Michigan Capitol Confidential

Benefit Costs Sunk Benton Harbor's Finances

Wed, 08 Feb 2012 06:30:00 -0500

By Tom Gantert | 2/8/2012

Most union contracts don't last eight years. But in Benton Harbor they did and keeping a deal in place for eight years cost the city dearly.

Under that deal, Benton Harbor was giving raises as high as 15 percent to some of its employees and paying for 100 percent of health care premiums for all its employees. Also, employees contributed just 3 percent of their salary to their defined-benefit retirement plans. http://www.michigancapitolconfidential.com/16436

Commentary: Rep. Ray Franz — Hero of Home Repair Tradesmen

Wed, 08 Feb 2012 06:29:00 -0500

By Jack McHugh | 2/8/2012

Occasionally, a legislator does the right thing and deserves recognition. Based on a new bill to strike a blow against overly intrusive big government on behalf of the home repair tradesmen and entrepreneurs, Rep. Ray Franz, R-Onekama, is one of them. http://www.michigancapitolconfidential.com/16433

Rosy Solar Jobs Projections Fail To Live Up To the Hype

Tue, 07 Feb 2012 06:30:00 -0500

By Tom Gantert | 2/7/2012

In the final days of Gov. Jennifer Granholm’s tenure, the state Department of Energy, Labor & Economic Growth trumpeted the success of green jobs created in the solar industry. “Total job creation projected of 21,592” the April 12, 2010, DELEG presentation claimed.

Almost two years later, the large majority of those jobs never saw the light of day. Even if they had come to fruition, they would just be a small part of the entire Michigan economy. http://www.michigancapitolconfidential.com/16425

The Unequal School Funding Myth

Tue, 07 Feb 2012 06:29:00 -0500

By Michael Van Beek | 2/7/2012

Public school special interests groups uniformly lobby for the state to give more money to school districts. To sell this idea to policymakers and taxpayers, these groups often claim that schools need "adequate," "stable," and "equal" funding. These talking points give rise to some common myths about school funding in Michigan. The short video below examines one of these myths: The Unequal Funding Myth. http://www.michigancapitolconfidential.com/16426

SEIU Sent Key GOP Senator $5K on Day Bill to End 'Forced Unionization' Arrived in Senate

Mon, 06 Feb 2012 06:30:00 -0500

Home health care unionization continues

By Jack Spencer | 2/6/2012

Michigan Senate Appropriations Committee Chair Roger Khan, R-Saginaw, received $5,000 from the Service Employees International Union on June, 9, 2011. That was the day House Bill 4003 was sent to the Senate, one day after its passage in the House.

HB 4003 was drafted to end the Home Healthcare Dues Skim, under which the SEIU has received more than $28 million http://www.michigancapitolconfidential.com/16413

Analysis: School District Turns Down $270K Savings

Mon, 06 Feb 2012 06:29:00 -0500

By Kyle A. Jackson | 2/6/2012

Portage Public Schools had an odd reaction to some good financial news this week, telling a company that could save it $270,000 a year "no thanks." That offer came from Grand Rapids Building Services, a facilities cleaning contractor that proposed taking over the school district’s first shift custodial duties. http://www.michigancapitolconfidential.com/16422

Projections vs. Reality — Should Politicians Make Job Creation Claims?

Sat, 04 Feb 2012 06:30:00 -0500

By Tom Gantert | 2/4/2012

Michael LaFaive says Michigan residents have had their fill of erroneous job projections from politicians.

“There was no accountability for Gov. Granholm who gave out predictions like candy on Halloween,” said LaFaive, director of the Morey Fiscal Policy Initiative for the Mackinac Center for Public Policy. “Have we already forgotten, ‘In five years, you’ll be blown away'?” http://www.michigancapitolconfidential.com/16415

Commentary: If the Monopoly Title Fits, Wear It

Sat, 04 Feb 2012 06:29:00 -0500

By Michael D. LaFaive | 2/4/2012

The Michigan Beer and Wine Wholesalers are arguably the greatest beneficiaries of an archaic liquor control code. It reads as if it were written for these lucky few members of a hereditary and elite millionaire’s club. http://www.michigancapitolconfidential.com/16414

Taxpayer Costs For Average State Employee Increased From $79K in 2001 to $95K in 2011

Fri, 03 Feb 2012 06:30:00 -0500

Dems claims state employees 'gave back' $500 million in concessions — facts say otherwise

By Tom Gantert | 2/3/2012

In 2001, the state paid $3.9 billion to 62,057 full-time employees, an average of $63,474 in total compensation for each employee. In 2011, the state paid $4.7 billion to 47,818 full-time employees, meaning total compensation per worker jumped to $97,883. The Mackinac Center received the compensation data in a Freedom of Information Act request from the state’s Civil Service Commission.

When adjusted for inflation, the state spent $4.8 billion in 2001 on employee compensation and $4.5 billion in 2011 despite having 23 percent fewer workers. Average compensation increased from $78,999 in 2001 to $94,888 in 2011 when adjusted for inflation. http://www.michigancapitolconfidential.com/16406

Analysis: The Unstoppable Teacher Pension Fund Monster

Fri, 03 Feb 2012 06:29:00 -0500

By James M. Hohman | 2/3/2012

The state’s teacher retirement system continues to increase burdens on taxpayers and local school districts. The costs exploded in the recent years, and without substantial reform there is no reason to expect that trend to change. http://www.michigancapitolconfidential.com/16387

Award-Winning Reporter, Editor Joins Michigan Capitol Confidential as Managing Editor

Fri, 03 Feb 2012 06:28:00 -0500

Manny Lopez, a 14-year journalism veteran who most recently served as editor of The Detroit News opinion page, has joined the Mackinac Center for Public Policy as managing editor of Michigan Capitol Confidential. Over the years, Lopez worked at The News as an editorial writer, columnist, reporter and automotive editor, winning awards for coverage of the GM bankruptcy, health care and other issues. http://www.michigancapitolconfidential.com/16412

Home Health Care 'Dues Skim' Worse Than Previously Thought

Thu, 02 Feb 2012 06:30:00 -0500

'This is Crony Unionism'

By Jack Spencer | 2/2/2012

According to figures provided by the Department of Human Services, far more home healthcare providers were ensnared in Michigan's “forced unionization” of 2006 than previously believed. There are 60,190, which is more than 25 percent higher than the 43,000 reported up to now. http://www.michigancapitolconfidential.com/16405

Commentary: Right-to-Work-for-Yadda-Yadda-Yadda

Thu, 02 Feb 2012 06:29:00 -0500

For the umpteenth time: No, wages won't collapse.

By Paul Kersey | 2/2/2012

If there is a challenge in defending the right-to-work concept, it isn't researching or writing, it's boredom. Union officials continue to tell the same stories. After a while the material you have to read through and rebut gets repetitive. http://www.michigancapitolconfidential.com/16393

Nation’s Highest Gas Tax Coming To Michigan?

Thu, 02 Feb 2012 06:28:00 -0500

By Jack McHugh | 2/2/2012

Michigan could potentially have the nation’s highest gas tax if Gov. Rick Snyder’s proposal to replace the state motor fuel tax with a higher wholesale tax becomes law. http://www.michigancapitolconfidential.com/16407