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untanglingwebs
El Supremo
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Mon Sep 08, 2014 1:45 pm |
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untanglingwebs
El Supremo
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Do you feel it yet? "6 things Michiganders are feeling, thanks to Gov. Snyder"
MORE → ow.ly/BkVW6
6 things Michiganders are feeling instead of a recovery thanks to Gov. Snyder
Today, Gov. Snyder released an ad promising Michiganders that if they haven't felt the recovery, they "will soon." Well, here are 6 things Michiganders are already...
buzzfeed.com|By MichiganDems |
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Thu Sep 11, 2014 4:15 am |
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untanglingwebs
El Supremo
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6 things Michiganders are feeling instead of a recovery thanks to Gov. Snyder
Today, Gov. Snyder released an ad promising Michiganders that if they haven’t felt the recovery, they “will soon.” Well, here are 6 things Michiganders are already feeling instead of a recovery thanks to Gov. Snyder and his policies.
posted on Sept. 2, 2014, at 2:15 p.m.
Snyder Retirement Tax = Higher Taxes on Seniors
Seniors are feeling the budget-crushing impact of the pension tax that Governor Snyder claims “is not a tax.”
Cuts to K-12 Funding = Teacher Layoffs and Larger Classrooms
Students are feeling the repercussions of Snyder’s $1 billion in cuts to education, which has led to teacher layoffs and larger class sizes.
Cutting the Child Tax Credit
Parents are feeling the impact of Snyder cutting the Child Tax Credit, eliminating vital support for those struggling to make ends meet.
Via businessweek.com
Cutting the Homestead Property Tax Credit
Homeowners are feeling the burden of higher property taxes after Snyder cut the Homestead Property Tax Credit.
Via bridgemi.com
Higher College Tuition Costs
College students are feeling the strain of increased tuition after Snyder slashed state funding for Michigan’s universities.
Via freep.com
Governor Pothole
Drivers are feeling the pain of bumpier roads and dangerous commutes as Snyder says there’s been “a lot of positive progress,” but has been unable to pass any road funding legislation.
Via michiganradio.org
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Thu Sep 11, 2014 4:20 am |
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untanglingwebs
El Supremo
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Fact check: Did Michigan Gov. Rick Snyder cut $1 billion from education or add $660 per student?
Jonathan Oosting | joosting@mlive.com By Jonathan Oosting | joosting@mlive.com
on February 05, 2014 at 8:07 AM, updated February 05, 2014 at 8:09 AM
LANSING, MI -- Michigan Gov. Rick Snyder says state spending on K-12 education has increased $660 per student since he took office, but Democratic challenger Mark Schauer says Snyder cut $1 billion in education funding.
Who's right? Who's using fuzzy math?
With Snyder expected to release his fiscal year 2015 budget proposal later Wednesday -- reported to include a 3 percent K-12 funding increase -- we thought it appropriate to examine each claim using data from the non-partisan Senate Fiscal Agency and former House Fiscal Agency Director Mitch Bean.
As you'll see below, both Snyder and Schauer can make the math work to suit their arguments. But apparently not all schools can make current funding levels work for their students. As of September, state Superintendent Mike Flanagan said that 56 districts and public charters were operating with budget deficits.
MARK SCHAUER: "Snyder has cut $1 billion from public schools … and taxed retirement funds all to create tax breaks for corporations that aren't creating jobs."
Snyder's 2012 budget -- his first in office -- cut $930.6 million in ongoing school aid spending compared to the previous year, according to an SFA analysis from the time. In doing so, it reduced the minimum foundation allowance by $470 per pupil, retaining an existing $170 per-pupil cut that had been backfilled by federal money and adding another $300 per-pupil cut.
That's money that goes directly to schools -- and eventually the classroom.
However, Snyder's first budget also included $455 million in one-time spending, including a $100 per-pupil incentive available to districts that adopted "best practices" and $155 million to help offset ballooning retirement costs.
Budgets are plans and do not always reflect what actually happened. All told, the state ended up spending $12.75 billion in school aid for fiscal year 2012, according to the SFA. That was down from $12.98 billion the year before under a budget approved before Snyder took office, a net drop of around $235 million, far short of the $1 billion figure that critics cite.
The governor attributes that reduction to a significant loss in federal funding. In 2010-11, the school aid budget was bolstered by $184.3 million in federal stimulus funds and a $316.3 million federal education job grant, neither of which were available for Snyder's first budget.
"When those funds disappeared, the state couldn't completely make up for them," Bean wrote in a recent analysis. "But the reason they couldn't be made up was a net tax cut of about $500 million and a (rainy day fund) deposit of about $258 million -- so that took about $750 (million) off the table that could have reduced or eliminated the cuts to education."
While classrooms saw less direct money during Snyder's first-year budget, the state actually devoted more of its own dollars to K-12 education that year. And, as you'll see below, state funding continued to increase and by Snyder's second budget had offset the federal losses.
Bottom line: Snyder's first budget did cut school aid gross appropriations, but the spending reduction was much smaller than critics make it out to be and coincided with the loss of significant federal funds. The minimum per-pupil foundation allowance did drop significantly. Subsequent budgets increased funding.
RICK SNYDER: "I'm proud to say, in the last three years we've increased educational spending at the state level for K-12 each and every year to the point where we've invested $660 more per student than there was previously before I took office."
Gross school aid appropriations fell Snyder's first year in office but have rebounded each of the last two years. As noted above, that first-year reduction was marked by a significant loss of federal dollars. State restricted and general fund appropriations increased slightly in 2012. They continued to climb in Snyder's next two budgets and they are poised to jump again.
State-specific school aid spending rose from $10.8 billion in 2011 to $11.5 billion in 2014, according to the SFA. That means overall state aid is up around 6.4 percent since Snyder took office. But when you factor in federal funding, gross appropriations increased less than 3 percent, which is slower than the rate of inflation.
Snyder's $660 per-pupil figure is based on factors that do not necessarily mean more money in the classroom, including debt service for the school bond loan fund, state spending on the Michigan Public School Employee Retirement System and reduced enrollment numbers.
Of that $660 per-student average increase, only $439 is the result of state spending, according to Bean. The rest is because there are about 46,000 fewer students enrolled in publicly funded schools. Take MPSERS out of the equation, and state spending has increased by a more modest $394 per pupil, according to Bean. Of that, about $180 is new spending, while $214 is attributable to enrollment declines.
Overall state spending is up, but that doesn't necessarily mean all of that money is making it into the classroom. The minimum per-pupil foundation allowance -- the money schools automatically get based on enrollment -- has dropped from an effective rate of $7,146 in 2011 to $7,026 in 2014.
As Bean noted in his analysis, "the foundation allowance and 'per pupil' funding are no longer synonymous. Now, instead of just the foundation allowance being sent to schools, people, including the governor's number crunchers, are rolling in spending on things like" MPSERS.
Bottom line: State school aid spending is up since Snyder took office, whether or not you count federal funds or retirement payments, but the $660 per-pupil figure doesn't tell the whole story. A large chunk of state spending now is going to retirement costs and doesn't necessarily make it into the classroom. The minimum per-pupil funding allowance is down since Snyder took office, and many schools have fewer students.
Jonathan Oosting is a Capitol reporter for |
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Thu Sep 11, 2014 4:28 am |
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untanglingwebs
El Supremo
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Buzz Feed
The 5 most ridiculous things said by Gov. Snyder
With less than 80 days before the election and Schauer tied with Snyder in the polls, Gov. Snyder went into panic mode. Here are a few of the most ridiculous things said by Gov. Snyder.
posted on Aug. 21, 2014, at 3:41 p.m.
MichiganDems
Brand Publisher
If it walks like a tax increase and talks like a tax increase, then it’s probably a tax.
1. Speaking to a room full of seniors, Gov. Snyder said: “It’s a topic that comes up quite often and it’s the quote unquote pension tax. And I want to be proactive and let people know it’s not a pension tax.”
#JustLikeTheDetroitFlood
2. Doing a radio interview with Frank Beckmann, Gov. Snyder tried to relate to Michiganders suffering from flood damage by claiming: “I’ve been through a lot of things like that, Frank. We just recently had holes in our roof from storm damage to our Lake House.”
Lifestyles of the rich, elected and appointed
3. After saying that raising the minimum wage isn’t a “significant issue,” Gov. Snyder gave his top political appointees a 90% raise.
Gov. Snyder: It’s whatever I say it is!
4. Appearing on Morning Joe after ramming through Right to Work legislation with zero public input or debate, Gov. Snyder claimed, “I don’t believe this is actually anti-union. If you look at it, I believe this is pro-worker.”
The data-driven nerd isn’t so data-driven after all
5. When asked if he knew how many jobs his business tax cuts had created, the self-professed data-driven nerd had only this to say: “No.” |
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Thu Sep 11, 2014 4:34 am |
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untanglingwebs
El Supremo
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Sat Sep 13, 2014 12:32 pm |
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untanglingwebs
El Supremo
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Yesterday, Gov. Rick Snyder participated in a one-hour call-in show on Michigan Radio. The show was hosted by the incomparable Rick Pluta who did an excellent job of selecting questions from the Michigan Radio Facebook page, Twitter, emails, and actual phone calls. When Gov. Snyder tried to weasel out of answering a question, Pluta did a good job of pushing back.
Here are some the more interesting things Gov. Snyder said during his interview:
Regarding the Education Achievement Authority as the “best option” for poor-performing schools in Detroit:
The traditional system did NOT work with respect to these kids. So, isn’t it important to try to come up with innovative ideas? So, we actually looked at best practices. We had a lot of help from experts around the country, some of the leading educational people and organizations. The Educational [sic] Achievement Authority is really taking on two or three things that I think are critically important. One, they’re modeling the concept of more year-round school and I think the evidence is really strong that year-round schools, particularly for students who are really challenged, that have a difficult environment, they can better in that environment. The other one is the concept of “Student Centered Learning”, really empowering the students. And so that takes some time to show up…It’s one of the foremost ideas of the Educational [sic] Achievement Authority. It is working… It takes some time … You don’t make up several grades in one year, it takes multiple years. The real question is has their been student growth from the last time they were really gone through tested or assessed in some fashion, and they’re showing results there.
While year-round schooling is a potentially good concept, as I told a reporter during an interview for an NBC News piece on longer school years, it is only a good solution when the programs is working well for kids:
“I don’t necessarily have a problem with year-round schools; I just don’t think that in and of itself is a solution,” said Chris Savage, community activist who has testified against the EAA in the state legislature and author of the Eclectablog, which has served as a watchdog to state control. “A year-round school in a sound program is a great idea.… They need to get their program in order.”
And the fact is, the EAA simply is NOT improving the outcomes for these schools. When Professor Tom Pedroni analyzed the data, claims being made by the EAA that they had advanced kids as much as two grade levels in a single year were found to be, simply put, lies.
When Gov. Snyder talks about bringing “some of the leading educational people and organizations”, he’s talking about groups like the Broad Foundation, the Bill and Melinda Gates foundation, and other philanthropic groups that are spending enormous amounts of money to essentially kill off our public school system in favor of for-profit charters and other education models that involve funneling taxpayer dollars into the coffers of for-profit corporations.
With regard to Student Centered Learning, while the concept is worth exploring, the way that it has played out in the EAA has been an utter failure. The teachers and students in the EAA are essentially the beta testers for a software package that often doesn’t work, the schools didn’t have enough computers for the kids to use it, and it was basically an empty shell with no curriculum, forcing teachers to add their own curriculum when a large percentage of them were first-year teachers.
Gov. Snyder needs to convince voters that the EAA is some sort of a success story but the truth, as has been well-documented at this site, is that it has been an utter failure and needs to be ended now.
Finally, with regard to the idea that the success of the EAA isn’t going to “take some time to show up” flies in the face of the claims made by the administrators of the EAA itself. It is also highly reminiscent of his latest ad where he tells us that our state’s economy is on the “road to recovery” and that “you might not feel it yet, but you will soon.”
Regarding the taxing of pensions:
Actually, that’s a mistatement when it says ‘seniors’, if you look how the system works. It was really about, essentially, removing a exclusion on pension income. So, the first thing we did as part of that process is say, let’s look at our system. And what we did is say if you have certain kinds of retirement income, you pay no Michigan tax, regardless of your age. So, we had many people retiring at 40 or 50 not paying any tax for the rest of their lives on that income. And, if you think about it, is that really a fair answer with respect to other situations where you have seniors still having to work that were paying Michigan income tax? Or the fact that, in many respects…when I was campaigning, everyone said, “We want to keep our kids in Michigan.” If you make it so retirement income isn’t taxed, you’re shifting your tax burden essentially to your kids and say, “We want you to carry us.” And that’s not a fair answer. So, what do you do? We made modifications and the first part of it is is we grandfathered in all our seniors. We defined seniors as 67 and older. So none of the tax law changed with respect to retirement income for anyone in that category.
The next piece is we put a transition in for people between 60 and 67. So we gave them a special exemption of up to $40,000 for a married couple for that kind income and in addition to the transition so they had a much more favorable case. So, the people that really get affected by this are people before they’re seniors in terms of their retirement income, or if they have high retirement income. And, what we did is, instead of having that, we put in an exemption for ALL seniors, of up to $40,000 for a married couple, for ANY kind of income. So, what we did is we now made it fairer for those people working, who had to work. They’re not going to pay Michigan income tax now where they used to have to. And now it’s fairer between people who have retirement income and people who have working income. They only seniors that really will pay is if you have pension income, of income well above $40,000. Once you get above $40,000, you can be affected by it. Or if you’re younger and you’re not a senior. So that was part of this is let’s make a fairer long-term system that really makes it, for the income working people, the people still having to work, they have a much fairer situation. It’s still one of the top ten most generous schemes in the country.
It’s hard to know what to say about this other than that there are plenty of retirement age folks who beg to differ about this particular claim that the new tax on their pensions is somehow not a tax. It brings to mind the adage, “Don’t pee on my shoe and then tell me that it’s raining.” Suggesting that taking care of our senior citizens by not taxing their pensions, something that they counted on, is somehow “carrying” them and unfair is truly insulting given that these are people who worked their entire lives, contributing to society, and now want to retire with a little bit of money and a little bit of dignity. Governor Snyder acts as if $40,000 a year for a married couple is somehow a huge amount of money but we all know this is hardly the case and a large number of seniors whose pensions were not taxed in the past will see a tax increase. Period.
Quit peeing on their shoes, Governor.
Regarding cutting taxes on corporations and paying for it by raising taxes on everyone else:
We simplified our tax code in a lot of ways. Let me talk about the issue about business benefiting because, again, that’s another misinformation piece out, because a lot of times people like to characterize this as “Big Business” winning. Big Business did not get a tax benefit from the tax changes we made. That didn’t happen at all and, in fact, we changed…the simple facts are is the corporate tax rate is 6%. The individual tax rate is 4.25%. And I wiped out most of the tax credits in the corporate tax code. One of the few credits remaining is for small business. What we did was make a fairer tax system because it was really small and medium-sized businesses, the people that create jobs – we were putting a huge burden on their backs. Think about this: they were paying the Michigan income tax because that flows through. So, we pay taxes on our wages – I pay tax on my salary as governor – small business people were paying on the income of their business but then we said let’s stick ‘em with another tax. We were taxing them more than what we were paying. That’s not a fair answer, particularly when they’re the job creators. So the tax reform we did was to essentially say let’s tax away that second tax and now create a fair system that we’re simply asking them to pay the tax rate the same way you and I pay on our salary. And that helps generate more jobs and that’s the fair answer. So, that’s the tax reform that really happened. It wasn’t all Big Business. Again, I wiped out their credits, they have a higher tax rate than individuals. That wasn’t a big win. [...] So, we got rid of a dumb tax and replaced it with a clear, simple system that actually requires good, higher payments, in some ways, from corporations, larger corporations, and, at the same time, makes it fairer for small and medium-sized businesses.
This is the classic “Straw Man Argument” where Snyder mischaracterizes the argument and then shoots down the mischaracterization. Few people are talking about “Big Business”. We’re talking about the plain and simple fact that corporations in this state are enjoying a nearly $2 billion tax break while money has been pulled from our classrooms, the middle class and poor are seeing their tax burden increased, and our senior citizens are now paying a tax on their pension that they didn’t pay before. It’s important to know that the definition of a “small business” probably isn’t what you think it is. While it includes the local “mom & pop” store on the corner, it also includes businesses with as many as 1,500 employees and making as much as $38 million a year. And that’s just for a so-called “small business”. For example, an oil refinery or aircraft manufacturer with 1,500 employees is considered a “small business”. An oil and gas support corporation making $38.5 million a year? That’s a “small business”.
The “taxed twice” argument was shot down extremely well in a must-read report by the Michigan League for Human Services:
The double taxation concern is flawed because it is only applied to business and not to individuals. For example, personal income is taxed once, through the personal income tax, and again, throught the sales tax on purchases. In fact, the double taxation for individuals was made worse when the recent tax changes eliminated the city income tax credit so that individuals pay taxes on the same income twice. The other argument in favor of taxing businesses is that they use government services such as police and fire services for their building, as a separate entity from individuals, and these benefits should be paid for through taxes.
That same report shows the impact of the business tax cuts:
This self-created deficit came about because nearly 100,000 businesses no longer pay the Michigan Business Tax.
By the way, if “Big Business” was feeling so much additional tax pain under this new tax scheme, you can be quite sure you would have heard from them about it. You can trust me when I say they tend not to stay quiet about that sort of thing.
In the final analysis, this isn’t about “Big Business”, it’s about a policy that says corporations should be taxed less, individuals should be taxed more, and this will create jobs. Three years later we still have the third highest unemployment rate in the country so apparently all of that tax savings hasn’t translated into businesses doing more hiring, after all.
Please, Governor, quit peeing on our shoes.
Regarding increasing the State Earned Income Tax Credit for poor working families:
There’s one huge challenge on that. That was something that we did scale back to some degree. It’s really a federal program. The way our program works in Michigan is we simply take a percent of whatever that federal credit is and we were paying that. It used to be 20% and now it’s 6%. Some people have suggested bringing that back to some degree. And one of the challenges to do that is is if you look at the Internal Revenue Service themselves, the Auditor General for the IRS has basically come out and issued a report that says over 20% of the payments under this program are improper. So, one of the real questions is should we be looking to reinvest in a program where the federal government themselves comes out and says more than 20% of those payments are improper. That’s hard to justify.
Basically, what Gov. Snyder is saying here is there’s waste in a federal program so every low-income, working Michigander must pay the price for that. This self-proclaimed problem solving CEO/accountant isn’t clever enough to find a way to solve that particular problem so the tax cut must be slashed by 60% and poor Michiganders can just deal with it.
That’s insulting and offensive and Gov. Snyder should be held accountable for that astonishing comment.
What is shocking is how easy Gov. Snyder’s budget goes on upper income Michiganders and how astonishingly HARD it hits lower income residents. Take a look at the average tax increase broken down by income group, again from the MLHS report:
When you look at the total state and local taxes as a percentage of income of those making $334,000 or more per year vs. those making $17,000 year or less, the poorest people pay 1000 times more than those at the top of the food chain. The poorest Michiganders pay 1.0% of their income vs. 0.001% for the top earners.
Gov. Snyder can’t justify keeping the Earned Income Tax Credit at 20% for the working poor but somehow he CAN justify that.
Regarding restoring the Emergency Manager Law after voters voted it down:
Actually, what we did was look at some of the key issues and concerns that were clear about the public vote. That got to the point of how long someone was in the position and did the community have other options to choose. So, we modified the law to take those into account. So, what we did was look at, okay, here are the issues, here are some of the primary criticisms and put that into account of having a new law to go forward.
Right, right. You “fixed” the Emergency Manager law after voters weighed in at the ballot box. The one thing you forgot to “fix”, Governor, is the whole “taking away democracy” part. Don’t insult our intelligence by suggesting that the our vote to overturn the Emergency Manager law was a primer on how to make it better. That law is and was an affront to our nation’s bedrock foundation of democracy and no amount of obfuscation on your part changes that. You thwarted the will of the people and you know it.
Marriage equality:
As a practical matter, the courts are really going to decide this matter. I’ve said that it’s in the court system and they’re going through that process. It was something decided by the people in Michigan’s constitution several years ago. They voted on the definition of marriage being between a man and woman. And, as a practical matter, that’s Michigan’s constitution. So, now we’re going through the court system to see what the answer is. And the Attorney General is the one who is primarily pursuing this and he’s doing the appropriate action of saying that’s what the constitution says so he needs to defend the constitution of the State of Michigan.
Michigan’s ban on same-sex marriage didn’t happen “a few years ago”. It happened a decade ago in 2004. Since then, a plurality of Michigan citizens now support marriage equality in our state. As far as Attorney General Bill Schuette wasting millions of our tax dollars on defending this bigoted ban, the fact is the court HAS weighed in on this and found the ban unconstitutional. It was a choice by Schuette to continue fighting it, one he could have chosen NOT to fight after a federal judge had ruled.
When this issue is resolved once and for all, Gov. Snyder and AG Schuette will be seen as being on the wrong side of the issue, supporting homophobic bigots over the will of the majority of citizens of Michigan.
Regarding the expansion of the Elliott-Larsen Civil Rights Act to protect members of the LGBT community:
I’ve made it clear that I don’t believe in discrimination and I think it would be appropriate for the legislature, at some point, to take up this discussion and I’ve been encouraging them to take up that discussion of Elliott-Larsen. [...] Let’s have a good dialogue, a good discussion before the legislature and, again, that’s where the forum should be and that’s where we can have public hearings. We can have a great public dialogue on it and I’ve been encouraging them. I think the Speaker actually previously had sent signs that he was interested in the topic at some point. It’s just now a question of, you know, we’re in an election season and then there’s the lame duck session.
This is what passes for “leadership” from our CEO/accountant governor: punting a contentious issue to the courts and the legislature. When he was asked by Rick Pluta if he would sign a bill that extends civil rights protections to the LGBT community, Gov. Snyder responded, “Well, again, I don’t do hypotheticals…I wait until a bill gets to my desk then I do my analysis.”
This isn’t leadership, it’s cowardice.
On whether oil drilling in residential areas is appropriate:
Well, it’s a balancing act. When you get into extremely urbanized areas, again, residential neighborhoods. It’s really how do you do it in a way that you have respect for the number of people living there. In many cases in Michigan, people are actually excited to see it because it brings in good revenue to the land owners and the people living in that area. And, so, again, how do we strike that right balance when you get into very populated areas.
Republicans LOVE to talk about local control but, apparently, when oil and gas profits are on the line, we have to find “the right balance” between the greed of Big Oil companies and the health and safety of our residents and the environment. This is another issue on which Gov. Snyder is going to be seen on the wrong side of.
On leadership in addressing global climate change:
One of the controversies you get it is there global warming and what caused it. What I was going to say is that it’s clear that the volatility in the weather and the challenges are more.
It was (because of) a change in circumstance that Proposal 2 went on the ballot. Basically I met with labor and management during the summer and Proposal 2 was about putting collective bargaining in Michigan’s constitution. That would have destroyed Michigan’s economy, in my view. It was a devastating proposal. And I suggested to them, I said my real concern here is if you start on this path on collective bargaining, you’re going to highlight the right to work issue. That you’re going to put both of these issues on the table. And, in fact, I asked labor, in particular, not to go ahead with their petition drive. It’s not payback. It’s actually why I walked through it ahead of time. I didn’t threaten, I just said my concern is is if this goes forward, this is a likely consequence. I don’t think anyone disagreed with that. Everyone understood that could be a consequence and so there’s no threat. I don’t threaten people. I just do my job. I’m there to solve problems. I don’t believe in fighting with people.
So, that was a case where it went ahead and, again, it got defeated – appropriately defeated – and right to work was a consequence. And right to work is not a bad answer. It’s a good answer. It’s standing up for Michigan workers. They should have the freedom to choose. It’s about representing Michigan people and it’s helped our business development pipeline in this state. We’ve got a lot more companies looking to build and stay in Michigan because of that.
Gov. Snyder just redefined “threatening someone” as “walking them through it ahead of time”. Make no mistake, when Snyder “walked labor through” how things were going to play out ahead of time, it was clearly a threat. He made it clear that, if they pursued Prop 2, Snyder and his business pals like Dick DeVos would punish them by making Michigan a Right to Work state. And, when labor organizations moved forward with Prop 2, they made good on their threats. Period. You can whitewash the payback with fun phrases like “walking them through it ahead of time” but you threatened them, plain and simple. |
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Sat Sep 13, 2014 12:37 pm |
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untanglingwebs
El Supremo
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Michigan led the country in job losses in August, tied for 5th highest unemployment rate
By Eclectablog on September 22, 2014 in Michigan, Michigan Republicans, Rick Snyder
When Rick Snyder came into office, Michigan had the nation’s 5th highest unemployment rate. After nearly four years of his relentless positive Republican action, guess where we’re ranked now?
Yup: 5th.
That number doesn’t tell the full story either. The only reason we’re ranked 5th instead of 4th or less is because so many Michiganders have left the job market. Our unemployment rate is still 1.3 percentage points above the national average of 6.1%. The worst news, however, is that our state lost 9,500 jobs between July and August, the highest job loss in the country. By contrast, 35 states saw job growth improve in the same month.
Abysmal numbers like these are the reason that Rick Snyder has pivoted from his “Comeback Kid” or “Comeback State” rhetoric in his campaign ads. Instead, he’s talking about a mythical “road to recovery”. Considering the state of Michigan roads right which are crumbling before our eyes thanks to a profound lack of leadership by Rick Snyder, the use of the road metaphor is laughable. Republicans control every aspect of our government and they STILL can’t get the issue of road repair funding resolved with winter fast approaching.
The bad economic results are also why Gov. Snyder is now running on Obamacare, touting his success at getting Medicaid expansion passed. This is complete historical revisionism since Snyder himself was initially a roadblock to getting Medicaid expansion passed then displayed yet more failed leadership once he hopped on the bandwagon. The effort lost our state hundreds of millions of dollars in federal funds and forced countless working poor residents to wait even longer for the healthcare coverage provided by the Affordable Care Act under Medicaid expansion.
Don’t buy the lies. Governor Snyder and Michigan Republicans in general have ensured that Michigan has stagnated. If it weren’t for efforts by the Obama administration and the seeds planted by Gov. Jennifer Granholm to revive the manufacturing sector in Michigan, we’d be even worse off than we are. For Gov. Snyder to take any credit for that is offensive and deceitful. The GOP’s wars on women, workers, senior citizens, students, and the middle class have done nothing to improve our state’s economy. These groups are truly the only thing Snyder has been “tough” on.
On November 4th, Michigan voters will have the perfect opportunity to hold them accountable. |
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Tue Sep 23, 2014 6:43 am |
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untanglingwebs
El Supremo
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Eclectablog
Snyder administration official who resigned over extravagant spending now found to have had a conflict of interest, as well
By Eclectablog on September 19, 2014 in Michigan Democratic Party, Rick Snyder
The scandals just keep piling up
More evidence has emerged that being a business mogul associated with, a relative of, or even hired into the Snyder administration gives you some perks not enjoyed by others. You might, for example, have contracts with the state tossed your way like Snyder’s cousin, George Snyder. You can impact legislation that benefits you and/or your business partners. You can live extremely high on the hog on the public’s dime right up until you get busted for it. That last one accurately describes Scott Woosley, the former head of the Michigan State Housing Development Authority who resigned in disgrace last month after the Michigan Democratic Party uncovered wildly extravagant expenditures by Woosley and his staff that were then signed off on by other Snyder administration officials and reimbursed using taxpayer dollars.
Yesterday, the MDP revealed that, during his first year or more in his position as the Executive Director of MSHDA which distributes U.S. Department of Housing and Urban Development (HUD) grants, Woosley was also receiving HUD funding through Labor-Management Fund Advisors (LMFA), the company for which he was the Managing Director. In fact, LMFA received over $1 million in HUD grant monies and was still receiving those disbursements after Woosley took a leadership position at MSHDA representing a clear conflict of interest. After all, Woosley was responsible for seeing to it that HUD grant funds were being spent properly. In other words, he was responsible for overseeing himself.
In August, Woosley claimed that he had “no business with the state or MSHDA” which clearly had not been the case when he took over as Executive Director.
Michigan Democratic Party Chair Lon Johnson filed a complaint yesterday with HUD Inspector General David A. Montoya, a complaint that documents potential conflict of interest and the misuse of federal funds.
“The Snyder Administration either permitted or turned a blind eye to a major conflict of interest involving the head of his housing agency, whose private real estate company was receiving over a million dollars in tax payer money,” said Johnson. “Federal conflict of interest laws exist to protect taxpayers from exactly the kind of abuse that is rampant in the Snyder administration. When Snyder and his administration ignore rules designed to protect the public, they betray the public trust. People like Scott Woosley that have major conflicts of interest and stand to benefit financially from their appointment should never be placed in charge of a state agency responsible for stewardship of hundreds of millions of public dollars.”
This isn’t just a “kinda sorta” situation where Woosley “kinda sorta” had a conflict of interest. This is actually a very clear example of violating HUD’s rules on this. In a HUD presentation on conflicts of interest, Ellen Dole gives this example:
•The State Housing Finance Corporation (SHFC) hired ABC Associates to administer a Homebuyer Assistance Program funded with HUD HOME funds.
– John is the President and partner of ABC Associates and also serves as the Executive Director of SHFC.
•Is this a conflict of interest under Part 85 [of the Code of Federal Regulations]?
Answer: Yes.
A whistleblower at MSHDA also told the MDP that Woosley and his staff were misusing federal funds for their own enjoyment and utilizing the services of state employees improperly. Here’s what they said in a letter they sent to the MDP:
RE: Scott Woosley, Exec Director of MSHDA
To Whom It May Concern:
Please be advised that you need to look very deep and very hard into the expenses associated with Scott Woosley and his cohorts involved in the EB5 and/or Mezzanine Funding at the Michigan State Housing Development Authority and their misuse of state employees who are being paid as state classified civil servants while working on these endeavors.
Travel, alcohol, massages, ballgames, etc are all part of their so-called “work” while entertaining business associates in these fields. Many of these activities, especially the drinking, take place during regular work hours, which is against state policy.
Many staff are involved in the review of the documents they plan to provide to your firm in regards to the FOIA they received. Don’t trust that you’re receiving accurate information regarding those expenses.
Employees are fearful of retribution from those involved in these new funding techniques through the agency should they voice their concerns over apparent abuse.
Scott’s leading fraud partner, Jennifer Bowman, the director of Legislative Affairs and Communications at MSHDA, rules by intimidation and threats. She had made it clear that she will take down anyone in their way, including other division directors, whom she feels she has authority over. Truly a pit bull wearing lipstick.
Regardless if they call it a foundation or fund, they are using state employees and having them engage in activities prohibited under civil service rules. They are allowed to claim expenses that are not allowed and there’s no oversight or audits performed related to those expenses.
Unfortunately I cannot leave my name. I know for a fact that I would not have a job if I were to be exposed as the writer of this letter.
I’m simply one of the good employees who’s totally offended by this type of rogue behavior that gives state employees a black eye and makes all our jobs more difficult.
LOOK CLOSE – DIG DEEP – AND DON’T TRUST A WORD THEY SAY!
In the business world from which Snyder and his business colleagues operate, nepotism and cronyism may be acceptable, if not unethical. In government, however, they are ILLEGAL.
And, in the Snyder administration, it looks increasingly like they are overlooked, accepted, and/or even encouraged.
The Snyder campaign will have you believe that this is all just election year politics on the part of the MDP. The reality is that voters need to know what Snyder and his pals are up to so that they can make an informed decision about who they want running our state government. By choosing Rick Snyder, they can expect more of the same and that means more perks and benefits for friends, relatives, and buisiness associates who are permitted to benefit themselves financially and in other ways by exploiting their government positions.
[Caricature by DonkeyHotey from photos by Anne C. Savage for Eclectablog] |
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Tue Sep 23, 2014 6:49 am |
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untanglingwebs
El Supremo
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Pure Michigan is in decline
Steven Cook 5:27 p.m. EDT September 23, 2014
Pure Michigan in pure decline. That is how one prominent writer described the state of our state.
After reading the facts spelled out in a report released by the East Lansing-based nonprofit group Prima Civitas, it would be hard to argue with that assessment. The group, which promotes competitiveness and innovation in government and industry, analyzed several aspects of Michigan’s economy. The report, “Michigan Dream at Risk,” should serve as a wake-up call to policymakers and voters in the fall election.
Although the report reveals a decade of neglect for our state’s infrastructure, each of the indicators have continued on a downward slide in the last four years, coinciding with Gov. Rick Snyder’s term of office and one party control of state government in Lansing.
The report documents the financial devastation Michigan families have experienced in a section entitled, “Biggest fall in family incomes in the nation.” Michigan families have fallen from 19th nationally in family income to 37th.
Michigan public schools, once the envy of the nation, have experienced a 16 percent decline in investment, exacerbated by the $1 billion funding cut that Snyder pushed through in his first year in office.
The unprecedented disinvestment in our public schools has led to serious shortages of classroom supplies, larger class sizes, and the elimination of music, art and physical education classes in many districts. Every school district in the state has less per pupil funding than it did when Snyder took office. Take a look at the website kidsnotceos.com to see how much funding your district has lost.
The report exposes Michigan’s disinvestment in higher education as well. Many middle-class families no longer have the opportunity to send their children to college because college tuition has doubled. It is no wonder, given the 29 percent drop in higher education funding.
In addition, our cities have suffered a 31 percent reduction in revenue sharing resulting in 4,000 fewer firefighters and police officers in communities across the state.
The report shows Michigan’s spectacular natural resources have suffered measureable damage. The miles of polluted rivers have doubled, while beach closures have increased 22 percent in the last five years. Our waterways are the single biggest tourist attraction in the state. This type of neglect will devastate our tourism industry and our economy as a whole.
And finally we come to our roads. The report rated Michigan roads as “worst in the nation.” Who could argue with that assessment?
The “Michigan Dream at Risk” report makes it clear that by every measure our economy has declined in the last four years Snyder has been governor. To understand how and why the Michigan dream has been compromised, one needs to look no further than the policies Lansing politicians have pursued.
Corporate tax cuts have been given top priority. Our schools, colleges and universities, natural resources and roads have all taken a back seat as billions of dollars in revenue have been consumed by corporate tax cuts. In campaign ads, Snyder calls himself an accountant. Unfortunately, he’s a corporate accountant. Michigan needs an accountant who will add middle-class families to the spread sheet.
Ad campaigns can tout “Pure Michigan,” but unless we pursue policies that truly value the things that make our state great — our infrastructure and our natural resources — it’s just an empty slogan.
Snyder promised to end Michigan’s economic decline. Instead, he has accelerated it. Pure Michigan is in pure decline. The only way to reverse these disturbing trends is to change directions, change policies, and change political leaders. If we don’t, we deserve what we get — more of the same.
Steven Cook is president of the Michigan Education Association.
Labor Voices
Labor Voices columns are written on a rotating basis by United Auto Workers President Dennis Williams, Teamsters President James Hoffa, Michigan AFL-CIO President Karla Swift and Michigan Education Association President Steven Cook. |
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Tue Sep 30, 2014 7:14 am |
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untanglingwebs
El Supremo
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Interesting as Prima Civitas is the non profit that was being run by Mike Brown before he returned as EFM to Flint.
Tim Herman's Genesee Flint Regional Chamber of Commerce is responsible for the Pure Michigan ads locally. I laugh when I see only ads here for local venues. Aren't they supposed to promote tourism> |
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Tue Sep 30, 2014 7:19 am |
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untanglingwebs
El Supremo
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Michigan Truth Squad
A project of
the Center for Michigan.
Foul on Snyder ad for portrayal of Schauer school vote
1 October 2014
by Bridge Magazine
Who: Rick Snyder for Governor
What: “Linda,” 30-second ad
The call: Regular Foul
Relevant text:
“School funding is always tough. But at least we’re not cutting state education funding like Granholm and Schauer did. Governor Snyder has increased K-12 state funding every year he’s been in office, in spite of what you’ve heard. Increased spending. And he even shored up teachers’ pensions. I taught for 31 years. I trust the direction Governor Snyder is taking in education.”
The 30-second TV ad by the campaign for incumbent GOP Gov. Rick Snyder is getting as much notice for who’s in the ad as its content. In it, retired school teacher Linda Thaler attacks Mark Schauer, the Democratic candidate for governor, for education funding cuts while he was in the state Senate. Why the fuss over Thaler? She happens to be Snyder’s next-door neighbor at his Gun Lake vacation home south of Grand Rapids. Lansing news service MIRS also reports that Thaler ran for Republican precinct delegate. Snyder spokesperson Emily Benavides told MIRS: “She is a supporter like any other.”
The ad continues the fight over a over a pivotal, seemingly interminable issue in the race for governor: Which candidate is most committed to improving Michigan’s struggling K-12 educational system? The debate over whether Gov. Snyder raised or lowered education funding in his first year in office has turned into math-class-for-politicos, as each side bends numbers to suit its case.
And now we have dueling teachers.
Schauer, a former congressman and state senator, has taken shots at Snyder for cuts to education during Snyder’s first year in office while giving a tax breaks to business. The Democratic Governors Association ran a TV ad featuring Royal Oak school teacher Kim Stanley attacking Snyder for cutting “a billion dollars” from education (Truth Squad called a foul on that attack, too).
Now it’s Snyder’s turn. Thaler speaks to the camera from a living room setting, with a script that tries to turn the tables on Schauer.
Statements under review:
“School funding is always tough. But at least we’re not cutting state education funding like Granholm and Schauer did.”
The ad cites Schauer’s 2003 vote as a state senator on a measure aimed at closing an expected $350 million shortfall in the school aid fund. It passed by a 38-0 margin. According to an analysis by the House Fiscal Agency, the measure added $152 million in new tax and lottery revenue for school aid funding. Then-Gov. Jennifer Granholm signed a separate executive order that cut the education budget by roughly $100 per student. Analysis at the time by the Mackinac Center for Public Policy, a Midland-based conservative think tank, described it as part of a deal struck between Granholm and GOP Sen. Majority Leader Ken Sikkema.
Statements under review:
“Governor Snyder has increased K-12 state funding every year he’s been in office, in spite of what you’ve heard. Increased spending. And he even shored up teachers’ pensions.”
Strap on your green eyeshades. Schauer has repeatedly asserted that Snyder cut spending in 2011-2012 for K-12 schools and higher education by more than $1 billion, citing analysis by the Senate Fiscal Agency. It includes a $930 million cut for K-12 schools, $12 million for community colleges and $216 million for higher education. The measure included a $470 cut in per pupil funding. But that calculation did not include $154 million to allocate $100 per pupil for eligible “best practices” school districts and $288 million to support the teacher pension fund – an obligation that districts would have otherwise been required to meet. It also does not account for the loss of more than $500 million in federal stimulus funds that had been available in the previous budget when Granholm was still in office. The state ended up spending $12.75 billion in school funding in Snyder’s first budget, compared with $12.98 billion the year before.
The Snyder camp cites a chart from the Department of Technology, Management and Budget that shows state funding for K-12 education has increased from $10.8 billion in fiscal 2011-2012 – his first school budget – to $11.7 billion for fiscal 2014-2015. In the past three years, Snyder has pumped more than $970 million into districts’ teacher retirement obligations. But the minimum effective foundation allowance has remained relatively flat since Snyder took office in 2011, standing at $7,146 in fiscal 2010-2011 and $7,187 for 2014-2015.
The call: Regular Foul
The ad overreaches when it accuses Schauer of “cutting state education,” imparting blame to him for a per pupil funding cut that was in fact an executive order signed by the governor. The part of the package that he and his Senate colleagues approved actually added money for schools, part of a larger deal (agreed upon by both political parties) to close a sizable school aid funding gap.
It is true that K-12 spending has increased every year since Snyder’s first K-12 budget. But it’s also true that K-12 funding in Snyder’s first budget fell from from the previous year, which contradicts Thaler’s statement that “at least we’re not cutting state education funding.” |
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Wed Oct 01, 2014 6:44 pm |
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untanglingwebs
El Supremo
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How we make the call
Flagrant foul
A false statement about a candidate’s position or a fact involving policy. It’s one thing to point out differences between records. It’s another for a candidate or third-party group to present false information or inaccurately portray a candidate’s political record.
Regular foul
A statement that distorts a candidate’s record or a fact involving policy, or which omits a fact that is essential to understanding a candidate’s position.
Warning
A statement that may be generally truthful, but lacks context and could easily mislead or be misconstrued.
No foul
A statement, however strident, that is based on accurate facts.
We'll keep tabs on each politician, and we'll make sure you know how many fouls, if any, are called on each.
For too long some Michigan politicians and their consultants have stretched the truth, broken trust with citizens, and ignored the consequences of the things they say. The result is undue mistrust in our political process, one that is ultimately controlled by citizens – ideally informed citizens like you who are taking the time to learn about the issues and the people who represent them in our representative democracy.
Identify questionable claims in the political speech you see or hear. If you hear or see a major speech, news release, white paper or report, viewpoint column, political website, or issue advertisement that raises questions in your mind, send us a Truth Squad Tip.
If a tip exposes an exaggeration, misinformation, an outright lie, or a distortion, we will call a “Foul!” on the politician or political party.
If you choose, your tip can remain anonymous.
Let your friends know when the Truth Squad calls a foul: Hold Michigan politicians and political parties accountable. Email, Tweet, Facebook us your favorite fouls.
The Truth Squad is focused on:
•Political Speech
•News Releases
•White Papers or Reports
•Viewpoint Columns
•Political Websites
•Issue Advertisements
We hope you will find the Truth Squad informational, educational, fun and, mostly, useful. Spread the word – we’re ready to blow the whistle on Michigan politics.
How is Truth Squad produced?
The Michigan Truth Squad is a reporting project of Bridge Magazine and The Center for Michigan. Each analysis is produced by the staff of Bridge Magazine and freelancers with deep experience in state politics and policy. The bios of all Bridge staffers are available here. Our Truth Squad team has more than 100 years of combined experience as journalists covering Michigan politics, public policy, and current events.
Bridge Editor David Zeman and Center CEO John Bebow determine who staffs the Truth Squad. Individual campaign ad analyses are generally team efforts, with David Zeman having final authority over the published content. Truth Squad writers are paid: Bridge staffers are on salary, and freelancers are on retainer or paid by the article. Truth Squad and Bridge are funded through The Center for Michigan, a nonprofit organization that receives funding from a wide range of philanthropic sources. All major donors to the Center for Michigan’s operations are listed at the bottom or bottom-right of every page on the site.
Thank you to our investors: |
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Wed Oct 01, 2014 6:45 pm |
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untanglingwebs
El Supremo
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Michigan Truth Squad
A project of
the Center for Michigan.
Foul on anti-Schauer ad tying Obamacare to higher taxes
1 October 2014
by Bridge Magazine
Who: Republican Governors Association
What: “Who Stands To Lose,” 30-second TV ad
The call: Regular Foul
Relevant text:
“The last time Mark Schauer held state office, Michigan was circling the drain. Then he left for Washington, where he voted for Obamacare. In fact, Schauer voted with Obama and Democrats 95 percent of the time. Now Michigan’s seniors are facing higher costs, fewer benefits and loss of their doctors. Thanks to Schauer and Obama, who stands to lose the most? Taxpayers. Seniors. Families. You.”
The 30-second ad by the Republican Governors Association opens a new line of attack against former U.S. Rep. Mark Schauer, who is running against incumbent GOP Michigan Gov. Rick Snyder. The RGA had already pumped nearly $3.2 million into TV ads on behalf of Snyder as of Sept. 1, according to the Michigan Campaign Finance Network. The ad reprises earlier charges linking Schauer to Michigan’s recession. But this one also assails him for backing Obamacare, also known as the Affordable Care Act, which the ad asserts is harming coverage for senior citizens. It is an interesting strategy, given that Snyder pushed for approval of Medicaid expansion under the act. It has enrolled more than 400,000 low-income Michigan adults in its first year.
Statements under review:
“The last time Mark Schauer held state office, Michigan was circling the drain.”
Classic guilt by association. RGA backup material for the ad cites a litany of figures, including job losses and rising unemployment that happened while Schauer served in the state Senate from 2003 through 2008.
The numbers speak for themselves. In January 2003, non-farm private sector employment in Michigan stood at 4,445,700. In December 2008, it stood at 4,054,600 – a drop of more than 390,000. Michigan’s unemployment rate was 6.2 percent in January 2003. It was 10.6 percent in December 2008. But this fails – as did a previous RGA ad – to substantiate its suggestion that Schauer was responsible for a miserable decade. Most analysts attribute Michigan’s losses in that decade to the decline of manufacturing, notably the near-collapse of the automobile industry. It is worth noting that Schauer served as minority leader in the state Senate and that Republicans controlled that body during both of his terms.
“Then he left for Washington, where he voted for Obamacare. In fact, Schauer voted with Obama and Democrats 95 percent of the time.”
Little to dispute here. Schauer voted in 2010 to pass Obamacare, issuing a statement at the time that “it’s about doing what’s right for the people of Michigan to get our economy back on track.” According to the Washington Post, Schauer voted 95 percent with his party during his term in Congress from 2009 through 2011.
“Now Michigan’s seniors are facing higher costs, fewer benefits and loss of their doctors. Thanks to Schauer and Obama, who stands to lose the most? Taxpayers. Seniors. Families. You.”
This is a complex issue that requires some background. About 16 million Americans – one third of those in Medicare, the government health care program for those 65 and older – are enrolled in a private option to that program known as Medicare Advantage. It is paid for by federal funds but managed by private insurers and often offers lower premiums and options like vision care or gym memberships. At passage of the ACA in 2010, that option was costing about 14 percent more than traditional Medicare. The act aims to drive down its cost by reducing payments to insurers by about $156 billion over 10 years. The nonpartisan Congressional Budget Office estimated that overall Medicare spending would be reduced by $716 billion over 10 years under the act, because the law also cuts spending to hospitals, home health services, hospices and skilled nursing services. Backers said the reductions are needed to shore up the long-term financial security of Medicare, under increasing fiscal stress because of the rising numbers of aging Americans. Trustees cautioned in 2012 that the trust fund that pays hospital costs would run dry in 2024. Critics warned those cuts could compromise care and degrade the private Medicare private option.
AARP – the nation’s largest senior citizen lobbying group – backed Obamacare. In a February briefing, an AARP official said the act’s provisions “strengthen Medicare and give more coverage,” noting that it closes the “donut hole” gap in prescription drug coverage by 2020. The briefing said it’s too early to tell if the spending cuts will affect care.
Analysis in April by the Kaiser Family Foundation, a nonprofit health care research organization, found that premiums paid by members were relatively stable since 2012 at about $35 per month but that some insurers were increasing out-of-pocket spending limits. Because of cuts to insurers, the CBO projected the number of enrollees in Medicare Advantage would fall to 10 million by 2014. That market drop never materialized. The CBO now projects that Medicare Advantage enrollment will reach 22 million by 2020.
RGA documentation notes that health insurers such as UnitedHealth Group Inc., the largest provider of Medicare Advantage, expected to cut the number of doctors in its network by 10 to 15 percent by the end of 2014.
The ad expands its attack to the entirety of the ACA, as it flashes the words “Jobs lost.” RGA supporting material notes a CBO estimate that the act will result in the loss of 2.5 million jobs by 2024. A CBO statement issued in February said that figure is “almost entirely” due to workers voluntarily leaving jobs or cutting back hours. That’s in part because subsidies under the ACA diminish as income rises, which the briefing notes means “a portion of the added income from working more would be offset by a loss of some or all of the subsidies, which represents an implicit tax on earnings.”
The Center for Healthcare Research & Transformation, a nonprofit partnership of the University of Michigan and Blue Cross Blue Shield of Michigan, projects that the ACA will cut the number of uninsured in Michigan in half by 2019.
The call: Regular Foul
The first part of the ad reminds us that Michigan “was circling the drain” while Schauer was in office. But it doesn’t tell us why he might be responsible. That said, it’s indisputably true that the Michigan economy was horrible during Schauer’s time in the state Senate.
The second part of the ad – focused on Medicare and the ACA – oversimplifies a complicated issue and tells but a part of the story. It fails to acknowledge the legitimate concerns over long-term financing of Medicare the act attempts to address. It also leaves out the fact that hundreds of thousands of Michigan residents now have health insurance because of the act. None of that warrants a foul; it’s just another case of a political ad not giving voters the full story which, as Truth Squad has repeatedly pointed out, no political ad is required to do.
The ad falls into trickier territory when it concludes that seniors and taxpayers are net losers under Obamacare. Yes, the governor’s group can cite examples where some seniors’ costs have risen, or their benefits or choice of doctors has narrowed.
But premiums under the private option have remained relatively stable the past few years. Further, the ACA closes the gap in Medicare’s prescription drug coverage to seniors by 2020. That means lower costs to seniors. Predictions that the ACA would cripple the private insurance option under Medicare have thus far been proven wrong. And long-term forecasts indicate that reforms to Medicare under the ACA are trimming its cost. That should be good for taxpayers.
As the Kaiser Foundation noted in an updated analysis on Monday, the latest Congressional Budget Office data show Medicare spending in 2014 is projected to be about $1,200 less per person than forecast at the time the ACA took effect. Those savings are expected to double by 2019, with the act’s efficiencies likely spurring providers to “tighten their belts,” producing savings that are “good news for Medicare, the federal budget and for beneficiaries.”
“It is clear that the Medicare savings provisions in the ACA, such as reductions in provider payment updates and Medicare Advantage payments, have played a major role, and the changes included in the law may be having a bigger effect than was expected soon after the law passed,” Kaiser wrote.
Truth Squad awards a foul for this claim. |
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Wed Oct 01, 2014 6:48 pm |
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untanglingwebs
El Supremo
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Fact check: Did Michigan Gov. Rick Snyder cut $1 billion from education or add $660 per student?
Jonathan Oosting | joosting@mlive.com By Jonathan Oosting | joosting@mlive.com
Follow on Twitter
on February 05, 2014 at 8:07 AM, updated February 05, 2014 at 8:09 AM
Michigan credit outlook lowered following reduced revenue estimates, Detroit 'grand bargain' deal
LANSING, MI -- Michigan Gov. Rick Snyder says state spending on K-12 education has increased $660 per student since he took office, but Democratic challenger Mark Schauer says Snyder cut $1 billion in education funding.
Who's right? Who's using fuzzy math?
With Snyder expected to release his fiscal year 2015 budget proposal later Wednesday -- reported to include a 3 percent K-12 funding increase -- we thought it appropriate to examine each claim using data from the non-partisan Senate Fiscal Agency and former House Fiscal Agency Director Mitch Bean.
As you'll see below, both Snyder and Schauer can make the math work to suit their arguments. But apparently not all schools can make current funding levels work for their students. As of September, state Superintendent Mike Flanagan said that 56 districts and public charters were operating with budget deficits.
MARK SCHAUER: "Snyder has cut $1 billion from public schools … and taxed retirement funds all to create tax breaks for corporations that aren't creating jobs."
Snyder's 2012 budget -- his first in office -- cut $930.6 million in ongoing school aid spending compared to the previous year, according to an SFA analysis from the time. In doing so, it reduced the minimum foundation allowance by $470 per pupil, retaining an existing $170 per-pupil cut that had been backfilled by federal money and adding another $300 per-pupil cut.
That's money that goes directly to schools -- and eventually the classroom.
However, Snyder's first budget also included $455 million in one-time spending, including a $100 per-pupil incentive available to districts that adopted "best practices" and $155 million to help offset ballooning retirement costs.
Budgets are plans and do not always reflect what actually happened. All told, the state ended up spending $12.75 billion in school aid for fiscal year 2012, according to the SFA. That was down from $12.98 billion the year before under a budget approved before Snyder took office, a net drop of around $235 million, far short of the $1 billion figure that critics cite.
The governor attributes that reduction to a significant loss in federal funding. In 2010-11, the school aid budget was bolstered by $184.3 million in federal stimulus funds and a $316.3 million federal education job grant, neither of which were available for Snyder's first budget.
"When those funds disappeared, the state couldn't completely make up for them," Bean wrote in a recent analysis. "But the reason they couldn't be made up was a net tax cut of about $500 million and a (rainy day fund) deposit of about $258 million -- so that took about $750 (million) off the table that could have reduced or eliminated the cuts to education."
While classrooms saw less direct money during Snyder's first-year budget, the state actually devoted more of its own dollars to K-12 education that year. And, as you'll see below, state funding continued to increase and by Snyder's second budget had offset the federal losses.
Bottom line: Snyder's first budget did cut school aid gross appropriations, but the spending reduction was much smaller than critics make it out to be and coincided with the loss of significant federal funds. The minimum per-pupil foundation allowance did drop significantly. Subsequent budgets increased funding.
RICK SNYDER: "I'm proud to say, in the last three years we've increased educational spending at the state level for K-12 each and every year to the point where we've invested $660 more per student than there was previously before I took office."
Gross school aid appropriations fell Snyder's first year in office but have rebounded each of the last two years. As noted above, that first-year reduction was marked by a significant loss of federal dollars. State restricted and general fund appropriations increased slightly in 2012. They continued to climb in Snyder's next two budgets and they are poised to jump again.
State-specific school aid spending rose from $10.8 billion in 2011 to $11.5 billion in 2014, according to the SFA. That means overall state aid is up around 6.4 percent since Snyder took office. But when you factor in federal funding, gross appropriations increased less than 3 percent, which is slower than the rate of inflation.
Snyder's $660 per-pupil figure is based on factors that do not necessarily mean more money in the classroom, including debt service for the school bond loan fund, state spending on the Michigan Public School Employee Retirement System and reduced enrollment numbers.
Of that $660 per-student average increase, only $439 is the result of state spending, according to Bean. The rest is because there are about 46,000 fewer students enrolled in publicly funded schools. Take MPSERS out of the equation, and state spending has increased by a more modest $394 per pupil, according to Bean. Of that, about $180 is new spending, while $214 is attributable to enrollment declines.
Overall state spending is up, but that doesn't necessarily mean all of that money is making it into the classroom. The minimum per-pupil foundation allowance -- the money schools automatically get based on enrollment -- has dropped from an effective rate of $7,146 in 2011 to $7,026 in 2014.
As Bean noted in his analysis, "the foundation allowance and 'per pupil' funding are no longer synonymous. Now, instead of just the foundation allowance being sent to schools, people, including the governor's number crunchers, are rolling in spending on things like" MPSERS.
Bottom line: State school aid spending is up since Snyder took office, whether or not you count federal funds or retirement payments, but the $660 per-pupil figure doesn't tell the whole story. A large chunk of state spending now is going to retirement costs and doesn't necessarily make it into the classroom. The minimum per-pupil funding allowance is down since Snyder took office, and many schools have fewer students.
Jonathan Oosting is a Capitol reporter for MLive Media Group. Email him, find him on Google+ or follow him on Twitter. |
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Wed Oct 01, 2014 6:55 pm |
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