MEA Voice - Fall 2008

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Secretive Mackinac Center refuses to disclose financiers

MEA research reveals millions from conservative foundations, individuals

'Founded 21 years ago by Republican activists and financed by insurance companies, the Mackinac Center for Public Policy has positioned itself as a research institute, maneuvering into the news media in Michigan and, increasingly, the nation. To intelligently judge the material the center produces, as well as the “research” credited to it by news sources, one must know its background— and its financial backers.

Founding The Mackinac Center was created in 1987 by Dykema Gossett attorney Richard D. McLellan, then-Sen. John Engler and Amerisure general council D. Joseph Olson. The insurance and chemical industries provided initial funding.

Its creation was driven by the insurance industry’s call for product liability reform, its interest in purchasing the Accident Fund, a state agency selling workers compensation insurance, and by Dow Corning’s concern over silicone breast implant liability.

Mission The center describes itself as “a nonpartisan research and educational institute.” But, its “research” accepts several controversial opinions as fact: school choice improves schools, right-to-work laws help workers, and privatization saves money, just to name a few. As its new president, Joe Lehman recently said:

“We will continue to show how to fix Michigan’s fundamentals by expanding school choice, modernizing labor laws, aligning state spending to its core priorities, protecting property rights...”

The group’s board of directors reflects its conservative roots and represents a who’swho in Republican politics. Past board members include: William Rosenberg, who worked in the Bush, Reagan, Milliken and Engler administrations; Republican National Committee Chairman Robert Teeter, a pollster for the Nixon, Ford and Bush campaigns; and, Amway president and past Republican candidate for governor, Dick DeVos.

Funding The Mackinac Center steadfastly refuses to disclose its sponsors.

“We do have a strong desire to protect the privacy of our contributors,” said Michael Jahr, director of communications for the Mackinac Center. Jahr cited two reasons for secrecy—donor privacy and concerns expressed by some contributors that they might face intimidation for contributing to the organization.

The center is, in fact, funded by right wing conservative foundations, including those created by Wal-Mart, Coors and Amway families, as well as several oil, insurance and automotive corporations, according to documents on file with the Internal Revenue Services.

Jahr said the center’s budget last year totaled about $4 million.

Between 2002 and 2006, more than $7 million was given to the Mackinac Center from conservative foundations established by the heirs to corporate fortunes and leading Republican contributors, according to MEA research. (See accompanying information box for highlights.)

It’s no coincidence that these foundations agree with the Mackinac Center’s conservative research.