the country. In the past going forward. guilty to embezzling nearly $500,000 from two years, about 300 union offices have In the five years since Michigan became In 2017 and 2018, six people, most of the union. discovered theft, often through audits of a right-to-work state, most of its largest them officials with the United Auto Workers Last year, a former office manager with union finances. unions have seen a significant hit to union, have been charged in a single the International Brotherhood of Electrical Unions that represent private sector their membership, revenues and political multimillion-dollar corruption scandal. The Workers Local 876 was convicted of workers are required by federal law to spending. On average, since 2012, they have union leaders allegedly took millions that embezzling more than $300,000 from the post financial, spending and membership lost 85,000 members (11 percent) and are the automaker FCA provided for worker union. She was sentenced to four years in information online. Associations that spending $26 million less (57 percent) on training and instead spent it lavishly on federal prison. represent exclusively government workers politics and lobbying. trips, shoes, restaurants and other goods. SEIU Healthcare Michigan was placed do not have to post this information, though If you take out the United Auto Workers, a Last year, the former leader of the under an emergency trusteeship in 2017 by states can decide whether to require them national union that has rebounded strongly Operating Engineers Local 324 pleaded its parent organization after allegations of to do so. The Mackinac Center for Public with the auto industry, the 10 largest unions in guilty to forcing businesses and employees financial malpractice came to light. Policy has published a study on bringing Michigan that file federal transparency reports to pay kickbacks, which he spent on alcohol, The recent leader of AFSCME Local 640, financial transparency to public sector have had a net loss of 137,000 members, or meals and a wedding for his daughter. a hospital workers union, was charged unions, where questions often arise about + 33 percent of their total. Two other officials — the then-current with stealing $600,000 from the union spending and disbursements. A loss of members and revenue isn’t the president and financial secretary — also over a two-year period. The charges were only problem for many unions, however. pleaded guilty to taking funds. announced in 2018. The original version of this story was Several of the major unions have had Also in 2017, the former comptroller An investigation by the Detroit Free Press posted online on April 21, 2018 and is corruption scandals in the past two years, of the Michigan Regional Council of found that embezzlement plagues union available at MichCapCon.com/25541. City Denies Alcohol License to Restaurant it Doesn’t Like BY JARRETT SKORUP "I would say more that when we think planned to serve craft beer and liquor from When city officials decide who gets a liquor of unique concepts that would not include local brewers and distillers. The location had license, they should not discriminate based A city in Michigan is denying an alcohol national fast-food chains," DuBuc said. been vacant for nearly four years, but the on their personal opinions about the food license to a restaurant, apparently because "Think locally managed, local concepts that restaurant invested $750,000 to develop it and or atmosphere of the restaurant. If a legal business or individual follows the proper government officials don’t like the style of are bringing a kind of unique flavor and hired 20 employees. If the license had been unique identity." procedures, government rules should be fair service and type of food offered there. approved, they planned to hire 20 more. But the Taco Bell Cantina is locally owned to everyone. And if city officials feel they need According to the Detroit Free Press, Royal "People keep on coming in, wanting slushy — it’s just a franchise of Taco Bell. The to protect local residents from substandard Oak city officials voted to deny an alcohol margaritas," [attorney Jim] Rasor said. "And “cantina” brand is an intentional effort to give food, they should rest assured that market license to a Taco Bell Cantina “after police we don’t have them, and they leave. The competition has been providing that service the restaurant more of a local feel, and it has + expressed opposition.” been rolled out in large cities throughout location is not doing type of numbers that are very well for centuries. Commissioner Kyle Dubuc said that the going to sustain it without these new novelty the U.S. The original version of this story was Taco Bell Cantina didn't fit with the city's The attorney for the owners of the Taco alcohol drinks ... (It) may very well turn into posted online on May 3, 2018 and is vision for the bistro-style licenses. Bell Cantina in Royal Oak said they had another vacant storefront on Main Street." available at MichCapCon.com/25566. Michigan Capitol Confidential JUNE 2018 | 13

Teachers Union Math Lesson: Magazine’s Description Of Michigan School $8,326 Per Kid > $7,462 Per Kid Funding 24 Years Out Of Date

The first “walk-in” demonstrations In 2010-11, the Carman-Ainsworth Wealth of community not the biggest factor sponsored by Michigan teachers unions district received $30.0 million in state dollars in how much schools get protesting alleged cuts in school funding for 4,585 students in 2010-11, or $6,559 per A recent story in The Atlantic magazine Bloomfield Hills Schools received took place May 9. pupil. When adjusted for inflation, this about private versus public schools used The events generated some media is the equivalent of $7,462 per student in $15,927 per pupil for operating expenses in examples from Michigan to illustrate some coverage, such as this from an article 2018 dollars. 2016-17, including local, state and federal of its arguments, but was significantly out by WEYI-TV. In 2017-18, the district received dollars. While this gives it one of the highest of date. “There's a massive shortage of teachers, $39.7 million in state dollars for 4,769 students, general fund budgets of any school system in In particular, author Julie Halpert focused there’s been a massive cut to funding or $8,326 per pupil. the state, several districts that are from far on Michigan’s Bloomfield Hills school and we want Lansing to listen to us,” State-only funding for all public schools less affluent communities are not far from district. In one section she says, “With a tax Michigan Education Association member was $10.80 billion in 2010-11, which was the that funding level. and Carman-Ainsworth teachers union base bolstered by one of Detroit’s wealthiest Flint Community Schools, for example, last budget of then-Gov. Jennifer Granholm. suburbs, Bloomfield Hills High is the kind president Frank Burger told the TV station. It stands at $12.86 billion in the current actually received more funding on a per- The claim by Burger went unchallenged. of public-school districts elsewhere would pupil basis in 2016-17 than Bloomfield fiscal year. In 2010-11, the state spent the only dream of having. ...” FORtheRECORD equivalent of $11.87 billion when stated in Hills. Flint received $20,166 per pupil for says: Michigan FORtheRECORD news media rarely challenge union 2018 dollars, meaning that after inflation, says: At least when its operating expenses in 2016-17. The state spending on schools has increased by it comes to Michigan, the author’s suggestion Michigan Department of Education said assertions that school funding has been cut + in Michigan. $1 billion since then. that schools in affluent communities gets that about $4,200 of that $20,166 was meant State funding for Burger’s school district more overall funding than those that are to address the water crisis. But even without The original version of this story was poorer towns is not true. The statement (not including local or federal money) has posted online on May 12, 2018 and is that extra revenue, Flint schools received increased since 2010-11. available at MichCapCon.com/25584. that Bloomfield Hills’ schools get a level $39 more per pupil than Bloomfield Hills of funding that “public school districts schools in 2016-17. elsewhere would only dream of having” calls The Pontiac City School District’s general for a closer examination. fund received $15,402 per pupil in 2016-17. Bloomfield Hills is a rare exception in the And the Detroit school district received Michigan school funding system that emerged $14,754 per pupil. from a comprehensive overhaul as a result of Schools in these poor communities Michigan’s Golf Courses Will Take Much the 1994 Proposal A ballot measure. Before received significantly more money than voters approved that proposal, local property other “hold harmless” school districts, not taxes provided the majority of school funding, More Water Than Nestle counting Bloomfield Hills. For example, the which created large spending disparities FORtheRECORD Troy School District received $11,345 per The Michigan Department of says: Michigan between schools in rich and poor communities. pupil in 2016-17 for operating expenses, Environmental Quality has approved a environmental regulators analyzed how Proposal A created a new system that reduced $4,057 less than Pontiac. permit to allow Nestle to increase the much water is used by the state’s golf the disparities by combining local and state tax amount of water it draws from a commercial courses in 2004. They estimated that golf revenue in a complex per-pupil funding source The reason Michigan’s poorer urban well in Northern Michigan for bottled courses around the state used 34 million called the “foundation allowance.” school districts are funded at comparatively drinking water. The food and beverage gallons per day for irrigation. Over the One of the challenges that Proposal high levels is they generally get millions company will now be able to withdraw up course of a 225-day golf season — April 5 to A’s bipartisan creators met was to craft a more in federal funding based on the to 400 gallons a minute at its plant in Evart, number of students who come from low- Nov. 15 — that would amount to 7.6 billion formula that increased funding for schools + up from 250 gallons a minute. gallons of water. in poorer districts while holding harmless income households. The approval drew this reaction from If Nestle ran its bottling plant 24 hours the funding levels of richer districts. The The original version of this story was Candice Miller, a former Michigan a day for an entire year, the most water it latter came to be known as “hold harmless” posted online on March 17, 2018 and is secretary of state and Republican member could use would be 210 million gallons. districts — including Bloomfield Hills. available at MichCapCon.com/25445. of Congress who is now the Macomb The state report said that golf course County drain commissioner. sprinklers lose between 5 percent to “Where will Nestle be when the water 40 percent of their water due to wind drift is gone and the community is left with and evaporation. That means as much as nothing, but dust and dirt?” Miller said, according to the news site MIRS. 3 billion gallons of water are “lost” by golf Miller said there may be an initiative to courses every year. try to overturn the decision. According to a county website, In 2016 Miller was elected to head there are 26 golf courses in Macomb County. Klida didn't respond to an email her county’s drain commission, called + the Macomb Office of Public Works, seeking comment. responsible for maintaining the network The original version of this story was of drains that remove standing water from posted online on April 6, 2018 and is low-lying land in the county. available at MichCapCon.com/25511. Michigan Capitol Confidential JUNE 2018 | 14

Seven Ann Arbor Retirees Getting Six-Figure Pensions The highest pension was for $126,216 to former fire chief who worked 25 years BY TOM GANTERT $34,080, but not everyone getting now collects an annual pension salary then was $81,723. His The median household income payments is a former employee. For of $68,036. annual pension is $55,109, or about in Michigan was $52,492 in Seven former city of Ann Arbor example, some surviving spouses The New York Times published a 67 percent of his base salary. 2016, according to an ongoing employees are currently collecting are also receiving benefits. One story on April 22 claiming that the Dean Ball, the deputy director U.S. Census Bureau survey. pensions that exceed $100,000 a person whose husband worked for public sector was losing its middle- of state and local policy for the Ann Arbor’s pension fund owes year, according to records from the the fire department and died in class status with the disappearance Manhattan Institute, said that $68 million in unfunded liabilities city-run pension system. 2003 receives an annual pension of middle-income jobs. amount was in the ballpark of most and is 88 percent funded. The The highest payout is to former of $43,000. Michigan Capitol Confidential public sector pensions. system pays out about $36.1 million fire chief Thomas Schmid, who is Gretchen Virlee-Wagner was has been examining public sector “Many defined benefit public sector in benefits to 1,061 recipients getting $126,216 a year. Schmid + a fire department employee who salaries and pensions in this state. pension plans offer about 60 percent each year. retired in 2002 after 25 years managed to claim a final-year salary According to city of Ann Arbor of the employee’s final average salary of service. of $307,516 in 2017. That amount records, Thomas Arreola was a every year in perpetuity. A generous The original version of this story was The average pension payout from included payouts for unused paid city police officer who retired in system might be closer to 70 or posted online on May 30, 2018 and is Ann Arbor’s retirement system was leave and sick time. Virlee-Wagner September 2017. His base annual 75 percent,” Ball said in an email. available at MichCapCon.com/25613.

Lonely Are The Michigan Democrats Who Oppose State Checks To Corporations BY EVAN CARTER included in a voting record 1 percent of business subsidy that repealed Michigan’s film to be used. I put this reasoning scorecard assembled by the dollars that came before them for subsidy program, which had given in the journal to explain my vote. Only one out of the Mackinac Center for Public Policy. a vote. They were Yousef Rabhi $40 million to Disney in 2013. I have voted against film credits 233 Democrats who have served The scorecard covers 37 votes in of Ann Arbor, Stephanie Chang Robinson later defended in the past. I am unequivocally in the Michigan Legislature since both the state House and state of Detroit and Jewell Jones of her “no” vote in comment on against corporate welfare as my 2001 never voted to approve any Senate over 17 years on various Inkster. All currently serve in Facebook, responding to a voting records since January 2012 of the taxpayer-funded business proposals to authorize $6 billion the House. Michigan Capitol Confidential demonstrates. I am not led by subsidy programs covered by a in cash subsidies for businesses. Robinson did not respond piece titled “What Happened in leadership or lobbyists. I attempt recent analysis of such votes. The average Democrat approved to an email and a phone call Five Days.” She wrote: “I voted to represent the interests of the Rose Mary Robinson, a third- + $1.62 billion in subsidies while requesting comment. against this particular bill because 4th state house district.” term state representative from the average Republican approved Robinson hasn’t voted against it was a ploy to renegotiate with Detroit, is the only Democrat to $1.47 billion worth. every business subsidy that the film industry. My vote did The original version of this story was oppose all the subsidy measures Besides Robinson, three other has come her way, though. In not change the outcome of the posted online on May 26, 2018 and is that came before her that were Democrats approved less than March 2015 she opposed a bill passage of the bill. I was not going available at MichCapCon.com/25609.

99 Teachers In This District Do Union Work on Taxpayers’ Dime — 1 of every 15 BY TOM GANTERT at the school. The figure was District teachers received In the current school year, Republican Senate but was not provided through an open records various amounts of pay for doing 177 public school employees taken up by a Republican House. As a Utica Community Schools request to the state Office of union work, with Parkinson across the state are paid by their “Each dollar these school districts employee, Eliza Parkinson has a Retirement Services, which keeps earning the most and the lowest districts to perform union duties base salary of $107,402 in 2017- spend on union lobbyists is a dollar records on public payrolls. The getting $161. All told this for some portion of their time. taken from classrooms,” said Sen. 18. Most of the time, though, she school year, Utica Community Altogether, school districts will district said there are 97 teachers Marty Knollenberg, a Republican operates as a “ghost teacher” — it will have paid for some amount Schools will pay up to $193,686 pay employees up to $1,877,126 to from Troy and vice chairman of the someone who is paid to educate of union work. The union also to school employees to perform perform union business this year. students but in reality spends the reimburses the school district for union-related activities. ThisThe state doesn’t track whether Senate Education Committee, in a work day on union business. Of costs incurred when negotiations compensation also counts towards unions reimburse those school statement when the bill was first her salary, $92,430 is for work are conducted during work time. the calculations used to determine districts for this expense. introduced. “The last thing parents done on behalf of the teachers Utica Community Schools has the educator’s pension. Legislation has been introduced and taxpayers should have to worry union, for which Parkinson serves 1,447 full-time teaching positions The union contract allows one to ban the use of taxpayer dollars about is whether money is being as the official representative to this year. The district’s contract with full-time school employee to be to pay public employees for siphoned out of classrooms to pay + the district. the teachers union allows the union a full-time union representative. union work. The proposed law is for lobbyists.” Parkinson is one of 99 Utica president to give out 100 days of so- The union reimburses the district Senate Bill 795 which has passed teachers this school year who called release time to other school at the rate of a first-year teacher’s committee but not been taken up The original version of this story was are being paid by the district for employees, who are then paid by the pay, which is $39,310 in the yet in the full Senate or House. posted online on May 1, 2018 and is performing union-related activities district for doing union business. current contract. In 2015, a similar bill passed a available at MichCapCon.com/25561. Michigan Capitol Confidential JUNE 2018 | 15

Two-Thirds Of Last Year’s Gas-Tax Hike Pays Debt On Roadwork Done Years Ago BY TOM GANTERT In the current fiscal year, $206.0 million of As of 2015-16, the state still owed some The current debt goes back to 1989. Both the money Michigan spends on roads will go $1.463 billion on road repairs completed Govs. John Engler and Jennifer Granholm While Michigan politicians are engulfed in to repay principal and interest on this debt, perennial debates over finding more money years earlier. The good news is, no new road championed major debt initiatives to fix roads according to a House Fiscal Agency memo. To debt has been incurred since 2011, and the + for road repairs, each year about $200 million put this in perspective, the state tax increase now and pay for it later. of current state transportation revenue goes that added seven cents to the price of a gallon total amount owed has been coming down: not for concrete and asphalt, but to repay of gas, starting in 2017, was projected to In 2011, the state owed $2.064 billion for road The original version of this story was debt incurred on road repairs completed generate an additional $313 million for road repairs. The high-water mark for Michigan’s posted online on March 28, 2018 and is years earlier. repairs this year. road debt was $2.258 billion, owed in 2009. available at MichCapCon.com/25483.

Bill Bringing State Closer To Ending Asset Forfeiture Abuse Advances in Michigan BY EVAN CARTER Mackinac Center analyst Jarrett Skorup prove by clear and convincing evidence Michigan State Police records indicate co-authored a study on Michigan civil asset that the property forfeited is connected to that in 2016 law enforcement used civil asset The Michigan House Judiciary Committee forfeiture with Dan Korobkin, the ACLU a crime.” forfeiture to take ownership of property voted 8-1 with one member voting present of Michigan's deputy legal director. Skorup Current law that would not change allows from more than 700 people who were on Tuesday to advance to the full House the said the bill is a good step but believes the law enforcement to seize property at the either never charged with a crime, or were main bill of a civil asset forfeiture reform bill should be tweaked in some “small but scene or during an investigation when there charged and found innocent. Out of the legislative package. significant ways.” is probable cause to believe a crime has 5,290 forfeiture cases Michigan adjudicated House Bill 4158 would require a person “This is a solid step in the right direction been committed and the owner is involved. in 2016, less than half involved someone be convicted of a crime before law and lawmakers should be commended for This is often but not always related to drug who had already been convicted of a crime. enforcement agencies and prosecutors taking it up. Hundreds of innocent Michigan cases, and is not generally controversial. More than $15.3 million in cash, vehicles could take ownership of seized cash and citizens lose their property every year Forfeiture happens later, under a legal and other assets was forfeited throughout through civil asset forfeiture,” Skorup said. process that lets law enforcement take other assets, as long as the property is the state in 2016. Since 2000, the state has “We will encourage legislators to ensure permanent possession of a person’s property valued at less than $50,000. forfeited about $20 to $25 million worth of that any assets gained without a criminal with a lower standard of proof than it would Rep. Jim Runestad, R-White Lake, who assets each year. conviction — as abandoned or relinquished take to convict someone of a crime. Since civil asset forfeiture has a lower chairs the House Judiciary Committee, told property — go to the state’s general fund A criminal conviction requires the standard of proof than a criminal conviction, Michigan Capitol Confidential that after rather than back to local law enforcement highest burden of proof — beyond a at times, law enforcement officials have more than a year and a half working on the agencies. This will better protect individual reasonable doubt. If the legislation reported been able to use it to take property even legislation, he’s pleased that the bill passed rights and prevent policing for profit.” by the House Judiciary Committee becomes when other charges are thrown out. out of committee. House Judiciary Committee Minority law, on drug-related crimes the state must Over the past several years, some The Michigan House Judiciary Committee Vice-Chair, Rep. Tim Greimel, D-Auburn convict a person in a court of law before a notorious cases have come to light and votes to advance a civil asset forfeiture Hills, was the only committee member to civil court decides whether the assets were news reports from around the state have reform bill. vote against House Bill 4158. Rep. Vanessa gained as a result of the illegal activity. raised public awareness of this controversial “It’s a balancing act and I think the bill, as Guerra, D-Saginaw, voted “present.” In 2016 the typical Michigan asset law. Michigan Capitol Confidential has “The bill imperils public safety by making forfeiture proceeding involved about it stands now, is a good one,” Runestad said. contributed to this record with stories it much easier for criminals to operate $500 worth of assets, usually cash and Runestad said House Republican leaders involving a former detective, a college and by draining funds from local police vehicles, according to data obtained through student, a 1965 Chevy Nova and a Traverse told him they are interested in the bill. He + departments,” Greimel said in an emailed open records requests to the Michigan State City couple, among others. plans to take up another forfeiture bill that statement. He added, “Moreover, there are Police. Given that low dollar value, critics he sponsored as soon as next week, and already due process protections in existing of the current law say, it’s often not worth The original version of this story was work is continuing on two other reform law: If someone objects to the civil forfeiture it for an individual to hire a lawyer to try to posted online on May 2, 2018 and is bills that still lack a consensus. of their property, law enforcement must get the goods back. available at MichCapCon.com/25563.

Video Sting Group Claims Michigan Union Got Payoff For Alleged Child-Molesting Teacher BY TOM GANTERT tried to remove her underwear. According and got a $50,000 settlement from the to the video report, the alleged abuse school district. A nonprofit group known for undercover occurred as many as 10 times. Much of the video focuses on secretly sting operations released a video Wednesday Years later, when the girl arrived in the taped conversations in 2013 between from its investigation into a Michigan teacher’s own high school classroom, she a Project Veritas operative and Johnny teachers union fighting the dismissal of a accused him of abusing her. The video Mickles, described as a field representative high school teacher accused of sexual abuse + reports that the teacher was forced to resign for AFT-Michigan. involving a young girl. from this school. But it also reports that Project Veritas reports that while dating due to intervention by the Michigan arm The original version of this story was the girl’s mother, the teacher allegedly went of the American Federation of Teachers, he posted online on May 10, 2018 and is into the child’s bedroom, touched her and was allowed to keep his teaching certificate available at MichCapCon.com/25576. Michigan Capitol Confidential JUNE 2018 | 16

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

House Bill 5767 House Bill 4158 House Bill 5100 Let alcohol producers and Require conviction for property Exempt bike racks, tow balls, etc. wholesalers sponsor beer tents forfeiture to police from ban on obscuring license plate Introduced by Rep. Roger Hauck (R) Introduced by Rep. Peter Lucido (R) Introduced by Rep. Holly Hughes (R) To revise the extraordinarily detailed law To establish that property seized from a person To establish that removable bicycle racks, trailer establishing a comprehensive regulatory regime because it may be associated with a suspected hitches, tow balls or similar devices are not on the wholesale distribution of beer, wine and drug crime is not subject to permanent forfeiture included in the definition of “foreign materials liquor, so as to allow manufacturers, wholesalers (loss of ownership) unless an individual is actually that obscure or partially obscure” vehicle license or retailers to get a special license to hold a beer convicted. However, the conviction requirement plates, which is a civil offense. This would also or wine festival in which they provide the sponsor would only apply to forfeitures of less than apply to the object carried by the device. with beer or wine dispensing or cooling equipment $50,000 (meaning police and prosecutors could and a brand-logoed tent. still take and keep assets worth more than that Senate Bill 856 using a lower burden of proof). Welfare and Medicaid budget Senate Bill 863 Introduced by Sen. Peter MacGregor (R) K-12 School Aid budget Senate Bill 826 The Senate version of the Department of Health Introduced by Sen. Goeff Hansen (R) Impose licensure on naturopathic physicians and Human Services budget for the fiscal year The Senate version of the K-12 school aid budget that begins Oct. 1, 2018. This covers welfare and for the fiscal year that begins Oct 1, 2018. This Introduced by Sen. Rick Jones (R) Medicaid spending and is by far the state's largest bill would appropriate a total of $14.732 billion, To impose licensure and regulation on annual appropriation. The bill would authorize compared to $14.580 billion approved last year. naturopathic physicians, with license fees, spending $25.117 billion, of which $18.345 billion Of this, $1.724 billion is federal money. The House education requirements and more. The bill is federal money and the rest is from state and budget version proposes spending $14.823 billion. defines naturopathic medicine as “a system of local taxes and fees. School districts with lower revenue would get practice that is based on the natural healing a $230 increase in per-pupil aid, and higher capacity of individuals.” spending ones would get an extra $115.