Merit fall 2012 by ABCofMichigan

FALL 2012

PUBLICATION OF ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN

SPECIAL ELECTION COVERAGE

ABC Endorses Romney for President, Hoekstra for U.S. Senate Tear Out Voters Guide Included

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Inside

VOLUME VI, ISSUE 3 ABC Endorses Mitt Romney for President.

Executive Perspective

More true this election year than ever before – “Get into politics or get out of business”.

Vote “NO” on Proposal 2: The Biggest Threat to the Merit Shop in a Generation

Of all businesses, Merit Shop contractors are among the biggest losers if Proposal 2 passes.

2012 Voters Guide – Presidential Candidate Comparison

Side by side comparison of Romney and Obama’s positions on the top issues affecting ABC members.

ABC Endorses Romney for President

Governor Mitt Romney, Republican candidate for president endorsed by ABC for the office of president of the United States.

ABC Endorses Hoekstra for U.S. Senate

ABC of Michigan’s Board of Directors voted unanimously to endorse Pete Hoekstra, a stanch defender of the Merit Shop, for U.S. Senate.

General Election Voters Guide

An easy tear out guide for use at the polls.

Michigan Supreme Court Endorsements

A crucial race in Michigan—to assure Merit Shop friendly justices at the top judicial level of our state.

State Board of Education & University Board Endorsements

ABC Opposes Proposal 3 – “25 by 25” – Renewable Energy Standard

Locking this percentage into our constitution will sharply increase the cost of energy to Michigan families and businesses.

ABC Opposes Proposal 4 – Forced Unionization of Home Health Care Providers

Labeling home-based care providers as “government employees” takes money away from the disabled it was intended for and gives it to the union bosses.

Advertisers Index

ASSOCIATED BUILDERS and CONTRACTORS of MICHIGAN 2012 BOARD of DIRECTORS Dave Mollitor – Chairman Consolidated Electrical Contractors – Greater Michigan Chapter

Some of the most significant gains for ABC members have come about from steadfast political and legislative advocacy to defend and advance the free enterprise philosophy of the Merit Shop. In Michigan we have seen the results of ABC’s important efforts first hand, from the fight to end government mandated project labor agreements to the elimination of the Michigan Business Tax.

Chris Beckering – Vice Chairman Pioneer Construction – Western Michigan Chapter Dave Sheffield – Secretary/Treasurer Onslow-Sheffield – Southeastern Michigan Chapter Jim Cripps – Past Chairman Cripps Fontaine Excavating, Inc. – Western Michigan Chapter Rick Jackson Jackson Associates, Inc. – Southeastern Michigan Chapter Mike Kelly Wolverine Building Group – Western Michigan Chapter Rod Kloha Circle K Service Corp. – Greater Michigan Chapter Bill Molnar Wm. Molnar Roofing, Inc. – Southeastern Michigan Chapter Dan Murphy MAG Insulation – Greater Michigan Chapter Brian Stadler Wolgast Corporation – Greater Michigan Chapter Jack VandeGuchte Sobie Co., Inc. – Western Michigan Chapter Dan Welch Welch Tile & Marble Company – Western Michigan Chapter Michigan Merit Contributors Publisher: Christopher Fisher Managing Editor: Mary Boardway, CAE Communications Coordinator: Kelly Dancsok ABCMI Economist: Don Wilson Advertising Sales, Design and Printing: Keystone Millbrook Michigan Merit (ISSN# 1938-9051) is the official publication of Associated Builders and Contractors Inc. of Michigan (ABC of Michigan) and is published quarterly at 230 N. Washington Sq., Suite 202, Lansing, MI 48933, (517) 853-2545. Please direct all inquiries to the previous address. Articles written by outside authors do not necessarily reflect the views of Associated Builders and Contractors Inc. of Michigan. ABC of Michigan reserves the right to reject or edit all material submitted for publication. The appearance of an advertisement in Michigan Merit does not constitute endorsement of the advertiser, its products or services, nor do Michigan Merit or Associated Builders and Contractors Inc. of Michigan guarantee or warrant any claims or offers made by the advertisers.

These important victories hinged on the outcome of elections. Future gains that promote economic growth, such as ending prevailing wage and Michigan becoming a right-to-work state, also depend on the election of pro-free-enterprise lawmakers. In 2012 this is especially the case. Indeed, this year’s election promises to be the most important in at least a generation. From the State House to the White House, Associated Builders and Contractors members can play a key role on Election Day. As From the State House November draws near, we hope you will take a look at to the White House, this special edition of Michigan Merit to better know the candidates and the issues affecting your business. Associated Builders ABC has met with candidates from across Michigan and Contractors and made endorsements based on which candidates will best support the merit shop. We have thoroughly members can play examined the numerous ballot proposals, including the a key role on especially dangerous Proposal 2. This edition is packed Election Day. with information you and your employees need to know at the ballot box. There is a lot at stake this year. As always, we encourage everyone to keep in mind the ABC political motto: “Get into politics, or get out of business.” In 2012 we can see why this is especially true. Yours for the Merit Shop

Chris Fisher

Permission to reprint in whole or in part is hereby granted, provided the following credit line is used: “Reprinted by permission from Michigan Merit, a publication of Associated Builders and Contractors Inc. of Michigan.”

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A governmen t of, f or and by t he union s?

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The Biggest Threat to the Merit Shop in a Generation Under the guise of protecting Michigan workers, union bosses were fleecing taxpayers at the expense of workers and all Michigan citizens. This didn’t protect anyone; driving up the cost of doing business in Michigan only eroded our ability to compete for jobs. As a consequence, millions of Michigan citizens are now out of work and Michigan’s economy has plummeted. Hard-won reforms are slowly bringing our state out of the economic doldrums and advancing our state as the place to set up shop. The “Protect Our Jobs” amendment proposal threatens to unravel all of our state’s progress and, most alarmingly, make it permanent. The “Protect Our Jobs” ballot proposal (Proposal 2) is a radical initiative to amend the Michigan Constitution to benefit the few over the many. By embedding union-only provisions and even collective bargaining itself into our state constitution, Proposal 2 is a union power-grab like never before. It not only makes it impossible to turn Michigan into a right-to-work state, but would overturn ABC’s hard fought efforts that have successfully prohibited government mandated PLAs in Michigan. Proposal 2 would embed prevailing wage in the constitution and even overturn laws limiting picketing at the private residence of a contractor. The passage of this dangerous proposal would limit the ability of lawmakers to set policy, basically handing over the keys to big labor. Union bosses would essentially be more powerful than the representatives we elect to office. Hidden in the middle of the proposal’s language is the phrase, “No existing or future law of the state or its political subdivisions www.a b c m i . c o m

shall abridge, impair or limit” unions’ ability to “negotiate in good faith regarding wages, hours, and other terms and conditions of employment…” This essentially means that legislators, who we elect to serve the citizens of Michigan, will be powerless to limit what government unions get in their contracts, including construction contracts. No future laws concerning union contracts could be passed without the consent of union bosses. The passage of this Rather than actdangerous proposal ing in the interest would limit the ability of the taxpayers of lawmakers to who elected them, legislators set policy, basically would be forced handing over the to make decikeys to big labor. sions that only Union bosses would benefit unions without regard essentially be more to the public as a powerful than the whole. representatives we This proposal elect to office. kills our state’s ability to keep government employee compensation in line with those in the private sector. Because this proposed amendment wipes out all past and future laws regarding collective bargaining, with the exception of those related to strikes, Fall 2012

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F E AT U R E

Of all businesses, Merit Shop contractors are among the biggest losers if Proposal 2 passes. Attorney General Bill Schuette recently opined that among the 17 sections of the state constitution and scores of laws that would be undermined would be Michigan’s Fair and Open Competition in Governmental Construction Act, which prohibits governments from mandating union-only project labor agreements. the cost of government services will skyrocket right along with the state’s labor costs. All of the reform that has been accomplished so far, along with its benefits and savings, would all be for nothing. According to the Mackinac Center for Public Policy, this proposed amendment would eliminate “at least $1.4 billion of the savings the legislature produced last year.” This includes the 80/20 law which prohibits state employers from paying more than 80 percent of a government worker’s health care costs, which alone would cost the state over $500 million a year. This amendment will adversely affect costs for our public schools. Before teacher tenure laws were reformed, teachers with seniority, regardless of how poorly they did their job, were nearly impossible to eliminate from public school payrolls. When layoffs occurred, newer, and in many cases higher performing, teachers would be sent packing first. Under the current teacher performancebased tenure laws, the hiring and firing of teachers cannot be based solely on seniority, eliminating this so-called “last in, first out” policy. If the “Protect Our Jobs” amendment passes, these laws will be nullified. It will become much harder for schools to fire an ineffective tenured older teacher, who costs the most for the state in terms of compensation, health care costs, and poor student achievement. High-performing teachers without seniority could be pink slipped. In addition, cost savings from the privatization of non-instructional services, such as janitorial services and transportation, would be eliminated. Even a statewide law setting the Tuesday after Labor Day as the first day of school would be overturned, potentially 8

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resulting in a different start day for each school district in the state. Do we really want to increase costs for our public schools at a time when our economy calls for cost savings? If the labor costs at public schools increase, other programs that directly affect our children will be cut to compensate for the increase. Proposal 2 has an enormous impact on private businesses. If the “Protect Our Jobs” amendment passes, Michigan will have no ability to become a Right-To-Work state without another costly campaign to yet again amend the state constitution. This means that a worker will not be allowed to keep his job if he chooses not to contribute to a union at his workplace. This sets up our state to be dead last in job creation and kills our ability to attract industry to Michigan. Proposal 2 sends a message to businesses around the country that it will cost a whole lot more to do business in our state. At a time when Michigan needs to attract more industry, Proposal 2 will discourage anyone from setting up shop here. So what does all this mean for ABC members? Of all businesses, Merit Shop contractors are among the biggest losers if Proposal 2 passes. Attorney General Bill Schuette recently opined that among the 17 sections of the state constitution and scores of laws that would be undermined would be Michigan’s Fair and Open Competition in Governmental Construction Act, which prohibits governments from mandating union-only project labor agreements. “It is clear that ABC members and their employees will be denied access to equal opportunity and the ability to perform work on projects financed by their own tax dollars,” said Michigan Merit

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Chris Fisher, President of ABC of Michigan. “This proposal is easily the largest threat to the Merit Shop in more than a generation.” David C. Mollitor Jr., President of Consolidated Electrical Contractors, commented, “As an employer my number one goal is to employ people, but yet I find it necessary to spend a good deal of my time just protecting our company’s rights to employ people; does that make any sense? The people we employ are intelligent people with an ability to make their own decision on what is best for them and their families, but yet we continue as a state to force a past belief that has failed us as a state (unionization). Many years ago our state was a leader in this country and was followed by others, but today our state is an example of what not to do. While other states continue to move in different directions based on what they have learned from the past, Michigan continues to duplicate the history of what got us in many of the troubles, without any respect or care to where that direction will take us in this global economy. If this ballot proposal is passed, God help us all. Our company, which has been here since 1924, will start all over fighting with the unions trying to take over our business. This will do nothing but chase my business and businesses just like mine to other states to make a living. At some point we are all going to call a spade a spade and give up. I hope this is not the case.” Chris Beckering, Director of Business Development at Pioneer Construction in Grand Rapids, thinks that everyone will pay the price for this proposal. “Any straight forward analysis of the ballot proposal makes clear that it would harm our economy, pick winners and losers based on union

status and rip off taxpayers,” he said. “Michigan citizens deserve better than this dangerous attempt to hijack our constitution just to benefit unaccountable special-interest union bosses.” This proposed amendment benefits government workers, but only three percent of our state’s population belongs to a government union. “Protect Our Jobs” (Proposal 2) is a scheme to hijack the constitution in Michigan to favor this three percent over the 97 percent of all other Michigan citizens. The proponents of Proposal 2, namely UAW President Bob King and his union counterparts, have tried to argue that this proposal fights for the middle class, but it’s the middle class in Michigan that will suffer if this amendment passes. Joseph G. Lehman, President of The Mackinac Center for Public Policy, a Michigan policy think tank, writes, “Protect Our Jobs argues that, unless we pass their amendment, the entire middle class (not just unionized government workers) will be worse off. But the amendment does nothing for the middle class as a whole except putting them on the hook for ever-more-expensive unionized government workers.” Three percent, with one swift motion, will repeal seventeen sections of our state constitution and reverse more than 170 laws. These unions have tried on three other occasions to force their agendas through, and all three times they were rejected by Michigan voters. The “Protect Our Jobs” amendment proposal certainly will protect government union jobs. But if Proposal 2 passes, the rest of us lose. And, more to the point, the real winners are the union bosses who will be calling the shots again in Michigan. MM

• Proposal 2 would allow unfair project labor agreements that prohibit workers in our company from working on construction projects paid for by your own tax dollars! This means less work opportunities for you! • Proposal 2 means less local work in Michigan and out of state travel! • Proposal 2 would increase taxes $1.6 billion. This means the government gets more of your money and you keep less!

www.a b c m i . c o m

Fall 2012

Mitt Romney 65 Detroit, Michigan Wife: Ann; five sons

Barack Obama Age Hometown Family

51 Honolulu, Hawaii Wife: Michelle; two daughters

PRIVATE BALLOT Supports a worker’s right to a private ballot election when deciding whether or not to unionize OPEN COMPETITION Will end government mandated discrimination that keeps 86% of American construction workers from working HEALTH CARE (INDIVIDUAL MANDATE) Supports a government-run health care system that mandates families and individuals buy insurance or face a penalty REDUCE TAXES AND CUT SPENDING Supports the reduction and stabilization of federal spending while fixing the nation’s tax code to focus on jobs and growth ENERGY INDEPENDENCE Supports the production of more American energy sources including the development of our domestic oil reserves and natural gas INCREASED GUN CONTROL Supports more restrictions on gun rights in America. Paid for by Associated Builders and Contractors, Inc. Free Enterprise Alliance

ABCvotes.com

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ELECTION

ABC Endorses Mitt Romney for President

Associated Builders and Contractors (ABC) of Michigan has endorsed Republican presidential candidate and former Massachusetts Gov. Mitt Romney to be the 45th president of the United States. The association’s endorsement of Romney came just days before the Michigan Presidential Primary election. “Mitt Romney is the best candidate to help grow our economy and get Michiganders back to work, said 2012 ABC of Michigan Chair David Mollitor, President of Consolidated Electrical Contractors in Lansing, MI. “This election is about jobs. Gov. Romney’s proven job creation trackrecord and fiscal conservatism makes him the best choice.” “Throughout his campaign, Mitt Romney has done a great job keeping the issues that are important to the merit shop construction industry in the public eye by supporting a neutral National Labor Relations Board, right-to-work laws, ending prevailing wage and eliminating government-mandated union-only PLAs on public projects,” said Chris Fisher, President, ABC of Michigan. “As president of the United www.a b c m i . c o m

States, Mitt Romney will remove obstacles to job creation so the private sector can help rebuild our economy. In a speech before the ABC National Board of Directors, Romney said, “If I become president of the United States I will curb the practice we have in this country of giving union bosses an unfair advantage in contracting. One of the first things I will do - actually on day one - is I will end the government’s favoritism towards unions in contracting on federal projects and end project labor agreements and I will fight to repeal Davis Bacon [prevailing wage].” “I also will make sure that workers in America have the right to a secret ballot and I will fight for right to work laws.” MM

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Associated Builders and Contractors Endorses Hoekstra for U.S. Senate

“...In the U.S. Senate, I will fight like I have done my whole career, eliminating senseless red tape and cutting spending so our economy is strengthened for generations to come.” 12

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Associated Builders and Contractors of Michigan (ABC) has endorsed Pete Hoekstra for the United States Senate. “Pete Hoekstra has a proven track record of job creation and is the best candidate to help Michigan continue on its path to economic recovery,” explains Chris Fisher, president of ABC of Michigan. “He recognizes the importance of government being limited, open, fair and accountable, as well as having what it takes to clear the way for business growth and job creation.” ABC of Michigan’s Board of Directors unanimously voted to endorse Hoekstra based on his record of proven leadership in both the private and public sectors and because of his commitment to limited government, free enterprise and job creation. “It is an honor to receive the endorsement of ABC of Michigan,” said Hoekstra. “From supporting more regulations on America’s businesses to higher taxes for job creators, Debbie Stabenow and Barack Obama have severely damaged our economy and made it harder to do business in Michigan. In the U.S. Senate, I will fight for workers, like I have done my whole career, eliminating senseless red tape and cutting spending so our economy is strengthened for generations to come.” MM Michigan Merit

UNITED STATES PRESIDENT AND VICE PRESIDENT:

MITT ROMNEY PAUL RYAN UNITED STATES SENATE:

UNITED STATES REPRESENTATIVE IN CONGRESS:

PETE HOEKSTRA

District

Party

Name_________________________

1 2 3 4 5 6 7 8 9 10 11 12 13 14

R R R R R R R R R R R R R R

Dan Benishek (I) Bill Huizenga (I) Justin Amash (I) Dave Camp (I) Jim Slezak Fred Upton (I) Tim Walberg (I) Mike Rogers (I) Don Volaric Candice Miller (I) Kerry Bentivolio Cynthia Kallgren Harry Sawicki John Hauler

STATE BOARD OF EDUCATION: VOTE FOR 2 Todd Courser Melanie Kurdys UNIVERSITY BOARDS: Michigan State University Board of Trustees: Melanie Foster Jeff Sakwa University of Michigan Board of Regents: Dan Horning Robert Steele Wayne State University Board of Governors: Michael Busuito Satish Jasti

STATE PROPOSALS

MICHIGAN SUPREME COURT:

Colleen O’Brien Stephen Markman

Partial Term: ends 1/1/2015 Brian Zahra

VOTE NO ON PROPOSALS 2, 3, and 4

PROPOSAL 2:

guarantees “no current or future law” would trump union deals. Bipartisan leaders, the Detroit dailies and The Wall Street Journal warn the proposal would cost hundreds of millions of dollars, invalidate at least 170 laws and be devastating to job creation and business growth. This proposal would even eliminate Michigan’s law prohibiting uniononly PLAs.

PROPOSAL 3: is being funded by out of state windmill manufacturers and other special interests and forces an energy quota, demanding we buy 25 percent of energy from specific “green” sources regardless of the cost. Even if better alternatives are developed, the quota would remain locked in the Constitution.

PROPOSAL 4: would force unionization of all home health care workers. Courts and lawmakers previously stopped this unfair union dues skimming scheme so union bosses bought the signatures to hijack the constitution for their personal gain.

MICHIGAN HOUSE OF REPRESENTATIVES: District

Party

Name

District

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55

R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R

Dan Schulte Daniel Grano Dolores Brodersen Ronald Michalski Samuel Rodriguez Darrin Daigle Mark Ashley Price David Porter Rene Simpson Jasmine Bridges Kathleen Kopczyk Joanne Michalik Tony Amorose Edward Gubics Priscilla Parness Mary Stargell Anne Rossio Candice Rusie John Walsh (I) Kurt Heise (I) Joseph Barnabei Art Blundell Pat Somerville (I) Anthony Forlini (I) Sean Clark Mark Bliss Ezra Drissman Steven Klusek Brian Stebick Jeff Farrington (I) Lynn Evans Andrea LaFontaine (I) Ken Goike (I) Bruce Rogers Timothy Sulowski Peter Lund (I) Bruce Lilley Hugh Crawford (I) Klint Kesto Mike McCready Martin Howrylak Bill Rogers (I) Gail Haines (I) CCommittees Eileen Kowall (I) Tom McMillin (I) Bradford Jacobsen (I) Cindy Denby (I) Jeff Woolman Robert Daunt Miles Gadola Joseph Graves (I) Mark Ouimet (I) John Spisak Bill Emmerich Owen Diaz

56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110

Party R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R R

Name________________ Dale W. Zorn (I) Nancy Jenkins (I) Kenneth Kurtz (I) Matt Lori (I) Mike Perrin Margaret O'Brien (I) Mark Behnke Jase Bolger (I) Earl Poleski (I) Mike Shirkey (I) Aric Nesbitt (I) Jeff Oesterle Timothy Moede Susan McGillicuddy Rick Outman (I) Deb Shaughnessy (I) Ken Yonker (I) Peter MacGregor (I) Rob VerHeulen William Nathan Sneller Roy Schmidt (I) Tom Hooker (I) Dave Pagel Al Pscholka (I) Bob Genetski (I) Dan Lauwers Kevin Daley (I)idate Comm Paul Muxlow (I) Dan Grimshaw Ben Glardon (I) Lisa Posthumus Lyons (I) Mike Callton (I) Roger Victory Amanda Price (I) Joe Haveman (I) Holly Hughes (I) Travis Shepherd Tom Leonard Tim Kelly Jeff Baker Chad Dewey Joel Johnson (I) Jim Stamas (I) Kevin Cotter (I) Jon Bumstead (I) Ray Franz (I) Phil Potvin (I) Bruce Rendon (I) Wayne Schmidt (I) Greg MacMaster (I) Peter Pettalia (I) Frank Foster (I) Ed McBroom (I) Jack Hubbard Matt Huuki (I)

What is Proposal 2 (the Union Boss Ballot Proposal)? • • • • • • •

Proposal 2 will deny ABC members billions of dollars of work Proposal 2 is the biggest threat to your company in a generation Proposal 2 would overturn Michigan’s anti-PLA law Proposal 2 would expand Prevailing Wage into the Constitution Proposal 2 prevents Michigan from being a Right-to-Work state Proposal 2 is the largest tax-hike any state has ever seen Proposal 2 would allow unions to picket ABC members’ private homes

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ELECTION

Michigan Supreme Court Endorsements For ABC, the dominate issue in the supreme court election is whether the highest Court of our state will be comprised of a majority of judges who respect the limits of the “judicial power” and who understand that the “judicial power” is the power to say what the law “is” and not what the law “ought” to be.

Justice of the Supreme Court — 8 year terms (2) positions

Colleen O’Brien Oakland County Circuit Court Judge

Justice Stephen Markman Incumbent

Justice Brian Zahra Incumbent (partial term)

State Board of Education & University Governing Boards Associated Builders & Contractors of Michigan is endorsing the following candidates for the governing boards of Michigan’s major universities and the State Board of Education:

State Board of Education 8 year terms (vote for 2)

• Todd A. Courser of Silverwood, MI • Melanie A. Kurdys of Portage, MI

University of Michigan Board of Regents 8 year terms (vote for 2)

• Dan Horning of Grand Haven, MI • Robert Steele of Ypsilanti, MI

www.a b c m i . c o m

Michigan State University Board of Trustees 8 year terms (vote for 2)

• Melanie Foster of East Lansing, MI • Jeff Sakwa of West Bloomfield, MI

Wayne State University Board of Governors 8 year terms (vote for 2)

• Michael J. Busuito of Troy, MI • Satish B. Jasti of West Bloomfield, MI MM

Fall 2012

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ABC OPPOSES Proposal 3

“25 by 25” Renewable Energy Standard

his proposal sounds good at first: more energy in Michigan from renewable sources. Who could oppose that? Well, a lot of us. It’s a proposal that is likely to increase energy costs dramatically in the future and is a dishonest attempt by investors to cash in on the energy market through our Constitution. Additionally: Michigan has a strong law promoting more renewable energy, and we think a law passed by the legislature and signed by the governor is the right place to decide energy policy. The wrong place is our constitution. With all the changes in the price of energy, and the new technologies for extracting clean-burning energy, we should

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be flexible about where we get our power. We shouldn’t lock anyone’s idea in the constitution in this time of change. The Michigan Energy, Michigan Jobs Initiative, also called “25 x 25,” would mandate in the state constitution that 25 percent of Michigan’s energy come from renewable sources – such as wind, solar and biomass – by 2025. Under current state law, approved in 2008, 10 percent of Michigan’s energy is supposed to come from renewable sources by 2015.Electricity providers are already making significant progress toward meeting that standard, which was established by the Legislature with overwhelming bipartisan support. Proposal #3 on the November ballot will increase that standard to 25 percent, even though such an increase will cost Michigan families and businesses at least $12 billion. Even worse, backers of this proposal want to lock that mandate into the Michigan Constitution, eliminating any flexibility and guaranteeing a future filled with rate increases for customers. Michigan’s families and businesses can’t afford to pay more for this reckless proposal. The proposal’s backers claim there will be a 1 percent cap on annual rate increases, but that’s no guarantee. Courts could strike down the so-called cap, leaving Michigan’s families and business to face sharply higher electric bills. Meeting a 25 percent renewable energy standard would require a minimum $12 billion investment in renewable energy infrastructure that will have to be made – regardless of economic or market conditions. Regardless of what we may think about renewal energy standards and even some short-term work opportunities that may arise, the state constitution isn’t the place for energy policy. This proposal would lock an unreasonable renewable energy mandate into the Michigan Constitution and eliminate the flexibility needed to deal with volatile markets, changing customer needs, and technological advances. Michigan is already on a smart – and affordable – path to a greener energy future. We encourage all Michigan families and businesses to oppose the costly Proposal # 3 constitutional energy mandate. MM

Michigan Merit

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ELECTION

ABC Opposes Proposal 4: Forced Unionization of Home Health Care Providers By Michael D. Jahr

Now that millions of signatures have been submitted to the Secretary of State’s office, there are six different proposals on the ballot this fall. Many of them would benefit narrow constituencies at the expense of taxpayers. Perhaps the most egregious is a self-serving measure that would embed a one-sided government union scheme into the state constitution. Pitched as a way to help home health care recipients gain independence, the initiative is really about permanently expanding the definition of government employees and padding union coffers. The arrangement first came about when the Service Employees International Union and Gov. Jennifer Gran-

holm’s administration created a shell “employer” for tens of thousands of home-based caregivers. Many are family members caring for developmentally disabled loved ones who receive a Medicaid stipend. By labeling caregivers as “government employees” and by skimming off a portion of these payments as “dues,” the SEIU quietly has taken more than $30 million from Michigan’s most vulnerable residents. Robert and Patricia Haynes of Macomb Township are among those designated by the SEIU as government employees simply because the couple receives a Medicaid payment for the care of their developmentally disabled adult children. Melissa, 34, and Kevin, 30, have severe cerebral palsy, which significantly impairs their ability to speak and care for themselves.

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Fall 2012

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ELECTION

The so-called state government employer...is the Michigan Quality Community Care Council. This entity may be without precedent: it was not created by law or executive order; it no longer receives state funds; it cannot give its “employees” benefits or a raise; and it operates out of the director’s basement. While the Hayneses have no objections to unions — Robert belonged to one as a Detroit police officer — they are appalled at the notion that one is purporting to represent them in their home and is skimming off money intended for their children’s care. The so-called state government employer of the Hayneses and 60,000 other caregivers is the Michigan Quality Community Care Council. This entity may be without precedent: it was not created by law or executive order; it no longer receives state funds; it cannot give its “employees” benefits or a raise; and it operates out of the director’s basement. The director, it should be added, was working only a few hours a week in order to collect unemployment benefits.

Odder still, this ostensible employer is partially funded by the government union that it supposedly bargains against. Freedom of Information Act records show that the SEIU has paid the MQCCC $12,000. The SEIU appears willing to prop up the MQCCC to keep the lucrative arrangement alive. Lawmakers thought they had put an end to this with a law that clearly states the caregivers are not government workers. But the SEIU filed suit in federal court, asking a judge to keep the money flowing. The union’s argument? The attorney told the judge that as a “First Amendment advocacy organization” the union needs the funds for the upcoming election. This candor in the courtroom is not matched by the SEIU and MQCCC ar-

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guments made in public. The rationale they offer for amending the constitution is that they provide a registry for patients seeking qualified caregivers. Of course, the Michigan Department of Community Health could easily maintain such a registry without MQCCC or SEIU involvement. As it is, the seven-year-old registry contains a paltry 933 names — out of more than 60,000 providers. The federal judge ruled that the skim could continue because the MQCCC and SEIU have an existing contract. Technically, that’s true. Since the employer in this case exists only to do the union’s bidding, the parties theoretically can “negotiate” a new contract at any time and for any period, extending the money grab indefinitely. It’s plausible that we now have a government entity that can never be eliminated. So, families saving for a new wheelchair or a computer that allows their loved one to communicate through eye movements will have to save a little longer. The SEIU needs its cut. Perhaps the most remarkable aspect of this cynical fleecing is that parties actively raiding taxpayer-funded safety net payments are willing to represent themselves as “Citizens for Affordable Quality Home Care.” MM Michael D. Jahr is vice president for communications at the Mackinac Center for Public Policy, a research and educational institute headquartered in Midland, Mich. Article is reprinted with permission from the Mackinac Center for Public Policy.

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