Gov. Snyder Could Replace Board That Helped Facilitate Forced Unionization Of Home-Based Caregivers
If Proposal 4 passes, constitutional amendment would lock in current union-stacked board
Time is running out for Gov. Rick Snyder to replace before Election Day the union-stacked Michigan Quality Community Care Council board.
Replacing the board that oversees the Michigan Quality Community Care Council (MQC3), the dummy employer created as part of a scheme by the Service Employees International Union to help unionize about 44,000 home-based caregivers in Michigan, could give the governor a measure of control over the situation if Proposal 4 were to pass in November.
Proposal 4, which Gov. Snyder opposes, is an attempt to lock the forced unionization of Michigan's home-based caregivers into the constitution. According to the wording of Proposal 4, those on the MQC3 board before the election would automatically get four-year terms on the board of a new entity called the Michigan Quality Home Care Council (MQHCC). If the governor doesn't act and the proposal passes, he would no longer have the authority to replace them.
Gov. Snyder is considering taking action on replacing members of the MQC3 board, said Sara Wurfel, the governor's press secretary.
"This is something under close review and assessment, and we're exploring options," she said.
In 2005, the SEIU targeted Michigan's share of the federal Home Help Program as a dues-producing source. Under the federal Home Help Program, elderly patients and others suffering from various ailments can be cared for at home instead of being placed in nursing homes or other long-term care facilities.
The SEIU pulled off its scam by taking advantage of Michigan's first unionization that was conducted through the mail. As a result, the SEIU has been taking money from the Medicaid checks of the elderly and disabled for about seven years. To date, more than $32 million has been taken by the SEIU.
"I would hope the governor would do this before the deadline," said Wendy Day, of Common Sense in Government. "If he has the chance to put responsible leadership on the board, he should do it.
"Everyone knows this is a scam," Day said. "If it turns out that we can't fix it, I would hope the governor would take advantage of any opportunity to mitigate the damage."
Earlier this year, Gov. Snyder signed a law making the unionization illegal because the workers are not state employees. The SEIU took the issue to federal court and said it was a "First Amendment advocacy organization" that would suffer "irreparable damage" if the money flow stopped. U.S. District Court Judge Nancy G. Edmunds ruled in the union's favor.
The Mackinac Center Legal Foundation has filed a case with the Michigan Employment Relations Commission against the SEIU over unfair labor practices. The legal action asks MERC to reverse the decision that recognized the forced unionization of those workers nearly seven years ago. It also asks that the money being taken for dues be immediately ended and for the return of about six months' worth of dues, or about $3 million.
"Everything that can be done to fight this situation should be done," said Gene Clem, of the Southwest Michigan Tea Party Patriots. "I think that this (replacing the MQC3 board) would be an excellent step for the governor to take."
Ironically, Snyder now has the opportunity to make the SEIU's dummy employer into an entity that could at least approximate a real employer. He could replace the MQC3 board with members who would no longer do the SEIU's bidding. The SEIU has funneled money to the MQC3 and the union works closely with the MQC3's executive director, who can't work more than 3 hours a month so she can continue to collect unemployement benefits.
Dohn Hoyle, who is a member of the current MQC3 board, also is treasurer and co-chairman of the "Keep Home Care Safe" campaign, which is the group behind the effort promoting Proposal 4. He also heads Home Care First Inc., which has provided $1.84 million to the campaign committee for Proposal 4. Hoyle also is executive director of The Arc Michigan and under Hoyle's direction, the Arc donated $50,000 to the MQC3 this past spring.
Proposal 4 backers try to give the impression that the union got three pay increases for the home-based caregivers. It didn't. When pressed on this subject, defenders of the forced unionization simply repeat the claim that the SEIU achieved that for workers.
The MQC3, which has admitted it is not the employer of the home-based caregivers, has had no ability to give the caregivers a raise and neither would the MQHCC, the new entity that would be created if Proposal 4 passes.
Only the legislature has the ability to boost the value of the Medicaid checks that home-based caregivers receive. At most, the SEIU could lobby for an increase. Receiving a percentage of the caregivers' Medicaid checks for lobbying would be like activists who lobby on behalf of welfare recipients receiving money deducted from welfare checks and food stamps.
Of the three pay increases home-based caregivers have received since 2005, two were tied to increases in the minimum wage. Former Gov. Jennifer Granholm lobbied for and got the other increase, which was regionally-based and not uniform.
Gov. Snyder clearly understands the dangers of this ballot proposal being locked into the state constitution and relayed his opposition in a press release and video explaining why he's against Proposal 4.
"Proposal 4 creates a slippery slope," Gov. Snyder said in a statement posted on the governor's website. "Anyone else who receives a direct or indirect payment from the government may be involuntarily enlisted into a union, as well."
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
Is 5076 Montauk Blighted?
The house sitting on 5076 Montauk Drive in Alpine Township (pictured at right) doesn't look like a blighted property. The house is not crumbling, nor does it appear to be in an area where vacancy is a concern.
However, when the Kent County Land Bank Authority acquired 5076 Montauk this summer, the property automatically became "blighted." Any property acquired by any Michigan land bank is considered blighted by law, regardless of the property's condition or location.
In Kent County, properties held by owners who repeatedly fail to pay property taxes are subject to tax foreclosure. Tax foreclosed properties are sold at a countywide auction to the highest bidder.
The theory behind land banks is that government needs a tool to deal with undesirable properties that fail to sell at tax auction. But 5076 Montauk does not fit that bill. The land bank appears to have acquired the Alpine Township house to help fund its operations — not because the property lacked interested buyers.
Land bank staff, as reported by MLive, wrote that 5076 Montauk is a "Nice Home," and that "Revenue from this project will go a long way to help fund the Land Bank."
The phrase "long way" seems accurate. The land bank was able to acquire the property before it went to auction for the amount of taxes due — $10,440.28.
Had the property gone to tax auction, it could have sold for more than 10 times that amount as interested bidders upped the price. The revenue from the sale of 5076 Montauk at auction would have gone to Kent County, which is looking at a $955,000 budget deficit.
However, the property was blocked from going to tax auction. The land bank requested that the county acquire more than 40 properties before tax auction and then transfer those properties directly to the land bank.
Michigan's land bank law specifies that properties must be offered at tax auction before being transferred to land bank ownership. County-land bank coordination circumvents this restriction.
It appears that land bank staff anticipate gaining nearly $100,000 from 5076 Montauk. And that's to say nothing of re-routed property tax revenue. Land banks receive half of the tax revenue from a property for five years after the property is sold.
Dan Kildee, congressional candidate and founder of the Center for Community for Progress, an organization that promotes land bank legislation in other states, has said that land banks get to be the "smartest and luckiest speculator."
But Michigan's land banking law ensures that land banks are the most well-connected and favored speculator. Land banks can acquire properties through intergovernmental coordination, refuse to sell those properties (or sell them to preferred organizations), take on debt and ensure their continual existence by redirecting tax revenue.
When blocking properties from going to tax auction, Michigan land banks are getting in the way of one of the best chances at redevelopment: private investment. Tax auctions are frequented by entrepreneurs, and individuals looking to get a good deal on a home. When those entrepreneurs do well, so does the area as properties are improved and occupied.
When land banks acquire properties like 5076 Montauk, they are stalling a sale and opening taxpayers up to the risks of owning vacant property. Though 5076 Montauk may seem like an easy deal, there is always the risk that a property won't sell. The cost of this risk accumulated over time is the slow and steady amassing of vacant property.
Instead of taking in sales revenue at tax auction, Kent County revenue is being redirected so that the land bank can attempt to play the odds. But in this case, taxpayers bear the risk instead of private individuals.
Michigan's land bank law is nearly a decade old. It's time to start asking if Michigan's land banks are actually stalling the spread of blight, and whether the acquisition of properties like 5076 Montauk is worth the risk to taxpayers.
For more information on this story, see Michigan Capitol Confidential.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
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