News Story

Clinton County Regional Education Agency to funnel $18 million to private organizations

Money part of $1B in hand-picked projects by lawmakers

When Michigan’s lawmakers created the current state budget, they used a Greater Lansing area education service agency to distribute millions of dollars in hand-picked projects to areas far from the capital city.

The state budget routinely allocates grants to organizations selected by legislators who want to bring pork home to their district, with this year’s number close to $1 billion. There’s no competitive process or accountability for how the money is spent. The grants are usually directly disbursed to the intended recipient. This year’s budget, however, involves a middleman.

The Clinton County Regional Educational Service Agency, a unit of government that serves public school districts, will receive $75 million from the education budget. Of that money, it must send $18 million to predetermined organizations throughout the state.

Some money delivered through the service agency will go to organizations already receiving funds through the Department of Labor and Economic Opportunity. The Detroit Police Athletic League in Wayne County will receive a $500,000 grant and an additional $250,000 from the education budget.

The state education budget awarded $3.5 million to the State Alliance of YMCAs in LEO grants and $1.2 million from the education budget. The $1.2 million will support Youth in Government, a civics education program for middle and high school students, said Fran Talsma, president and chief executive officer of The State Alliance of YMCAs.

“The funds will reduce barriers to participation through scholarships and support teacher advisors in this afterschool program,” Talsma told Michigan Capitol Confidential in an email. “Nearly 100 Michigan schools participate in the program, and last year, over 2,000 Michigan youth took part in the year-long program.”

The $3.5 million LEO grant will be “equitably disbursed” to 26 YMCAs to “expand community-based programming for youth, families, and seniors as well as capital projects.”

The Downtown Boxing Gym is allotted a $2 million LEO grant and a $1 million education grant, as CapCon recently reported.

Other organizations receiving a share of the $18 million include:

  • Future Farmers of America: $4 million

  • Boys and Girls Club of Southeast Michigan: $3 million

  • HYPE Athletic Center: $3 million

  • Brilliant Detroit: $1.5 million

  • Flint Center for Educational Excellence: $1 million

  • Friends of the Children: $500,000

  • Detroit Opera: $800,000

  • Special Olympics: $500,000

  • Horatio Williams Foundation: $500,000

  • Friends of the Children: $500,000

  • Detroit Science Center: $500,000

CapCon emailed the Clinton County RESA Board, seeking comment. It has not responded.

CapCon asked the nonpartisan House Fiscal Agency why the budget sent $18 million to a county education service district. Noel Benson, a fiscal analyst, responded.

“Under Article IX Sec. 11 of the Michigan Constitution, School Aid Fund dollars may be used only for aid to school districts, higher education, and school employees’ retirement systems. Subsection (2) of Sec. 32n lists the eligible recipients of funding under this section, and it includes community-based organizations and other private entities that would otherwise not be eligible for School Aid Fund, so a pass-through is required to distribute funding to them.”

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

Salem Township uses public resources to push road millage renewal

Unclear whether advocacy violates Michigan Campaign Finance Act

A Michigan township might have violated state law by using taxpayer resources to urge residents to vote “yes” on a road millage renewal.

Salem Township in Allegan County posted a note on its website urging residents to vote for a renewal of what it called a crucial road millage, which had been in effect since the 1970s.

The post on the government website, preserved by the Internet Archive, read: “VOTE TUESDAY, AUGUST 6TH FOR ROAD MILLAGE RENEWAL.”

“Residents of Salem Township, On your August Primary ballot, you will find a crucial item: the renewal of our current road millage. This millage has been in effect since the 1970s and is set to expire in December 2025 unless renewed. Over the next few days, we encourage you to observe the excellent condition of our Township roads. This high standard of maintenance is largely made possible by your current millage contribution. Please consider voting ‘yes’ to ensure we can continue to uphold our roads as a source of pride for our community.”

Public entities such as townships can place a tax proposal on the ballot but can’t advocate for it using public funds, space or supplies. Governments can publish factual election statements, according to a post from the Lansing, Michigan, law firm Foster Swift Collins and Smith.

“For example, even a statement such as ‘the millage will allow us to provide better health services’ is generally prohibited because it is viewed more as a promotional message than a factual statement,” the law firm said. “Further, the public body may not post signs in its facilities or produce information with public funds that encourages citizens to ‘vote for’ or ‘vote against’ the ballot question. Typically, materials public bodies can provide are limited to the precise language of a millage, or other similar ballot initiative, and basic facts regarding that language.”

State law says: “A public body or a person acting for a public body shall not use or authorize the use of funds, personnel, office space, computer hardware or software, property, stationery, postage, vehicles, equipment, supplies, or other public resources to make a contribution or expenditure or provide volunteer personal services that are excluded from the definition of contribution under section 4(3)(a).”

Salem Township hasn’t yet responded to a request for comment.

The state can’t answer questions about whether a specific activity violates the Michigan Campaign Finance Act, said Sam May, the press secretary for Secretary of State Jocelyn Benson.

“Anyone seeking a legal determination on that activity can file an official complaint through the Bureau of Elections or a request for Department of State to issue a declaratory ruling/interpretive statement,” May wrote in an email reply to Michigan Capitol Confidential.

Voters rejected the road millage renewal in a vote of 559-538 on Aug. 6.

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.