Open Government? Only if You Speak Bureaucrat-ese

Today’s Traverse City paper opines in part on one state lawmaker’s efforts to be transparent, although we are having a hard time finding just how.
“Michigan House Minority Leader Kevin Elsenheimer, R-Kewadin, has published on his Web site, http://www.kevinelsenheimer.com/,the names and salaries of the 11 public employees working directly for him. According to the Mackinac Center, Elsenheimer reveals all the details of his nearly $438,000 annual staffing budget.”
We go to Elsenheimer’s site and poke around for three minutes, finding no such information. Maybe we’re a little impatient. But more likely, we are busy, like so many of you.
The idea of transparency is being given lip services by many, but making the information easy to access and digest seems to be part of the obfuscation. And most of us do not speak in bureaucratic terms nor do we always know what we are looking at when we see a number. For example, Secretary of State Terri Lynn Land, who has spent few days as a regular citizen during her adult life, claims to be posting public records online at the Department of State site.
But when looking these over, there are items that simply could not make sense to the average taxpayer. What does this line item mean?
CMVSA FEES $ 35,574.93
It means $35 grand was spent on something that I cannot decipher.
How about this one?
DUES, FEES, SUBSCRIPTIONS $65,374.75
What are the dues for, what are the subscriptions to and what kind of fees are we talking?
Some folks at the Mercatus Center at George Mason University rightly note this week that “True transparency requires putting specific details of every government expenditure online, where citizens can review them and spot wasteful spending.”
Anyone can blather on about open government and pass bills and require transparency. Fellow bloggist Michigan Liberal gave props to state Sen. Gretchen Whitmer a week or so ago for her muddled “speech” on the value of openness. But a look at the state Senate site requires a long walk for information that is as enlightening as Land’s. Transparency is becoming another buzz word, but it is taking on a familiar government hue, that of a very hazy view.

Michigan Asset Management Council - Subject to Open Meetings Act? Let's Find Out

We have reported before on the dismal state of Michigan’s roads, and a short trip this morning reminded us that the problem is still present and active.
We see that there is a conference set up for May at the Kellogg Center at Michigan State University
operated by the 10-member Michigan Asset Management Council, a public board which has to post its minutes and meeting times in accordance with the state’s open meetings act.
Perhaps this meeting would provide some answers to the questions about the state’s troubled roads. Why not go and check it out? While we’re hardly riding low wallet side, the price is $30 for public agencies and $100 for private companies. But if this is an open meeting, they should not be able to charge.
Not sure how that works for anyone – if we are funding the board and paying for the meeting, should not private vendors be given preference?
So I sent an email to Brian Sanada, the board’s listed contact. It reads:
Hi -
I'd like to attend the May 19 Transportation Management Conference but am confused by the admission price. I believe this is a conference of public officials, and the flyer states that all ten members of the Michigan Asset Management Council will be present. I am not a vendor nor am I connected with a municipality, but I would like to know what your take on this conference is in relation to the Open Meetings Act.
I thank you for your time.
Steve
I may be incorrect, but I would maintain that this is a public meeting for the “purpose of deliberating toward or rendering a decision on a public policy,” which is how the state’s Open Meetings Act defines a meeting.

Drink, Drank Drunk Driver - 12 Time DUI Offender in MIchigan

For the 12th time, a man from Caro was arrested for drunk driving. This man, Jimmie R. Rogers Jr., has spent time in prison for his disregard for our laws. But what does this say about how serious we are about the often-dubious offense?
We have seen lives wrecked by the state’s onerous drunk driving laws, both on the victim side as well as the offender side. There are numerous people who have had a couple of drinks and gotten nailed with fines that far exceed the danger they presented to the public. Drunk driving on the law enforcement side is a revenue instrument, seen by officials as a cash cow. The fee to reinstate a license was more than doubled in 1992 from $60 to $125.
A sharp Michigan lawyer’s site tells us more about this issue.
And given the nature of the income potential, why wouldn’t the state want to extend bar time? Does this mean that these officials care more about revenue than they do about the safety of the public from those viscious drunk drivers? Or does it mean that the crime is not as serious as everyone thinks, since there exists a willingness to put more potentially drunk(er) drivers on the road?
The point is that no one is really serious about taking drunk drivers off the road when stated mission conflicts so apparently with the revenue potential. Drunk drivers are bad news, no doubt, but if they were as serious an element as such groups as MADD would tell us, why wouldn't someone like Jimmy Rogers Jr. be locked up forever

Banks Paying Back Bailout Money

Banks are already paying back their bailout funding, although it’s apparently not widely reported news. Among those disengaging from the feds are TCF Financial Corp. (TCB), FirstMerit Corp. (FMER), Independent Bank Corp. ( INDB), and First ULB Corp.
A report released Friday by the Treasury Department notes that over $1 billion has been paid back through April 15.
Independent Bank is based in Ionia, while TCF has branches in Michigan. We’re glad to see that some of the locals are no longer wards of the state. Now they can get on to their business of charging inexplicable user fees without federal interference.

State Parks Need Funding. One State Parks Fund Has Record Resources. Can We All Get Together?

Our parks system is allegedly failing.
But we have a way out of it.
Chances are that you, like most Michiganders, don’t know what the Michigan Natural Resources Trust Fund (MNRTF)is. The fund is the repository for mineral and oil lease royalty payments, created in 1984 via a statewide vote. The fund is overseen by a board, which is composed of folks from conservation groups, the state DNR and a retired fellow named Bob Garner from Cadillac, whose yank comes via political contributions from both himself and his wife, numbering about $1,200, to Gov. Granholm. We should also note that prolific Republican contributor Frank Torre is on the board. He runs a landscape contracting firm in Pontiac. We supposed that paying into the system merits consideration, a sort of admission fee.
The board proposes spending, which is routinely rubber-stamped by state lawmakers.
The board meets six times a year with a poorly posted public meeting notice. But what goes on in the meetings deserve more attention, because more than $45 million in taxpayer dollars is doled out in the course of a year. In a state that is shouldering a $785 million budget deficit, this is some serious cash.
In December, the board held two meetings, one at 7 p.m. on the 2nd and then the next morning at 9 a.m. At stake was the distribution of millions of dollars. The first meeting included a pitch from a DNR bureaucrat, Vicki Anthes, who asked the board for $11 million to buy some primo Detroit River frontal property from a group called the Detroit River Conservancy, a tax-exempt group that is awash in money. In 2007, the Detroit River Conservancy claimed $80 million in net assets, and paid its president, Faye Nelson, a package worth $240,000 a year. And somehow, a grocery store clerk in Houghton, a mechanic in Petoskey and a computer tech in Three Rivers were supposed to think funding a dubious venture is one of the nation's most corrupt cities is a good idea. But these state residents probably didn’t know about the possibility, which is still pending.
As the meeting progressed, a Mr. Tom Bailey, who is executive director of the Little Traverse Conservancy made some comments regarding the economy and the need for economic stimulus, according to minutes of the meeting. Thanks to the constitutional protection of the MNRTF by the State of Michigan and how the program was created and crafted in the 1970s, Bailey noted, this year – and we presume he means 2009 - we will see the largest award of grant money in the history of the program – approximately $45 million.
Mr. Bailey continued by stating that this creates a ready-made economic stimulus for Michigan. Most of the $45 million will go into the real estate market, which is one of the most troubled segments of our economy. Twenty-five percent of the $45 million will go to community recreational infrastructure, creating jobs and projects for the communities that will pay dividends for generations as people have full access to our natural resources.
Mr. Bailey stated that we should ask the Legislature, not just for land conservation and recreation, but for the sake of our state, to pass the MNRTF bill as early in the upcoming session as possible so these dollars can go into the economy right away. He stated that Little Traverse Conservancy is willing to assist staff in any way possible.
Bailey is paid $93,000 a year to help oversee the Little Traverse Conservancy’s $65 million in net assets, per its 2007 tax form. Not so smart – we note that $7.4 million is invested in publicly traded securities. Bet that $7.4 million is a bit worn down today. His comment about sinking most of the $45 million into real estate – also not so smart. And somehow, he believes that the high and mighty mission of these overfunded endeavors is to create jobs, whatever that means.
The meeting went on with 18 people appearing to ask for money from the board. They all came bearing numbers and assuring that the money would be – like most public money – wisely spent.
The next morning, the group heard from Joe Frick, chief of the office of financial services at the Department of Natural Resources. He advised the board that “there is an unusually high amount of oil and gas revenue -- $92.4 million, credited to the MNRTF for 2008. One-third of the revenue is available to spend for acquisition, development, operating costs and payments in-lieu of taxes -- $30.8 million. MNRTF had $380 million to spend.
The board then proceeded to approve about $45 million in expenditures, including:
• $96,000 for disabled access to Rolling Hills Park in Washtenaw County;
• $255,100 for pool house improvements at Lion’s Field in Algonac;
• $1.982 million to expand Lake Lansing Park North in Ingham County
Which is fine in one regard – we have wonderful parks in Michigan, terrific green spaces and we should be willing to spend on such things. Normally. But today is not normal.
In the Detroit News story linked at the start of this blog, we are told that “A trust fund, approved by voters in 1994 to meet long-term infrastructure needs, is instead being tapped for operations and is nearly depleted.”
(But we do have money for new digs for at least one DNR office)
At any rate, someone missed a very public meeting. This is the opposite of what was said at the MNRTF gathering on Dec. 3.
But says Sen. Patty Birkholz, R-Saugatuck, chairwoman of the Senate Natural Resources and Environmental Affairs Committee:
"The condition of our parks is embarrassing at best and abysmal at worst. If we don't do something, there will be closures of some of our state parks."
The proposed remedy is a higher vehicle registration fee.
But how about some legislation that would permit money from the trust fund to be transferred to our state parks rather than expanding an already sufficient park in Ingham County? Or perhaps we can tell these well-heeled conservancies to do it themselves, and, by the way, we’re in a recession and please cut those salaries and spend some of that money you already have in the coffers. Better yet, how about Sen. Birkholz propose legislation to amend the structure of the MNRTF and consider this an emergency.
This is the crime of a media depletion.; there is no one to cover these key meetings in which millions of public dollars are approved to spending. We will continue to look at these board, panels and committees and hopefully expose their activities in hopes of making a difference.
Detroit River Front Conservancy

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MNRTF board minutes, 12/2008

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Banks Need To Come to Table With Chrysler - OK, Can They Sit Next to the UAW?

Sometimes, it feels like we spend too much of our precious energy - don’t worry, Free Michigan uses alternative fuel – knocking the governor. It’s hardly partisan, though, and we can only dream of the Engler days, when it was even easier to show an overstuffed bureaucrat blowing smoke.
But today, Gov. Granholm sent a letter to Chrysler creditors beseeching them to come back to the bargaining table and hammer out a deal with the failed automaker.
"With just over a week to go before the government's restructuring deadline, I urge you, too, to do your part to avoid the devastation that a bankruptcy or liquidation will bring," Granholm wrote in a letter sent to the presidents of J.P. Morgan Chase, Citicorp, Morgan Stanley and Goldman Sachs, as well as investment funds Oppenheimer Funds, Elliott Management, Perella Weinberg Partners, and Stairway Capital Management. "Your action is inconsistent with what should be our common objective in helping advance America's economic recovery."
Which is fine. The banks received taxpayer money and perhaps could share the wealth. But Chrysler, too, has received billions in bailout money, and cannot come up with a life saving plan. It did, however, find the $$ to thank us all for the money in some pricey print ads.
Great idea.
But we wonder why Granholm has sent no letter to the UAW, asking it to shoulder some concessions. There is no doubt that there is some room to move there, and the union is part of both Chrysler’s and GM’s problem., although the union would dispute that.
In an interview with CNBC last week, Granholm said that “all this talk about bankruptcy creates a downward spiral… I think some of those holding that debt will walk them up to the brink.” Yes, they will, and perhaps will even ask for the money that is owed them by Chrysler. But perhaps if they saw other well heeled entities pitch in, like the UAW, they may be more inclined to take a constructive part in the discussion. By excluding the UAW from Granholm’s little missive, it just makes her effort one more political play for favor with constituents. Which is exactly what Engler would have done.

It’s a Beautiful Day in the Neighborhood; Blog Focuses on U.S. Rep. Rogers.

Now this is a good watchdog site, albeit a bit limited in focus. Rep. Mike Rogers, who represents parts of mid-Michigan, is a polished politician who delivers a pretty standard moderate Beltway rap – the feds spend too much (now that the president is a Democrat), we need a strong defense, the auto industry is in trouble, blah blah. Nothing truly courageous.
To one end, he recently introduced his own site in the name of government accountability. Notice the links go to mostly government-administered Web sites. Talk about the wolves watching the hen house. It's a true bureaucratic answer to transparency. "Let us do it."
But Mr. Rogers Neighborhood rightly focuses on the hypocrisy that comes from our elected representatives, and with some good humor.

Michigan More Than Doubles Federal Contract Revenue Since 2004

Michigan’s economic troubles are well documented and widely known. But did you know that the state’s federal contracts have doubled in dollar terms since 2004? The pace has been led by General Motors and Chrysler, and last year, businesses in the state performed $8 billion worth of contracts.
The state now ranks 19th in the nation in federal contract revenue, even as Michigan sets the pace and essentially defines the conversation of unemployment in the U.S. Most of Michigan’s contracts involve vehicles of all sorts – military mostly.
State leaders still promote these federal contracts but there is no proof that these do much at all for an economy overall. Does this also paint a picture of government employment overall boosting an economy? Of course it does. We are just rarely confronted with the stark reality – government does not create jobs, or enough to make a difference. But it can create job opportunities.

Freep Pulitzer: A Triumph of Great Reporting and Open Records

Pulitzer congrats to the Detroit Free Press’ Jim Schaefer, M.L. Elrick, as well as the rest of the staff involved with the reporting on the scandal of Mayor Kwame Kilpatrick.
After obtaining text messages between the two, the Freep team faced some formidable opposition in its work to uncover evidence that the former mayor and his aide, Christine Beatty, conspired to cover up city government malfeasance. Kilpatrick and Beatty were charged in March 2008 with perjury, misconduct and obstruction of justice. Kilpatrick was ousted as mayor after he pleaded guilty to two counts of obstruction of justice and no contest to assault.
Getting the text messages was the first step, and the newspaper has never revealed its source.
Special mention should be made of Herschel Fink, who assists journalists statewide in breaking through the smoke screen that many are presented with when seeking access to public records. Fink played a key role in the Kilpatrick case. Here's hoping he keeps kicking.

Zen and $700 Million Aside, We Still Prefer Capitalism

While I realize that this interview with Kazuo Inamori, who heads Kyocera, is a winner in the eyes of the folks at USA Today for his biting criticism of capitalism, this is an enlightening view of economics.
Inamori is 77 years old, a Zen Buddhist monk and a huge business success, thanks to his reliance on capitalism and the free markets. His company develops and builds technology for a number of industries, including cell phones, ceramic-related products for the medical field and even some parts for the auto industry.
I see merit in his view: “Overcoming the current difficulties will require us to refine the free-market economic model that we have come to value above all others. However, I do not believe that this crisis represents the failure of capitalism. We must use the wisdom of humankind to modify the current form of capitalism into a more moderate version.”
Easy to say for a man who is the 31st wealthiest in Japan, according to Forbes. Net worth, $700 million.
But I also think he is a bit idealistic, and even simple, if he thinks that one can will the human instinct of greed into cooperating with his notion of how capitalism should work.
What a good reporter would have asked is: How much were you paid annually in the three years leading to your retirement? What did it take to become one of the richest people in Japan without greed? That would at least let us know if Inamori were on the level.

$2 Million More to Build a Meijer in Michigan Than in Indiana

We still love the Michigan Economic Growth Authority (MEGA), an offshoot of the Michigan Economic Development Corporation which authorizes tax breaks.
In its meeting last month, there was a bit of exchange about a new Meijer being built in Berlin Township a bit east of Flint. The new location will hire around 190 full time workers. This, from the minutes:
“(Board member Jackie) Shinn inquired about the difference in cost compared to Indiana. There was a $2 million difference in the labor in Indiana and it is less expensive to build there. Meijer faces a significant competitive disadvantage by relocating in Michigan without the benefit of incentives.”
The board’s response to this? A 100% standard employment tax credit for 8 years. We are for tax concessions when they are needed to remain competitive – within the state. But when we are looking at a neighboring state that has a better shot at landing a large employer because of its union base and attached costs, would that not ignite some kind of debate?
Union costs in Michigan are of course what fuel this cost discrepancy. Michigan has about 30% more labor membership than Indiana.
A quick look at the records shows that Jackie Shinn, chief deputy director at the Michigan Department of Transportation, has no inclination at all to reflect on why Indiana can get the job done cheaper than Michigan.
Her political contribution list is filled with money filtered to the pro-union forces here. She has donated thousands of dollars to the Granholm administration and has been rewarded with a lofty, powerful position as a result.
The free market is not free when you have a cabal with such fealty to costly union strongholds. Did we mention Michigan’s unemployment rate?

Macomb Commissioners Look to Law Over Alleged Open Meetings Violation

A group of commissioners in Macomb County took a vote over the phone to buy some police cars, according to a report in the Detroit Free Press.
That’s bad enough – but the item was voted on to purportedly support the U.S. auto industry. As if buying four cars at fleet rates would put a dent in 49% sales drop through March.
"Board Chairman Paul Gieleghem, D-Clinton Township, acknowledged Friday that a secretary tallied votes over the phone earlier this month for permission to buy four police cruisers. But he insisted a vote wasn't required. Gieleghem said the county didn't have time to wait for a public meeting because a deadline was rapidly approaching to buy 2009 Chevy Impalas, rather than the more expensive 2010 model."
We beg to differ with three-term commissioner Gieleghem, and the good money has it that Macomb residents would also disagree. If they voted, why would it not be done in public? Michigan statute is pretty clear on phone votes, by the way; “Under the Open Records Act, phone call conference meetings generally are not allowed.”
Under the law, any person can challenge the action taken in circuit court within 30 days of the alleged misdeed.
Let’s go beyond the idea that this purchase didn’t require a posted, open meeting. Are phone votes allowed at all? Some municipalities in the U.S. do make allowances. For example, in some Chicago suburbs, when a board member is traveling but still wants to participate.
This seems reasonable. But in the Macomb case, this is stupidity to behold. Gieleghem is a former state rep who should be ashamed. Not just for intentionally trying to circumvent the law, but also for buying Impalas.

Lansing's Country Club in Forclosure - Where is the $6 Million Going?

You don’t often hear of country clubs going into foreclosure, but in Michigan’s capital city, it has happened. The Country Club of Lansing is in some kind of mortgage trouble, although it’s hard to say what the nature of that trouble is because of the convoluted news accounts.
Still, tax forms show the club had $6 million in gross receipts in 2006 with 669 members, the most recent data available. Those forms also showed that the club paid nothing for occupancy. That same year, the club paid out $2.2 million in salaries and it claimed $11 million in land holdings. It made $3.1 million in membership dues. The club claimed only $95,000 in deferred compensation and $23,000 as a lease obligation. It doesn’t specify the nature of the lease. But how could an entity slide so quickly down hill? Are we to believe that it can’t meet its obligation on property that has most likely been paid off for years. Unless the club borrowed on the property and is for some reason not paying it back.
Where is the money? Are the feds going to look into this? We see that the country club in Bay City is also having trouble . But the Bay City club is being a bit more honest with the people about just what is owed and what its stance on the issue is. We see they are also dealing with National City bank, which is on the skids.
Here in Lansing, we have no information.
Last July, club manager Chris Freeman, who pulls in a salary of $150,000, gave an interview to a local tv station:
"A country club is obviously a luxury, and when things get tight it's quite often the first thing to go as far as the things that you don't want on your monthly payment.”
The Country Club of Lansing has seen a 4 percent decrease in their membership over the last 2 years and while their members have enough income to afford the membership they're still cutting back.
"I think even people that have relatively high incomes are tightening up weather they can afford it or not; we're seeing some tightening up," Freeman said.
What did he know at that point? And a 4% decrease would be only a 26 member loss from 2006.
This is a debacle that no doubt has all of the club’s board members chattering, and it’s a board with some major power on it. Doctors, lawyers and other well-to-do, mostly male key figures in the city’s power base. And not a word from one of them. Some big wigs dropped the money ball.
And with no newspaper to speak of in town, not a single reporter to ask them.
Country Club of Lansing

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Taxpayers Foot Travel Bill for MSU Staffers – Both Business and Pleasure

When MSU staffers travel, they have an $11 million budget and that means some serious frequent flier miles. With 18,500 flights, at an average of $260 one way, that comes to $7.4 million in air fares figuring an ave price of $400 round trip. Let’s be charitable and say these fares averaged 500 miles, which comes to 9,250,000 air miles. And let’s also assume a 25,000 reward. We’re talking 370 free trips that are being earned.
So while some schools are paring back travel costs – Evergreen State College in Washington has frozen out-of-state travel, says college spokesman Jason Wettstein, as has Temple University – Michigan State University proudly ignores the free travel perks and trudges on.
We give props to some other Big Ten schools who put taxpayer-funded frequent flier miles to business use, including University of Iowa, University of Wisconsin, University of Minnesota, Ohio State University and Indiana University. MSU is truly arrogant and uncaring as it raises tuition, gobbles pork and ham-handedly tries to build a $160 million dollar art museum that started with a $26 million gift.

Nero Fiddles - Detroit Goes Energy Efficient, Plans to Save Tiger Stadium

We are amused by the recent Pig Book of Congressional Spending, if only for its Michigan entries. How about $951,500 by Sens. Carl Levin (D-Mich.) and Debbie Stabenow (D-Mich.), and House appropriator Carolyn Kilpatrick (D-Mich.) for downtown Detroit energy efficient street lighting? In a city with more trouble than it’s worth, this is as good as our elected officials in Washington can do. Well, OK, let’s also give them credit for the the $3.8 million earmark for the Old Tiger Stadium Conservancy , a 501c3 that has already held massive fundraisers. What happens if the effort to save Tiger Stadium fails, despite all the good intentions? That $3.8 million will go somewhere.
The state also has a gem along the lines of spending your money in the questionable name of energy. HB 4217, introduced in February by Democratic Rep. Fred Miller, would require the use of high efficiency light bulbs and electronic ballasts (used in fluorescent lights) in public facilities. The house passed it 69-35
The bill sits in committee on the Senate side.
And Michigan rolls.

Michigan Leads in Auto Insurance Costs

Auto insurance rates in Michigan are the highest in the nation.
It’s one more sad top spot for the state, and things are only going to get worse. Recall that in her state of the state address, Gov. Granholm asked that insurers freeze their rates. But it won’t happen; the Michigan Catastrophic Claims Association (MCCA), which is the bureaucracy that pays out medical claims for auto insurers, is going to raise rates effective July 1 by $20. Insurance in Michigan has gone up dramatically in the past 8 years, most drivers will notice.
Some lawmakers are making noise about reigning in the claims association, such as state Sen. Glenn Anderson, who seeks more transparency in the association’s conduct. Michigan in unique in that it is the sole state with bottomless medical coverage for those hurt in an auto accident. I know that when I lived in Texas and Florida, that coverage was an option that many did not use.
The association is a train wreck, with the decision making board composed of five members – all from insurance companies. They hail from the Auto Club Insurance Association, Auto-Owners Insurance Company, GMAC Insurance, Progressive Insurance Company and State Farm Mutual Automobile Insurance Company.
Is it hard to see why this is such a mess? When a lifetime claim comes in, who would they rather have pay it out, their company or a taxpayer?
Legislators mostly wave at the problem, even creating a Web site that feigns interest in lowering rates. But just to see how sincere they are, click on the link for "Michigan Legislature Begins Auto Insurance reform Hearings." It's a dead link. Problem solved.

Sunshine and the Feds

It’s sunny and 75 outside my room at the Austin Motel. This is much better.
Propublica is an investigative site that does a pretty good mainstream media take on news. You’ll find some half-baked liberal slant and much reverence for all things Democrat. But I was pleased to see the posting of the Obama team’s financials.
It turns that that you, too, can request these things via the Web. For House members, go here and for White House appointees, head here. Wouldn't it be something if Michigan, in its love for openness and transparency, made it this easy?

One More Week on the Road

That last was a little grouchy and for that I can’t apologize. It is tough to be patronized by a public official and let it pass. I am becoming more inclined to begin making the calls and asking the questions that the state house press crew should be handling. We’ll see what develops. I am taking a week or so and going to Texas on a mixed use visit, part social and part business. I will probably find some time to post, but the daily news grab will return the 16th. On that date, conservative columnist Michael Adams will appear at MSU, although I have no specifics. Adams is a bit far to the right for me, but perhaps some free speech advocates will show up again, as they did in 2007 for an appearance by Minuteman Chris Simcox.

Who Is Writing the Inane Press Releases For the Governor?

I read this one today and cannot figure out how this stuff passes for information. The gist is the spending of $2 billion in taxpayer money on things that are somehow deemed worthy. Whether they have merit or not is worth discussing, but more than anything, it’s insulting to issue such a statement. For example, among the money allocated is “$900 million for public education in Michigan, including services to at-risk students, students with disabilities, and homeless students…” –
This would be news if that $900 million excluded services to “at-risk students, students with disabilities, and homeless students.” Does the governor think the public is that stupid? A statehouse reporter could call the gov’s office and ask why this is noted.
More money is set aside for what?: “$190 million for community-based service programs and food assistance to help citizens who are being directly impacted by the struggling economy…” OK, good idea. What service programs are going to get the money? What is food assistance? Is that food?
How about “$48 million for public safety programs, including efforts to protect children from internet predators and provide services to crime victims…” This implies that we are not providing services to crime victims and that we are not protecting children from internet predators. That’s pretty big news. But can’t a reporter call and get some specifics? What kind of services? How are we going to protect children from internet predators?
Since 1976, Michigan has provided financial compensation to crime victims with a lawful limit of $15,000. In fact, the entire array of services to crime victims is subject to law. Is there something, some way, that Michigan has been derelict in handling this?
At the Web site of the Crime Victim Foundation, a quote from Gov. Granholm is bannered: "From time to time, I see a victim, who, by no fault of his or her own, is placed in a desperate situation with no place to turn; the Foundation responds to that victim."
The Crime Victim Foundation’s tax returns are not available online so we can’t tell how much public funding it already receives.
And I am fully in favor of helping crime victims in whatever fashion we can; these are folks who are often already impoverished and our blessed humanity gives us the love for our fellow man to assist in any way we can. Churches, social groups, and other community efforts are truly needed.
But this unchecked spending of billions of dollars goes on without question and inane press releases such as this continue to be issued. And they will as long as the media obediently chews its cud.

The Ultimate States' Rights Issue?

Michigan’s first applicant to receive legal medicinal marijuana has been documented. This is one more test of states' rights, and President Obama and his Attorney General Eric Holder have already promised that the feds would no longer harass and prosecute those who administer medicinal pot under state law. I think it’s safe to say this is a politician’s promise. Just a week after the vow was made, DEA agents popped a dispensary in California, and I expect this will continue, as Obama made the gesture to appear youthful and above the issue. And he sure doesn't want to look at it in terms of state's rights. If he were to give it that form of merit, what would that mean for gay marriage, gun laws, and abortion?
The issue is an important one in the role of states' rights. One on side of the fence, we have conservatives who feel the medicinal provision is a “nose under the tent” and they have a point, when you see who the supporters of medicinal pot are: NORML, MPP,and other stoner groups are always at the front of the push for medicinal. If state’s rights is so important, though, to many conservatives, why would this not be a classic case of letting the voter’s speak? Liberals are often remarkably silent when it comes to the issue, leaving the Libertarians to advocate next to the red-eyed.
I fall on the state’s rights side. It is folly to ignore the will of the voters and it could be leveraged in an overall debate on just where the federal reach of the law ends. I think it ends when voters of a state say it ends.
I am reminded of a fellow I met in Las Vegas in 2003 in the course of working on a story for the Washington Times not all that long ago.
In researching the story, I met a fellow named Pierre Werner, a committed pot head, entrepreneur and a true eccentric. I connected with him on the phone when I first arrived in town, and a day later, I drove to a shady North Las Vegas neighborhood and loudly rattled the cage that encased the entry to a cinderblock home. That was how I was told to knock. And out walked Pierre. We chatted for a while and I must have convinced him I was not the law, because within 15 minutes, I was walking into a grow room with enormous plants. Over the next few days, Pierre and I had lunch at a local country club at which he was a member and we went to a Las Vegas 51s baseball game. I wrote a side bar on Pierre for that story, which is now being used by a drug rehab center for some reason. One of the best things about being a journalist is that you have the chance to hang out with these interesting characters and get to know how they work. I just noted this story on his release from prison. You guessed it: His law enforcement radar failed him. Musta been that last fattie.
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Media and Friends Seek a Welfare State for Michigan

This is a classic case of the media leading the charge to lean on big government in order to right a ship. And why Michigan leads the nation in unemployment, among many other things. The idea that the White House needs to bail the state out is standard silver-spoon ranting that will only hurt Michigan in the long run. As we know, lower taxes, remove the bureaucratic barriers that hamper small businesses and spend tax money on quality of life things like decent roads and sensible development. Instead, the media and state government screams unashamedly for more welfare.
This is a mindset that is sure to bring continued disarray and harm to the people.
And then there are the true crazies who are caught up in this “we are the world” sentiment. Two Michigan lawmakers want to raise the state income tax from 4.35 percent to 5.5 to pay for someone else’s kids to go to what we presume are already public school. Which we already pay for. Brilliant.

A City in Demise

When you go to lsj.com, the newspaper that is supposed to represent the capital city of Michigan, go to news, then see the submenu. Across, from left to right, are tabs for news, March mania, business, campus and then something called “capitol.” I’m not a style bully, actually, but the upper case denote the building in Washington D.C. We assume the LSJ is referring to the building at the corner of Capitol and Michigan, which the state refers to as the capital.
This fixation is brought about after a few hours at the state library yesterday, reading about the city. Such research made me realize how far this place has fallen. In 1956, income per family in Lansing was $6,867, 20% over the national average. Those families had 1.3 cars compared to the national average of .7, and 64.4% of Lansing families owned their own homes. The Lansing State Journal had more ad lineage than either the Detroit Free Press or the paper in Grand Rapids and had a daily circulation of 66,350.
Today, a drive down Michigan Avenue finds crucial commercial space occupied by state or non-profit operated enterprises, which generate no tax revenue. The same is true in Flint, one of the most emaciated cities in the U.S.
The median household income in Lansing is now $36,550, almost 25% lower than the rest of the state. The median home value is 28% lower than the rest of the state. And 25% of Lansing residents live in poverty. Home ownership rate in 2000 was 57%, and is no doubt lower now.
What happened can be summarized in grand statements and via accusations, or can be picked at piecemeal. By the former, this is the case: the town lived and died by the auto industry and big labor. This paid professional wages for menial, labor-intensive tasks. When the Japanese began to sell cars in the U.S., their prices undermined those demanded by the monopolistic auto industry. And soon, the quality also destabilized car makers who were cranking out cars that needed service almost monthly. I know because I drove Buicks, Oldsmobiles, Fords; they were a mess. Some of my friends worked in the local factories, and they made jokes about the poor work ethic that pervaded the plants. Workers would punch out for an evening break and head to the bar. And if things were lively, they would have a colleague go back to the shop and punch them in while they stayed to enjoy the night, returning to punch out. This is what happened to Lansing. The high wages and poor return killed an unyielding industry that simply refuses to concede defeat. Bring the labor costs down, please.
But it isn’t just the end of the big labor manufacturing base that has eroded Lansing. Intrusive taxes and fees have hammered residents for years. Small things like a tax to shutter a business or the 1% tax on adjusted gross income simply drive business and homeowners away.
Now, the area’s two largest employers are the state of Michigan and Michigan State University, both funded by tax dollars while costing more than they bring in. And the results are hardly anything the free market could crow about.
I don’t look to blame anyone in particular, here. But sitting in that library – which has had its hours cut as the state has fallen – I look at a path of failure that could have been averted by real leadership and perhaps taking unpopular stances against big foes, like the UAW and tax-crazed politicians.

State Funds Private Auto Supplier Expansions; Same Suppliers are Privy to $5 Bil Fed Bailout

Auto suppliers in mid-March joined the ranks of companies with their hands in the government till, receiving up to $5 billion in financing under a new program from the Treasury Department.
The Auto Supplier Support Program is meant to give “suppliers the confidence they need to continue shipping parts, pay their employees and continue their operations,” Treasury said in a press release.
The program was created thanks to some strong lobbying by the Original Equipment Suppliers Association and other supplier advocacy non-profits.
We notice, though, that in February some of the state’s brightest economic minds got together for the monthly meeting of the Michigan Strategic Fund Board, one more panel that meets with absolutely zero oversight from the media or public. The panel is there to hand out public money, and this group is particularly charged with giving away money from the Community Development Block Grant(CDBG), a federal program that “works to ensure decent affordable housing, to provide services to the most vulnerable in our communities, and to create jobs through the expansion and retention of businesses,” according to its site.
What the Strategic Fund Board decided to do is give away $260,000 to Berrien County in order to help a private company named Harbor Light Metals, an aluminum producer that provides parts to automotive companies, purchase some equipment. The county was excited, of course, because somehow it is sure that Harbor will provide some jobs. Maybe, maybe not. But wait a minute, didn’t we just fork over $5 billion for companies like this? What happened to buying your own gear, making something people needed or wanted, and then using that revenue to pay back the loan you took our to buy the gear?
The item read on the Fund Board’s minute like this: Harbor Light Metals, LLC, located in Benton Harbor, is a minority owned company producing aluminum alloys sold to automotive, industrial and export buying markets. Its major customers include Alcoa, Toyota, and Briggs & Stratton. The Company has the opportunity to diversify their customer base to include aerospace and defense. To that end, the Company needs to purchase additional machinery and equipment, a total investment cost of $709,000. Berrien County is requesting $260,000 of CDBG funds to assist in the purchase of machinery and equipment by the Company in support of this project.
Done deal. Your money. No problem.
Next, the Strategic Fund Board heard the case of Mahle Engine Components, an international concern with a shop in St. Johns, Michigan. It, too, is an auto supplier and a member of the Original Equipment Suppliers Association. Remember, the group that lobbied for the $5 billion auto supplier bailout? It seems Mahle wants to expand and diversify its piston ring production. Is this a sound move given the direction of the auto industry? Not sure, but a private company is entitled to make its own decision in a free market. But the City of St. Johns is so sure it’s a good idea that it asked for $61,400 to build an additional road so that Mahle can embark on its dubious enterprise.
These are small amounts of money in the scheme of things. But it is alarming to see this public money thrown at companies who are already receiving more than they should. We are for tax breaks and concessions in the spirit of economic competition when conditions are right. But they are not right now, and both the private and public sectors need to stick to a pretty tight game plan, and that is to make money on both ends. This handing over of taxpayer dollars is a crime. And that a board such as the Michigan Strategic Fund Board operates with no public oversight is a travesty.

Michigan Forks Over Grant $$ to Builder Who Was Once Fined By the State

The state of Michigan has announced awards to five esteemed builders to build
energy efficient homes. A $5,000 stipend goes to these companies, and how proud they must be to have grabbed your money from among the hundreds of construction firms that could do the work. But one of the recipients, MJC Builders of Troy, based in Macomb County, has had some problems in the past. Not just from unsatisfied customers. But also from the…state, the very same that just handed them your money.
In 2000, MJC was fined $500 for refusing to respond to a filed complaint.
Now we know that there are all kinds of things behind such actions, including a grumpy client. We also see the head of MJC, Michael Chirco, is a diligent contributor to campaigns and PACs, including the Building Industry Association and a number of judges in his native Macomb County. The latter can be explained perhaps by the fact that he has been a party – a plaintiff – in 8 separate cases in Macomb since 1997, primarily him suing other developers. There are also some complaints out there.
But we are not giving them any validity. MJC might be a fine example of responsible building. We’re sure they are green green green. Are apartment complexes green? Because the City of Taylor, Michigan settled a lawsuit against MJC late last year over its plans to build a series of plexes around town. But out of the vast number of constructions outfits looking for work in Michigan, wouldn’t a little due diligence be in order when handing out favors? Perhaps that $5,000 will ease the sting of that $500 fine.

Three Smart Lists of Ways to Fix the Auto Industry

Free market advocates operate in a fixed mode that is easy to appreciate. Clear thinking with a common goal, that is, market driven results, is a given. But the dash of common sense that goes with it is always gratifying.
The Detroit Three – and I include Ford because it, too, is a mess – has stolen the free market from the auto industry. General Motors and Chrysler, classically corporate and unyieldingly rigid in their respective operations, are now nothing more than welfare begging Sad Sacks with nothing to offer but heaps of poorly designed and shoddily constructed metal. Witness the Chrysler Sebring, the Ford Mustang and the Chevy Malibu.
Last night I was privileged to hear a 60-minute talk from economist David Littmann, which was presented at Michigan State University by Students for a Free Economy.
In a chat that name dropped a litany of heavyweights, from Simon Bolivar to Albert Einstein, Littmann provided a tidy little history of the current economic debacle. Near the end of his appearance, a question was asked how he would fix the auto industry. His remedy? It was all directed at the government rather than the car companies - Lower the corporate income tax, pull back on this urgency to produce “green” cars, and remove CAFÉ standards.
In other words, let the free market decide what cars to sell and buy. That was already being done before the market slide, of course. Folks preferred Toyota and Honda and Nissan at an increasing rate. GM, Ford and Chrysler were headed for the junk yard. And that would have been that, perhaps, if the bottom would not have been pulled out overall car sales fell to a two-decade low.
Recently, a couple other commentators offered their solution for the auto industry, only these guys were from the auto world. One, Drew Winter, is a former colleague of mine and a writer at Ward’s Auto World. He’s a smart man who should probably be giving more media appearances just based on his expertise.
Winter lays out some new rules that include:
• no more wallowing in the past in terms of Detroit’s legacy to the American worker – “...No one outside Michigan — and I mean no one — cares. Wallowing in the past isolates us from reality and holds us back.”
• No apologies for building the big vehicles that consumers want: “They are the most popular vehicles in America, and my highest-volume, most profitable products.”
• No more marketing to the greenies: “Environmentalists who see motor vehicles as evil are not a demographic worthy of my marketing dollars.”
Winter also claims that the wages paid to Detroit Three workers are not an issue, and there I disagree to an extent. It’s not so much the wages but the benefits and legacy costs, which stem from the wage package that is ensuring Detroit cannot compete.
Forbes columnist Jerry Flint is a sage master of the auto industry. He still attends the big car shows, charming wife in tow, even though he has seen them all 30 times. Nothing would seem to be new to Flint, yet he makes sure he is current and in the know at a time when most auto workers would be fat and lazy in their Traverse City vacation home.
Flint also advises how to keep the industry afloat in a recent column.
Among his suggestions: Back off of electric cars, hand out tax credits on car purchases and, echoing Littman, lay back on the fuel efficiency demands.
This trio of wisdom knows that the free market will pull the auto industry through. If there are victims, such as GM and Chrysler, that’s the way things work in such a system. And at least someone is listening to one of these guys: The IRS on Monday announced a credit on tax paid on new cars. This needs to be extended to used cars over $25,000. But it’s a start.