Senator Called Film Subsidies 'a Waste,' Now Votes to Continue Them
In June, Sen. Mike Green, R-Mayville, said he considered Michigan’s film credits to be “a waste” and criticized his GOP primary opponent, Rep. Kevin Daley, R-Lum, for supporting them.
But only weeks after winning his primary election, Sen. Green voted to extend Michigan’s film subsidy program beyond 2017 and eliminate the program’s cap on how many taxpayer dollars could be spent on out-of-state film industry salaries.
"He (Rep. Daley) has voted for the film credits about every time." Sen. Green told Capitol Confidential in June, while making his argument that he (Sen. Green) was more conservative than Rep. Daley. "In my opinion, the film credits are a waste. According to the Senate Fiscal Agency, they haven't created any jobs. I don't think we should be giving a penny toward the film credits.”
In spite of what he had said in June, on Oct. 21 Sen. Green voted for Senate Bill 1103, which – if enacted – would allow the film subsidy program that is currently scheduled to end after 2017 to continue indefinitely. In addition, the measure would do away with a $540,000 salary cap on how much actors, directors and producers could receive from the subsidies. The bill is being considered by the State House.
“The bill makes changes to the current credits,” Sen. Green told Capitol Confidential, explaining his ‘yes’ vote on Senate Bill 1103. “For one thing, we’d get a bigger tax return on them; it would be more lucrative for the state. I also believe this legislation provides better incentives for establishing movie locations in rural areas, like we have throughout most of my district.
“I knew the bill had the votes needed for passage anyway,” Sen. Green continued. “It is not as though I cast the 20th (deciding) vote on this. The bill didn’t appropriate any money and I (as a member of the Senate Appropriations Committee) could still have something to say about that. But at least ... this would make the program a little bit better.”
An issue Rep. Daley attacked Sen. Green over in the primary race was that Sen. Green had voted against the right-to-work legislation in December of 2012 after pledging on camera to support a measure if one was ever brought up for a vote.
One of the points Sen. Green made in defense of his switch regarding the right-to-work issue was that he knew the bill would pass regardless of how he voted, which afforded him the opportunity to vote against it without impacting the outcome.
Rep. Daley described the fact that Sen. Green had voted in favor of Senate Bill 1103 after using the film credit issue against him (Rep. Daley) in the primary election as being “a shame.”
“I just think it’s a shame how in politics, within a matter of months, someone could change from using something against their opponent to going all the way over and voting in support of it,” Rep. Daley said. “I know that’s just the way politics go sometimes, but it’s a shame.”
Capitol Confidential asked Rep. Daley how he would vote on the film credit legislation (Senate Bill 1103) if it is brought up in the House during the upcoming lame duck session.
“I haven’t looked at the bill and I don’t know whether it is going to be brought up or not; but based on what I’ve heard about it, I would anticipate voting against it,” Rep. Daley said. “It sounds like it would undo everything we originally intended, which was that these (film credits) would end at a certain point – and, by the way, that was the context of my other votes on this issue’ – the votes over which I was accused of supporting the credits. Those votes were made with the basic understanding that this program was being phased out.”
“I’ve talked with some of my colleagues about being prepared to oppose it, if it is – in fact – brought up for a vote,” Rep. Daley continued. “Again, I don’t even know if the bill will be brought up for a vote or not, but you never know what might happen in lame duck.”
Ron Mindykowski, Sen. Green’s Democratic opponent in the 31st Senate District general election race, did not respond to a request for comment.
According to the federal Bureal of Labor Statistics, Michigan has fewer film jobs than it did in 2008, the year the initial subsidy was passed. The state has appropriated about $500 million since 2008.
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.
State Budget Follies
Senior Olympics subsidies getting old
Michigan’s state budget is a $52 billion-plus document that cuts across most aspects of our lives: police, courts, transportation and education to name a few subjects. Is it any wonder then that few noticed or complained when a $100,000 “one-time” appropriation was slipped in to subsidize an athletic competition between people who are in the autumn of their years?
Subsidizing the “Michigan Senior Olympics” is not a proper function of government. It is unfair to those whose hobbies are not subsidized, it financially supports a group who may already be healthier and wealthier than your average resident, and the state has more pressing uses for the money.
The Michigan Senior Olympics was created in 1979 and is a nonprofit fitness advocate for people over 50. The games it hosts are held in Oakland County and has boasted of 1,100 participants. The 2015 winter events begin Feb 7 and include sports such as billiards, powerlifting and hockey, according to the MSO’s website. The summer events are held in August and include events such as bocce ball, tennis and golf.
The state should kill this subsidy on fairness grounds alone. There are countless hobbies statewide — athletic and otherwise — that are not subsidized by government. Yet those who choose to participate sans subsidy are being forced to pay for the Senior Olympians’ competition.
Does it bother anyone in state government that a cross-country skier in Ishpeming has her own choices (athletic hobbies and otherwise) diminished to cross subsidize the hobby of a bocce ball playing Detroiter? Worse, there are taxpayers dragged into this transaction that have no interest in sports whatsoever.
Relatedly, it would not strain credulity to suggest that Senior Olympians already have many advantages in life over their counterparts. For example, as a direct result of being older and having more time to accumulate wealth, senior citizens nationwide have higher incomes and a higher net worth than many who are footing this Olympic bill.
The September 2014 Federal Reserve Bulletin summarizes its 2013 triennial “Survey of Consumer Finances,” which indicate that average income by the age of head of household is highest in the 55-64 age bracket and drops thereafter but is not much lower than the 35-44 bracket. The Census Bureau reports slightly different numbers, noting that wealth (a different measure of economic well-being) peaks in the 65-69 age cohort.
In other words, it is unlikely this particular set of sportsmen and women need a financial leg up, at least relative to their many poorer peers under the age of 35. Indeed, the under-35 crowd is already engaged in a massive intergenerational transfer of wealth to senior citizens via Social Security and Medicare programs and so should be left out of the Olympic transaction.
If the Senior Olympics really must have $100,000 more to operate, the civil society solution would simply be to ask its 1,100 participants to pay $91 more per person for the privilege of participating. Current MSO membership fees are $25 per person, though one must pay a registration fee and other costs depending on the event.
Another advantage that Senior Olympics’ participants may have is something many people cherish above all: their health. There are many seniors who only wish they could pay full freight to compete in the MSO, if only they were physically able to do so. Forcing unhealthy seniors to pay for those who are healthy is also unfair.
Readers may feel mollified by the knowledge that this is just a “one-time” appropriation. But “one-time” appropriations happen frequently with the same group. The Senior Olympics also got one-timers in three other budgets since Fiscal Year 2000. A fourth attempt in 2002 was made but vetoed according to Michigan’s State Budget Office.
The state has so many other pressing needs – roads and underfunded pensions to name two – that it is hard to believe this line item could get sneaked into the budget. Redirected to roads or schools, $100,000 could fill about 5,000 potholes or buy a school district 1,000 new textbooks.
Senior Olympics subsidies are unfair, unnecessary and waste precious resources that would be better used elsewhere. They should be eliminated during the Lame Duck session or by the new Legislature.
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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