News Story

Liberals, Democrats Question Conservatives’ Right to Equal Protection

Democratic legislator calls 'ludicrous’ comparison of free market donors' privacy rights to 1958 NAACP members

The Michigan Legislature has passed a bill that would protect donors to nonprofit organizations from having personal information and details of their contributions turned over to government agencies and posted on the internet.

Critics of Senate Bill 117 questioned the need for such a bill and ridiculed comparisons to a 1958 U.S. Supreme Court ruling that the state of Alabama could not demand a list of NAACP members. The Supreme Court ruled the demand violated the right of due process protected by in the 14th Amendment to the U.S. Constitution.

In the current era, there is no dispute over the danger to members of the NAACP in 1958 when the Jim Crow-era government of Alabama demanded their names and addresses. But today it is mostly donors to conservative and free-market organizations who feel threatened by such demands for public disclosure. Yet comparisons to that Supreme Court ruling have brought forth scorn from Democratic politicians and liberal websites.

Among many examples, a 2016 story on the left-wing Mother Jones website was titled, “Dark-Money Groups: Hey, We’re Just Like ‘50s Civil Rights Activists in Alabama!” The subtitle read, “Supreme Court ruling helped protect the NAACP. Now it’s protecting fat-cat donors.”

Michigan Democrats echoed this attack this week when they lashed out at Mackinac Center for Public Policy’s David Guenthner, a senior strategist for state affairs who referenced the Alabama-NAACP ruling in his testimony before the House Committee on Michigan Competitiveness.

In response, Rep. Abdullah Hammoud, D-Dearborn, said he found the comparison ludicrous and extremely offensive, according to the Detroit Free Press.

Rep. Tenisha Yancey, D-Harper Woods, asked Guenthner if he knew of cases in which “people contributing to political campaigns have been hanged,” the Free Press reported.

Guenthner said he did not, but he could have described death threats received by his organization, the Mackinac Center for Public Policy, in 2012.

Laura Campbell of Illinois admitted in court that she left numerous messages on the Mackinac Center’s voicemail system threatening to kill “all of you” and “bomb you.”

“Scotty Walker is dead. So are you,” one voice message said.

“We are going to just destroy you and take you down. We will destroy you. ... You are on Main Street. You are the first place to be bombed,” another message said.

And the Mackinac Center isn’t the only free-market nonprofit to be the target of death threats.

In 2016, U.S. District Court Judge Manuel Real cited death threats made to the nonprofit Americans for Prosperity Foundation when he denied demands by the state of California for the group to turn over its donor information.

Kamala Harris, then attorney general of California, was trying to get donor lists with individuals’ names and addresses from nonprofit organizations, including AFP.

While her office claimed that the donor list would be kept confidential, it was found to have published 1,778 documents with donor names and addresses on a website available to the public.

“Although the Attorney General correctly points out that such abuses are not as violent or pervasive as those encountered in NAACP v. Alabama or other cases from that era, this Court is not prepared to wait until an AFP opponent carries out one of the numerous death threats made against its members,” Real wrote.

The Ninth U.S. Circuit Court of Appeals overturned Judge Real’s decision.

In addition to physical threats, nonprofit donors have other reasons to fear the government obtaining their data.

Chris Fink, CEO of AFP, said during the California case proceedings, donors were concerned that they could face retribution from the IRS if their names were released to the government. In 2017, U.S. Attorney General Jeff Sessions admitted in a press release that the IRS had indeed targeted conservative nonprofits. Sessions said the IRS targeted hundreds of applications by nonprofits for additional scrutiny and delays and also requested donor information that he said was not needed to make a determination of tax-exempt status.

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

School District Gets More, But Superintendent Complains About ‘Do More For Less’

Remarks related to some extra internet sales tax revenue going to support roads, not schools

Mark Greathead, superintendent of Woodhaven-Brownstown School District, chimed in Thursday on a deal between Gov. Rick Snyder and legislative leaders to get extra money for road repairs and environmental cleanup projects by diverting some expected state revenue increases to them. Without the agreement, most of the new money would otherwise go to the School Aid Fund.

“Every superintendent in Michigan has been forced to work within the ‘do more with less’ model of school administration over the last many years, but I certainly doubt any of us expected to be told we now have to pay to fix Michigan roads,” Greathead said, according to The Detroit News.

Like many claims by public school administrators about having less, this one doesn’t stand up to scrutiny, especially at Greathead’s school district.

Woodhaven-Brownstown has seen its state funding (not including local and federal dollars) increase from $6,391 per pupil in 2010-11 to $8,003 per pupil in 2017-18. After adjusting for inflation, the district received the equivalent of $869 more per pupil in 2017-18.

The district’s general fund revenues (which include state, federal and local funding) increased from $40.5 million in 2010-11 to $54.4 million. Once inflation is factored in, the district’s general fund revenues were $9.2 million higher in 2017-18 compared to seven years earlier.

The Woodhaven-Brownstown financial data was derived from figures obtained from the Michigan Department of Education, the Center for Educational Performance and Information and the district’s own comprehensive annual financial report

On Thursday the Legislature enacted the revenue diversion plan and Snyder is expected to sign it. The money diverted from schools is expected to be made up by higher sales tax collections from taxing internet purchases, which under a recent U.S. Supreme Court will no longer be prohibited under federal law. This means that the School Aid Fund won’t lose money, but going forward it won’t get as much additional revenue as it would have without the deal.

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.