Analysis

Unions are Super PACS

Former Democratic Party Chairman admits double-standard

An unexpected burst of plain speaking recently swerved the race for the Democratic presidential nomination off the customary narrative. Howard Dean, the former head of the Democratic National Committee and candidate for the party's 2004 nomination, not only admitted but asserted that labor unions are super PACs.

While on the campaign trail, Dean — a Hillary Clinton supporter — described unions as super PACs while attempting to counter suggestions that Clinton was beholden to Wall Street, after collecting significant sums for speeches at financial industry events.

“Why does Hillary Clinton have to put up with a double standard?” Dean asked. “I don’t hear anybody asking Bernie Sanders for his transcripts for some speech he made with a labor union. Frankly, for Bernie to say he doesn’t have a super PAC. ... Labor unions are super PACs. Now, they’re super PACs that Democrats like, so we don’t go after labor unions, but this is a double standard.”

A PAC, or political action committee, pools contributions and can both give money directly to candidates and pay for independent political activities on a candidate’s behalf. A major difference between a PAC and a super PAC is that there is no cap on how much money can be contributed to a super PAC. Also, super PACs are not allowed to contribute directly to or coordinate with election campaigns.

“It seems like everyone tends to think of super PACs as being something primarily associated with the far right,” said Dennis Darnoi, a political consultant with RevSix Data Systems. “They see super PACs as being funding from the Koch brothers and sources like that. Without ever looking closely at political funding issues for themselves, most people probably equate super PACs with conservative candidates and issues. I think that’s largely due to the way things are generally reported by the news media.”

Bill Ballenger, founder of Inside Michigan Politics, agreed that there seems to be a distinction between reality and perception on campaign spending.

“Aside from stories about George Soros, who contributes heavily to the Democrats, the Republicans have been perennially characterized as the ones who are always financially supported by rich contributors and corporate interests,” Ballenger said. “This fits in well with the class warfare rhetoric the Democrats always end up relying on. And, although Democrats certainly get their share of funding from well-financed sources — including unions — the Republicans almost never say or do anything to try to contradict the general perception.”

“So — yes, it’s kind of interesting that Dean would say something like he did about the unions,” Ballenger continued. “But what’s even more intriguing to me is that Dean and Sanders are both from Vermont, which makes me wonder what might have happened between them in the past that would cause Dean to go after Sanders so aggressively.”

Seven of the top eleven organizations that spend the most on political campaigns in the U.S. are labor unions, according to the Center for Responsive Politics. The Service Employees International Union, which has contributed over $224 millions during recent campaign cycles, ranks No. 1. 

The top 100 political donors of 2014 gave roughly $174 million to Democrats and $140 million to Republicans, according to a POLITICO analysis of data from the Federal Election Commission and Internal Revenue Service.

Bob Allison, the executive director of the SEIU Michigan State Council, did not respond to an email offering him the opportunity to comment. Doug Pratt, the director of public affairs for the Michigan Education Association, did not return a phone call offering him the opportunity to comment.

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

Time to End the Use of Public Pension Plans for Private Gain

Michigan citizens expect that the money they pay in taxes will be used for the core government services that are supposed to be provided. Education dollars are supposed to be used to educate students. Money spent on pensions is supposed to provide a retirement for government workers.

That's not the case today.

In 2015, the Mackinac Center broke two stories about an abuse of tax dollars happening in Michigan, one dealing with union release time and the other with union executives spiking the pensions they earned while working as government employees. There are two bills that would fix these issues.

More than 70 school districts are currently providing "release time" to local union presidents. The way it typically works is that the head of a local union for a school district gets paid to work on union business, rather than taxpayer business. All the while, they receive all or part of their salary and benefits from the public school district — paid for by taxpayers. The direct cost of this practice is at least $3 million per year across the state, though the actual cost is much higher since schools then have to hire a teacher to replace the union president who is no longer teaching. Senate Bill 280 would end these special arrangements. It has passed the state Senate and now sits in the Michigan House.

The current and past heads of the state's largest teachers union are also taking advantage of taxpayers. At least 50 people, including the last three presidents of the Michigan Education Association, are using their union salaries to increase their public pensions. In the case of the MEA presidents, salaries top out at over $200,000. Senate Bill 279 would prevent this going forward. It has passed the Senate and is now in the state House.

Taxpayers have better uses for their money and these deals should end.

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.