News Story

Union Graphic Leaves Out Billions of Public Dollars To Claim Education 'Cuts'

MEA's Facebook page has multiple inaccuracies

The Michigan Education Association has continuously misrepresented the financial situation of schools, and did so again with a graphic it posted Sept. 12 on its Facebook page.

On a graphic titled, “Public School Cuts: A Vicious Cycle” (see image nearby), the MEA cited an open letter from a Michigan State University professor that leaves out billions of dollars in school funding from its analysis. The picture also cites a school district issuing 223 layoff notices but doesn’t mention that the district only ended up actually laying off two teachers.

In the past several months, MEA President Steve Cook has misrepresented facts on school funding in Michigan’s two largest newspapers.

Now, the Facebook page claims that when adjusted for inflation, school funding in Michigan has dropped from $11,000 per pupil in 2002 to $8,000 per pupil in 2011.

The MEA is citing data lifted from an open letter sent by Michigan State University Professor David Arsen to Gov. Rick Snyder.

However, Arsen's analysis left out billions of dollars given to schools because it didn’t include federal dollars or money given to Intermediate School Districts, Michael Van Beek exposed when he was education policy director at the Mackinac Center for Public Policy. Arsen eventually changed some of the information in the letter.

When all revenue is calculated, funding for schools actually went up 1.2 percent from 2002 to 2012, adjusted for inflation.

The MEA’s chart also cites an AnnArbor.com article with a headline that read: “Budget Crisis: Ann Arbor schools issues layoff notices for 233 teachers.”

But what the MEA doesn’t report on the chart is that the Ann Arbor school district ended up laying off just one full-time and one part-time teacher, not the 223 initially reported in the spring, according to Ann Arbor Public Schools Spokeswoman Liz Margolis.

Public schools in Michigan often issue numerous layoffs for teachers and end up calling many of the teachers back.

“The MEA is using outdated and flawed information to support its incorrect claims,” said Audrey Spalding, education policy director at the Mackinac Center.

Two members of the MEA’s communications team did not respond to requests for commment.

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

Despite Union Leader Complaints, Michigan Exports Exploding

Free trade boosts the economy

In a recent op-ed in The Detroit News, Teamsters President James Hoffa criticized trade deals in the United States saying, “It is time America’s major import wasn’t cheap foreign goods and its major export wasn’t good U.S. jobs.” 

Hoffa used the South American country of Colombia to make his point, saying that exports to the U.S. from Colombia fell 4.5 percent between May 2012 and March 2013.

But if Hoffa is implying that the U.S., and Michigan, are being hurt by trade deals, he won’t find much support from the Department of Commerce.

For example, exports from the U.S. to Colombia have increased from $5.6 billion in 2005 to $16.4 billion in 2012. U.S. imports from Colombia have increased from $8.8 billion in 2005 to $24.6 billion in 2012.

And in Michigan, exports to Colombia have increased from $58.6 million in 2005 to $224.9 million in 2012, with most of that coming from transportation equipment and chemicals. Michigan’s biggest trade partner is Canada, which receives $25.4 billion of Michigan’s exports in 2012.

“The story is the incredible growth of globalization and the U.S. has been in the forefront of that,” said James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy. “We are trading much more internationally than ever before.”

In the last four years, Michigan exports have grown five times faster than the state’s economy (Gross Domestic Product), said Mark Perry, a professor of finance and business economics at the University of Michigan-Flint, and a member of the Mackinac Center’s Board of Scholars.

Perry said Michigan’s exports lead the growth in the state’s economy. In 2009, exports were 9.3 percent of Michigan’s GDP and that increased to 14.2 percent in 2012. Michigan’s exports were $57 billion of the state’s $400 billion state GDP last year.

Perry said Michigan’s total international trade activity (the state’s imports and exports combined) increased 48 percent from 92.5 billion in 2009 to $136.6 billion in 2012.

“We have to remember that 95 percent of the world’s consumers are outside of the U.S. and foreign markets are vital to Michigan’s economy, especially its car industry,” Perry said.

Hoffa said in his Detroit News column that: “Workers on both sides of the deal get screwed while corporations rake in record profits.”

Perry said that was not true. More than $360 million in profit sharing checks will be paid by Detroit’s Big Three automakers to hourly workers with millions more in profit sharing bonuses going to salaried workers.

Hoffa did not respond to requests for 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.