The Magazine of the Mackinac Center for Public Policy MAY/JUNE 2015 A LAST STAND FOR CRITICS OF SCHOOL CHOICE Page 13 INTERPRETING PROP 1'S HISTORIC DEFEAT Page 5 Votespotter is now available in more states than Michigan. Make sure you are represented well in over a dozen states, with more to come. State Officials Available In: Colorado, Florida, Maryland, Michigan, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and Wisconsin . U.S. Congress is available in all 50 states. VoteSpotter is a mobile app that connects you to your representatives. Get alerts when they vote, then tell them what you think. It's never been easier to make your voice heard. Download it free at the App Store and Google Play. VoteSpotter.com IMPACT 3 May/June 2015 mackinac.org FROM THE WEB Blog Keep up to date on the latest policy stories from Mackinac Center analysts. Mackinac.org/blog Warmer Weather, Worker’s Choice and Warning Against Corporate Welfare MichiganVotes Want to know what your legislator Hope this latest edition of IMPACT finds If you haven’t been to a Mackinac Center (and others) have been voting for? you well and enjoying the warmer weather. event recently, you’ve missed out on MichiganVotes.org helps keep Michigan politicians accountable The Mackinac Center has also been something special. In this issue, hear about an event regarding the topic of big to their constituents. turning up the heat on its involvement MichiganVotes.org in the areas of its expertise. The center’s business, big government and liberty. most recent study, “Worker’s Choice: Please see page 8. CapCon Freeing Workers and Unions from Forced On June 25, there will be a debate Our flagship news source for the Representation,” proposes a fix to the regarding the topic of money in politics. state of Michigan. Breaking news like issue of unions having to represent Should private citizens be required never before. workers that don’t want to pay them to disclose every penny they give to MichCapCon.org (the study is available at Mackinac. charitable and political organizations? org/S2015-03). The study’s author, F. Hear from both sides of this argument at Databases Vincent Vernuccio, recommends giving the Lansing Center June 25. You can sign Labor contracts, superintendent individuals who have exercised their up at Mackinac.org/21072. salaries, school grading and more. Our online databases provide easy access right-to-work choice the ability to Opponents of school choice want to limit to important information. represent themselves. In addition, he the ability of families to select the best Mackinac.org/databases proposes that unions should be able school for their children in the Motor to deny representation to workers City. Director of Education Policy Audrey who don’t want it. On WJR AM760’s Spalding and Senior Investigative Frank Beckmann show, the host said of Analyst Anne Schieber produced Worker’s Choice, “It is an interesting idea, several video clips of Detroit families a common-sense concept.” Sean Higgins What folks are saying who benefit from school choice and the of the Washington Examiner said “unions about the MAckinac Center harm that would be done if their choices would benefit” with Worker’s Choice. were taken away. Those videos are at Read more about it on page 11. Mackinac.org/21191. Read more of this “Maybe it’s a little The policy of public sector pensions is issue in our feature story on page 13. strange to have complicated, which is why we’ve included Policy Analyst Jarrett Skorup spoke at someone like myself an easy to read and understand visual the appropriations committee in the up here at a Mackinac explanation of Michigan’s pension Florida Senate regarding the issue of Center event, but underfunding problem on page 10. It’s spending tax dollars on film subsidies. I think it actually also available at Mackinac.org/20884. Florida is considering reforms to its speaks to the power Lawmakers have recently showed film program and Skorup shared how of the argument.” interest in switching school employees Michigan’s film incentive program has over to a 401(k)-style plan in which — Jeff Irwin, State not been an effective use of tax dollars. Representative (D-Ann Arbor) workers get to keep their money if Read his testimony on page 12. May 20, 2015, speaking on they leave public employment early. the need to reform Michigan’s A critical feature of such plans is that Thank you for supporting the Mackinac civil asset forfeiture laws. they aren’t subject to the political game Center. It’s a privilege to advance liberty in which governments promise benefits and opportunity for all people. ¬ to employees but then fail to make the Dan Armstrong is director of marketing and required contributions to deliver them. communications at the Mackinac Center. Michael Reitz RECOMMENDS “The Up Side of Down: Why Failing Well Is the Key to Success” by Megan McArdle What can a bad breakup tell us about the GM bailout? Bloomberg View columnist Megan McArdle writes about economics, business, and public policy, and her new book focuses on the value of experiencing failure. Drawing on personal experience and examples from the business world, McArdle argues that setbacks and outright failure are key ingredients of success for individuals and society. “Learning to fail well means learning to understand your mistakes, because unless you know what went wrong, you may do the wrong things to correct it.” IMPACT 3 May/June 2015 mackinac.org LETTER FROM THE PRESIDENT Board of Directors Hon. Clifford W. Taylor, R. Douglas Kinnan Chairman Senior Vice President Retired Chief Justice, and CFO, Michigan Supreme Court Amerisure Insurance Joseph G. Lehman, President Edward C. Levy Jr. Mackinac Center for President, Edw. C. Public Policy Levy Co. Joseph J. Fitzsimmons Rodney M. Lockwood Jr. Five Road Funding Principles Retired President, President, Lockwood University Microfilms Construction Company, Inc. One might live a lifetime without witnessing accommodate emerging technology, Dulce M. Fuller Owner, Woodward and Joseph P. Maguire a political trouncing like the one voters which will make pay-by-the mile, pay- Maple President, Wolverine Development Richard G. Haworth Corporation delivered to Proposal 1 on May 5. by-the-ton, or both, instant and Chairman Emeritus, Haworth, Inc. Richard D. McLellan The complex measure to annually JOSEPH G. frictionless for any type of vehicle, Attorney, McLellan Law Kent B. Herrick Offices devote $1.2 billion more for roads LEHMAN including hybrids. Oregon President and CEO, Thermogy D. Joseph Olson by raising taxes $2 billion didn’t just is experimenting with this. Retired Senior Vice J.C. Huizenga President and General fail, it was vaporized in an historic 20-80 rout. President, Westwater Counsel, Amerisure • Identify and recommend ways to assign Group Companies Some Prop 1 proponents say they now discern more money out of current revenues Board of Scholars a new consensus to raise taxes to fix the roads, to roads. This means reassign state Dr. Donald Alexander Dr. Dale Matcheck even though that is not the most obvious spending from programs with lower Western Michigan Northwood University University Charles Meiser interpretation of their 60-point margin of priority to the roads until they are Dr. William Allen Lake Superior Michigan State State University (ret.) defeat. While Prop 1’s failure may have made adequately funded (and we believe University Glenn Moots even a small tax increase more difficult, the an additional $1.2 billion is the Dr. Thomas Bertonneau Northwood University SUNY - Oswego Dr. George Nastas III Mackinac Center’s ideas remain untarnished right number). My colleagues Mike Dr. Brad Birzer Marketing Consultants Hillsdale College by the blowout. Todd Nesbit LaFaive, James Hohman, and Jarrett Dr. Peter Boettke Ohio State University George Mason Dr. John Pafford Skorup have done more than anyone University So what are the Mackinac Center’s road Northwood University Dr. Theodore Bolema to identify more than $2 billion in Dr. Mark Perry funding principles? We point to the free- Mercatus Center University of Michigan market ideal — True North, if you will — and questionable spending that could Michael Clark - Flint Hillsdale College be devoted to roads. The Michigan Lawrence W. Reed chart a path that leads there even when it’s Dr. Stephen Colarelli Foundation for Economic Development Corporation Central Michigan Economic Education not yet politically possible. University Gregory Rehmke consumes hundreds of millions of Andrew Coulson Economic Thinking/ We have a way of patiently helping the Cato Institute E Pluribus Unum Films public dollars, much of it doled out as politically impossible become politically Dr. Richard Cutler Dr. Steve Safranek corporate welfare in a program cloaked University of Michigan Private Sector inevitable, to borrow Milton Friedman’s (ret.) General Counsel in secrecy and whose results hardly Dr. Chris Douglas Dr. Howard Schwartz phrase. Our two-decade march for right-to- University of Michigan Oakland University ever match its boastful claims. So start - Flint work comes to mind. Dr. Martha Seger Dr. Jefferson Edgens Federal Reserve Board with the MEDC. It’s hard to think of a Thomas University (ret.) Might a consensus now form around our state asset more central to economic Ross Emmett James Sheehan James Madison College Deutsche Bank approach to roads? development than decent roads. Dr. David Felbeck Securities University of Michigan Rev. Robert Sirico • Advocate for high quality, well-funded • Refrain from advocating for bigger (ret.) Acton Institute for the Dr. Burton Folsom Study of Religion and roads as a public good that serves government overall. Imposing new Hillsdale College Liberty taxpayers’ interests. Taxpayers will John Grether Dr. Bradley Smith road taxes should be a last resort Northwood University Capital University Law School pay for poor government roads one as long as lower priority spending Dr.