News Story

Grand Rapids Selectively Released Public Information

FOIA documents show city talked at length with MLive reporter; shut out Acton Institute, Michigan Capitol Confidential

Grand Rapids city officials gave detailed information about a tax dispute involving the Acton Institute to a select reporter, but not to the nonprofit fighting to prove it is a charitable organization, according to documents received through a Freedom of Information Act request.

In fact, an Acton Institute for the Study of Religion and Liberty official complained that the organization was struggling to get information about the appeal of its rejection of an application for tax exemption just two business days before a scheduled hearing.

Acton Institute Director of Finance Tom Vogt sent an email to City Commissioner Dave Shaffer complaining about the lack of response from the city, saying the city was being "rather hostile" or "strongly uncooperative," according to the FOIA.

In the email sent at 5:26 p.m. on March 7, Vogt says that MLive was reporting details of Acton's case while the city was not sharing that information with Acton.

"This is unfair and not transparent," Vogt said in his email to Shaffer. "On Tuesday morning, we'll go before the board of review having received nothing but the two paragraph denial letter. … At least the City Attorney and City Assessor did respond with some details to the MLive reporter eventually. But this process feels rather hostile, or at least strongly uncooperative, to Acton."

On March 6, Grand Rapids City Attorney Catherine Mish exchanged several emails with an MLive reporter. In one 280-plus word response to the reporter, Mish cited the state law the city was going to use against Acton and then laid out three examples of case law describing what they believe a "charitable institution" is for purposes of property tax exemption. The emails to the reporter also added the city's concerns with Acton's application.

"While the City agrees that the Acton Institute is a non-profit entity, the City was unable to verify that the Acton Institute qualified as a 'charitable institution,' " Mish wrote in one of the emails. "I am left to question, what does the Acton Institute provide that would qualify as a charitable gift for the benefit of the general public?"

Mish had a completely different response when Michigan Capitol Confidential asked her a similar question. City officials ignored multiple requests from Capitol Confidential sent on March 10. Then, at the board of review hearing on March 11, a Michigan Capitol Confidential reporter was told that electronic recording equipment was not permitted.

The city couldn't provide any written documentation of its policy banning recording devices, nor could it verify whether the decision was subject to public comment. An attorney for the city later said the ban was no longer in force and was due to a "misunderstanding" and "miscommunication."

Mish sent an email to a group of reporters, including Michigan Capitol Confidential, on March 12 with some procedural information about the Acton case. But that was the last correspondence until April 3 when the city decided it would completely shut out Michigan Capitol Confidential.

Last week, Mish sent an email to Michigan Capitol Confidential stating that "the City will not be responding to your questions, but only to your FOIA records requests, and only in the manner required by the FOIA statute."

She continued: "… the City does not serve as the legal counsel for the Mackinac Center.  The Freedom of Information Act does not require the City to perform legal research for you, and we will not do so. If you want to understand 'the written definition of what constitutes a property-tax-exempt charity', as you stated in your FOIA … I suggest that you consult an attorney to provide you with that legal advice."

Mish did cite the law and give examples of case law to the MLive reporter. She did not respond to a request for comment about the disparity in treatment.

Grand Rapids Mayor George Heartwell said he doesn't comment on matters pending before the Michigan Tax Tribunal.

Manny Lopez, managing editor of Michigan Capitol Confidential, said the news service files a number of FOIA requests each year, and some are denied.

"But the terse, and I'd say somewhat angry, response we got from Grand Rapids was over the top," Lopez said. "I'm not sure why Grand Rapids thinks it's OK to respond openly with some reporters but to purposefully shut out others, especially when we're talking about public information and the use of public tax dollars."

Acton is still waiting for a response from the board of review. If its application for a tax exemption is denied, it can take the case to the Michigan Tax Tribunal.

~~~~~

See also:

City Says Recording Device Ban Was Due To 'Miscommunication'

Tax Board Bans Recording Equipment In Hearing Involving Nonprofit

Grand Rapids Says Nonprofit Acton Institute Not a Charitable Institution 

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.

Commentary

Obama Drops a Minimum Wage 'Stink Burger' On Michigan

Using catchy sound bites like "give America a raise," President Obama ignores volumes of research showing that his demand to increase the minimum wage will be a jobs killer.

Nevertheless, the president came to Michigan last week and campaigned for raising the cost of providing the jobs that millions of young people need to gain entry into the workforce, or that provide supplemental income for many families.

The nonpartisan Congressional Budget Office estimates that under the president's plan, 500,000 of these jobs would probably disappear, and possibly as many as 1 million.

Last month, more than 500 economists signed an open letter against the proposal, citing the job losses predicted by CBO and noting that "the minimum wage is also a poorly targeted anti-poverty measure."

Also in March, a survey of minimum wage employers found that about 54 percent would reduce hiring if the increase becomes law, and 38 percent would lay off employees. 

But never mind those real world impacts on real people — pushing for a minimum wage increase is good politics.

Because there is little chance of the proposal passing in Congress, President Obama is taking his campaign on the road. From Washington to Michigan and in scores of other states, politicians and organized labor are salivating over the prospect of a noisy minimum wage debate this year.

Supporters hope for a two-for-one deal. They see the debate as a way to change the subject from the train wreck of Obamacare and to drive voter turnout on Election Day with an issue that energizes their base and polls well with both Democrats and Republicans.

In February, the New York Times reported that at their "annual winter meeting, the nation's labor leaders say that what they see as the best theme for reviving the union movement — American workers need a raise — also would be a winning issue for their Democratic allies in this fall's elections."

A key issue of the meeting was where labor would focus its political firepower during the 2014 election. The group decided on five states. Four of those states, including Michigan, are Midwest battleground states.

Likewise, Neil Sroka, communications director at the "Democracy for America" PAC, which was founded by former Democratic presidential candidate Howard Dean and a strategist for progressive groups, told the Washington Examiner in January, "It's a no-brainer for any Democrat... For politics and policy, it's a winning strategy."

Which brings us back to President Obama's visit to Ann Arbor. Partisanship was on full display during his speech at the University of Michigan. After thanking two local elected politicians, the president, playing to the mostly college aged audience, said If Republican budget priorities were a sandwich they would be called a "stink burger" or a "meanwich."

While in town, the president took a high-profile lunch break at Zingerman's Deli, whose owner is actively lobbying for a minimum wage increase. Zingerman's recently raised the pay of its entry level workers to $9 an hour, which the owner said he hopes will go up to $11 at the end of the next fiscal year.

Because it caters to a higher-end clientele, Zingerman's can afford to pay higher wages than most of its lunch trade competitors. According to The Detroit News, President Obama's share of a lunch for two with U.S. Senate Candidate Rep. Gary Peters, D-Bloomfield Township, came to "almost $23 before taxes — $13.99 for the [small] Reuben, $6.50 for the salad and $2.50 for the tea. If Peters made the same order, the total tab after taxes was about $50."

Paying $13.99 for a small sandwich for lunch is considered a luxury for most Americans. A boutique eatery like Zingerman's that can command such prices probably won't be put out by a government mandate to pay more for entry level help. That also applies to large retail enterprises like Costco.

But if a minimum wage increase drives up the cost of hiring entry level workers such as dishwashers and shelf stockers for smaller mom-and-pop job providers, these already-struggling small business owners will be forced to make some tough decisions, either laying off workers, reducing their hours or raising prices. The result could be fewer choices and higher living expenses for working- and low-income Americans who depend on more affordable alternatives.

That would be the real "stink burger" if the president gets his way, and it will land on the plates of the very people he says he wants to help. Obama talks about giving America a raise. Unfortunately, you can't get a raise if you don't have a job.

It's quite a "meanwich" to push an issue for political gain knowing full well it will take away the jobs of hundreds of thousands of Americans on the bottom rungs of the economic opportunity ladder.

F. Vincent Vernuccio is labor policy director at the Mackinac Center for Public Policy, 

(Editor's note: A version of this column first appeared at rare.us.)

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.