SPECIAL REPORT: How guv candidates say they’ll reform Michigan

By Charlie Cain

With the Aug. 3 gubernatorial primary barreling ever closer, each of the seven candidates for Michigan CEO is scrambling to convince voters that he is the true agent of change, the one needed to lead Michigan out of its morass.

That the men who would be governor want to cast themselves as reformers is not surprising given that Michigan is mired in its most challenging economic circumstances since the Great Depression and seems to have lost its way. “Broken” is a word the gubernatorial hopefuls often use on the campaign when describing the state’s current situation.

In the past decade, Michigan has become a relatively poor state, ranking 37th among the states (down from 18th in 2000) with a per capita income of $34,949. Property values are dropping faster than a Lake Michigan sunset, and foreclosures spiral up with alarming economic consequences. We’ve grown accustomed to leading the nation in unemployment. No one raises an eyebrow anymore when the words “billion dollar” and “state deficit” are used in the same sentence. General Motors and Chrysler may be out of bankruptcy, but it’s way too soon to say they’re out of trouble.

Given that backdrop, what reforms do the candidates think necessary to help right the Ship of Michigan?

Most of them like the idea switching to a part-time Legislature, and all but one want to change the state’s term limits law to allow a person to serve longer in either the House or Senate. Five of the seven candidates support docking the pay of lawmakers if they fail to meet the deadline to enact a state budget. The two Democratic candidates for governor are vehemently opposed to making Michigan a Right-to-Work state, while the idea holds some appeal to all but one of the five Republican candidates.

To a person, the candidates say they’re anxious to cut the bloated prison budget that gobbles up nearly one of every four dollars in the state’s main checkbook – although the lesson from recent history is that it’s easier said than done. There is universal agreement that the state must do more to encourage local units of government to consolidate services as a way of stretching precious tax dollars. Ditto for school districts. State employee pay and benefits are too rich and should be trimmed to look more like the compensation packages in the private sector, is the prevailing view among the candidates.

But when it comes to supporting a November ballot proposal to hold a Constitutional Convention which holds the greatest potential for bringing about dramatic, sweeping reforms (Irony alert!) only one of the candidates for governor says amen – state Senator Tom George (R-Kalamazoo).

Here’s where the candidates stand on some of the key reforms on Michigan’s political horizon.

Part-time Legislature

Background: Michigan and seven other states (Illinois, Massachusetts, New Jersey, New York, Ohio, Pennsylvania and Wisconsin) consider their legislatures to be full-time. Five states – Montana, Nevada, North Dakota, Oregon and Texas — had no regular session scheduled for this year.

Oakland County Sheriff Mike Bouchard, one of the Republican hopefuls, not only favors a part-time Legislature, he wants to strip lawmakers of their health care benefits. “Lawmakers should be citizen legislators,” says the former state lawmaker.

Sen. George said the 43 states with part-time legislatures “are doing better than we are. People would have more faith in government if they felt their legislators were working back home in the district. And it would be cheaper.

House Speaker Andy Dillon (D-Redford Township), one of the two Democratic gubernatorial candidates, said that while talk of limiting the time lawmakers can meet may sound like a good idea, it would be a mistake. “I understand the frustration voters have with the legislative process, but I do not see moving to a part-time legislature as the solution to that problem as it would shift our constitutional balance of power too far towards the executive branch, specifically the governor,” said Dillon.

Attorney General Mike Cox, a Republican, also has doubts. “A move to a part-time legislature may make us feel better, but it doesn’t scratch the surface on the size and scope of reform we need in Lansing,” he said.

Term limits

Background: The term-limits movement was a popular one that spread across the United States starting in 1990. It ended in 2000 when Nebraska voters approved them. Today Michigan and 14 other states (Arkansas, Arizona, California, Colorado, Florida, Louisiana, Maine, Missouri, Montana, Nebraska, Nevada, Ohio, Oklahoma and South Dakota) have limits on the number of years a person can serve in the Legislature.
In 1992, Michigan voters by a 59-41 percent margin approved limiting the length of time a person could serve in the state House to a lifetime maximum of six years and to eight years in the Senate. This year 29 of the 38 senators are term-limited and can’t seek reelection as are 34 of the 110 House members.

Most of the gubernatorial candidates say term limits should be amended to allow a person to serve for a longer period of time, but none has a more radical suggestion than Lansing Mayor Virg Bernero, a Democrat, who would like to see the law changed to allow a person to serve 12 years in both the Senate and the House, giving Michigan more seasoned lawmakers to shape state policy.

U.S. Rep. Pete Hoekstra (R-Holland) said the track record shows the limits imposed were counterproductive. “I do not believe term limits have had their intended effect, and I do believe they will need to be addressed,” he said. “We are losing good legislators that have the trust of their constituents and have relationships that can help pass reforms that we need.”

No state budget, no paycheck

Background: In two of the past three years, the Legislature failed to complete work on the budget on time, causing brief, albeit embarrassing, state government shutdowns. Michigan lawmakers are the nation’s second-highest paid (trailing only California), with an annual salary of $79,650.

Most of the candidates say if lawmakers don’t do their job and adopt a budget on time, they should take a hit in their wallets.

“The primary function of the state Legislature is to ensure a budget is enacted in time for state agencies, schools, local governments and others to plan for the coming fiscal year,” said Dillon. “Legislators must be held accountable for that and stay at the bargaining table until the job is done.”

Sheriff Bouchard said he’d move up the budget deadline to May 15 from the current Sept. 30. “If lawmakers miss (the deadline), they will be docked a day’s pay, along with the governor and lieutenant governor, for each day the budget is late,” he said. “Each day missed would total about $30,000 or the equivalent of a new police squad car or seven college students receiving the Michigan Promise Scholarship, which was cut by the Legislature.”

Mayor Bernero said the threat of financial penalty would help the process along. “I think you’d find – miraculously — that they’d get the budget done on time. Human nature is a funny thing. People don’t run for office just for money, but this would help them get the job done on time,” he said.

U.S. Rep. Hoekstra opposes the idea. “I wholeheartedly agree that the budget needs to be done in a timely manner,” he said. “However, I understand the legislative process and know that circumstances develop that cause unavoidable delays. Legislatures need flexibility. In addition, the recent budget impasses have been the result of poor leadership and not the fault of all the legislators.”

Ann Arbor businessman Rick Snyder, a Republican making his first bid for elective office, said it’s embarrassing to even discuss financial punishments. “But I’m fine with it as long as it includes the governor,” he said. “I view it more as a Band-Aid to a broken system. We shouldn”t need something like this. We should be doing our jobs to begin with.”

Constitutional Convention

Background: Michigan’s constitution was last rewritten in 1961-62 during a Constitutional Convention in Lansing known as con-con. State law requires that voters be given the option to call for a constitutional convention every 16 years and will decide the question in November. In 1978 70 percent of voters rejected the call for a convention as did 72 percent in 1994. Michigan’s 1963 Constitution has been amended by voters 31 times. Supporters – led by Gov. Jennifer Granholm – say a convention would be the most effective way to overhaul the Constitution and adopt needed reforms to reflect the current times. Opponents – including the Michigan Chamber of Commerce, Michigan Catholic Conference and Michigan Farm Bureau – argue a convention could cost as much as $45 million, handcuff the governor and Legislature for the next two years and bring much uncertainty to the state’s political climate.

Sen. George is the only one of the candidates who favors a blanket rewrite of the state constitution, in large part to make Michigan a friendlier place for job providers. “People who say they are for reforms but against the mechanism to achieve them are just giving lip service,” he said. “The only way to accomplish these things is through a convention since it’s so difficult to get a two-thirds vote of both chambers of the Legislature to get something on the ballot. We need to restructure government.”

But the other candidates say the risks outweigh potential gains. “I oppose a Constitutional Convention because it would provide further uncertainty for the state when we need to be attracting investment and entrepreneurs,” said Hoekstra.

Said Snyder: “In theory it sounds great. In practice I fear it would become a media circus with outside special interests creating divisive issues and filling the airwaves.”

Bernero said the timing is wrong: “If times were better I might support it. That’s not to say there aren’t things that need to be cleaned up. But right now we need all hands on deck to focus on the economy.”

Right to Work

Background: In 1947, Congress approved an amendment to the National Labor Relations Act to allow states to ban union-security agreements. Twenty-two states have since adopted “right-to-work” laws that allow workers to refuse to pay for union representation. Supporters of right-to-work laws say that no one should be forced to join a union. Opponents say right-to-work is nothing more than union busting and that the laws create “free riders” who refuse to contribute to a union but receive all the benefits of union representation.

“The idea that Right to Work would help recover our manufacturing jobs in Michigan is simply a myth, especially in today’s global economy,” said Dillon. “What it would do is greatly reduce consumer spending in our state as Right to Work often means lower wages for workers, and that is certainly not what Michigan needs to restore faith in our economy. We have a great heritage of a healthy relationship between labor and management throughout Michigan’s history, and I see no reason to change that.”

Fellow Democrat Bernero: “It really should be called right to work for less. It would be a huge, divisive issue at a time when we need to be working together – business and labor, Democrats and Republicans – to grow the economy.”

There is a split among the Republican candidates over the issue. Cox and George said if elected they’d sign it into law if it reached their desk. Snyder said it’s not on his agenda.

The biggest supporter is Sheriff Bouchard, who paid for a TV ad urging Michigan to become a right-to-work state. “I believe workers and businesses deserve a choice,” he said. “Workers shouldn’t be forced to join unions to get a job.”

Fellow Republican Hoekstra takes a different view: “A battle in Michigan over Right to Work would result in uncertainty for any business interested in investing in Michigan. We need to show that Michigan is open for business,” he said. “The image of Michigan needs to be a state that is on the move, making constructive meaningful change, not mired in controversy and infighting.”

Binding arbitration in police and firefighter contracts

Background: In 1969 lawmakers passed legislation to regulate contract negotiations between local units of government and police officers and firefighters. It prohibited strikes and provided for binding arbitration. But arbitrators are not allowed to consider a community’s ability to afford the cost of a police or fire contract proposal. Local government officials say the law has resulted in unrealistically high wages for police and firefighters and needs change so a city’s ability to pay is a factor. There are 2,000 fewer police officers and 2,400 fewer firefighters in Michigan today than in 2000.

Dillon said he supports changing the law “to reduce the timeliness on the process, expand the role of a mediator, and establishing training requirements for mediators.”

Bouchard said he said would tweak the law to “make the system more timely and less costly for both sides.”

Cox said the law should be updated to give arbitrators wider latitude to consider “the long-term impact of an arbitration award on the community in light of all the local unit’s liabilities and the current and anticipated future economic climate. I believe an arbitrator should also consider what impact an arbitration award would have on a local unit’s ability to provide adequate wages for its other employees, as well. If a local unit can’t afford an arbitration award, its only option may be to lay off workers, including policemen and firefighters, to support the pay increases.”

But Bernero believes it’s much ado about nothing. “I belong to the Municipal League (which is leading the effort to change the law) and at its meetings I keep shaking my head,” he said. “In five years as Lansing’s mayor, I’ve had no problems negotiating contracts with police and fire. This has not been an obstacle for us.”

Local consolidation and shared services

Background: With funds growing scarcer by the day, there is mounting pressure for regional cooperation among neighboring units of local government. Cities and suburbs, townships, village and counties provide duplicative services that would cost taxpayers far less if they were handled on a shared basis. Leading candidates for shared services are police, fire and public works operations. Getting serious talk about outright mergers of governmental units has historically been a much more difficult sell. If Michigan were recreated from scratch it’s a safe bet there wouldn’t be 1,240 townships, 272 cities, 261 villages and 83 counties – hardly a system to provide needed economies of scale. And more questions are being asked about the wisdom of maintaining more than 550 public school districts (each with its own administration) without compelling them to share — or at least competitively bid out – non-instructional services such as transportation, food and custodial.

U.S. Rep. Hoekstra said the state shouldn’t bully locals into action. “I support consolidation of services, but it must be done at the local level rather than mandates from the state,” he said. “The state can provide the framework and incentives, but should not mandate what consolidations need to occur, as each school district and local government has a different situation.”

Sen. George said school consolidation is long overdue. “School districts need to consolidate, but I don’t think it’s going to happen without a constitutional change,” he said. “Local units of government are remnants of our territorial days, set up for settlers in the 1800s to show how civilized we were and not a place noted for swamps and mosquitoes. The purpose for all this local government has passed, and it’s time to reassess.”

Dillon said his public health care reform plan would give locals a financial shot in the arm. “Michigan’s counties, cities, townships and school districts combine to offer literally hundreds of different health care plans for their respective employees,” he said. “If we were to create one menu of plans for all public employees at all levels of government in Michigan, we can streamline administrative costs and benefit from economies of scale while preserving the quality of their coverage. Throughout government, that alone could save up to $1 billion.”

Bouchard said as governor, he would maximize dollars for the classroom by requiring that “every school district competitively bid out secondary services such as busing, janitorial and food service, on an intermediate school district level.” Bernero said the state can provide technical support and dollars to help push local consolidation. “Revenue sharing could be structured in a way to incentivize consolidation,” he said. “Local governments tend to tinker around the edges and do as little as possible of consolidation. Generally speaking it won’t happen on its own. We have 550 public school districts for 83 counties. C’mon, that does not compute.”

Cox said state law stands in the way of achieving the savings that would result from greater sharing of services. “One change we must make is reforming the Urban Cooperation Act. Right now (the act) prevents voluntary consolidation of services between communities and school districts by building in higher costs,” he said. “State law should encourage school districts to combine services. … by providing additional state aid to local districts working to lower costs – sharing buses, food services, administrative function, and various other services.”

Michigan’s costly prison system

Background: Michigan is one of only four states that spend more on corrections than on higher education. It costs $5 million a day — $2 billion annually – to pay for the nation’s 8th largest and one of the most costly corrections systems. Michigan prison population peaked at 51,554 in March 2007. It has been declining since and today’s population of around 44,500 represents a 14 percent reduction in just over three years. Michigan keeps inmates locked up for longer periods of time than any of its neighboring Great Lakes states, and nationally only Michigan and Wisconsin do not award “good time” — sentence reductions for good behavior while behind bars.

Three of the gubernatorial candidates – Bernero, Dillon and Snyder – say the state should expand its promising Michigan Prisoner Re-Entry Initiative, which since its 2005 inception has helped more than 20,000 prisoners win parole. The program works with inmates before their release to help them line up jobs or education and training opportunities on the outside as well as stable places to live. It also provides them access to substance abuse treatment and mental health services. Before the program began, one in two parolees was returning to prison within two years, and that has been reduced to one in three today.

“We need to do a better job with prisoner re-entry programs,” said Snyder. “Too many are coming back because we haven’t helped them re-enter society successfully. We need to look at alternative sentencing before we put some people in prison that may not belong there and end up making them good criminals. Getting our economy working would reduce corrections costs. If people have a job and a family life, you would see our crime rate go down.”

As many as a quarter of Michigan prison inmates have a history of mental illness. Instead of winding up in prison, some argue these people might be better dealt with by mental health courts which are administered by mental health agencies to make sure inmates are taking their prescribed medications and following daily routines. Those requiring special housing get it, but at far less than the average annual cost of $35,000 to keep an offender in prison.

“We must explore more cost efficient ways of dealing with nonviolent crime, like drug courts and mental health courts,” said Dillon.

None of the candidates seems much interested in revisiting two sweeping changes adopted by the Legislature in 1998 – elimination of “good time” and the “Truth in Sentencing Act” which requires that inmates serve their entire minimum sentence in a prison, rather than in a less costly halfway house or at home on an electronic tether. Gov. Jennifer Granholm recommended both reforms this year as a way to quickly reduce the inmate population by 7,500. The Legislature didn’t salute.

Several candidates said they would convene a group of experts to identify ways to lower prison costs without jeopardizing public safety. “The corrections system is the biggest misnomer in state government – we are not correcting much in terms of bad behavior. As citizens we need to be vested in the success of people who will be coming back into society,” said Bernero. “I’m going to get the best minds on this and see what’s working and what’s not. It will be a complete overhaul.”

Bouchard said he’ll bring the same kind of efficiencies to the state prison system as he did the Oakland County Jail. He said privatizing jail food service is saving taxpayers more than $1.6 million annually, and using the same approach at state prisons could produce savings in excess of $38 million each year.

Attorney General Cox said the state should follow the roadmap experts have already provided. “Adopting a plan by the Council of State Governments and reducing per-capita inmate costs by only $2,500 would save Michigan taxpayers about $114 million,” he said. “According to the Pew Center, if we reduced per-prisoner costs to approach those of neighboring Ohio (lower by $7,548) or Indiana (lower by $13,005) we’d save between $379 million and $653 million annually.”

George, a physician, said he’d target health care costs. “We spend a lot of money on prisoner health care. We could save money if we had our students at Michigan medical schools help provide health care to our inmates,” he said.

State employee pay and benefits

Background: State employees have been in the crosshairs of a number of recent cost-cutting reform proposals. Senate Majority Leader Mike Bishop (R-Rochester) is pushing a pair of proposed constitutional amendments he says would save nearly $2 billion annually. One would have cut by five percent the pay for all government workers at the state and local levels as well as all public school, public university and community college employees. The other would force public employees to pay 20 percent of their health care costs. Meanwhile, House Speaker Dillon sponsored legislation to place all 400,000 government employees in Michigan in a single, state-managed health care plan, which he says would save as much as $900 million annually. None of the proposals has gained much traction in the Legislature to date. Lawmakers recently approved a plan that persuaded 17,000 teachers to retire to save school districts an estimated $515 million. It also requires teachers to begin to pay 3 percent of their salary to help pay for retiree health care. A similar plan is under consideration for state employees.

“We intend to look at the overall state employee compensation structure and ask two questions: Is the pay comparable with the private sector? And is it financially affordable? If we need to make changes, we need to understand the impact on people and their livelihood and do it in a constructive way,” said businessman Snyder.

Hoekstra said: “Public employee jobs should be good jobs, but not the best jobs in the state. Private sector employees have suffered through the recession with significantly lower pay and benefits, if not outright job loss.”

Benero stops shy of saying state employees are immune from future cuts. “I’ll do what’s necessary to balance the budget and provide quality service,” he said. “My first priority is not that we have to lop (compensation given to) state workers, that’s not my top goal.”

Said Cox: “Michigan state employees have better health care benefits than most other state employees and most other residents in Michigan. All across Michigan, workers in the private sector have been making sacrifices which include changes in their health care coverage; it is only fair that state employees and state government share in those sacrifices. Cutting the size of state government is essential.”