Government-Backed Green Energy Company Sweetens Package For Top Executives Despite Mounting Problems

One of the showcase companies of the green energy movement propped up by the federal stimulus questioned in recent filings with the Securities and Exchange Commission whether it can survive with its mounting debt and problems with defective batteries.

Yet, even with its struggles, its top executives were awarded sweetened severance packages that would give them an extra six-figures in payout if they lose their jobs. more …

Oops, House Committee Chair Not Sure How Union-Friendly Language Got Into Teacher Pension Bill

If the language is not removed, anyone who works for a private business but does contract work for a school could be considered a public employee. Snowplow drivers, janitorial service providers and food service providers are some of those who would be affected.

Government unions have been trying to expand the definition of who is eligible to be a public employee. Under former Gov. Jennifer Granholm, unions were able to claim day care workers were public employees and subsequently unionized. more …

Analysis: Michigan’s Long History of Government Pension Problems

Michigan policymakers set aside $133 million to reform the school pension fund in the budget last year and convened a workgroup to brainstorm curbing the system’s growing $17.6 billion unfunded pension liability.. The workgroup’s report only reaffirms the earlier underfunding warnings: There is no easy way out of this mess. What’s especially disappointing is that the drafters of the state’s constitution clearly wanted to avoid accruing liabilities, period. more …

Personal Property Tax Phase-Out Matters For Michigan

An eight-bill package has started moving through the legislature that would phase-out the person property tax, which affects business tools and equipment and is viewed by some as a detriment to doing business.

“The legislature found a way to wind down a tax that is, dollar-for-dollar, the most economically destructive in the state,” said James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy. more …

Ecorse: Regaining Control

Ecorse, in the shadow of Detroit, has struggled since 1986 with corrupt public officials and overspending. In 2009, former Gov. Jennifer Granholm elected Joyce Parker as Ecorse city manager. By privatizing most services, restructuring the city's debt and renegotiating union contracts where she could. From spending $5 million more a year than it took in, Ecorse has achieved solvency in the face of bankruptcy. "She has been a savior for our city," says city resident William Holmes. more …

Intimidation, Threats Take Place of Civil Discourse

Mike Barnhardt, president of the Sunshine Review, said transparency has become a “bastardized” term.

“Transparency is not about private responsibility to share private investing or private contributions or anything you want to do with your money,” Barnhardt said. “Donor issues or donor lists aren’t transparency issues. Those are First Amendment and privacy issues.” more …

No Relief In Sight For Home Health Care Workers

Capitol Confidential contacted the governor's office and asked if that means the dues flow will stop on that date. The governor's office has not responded to requests for answers to that question.

If the answer is yes, it would be the first confirmation that the administration has a date in mind for ending the “skim.” more …

Commentary: Two Cheers for Teacher Pension Reform Bill

Center analysts have been pretty tough on Senate Republicans who in recent days progressively watered down proposed school employee pension reform. However, when the time came to stop talking and start voting, the Senate made a pretty good down payment on desperately needed reforms. Referring to one major reform provision added late in the process, Senate Majority Leader Randy Richardville, R-Monroe, said to reporters, “Tell the Mackinac Center that, OK?” more …

Commentary: States and Federal Government Should Stop Funding Higher Education

Grove City College in Pennsylvania (my alma mater) is called “an exception to the rules of higher education.” The school is ranked 87 out of 87 of the Keystone State's institutions of higher education in its tuition, room and board. Yet Grove City College, like Hillsdale College in Michigan, accepts no direct or indirect government funding, and its students get no federal grants or loans. more …

GOP's 'No' Votes On School Choice Defend Their Decisions

Legislative candidates fill out a lot of questionnaires from interest groups in election years.

Some stick with their answers if they are elected; others flip flop when it comes time for an actual vote, which doesn't sit well with the groups that asked the questions, or with voters who want elected officials to stay true to their word. more …

Michigan Senate Takes Up Bill to Ban Government Union Stewards Working on Taxpayers' Dime

Chippewa Valley School District paid a combined $208,287 in compensation for two union personnel to deal 100 percent with union issues. One of those teachers sits on the Michigan Education Association’s board of directors. Chippewa Valley asked residents to approve a $27 million special education millage increase last November. more …

Expensive Janitorial Contract Forces Cuts

While the state of Michigan was facing a $1.5 billion deficit in 2009, the Ortonville-Brandon Public School Board of Education signed a four-year deal with its custodians and maintenance people that would pay for 90 percent of their health care premiums.

The family plan for the luxurious MESSA health plan cost $17,171 in 2010 or about $2,000 less than what it could have cost the district to pay the salary of a new custodian. more …

Commentary: Productivity Leads To Prosperity

Mlive columnist Rick Haglund is worried that a proposed cut in the property tax now imposed by the state and local governments on business tools and equipment "may be a job killer," because it would facilitate producing more goods and services per worker.

A simple case study, however, reveals why few serious economists actually take the notion of increased productivity killing jobs seriously. more …

Union Money Helps 'Dues Skim' Stay Alive

Based on emails obtained by Capitol Confidential, after the dummy employer in the “home health care dues skim,” was defunded, the Service Employees International Union (SEIU) donated at least $12,000 to help keep it going. In addition, Susan Steinke, executive director of the dummy employer, moved its headquarters into her home.

Emails also show that Steinke could work no more than five (5) hours a week (later no more than 3 hours a month) for the dummy employer. Her hours were limited in this way in order to allow her to qualify for unemployment insurance benefits. more …

Union Friendly GOP Legislator Spurned by Big Labor

State Representative Dale Zorn has often been a Republican ally to public sector unions by trying to thwart some of his own caucus' reform efforts. Yet, when Rep. Zorn cast the deciding vote in May in favor of Senate Bill 619, which lifted some restrictions on enrollment in cyber charter schools, it infuriated the teacher unions and their allies. more …

Biased Message Pitched in Taxpayer Funded Textbook

Students in high schools around Michigan and the nation are being taught how former U.S. Representative Carolyn Cheeks Kilpatrick, D-Detroit, was “more interested in finding solutions than focusing on politics,” according to a 2005 American Government textbook still in use. more …

Alcohol Regulation Study: No Advantage To Tighter Restrictions

Michigan’s alcohol regulatory system contributes to higher costs for the public without providing discernible public health and safety advantages, according to a new study. more …

Energy Debates Heat Up As High Electric Rates Continue

Residents and businesses in Michigan are wrestling with the highest electric rates in the region — and with the best way to fix that situation.

As is often the case in Michigan, a more competitive market versus a monopoly market is central to the debate, as is mandating an increase in the amount of renewable energy the state uses. more …

How CapCon Uses Transparency Laws to Hold Government Accountable

These ideas frequently put us on the opposite side of some well-connected and politically powerful special interests, many of which directly or indirectly do receive government money, and have an interest in preserving government secrecy. As seen recently in the politically charged environment in Wisconsin, some of these entities will use extreme tactics against those who oppose their interests . more …

'Taxpayer Burnout' Likely At Play In Rejection Of Grand Rapids Community College Millage Request

After a stunning defeat at the polls Tuesday, the president of Grand Rapids Community College said it will be a long time, if at all, before the school goes back to the voters for more money.

Despite a $150,000 promotional campaign, a traditionally favorable time for millage approvals, and more than 100,000 faculty, students, administrators and alumni in the community, voters rejected the $98.6 million bond issue request by a 14 percent margin. more …