News Story

The Refuge: Fall 2009

A publication of the Mackinac Center for Public Policy's Property Rights Network

Welcome to the new and improved version of The Refuge!  It has joined efforts with another Mackinac Center publication — Michigan Capitol Confidential. For readers of The Refuge, if you have enjoyed what you have been reading about property rights during the first two issues, then this change is going to mean two things:

  1. You'll be getting The Refuge more frequently: Michigan Capitol Confidential is published six times per year, rather than quarterly.
  2. You'll be getting MORE than just The Refuge. In addition to news about protecting your home and property from the covetous eyes of government, you'll now get the inside story on what else your elected officials are up to.

What this change will NOT mean is any reduction in content on the property rights news that you have come to rely upon from The Refuge. You'll still get everything you signed up for — just more frequently! You'll be able to find it right here, in a dedicated "Refuge" section, inside of Michigan Capitol Confidential.

Both of these publications are relatively new outreaches for the Mackinac Center. During the short history of both periodicals, each of us have visited and spoken to dozens of audiences across Michigan. And what we learned very quickly is that, for the most part, you're all the same people with the same concerns. So, it didn't take us long to figure out that we might be able to serve you more than twice as well by combining our efforts.

For longtime readers of Michigan Capitol Confidential, this is just one more improvement upon our mission to bring you news about YOUR government that you might not be getting elsewhere. Future issues will now come with several more pages of content — literally a brand new dedicated section just for property rights news.

If you haven't already told us that you want to remain on the FREE permanent mailing list, please do so. We'd hate to cut you off because you never told us how much you enjoyed what you are reading. And, as always, please don't hesitate to recommend the addresses of friends and family you think might also enjoy this information. (Somebody referring YOUR name might be why you're reading this issue right now!)

While this is a free publication, it is funded by the donations of patriots such as you. If you can spare a contribution in any amount, it will greatly enhance our ability to serve you better and find more people just like you in the future. The Mackinac Center is a 501(c)(3) research and educational institute, and your generous support is tax deductible on your federal income taxes.

But above all, if you're already a short- or long-time subscriber of either publication, thank you for your continued support. We hope you've enjoyed the road we've traveled with you so far, and can't wait to show you where we plan to go in the future.

Cordially,

Russ Harding, Director, Mackinac Center Property Rights Network

Bruce Edward Walker, Editor, The Refuge

Ken Braun, Senior Managing Editor, 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.

News Story

I'm Just a Bill

A sampling of proposed state laws, as described on MichiganVotes.org

SENATE BILL 904
Revise "green schools" criteria
Introduced by state Sen. Valde Garcia, R-Howell

The bill would revise the criteria by which a school may be designated as a "green school" and establish new levels of "greenness" for a school, including "emerald" and "evergreen." The new criteria specify in more detail various types of recycling and add doing energy audits of the homes of students, engaging in letter-writing or lobbying campaigns on environmental issues, offering classes in energy or environmental issues, creating a student environmental organization and "eco reading" program, and much more. Some criteria of the current "green school" statute are not included, such as hosting a Sierra Club spokesperson, students dusting coils on cafeteria refrigerators and checking bus tire pressure, etc.

SENATE BILL 552
Give "rewards" to gas stations that increase ethanol sales
Introduced by state Sen. Cameron Brown, R-Fawn River Twp.

The bill proposes to give a subsidy to gas stations that increase ethanol sales above certain thresholds specified in the bill. The subsidy would be a "carry-forwardable" income tax credit (can be used to offset the owner's tax liability over several years), and the value would be between 2 cents and 6 cents per gallon of ethanol sold above the threshold.

SENATE BILL 777
Authorize $100 million renewable power conversion manufacturer subsidy
Introduced by state Sen. Tony Stamas, R-Midland

(Note: This bill has become law — Public Act 110 of 2009)

The law gives a four-year, $100 million subsidy to a joint venture of the "Xtreme Power" and "Clairvoyant Energy" corporations, which would make "large scale power systems designed to convert variable renewable power into firm dispatchable power" at the former Ford Wixom assembly plant. The subsidy is structured as a "refundable" tax credit, meaning the state will send the company a check for the amount that the credit exceeds its tax liability.

House Bill 4126
Authorize subsidies for selected auto industry suppliers
Introduced by state Rep. Richard LeBlanc, D-Westland

The bill proposes to authorize up to $250 million in Michigan Business Tax credits for auto manufacturing suppliers that enter job retention agreements with the state. Several future years' worth of credits could be claimed all at once by a company, meaning that the state would be writing checks to them. The bill authorizes "clawbacks" if the firms don't meet the job retention goals, but if a firm went bankrupt then presumably the state would be in line with other creditors for a piece of whatever assets remain.

HOUSE BILL 4515
Increase electric car subsidies
Introduced by state Rep. Dian Slavens, D-Canton Twp.

(Note: This bill has become law — Public Act 5 of 2009. See also: "Politically Correct Capitalism," in the May/June 2009 edition of Michigan Capitol Confidential.)

The law expands from one to three the number of refundable, $100 million, capital investment Michigan Business Tax credit agreements that could be entered into with makers of plug-in traction battery packs used in electric cars, which were authorized by a 2008 law, and increase from $70 million to $90 million total credits for "battery integration, prototyping, and launch" expenses. The 2008 law authorized various subsidies estimated at $335 million over seven years. This bill would add an additional $220 million to that. "Refundable" means that the state will send a manufacturer a check for the amount that the credit exceeds the firm's tax liability.

SENATE BILL 418
Increase energy business subsidies
Introduced by state Sen. Jason Allen, R-Traverse City

The bill proposes to increase from $45 million to up to $60 million the amount of "21st Century Jobs Fund" money that can be spent on grants and subsidies to energy technology projects undertaken by for-profit companies. These "centers of energy excellence" grants would have to be used for matching federal or international grants.

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.