The other proposals would put in the state constitution, a right for public and private employees to organize and bargain collectively through labor unions, establish a standard of 25% of annual retail sales (by 2025) come from renewable energy sources, establish a Michigan Quality Home Care Council and provide collective bargaining for in-home care workers, a requirement of a 2/3rd vote in the House and Senate or a statewide vote to enact new taxes or increase the rate of taxes, and a required state vote on whether the state government constructs or finances new international bridges or tunnels for vehicles.

Partisan advertising for the proposals has been in the media in recent weeks.

Following, the Beacon will attempt to help voters understand the proposals by publishing the ballot language and excerpts of conclusions by the Citizens Research Council of Michigan which has analyzed the proposals.

According to a statement on its website, the Citizens Research Council of Michigan is a privately funded, not-for-profit public affairs research organization, founded in 1916. For over 95 years, the objective of CRC has been to provide factual, unbiased, independent information on significant issues concerning state and local government organization and finance. CRC believes that the use of this information by policymakers will lead to sound, rational public policy formation in Michigan.

Complete analysis of each proposal is available online by going to CRC’s website, www.crcmich.org.

PROPOSAL 12-1

A REFERENDUM ON

PUBLIC ACT 4 OF 2011

THE EMERGENCY

MANAGER LAW

Public Act 4 of 2011 would:

· Establish criteria to assess the financial condition of local government units, including

school districts.

· Authorize Governor to appoint an emergency manager (EM) upon state finding of a

financial emergency, and allow the EM to act in place of local government officials.

· Require EM to develop financial and operating plans, which may include modification or

termination of contracts, reorganization of government, and determination of

expenditures, services, and use of assets until the emergency is resolved.

· Alternatively, authorize state-appointed review team to enter into a local government

approved consent decree.

Should this law be approved?

Excerpts from CRC summary: A number of local governments are in financial distress, and may not be able to keep promises made to retirees, employees, residents, local businesses, vendors and bondholders. The national and global economic conditions that have caused much of this distress are not controllable by locally elected officials. Local elected officials are nonetheless responsible for ensuring that a government’s expenses do not exceed revenues, and the state is responsible for ensuring that local governments avoid financial collapse. On Nov. 6, voters will decide if PA 4 is the appropriate means by which the state meets its obligations.

A yes vote would reinstate PA 4 of 2011. Muskegon Heights is one of two school districts and four cities in Michigan which have had emergency managers appointed under PA 4.

PROPOSAL 12-2

A PROPOSAL TO AMEND THE STATE CONSTITUTION

REGARDING COLLECTIVE BARGAINING

This proposal would:

· Grant public and private employees the constitutional right to organize and bargain

collectively through labor unions.

· Invalidate existing or future state or local laws that limit the ability to join unions and

bargain collectively, and to negotiate and enforce collective bargaining agreements,

including employees’ financial support of their labor unions. Laws may be enacted to

prohibit public employees from striking.

· Override state laws that regulate hours and conditions of employment to the extent that

those laws conflict with collective bargaining agreements.

· Define “employer” as a person or entity employing one or more employees.

Should this proposal be approved?

Excerpts from CRC Summary: Past and present laws in Michigan have extended to organized labor the ability to represent public workers and to engage in collective bargaining.

If approved by voters, Proposal 12-2 will affect the cost of government because large percentages of government costs relate to personnel. In a period of declining revenues, increased costs as a result of the proposal could result in increasing pressure on state and local governments to cease or privatize some services.

With respect to public sector workers, the fundamental question of this proposal is whether the state legislature should have some say over the ability of public sector workers to organize and the scope of issues that can be bargained, or whether those rights should be protected by the constitution.

PROPOSAL 12-3

A PROPOSAL TO AMEND THE STATE CONSTITUTION

TO ESTABLISH A STANDARD FOR RENEWABLE ENERGY

This proposal would:

· Require electric utilities to provide at least 25% of their annual retail sales of electricity

from renewable energy sources, which are wind, solar, biomass, and hydropower, by

2025.

· Limit to not more than 1% per year electric utility rate increases charged to consumers

only to achieve compliance with the renewable energy standard.

· Allow annual extensions of the deadline to meet the 25% standard in order to prevent

rate increases over the 1% limit.

· Require the legislature to enact additional laws to encourage the use of Michigan made

equipment and employment of Michigan residents.

Should this proposal be approved?

Excerpts from CRC Summary: Issues: While some other states have Renewable Portfolio Standards or voluntary goals to increase use of renewable energy may have submitted those requirements to voters in the form of statutory referenda, no state has included the standards of renewable energy usage in its constitution.

In 2008, Michigan enacted the Clean, Renewable and Efficient Energy Act requiring public and private utilities and cooperatives to generate 10% of their retail electric sales from renewable energy sources by 2015.

It is not clear if attainment of the renewable energy standards set by states will be financially feasible or the affect the standards will have on energy portfolios. Renewable energy is a field that is dynamic in terms of new and improved technologies, and the ability to balance energy produced by non-renewable and renewable energy resources. A future constitutional amendment may be necessary to allow electric utilities to keep current in renewable energy usage to comply with state law.

Michigan does not have any other provisions in its Constitution that compel persons or businesses to engage in activities or perform tasks.

Furthermore, it is not clear what recourse the people would pursue in the event of non-compliance.

PROPOSAL 12-4

A PROPOSAL TO AMEND THE STATE CONSTITUTION TO ESTABLISH

THE MICHIGAN QUALITY HOME CARE COUNCIL AND

PROVIDE COLLECTIVE BARGAINING FOR IN-HOME CARE WORKERS

This proposal would:

· Allow in-home care workers to bargain collectively with the Michigan Quality Home Care

Council (MQHCC). Continue the current exclusive representative of in-home care

workers until modified in accordance with labor laws.

· Require MQHCC to provide training for in-home care workers, create a registry of

workers who pass background checks, and provide financial services to patients to

manage the cost of in-home care.

· Preserve patients’ rights to hire in-home care workers who are not referred from the

MQHCC registry who are bargaining unit members.

· Authorize the MQHCC to set minimum compensation standards and terms and

conditions of employment.

Should this proposal be approved?

Excerpts from CRC Summary: The debate on this issue centers on whether the strategy adopted in 2004 is primarily a means to channel money to unions or whether the proposed Council would actually improve the care available to participants of the Home Help Services Program. Providers are not required to avail themselves of the training opportunities; program participants are not required to select providers from the registry; participants are not required to avail themselves of financial management services.

The Home Health Car Program itself will remain in effect regardless of the outcome of this vote on the proposed constitutional amendment. The program that pays for home health aides depends on federal or state funding, not on the bargaining rights or union affiliation of, nor payment of union dues by home health care aides.

It’s another case of should the right of collective bargaining for public employees by protected by the state constitution.

PROPOSAL 12-5

A PROPOSAL TO AMEND THE STATE CONSTITUTION

TO LIMIT THE ENACTMENT OF NEW TAXES BY STATE GOVERNMENT

This proposal would:

Require a 2/3 majority vote of the State House and the State Senate, or a statewide vote of the

people at a November election, in order for the State of Michigan to impose new or additional

taxes on taxpayers or expand the base of taxation or increasing the rate of taxation.

This section shall in no way be construed to limit or modify tax limitations otherwise created in this

Constitution.

Should this proposal be approved?

Arguments For and Against Proposal 5: The rationale for the adoption of a supermajority requirement (2/3rds) is to restrict legislative powers to make it more difficult to enact tax increases or to adopt new taxes. These requirements aim to keep taxes low. Academic research to support the ability to achieve this aim is mixed, according to CRC. On study shows that a supermajority vote requirement results in lower taxes compared to tax levels without the requirement present. Other academic research, however, suggests that the vote requirement may affect state tax revenue, but does not affect total state revenue. States often increase other taxes, fees, and charges to make up for reduced tax collections arising from supermajority vote requirements.

PROPOSAL 12-6

A PROPOSAL TO AMEND THE STATE CONSTITUTION

REGARDING CONSTRUCTION OF INTERNATIONAL BRIDGES AND TUNNELS

This proposal would:

· Require the approval of a majority of voters at a statewide election and in each

municipality where “new international bridges or tunnels for motor vehicles” are to be

located before the State of Michigan may expend state funds or resources for acquiring

land, designing, soliciting bids for, constructing, financing, or promoting new international

bridges or tunnels.

· Create a definition of “new international bridges or tunnels for motor vehicles” that

means, “any bridge or tunnel which is not open to the public and serving traffic as of

January 1, 2012.”

Should this proposal be approved?

Excerpts from CRC Summary: The proposal contains some ambiguous language that likely will require the courts to settle. As pointed out by the proposal’s sponsors, the clear intent of the proposed constitutional language is to require voter approval for international bridges and tunnels. However, the proposal’s language specifically defines “new international bridges or tunnels for motor vehicles: as “any bridge or tunnel which is not open to the public and serving traffic as of Jan. 1, 2012. This definition does not mention the need that such a bridge or tunnel serve as an international crossing. Defining the term in this manner could mean that all bridge and tunnel projects for which the State of Michigan is involved, that are not open to traffic as of Jan. 1, 2012 will require statewide and municipal votes.

Michigan has not encountered any known constitutional issues with regard to bridge construction and finance. This proposal is an effort by a particular party with a vested interest in the outcome of efforts to build a new international bridge between Canada and Michigan to prevent or delay the state’s efforts.

This proposal may not affect the proposed New International Trade Crossing (NITC-bridge between Detroit and Windsor), because under the June 2012 Crossing Agreement negotiated between Governor Snyder and the Canadian government, Michigan state government has no direct responsibility for the construction or financing of the proposed bridge or related projects. As late as early 2011, the Canadian government offered to provide $550 million up front to over Michigan’s costs of the new international bridge crossing.