Whitmer differs with Benson — and Whitmer — on financial disclosure for spouses
Governor cites identity politics for her concern, but bills treat all spouses equally
When reporters asked Gov. Gretchen Whitmer about the financial disclosure bills debated last week in Lansing, and especially the push to strengthen the spousal disclosure requirements in the bills, the governor said she was worried about how the requirements would affect women.
As Bridge Michigan reporter Jonathan Oosting wrote on X:
Gov. Whitmer says she is concerned disclosure of a spouse's assets could be “held against” female candidates for public office. She is okay with requiring lawmakers to disclose information about spouses that you can already find on Google, she said.
The intent behind financial disclosure laws is to let the public know the financial interests of the people who represent them.
The belief that spouses should be included is widely held in Lansing, even if critics argue that Senate bills 613 and 614 don’t require enough information. As written, the bills only require officeholders and candidates to name their spouse and their occupation field — not their employer.
Read them for yourself: Senate Bill 613 and Senate Bill 614
One critic of that standard is Secretary of State Jocelyn Benson.
Benson, a female officeholder, believes the spousal disclosure requirements as written are too lax, not that they impose too much of a hardship.
“The spousal disclosure provision in the bills includes (such) minimal information as to make it relatively ineffective,” Benson testified to the Senate Oversight and Ethics Committee. “We should include not just the occupation, but also the employer in financial disclosure for spouses. The current language creates too many loopholes. If you're going to include spouses in this additional language in the legislation, then you should do so in a meaningful way or not at all.”
As written, the bills treat spouses of both sexes the same.
Detroit News reporter Craig Mauger dug into Whitmer’s time in the Legislature and found that the governor is at odds with her earlier self.
Back in 2006, as a state senator, Whitmer sponsored Senate Bill 1216, which would have required spouses to disclose every income source above $1,000.
But even that bill contained a loophole for self-employment. A self-employed spouse would only be required to do what Senate bills 613 and 614 require, to name the nature of the field without any specifics.
The Legislature is under a state constitutional mandate to pass a financial disclosure law by Dec. 31, due to Proposal 1 of 2022.
If that deadline is not met, Rich Studley, one of the four co-chairs behind Prop 1, has indicated litigation is possible.
Studley told Michigan Capitol Confidential that the bills as written do meet the minimum threshold, but they could be strengthened in two areas: tougher spousal disclosure, and more teeth for willful offenders.
As written, people who lie on their financial disclosures are only liable for a maximum fine of $1,000. And people who don’t file disclosures at all can only be fined $500.
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.
Three years later, Michigan court rules Michigan State illegally withheld information
Michigan lawmakers must close FOIA loopholes
Michigan’s Freedom of Information Act was meant to allow citizens virtually unfettered access to public records so that public officials and institutions would be accountable. But many government entities push the boundaries of the law and fight tooth and nail to keep their records secret.
A standard method often used by schools and universities is an exemption to FOIA called the Family Educational Rights and Privacy Act (FERPA). A federal law, FERPA was enacted to protect the privacy of certain information about students and parents – information such as individual student grades, family financial information submitted for financial aid purposes, and similar data that the public does not need to know about.
This exception makes perfect sense, when used in a limited and appropriate way. However, schools and universities have been using FERPA to conceal information that is not directly related to individual students in their educational capacity.
Consider Michigan State University. In summer 2020, more than three years ago, the Mackinac Center filed a public records request about the firing of an administrator based on controversial blog posts. These posts were taken out of context by the graduate students union, described by The Wall Street Journal as a Twitter mob, and led to Dr. Steven Hsu stepping down. We were interested in finding out the justification for the firing, and we requested documents.
Part of the records that MSU provided should have contained information pertaining to students who sought to influence the governance of the university. The university used FERPA to withhold or redact almost all the relevant emails. It’s been years, but the Michigan Court of Appeals ruled in favor of the Mackinac Center and ordered MSU to disclose these records.
MSU had argued that because these were university students, records of their actions (emails, signing petitions, etc.) fit into the broad category of “education records,” which are exempt under FERPA and FOIA. We argued, and the court agreed, that these were not the education records that were exempt. These were not the students’ grades, their academic discipline records, or their financial records. Rather, the records we sought were about students who petitioned the officers of MSU to influence its decision-making, and they willingly interjected themselves into a public debate.
As the Mackinac Center pointed out, anyone wishing to address the MSU trustees at their meetings is required to provide to the trustees his or her name, relationship to the university, street address, phone number, email address, and the subject of his or her opinion. This information is then made public. The same thing is true for anyone wishing to address the City Council of East Lansing.
But MSU’s argument was that the state’s FOIA law enables the university to keep information secret from the public.
“[T]he students were reaching out to address the situation involving Hsu and showcasing whether they supported or opposed Hsu’s removal,” the Court of Appeals held. “As the Court of Claims found, the information related more directly to Hsu than to the students. In other words, although the information related tangentially to the students, the information did not directly relate to them but, instead, directly related to the situation involving Hsu.”
The opinion in this case provides the clearest description in Michigan caselaw of when the exemption for FERPA information regarding students applies to public records requests. It is just the latest in a string of transparency victories the Mackinac Center has won over public entities across Michigan. But it should not take three years and hours of legal work to arrive at a decision that is obviously in line with the law. It’s another reason Michigan lawmakers should rewrite the state’s open records act to close loopholes being exploited by public entities that don’t want to be open to scrutiny.
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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