The Gongwer Blog

The Proposal 1 Defeat: Winners And Losers

By Zachary Gorchow
Executive Editor and Publisher
Posted: May 5, 2015 9:20 PM

As most expected, voters overwhelmingly defeated Proposal 15-1 and decided against a complex plan to raise the sales tax as part of a way to raise more money for roads.

Here’s an early look at who won and lost in this rare statewide special election.

WINNERS

PAUL MITCHELL: Mr. Mitchell steadfastly denied that his decision to lead an opposition group to the proposal had anything to do with his own political ambitions, but most expect him to run for office again and his having put almost a half-million of his own money into the No campaign will only help burnish his credentials in the Republican Party.

HIGHER EDUCATION: It didn’t get a lot of discussion, but one part of the constitutional amendment would have prohibited the use of School Aid Fund money to fund higher education, something that has occurred the last several fiscal years. Passage of Proposal 1 coupled with a recession would have put the state’s 15 public universities in a difficult spot.

LOCAL GOVERNMENTS WHO PASSED BALLOT PROPOSALS: Since the state picked up the cost of holding an election, local governments did not have to shell out the money as they usually would to hold local millage, bond and other proposal votes.

THE NO NEW TAXES CROWD: Remember how tortuous it was in Mr. Snyder’s first term trying to increase taxes to pay for more money for roads? Imagine how difficult it will be now with a more conservative Legislature emboldened by an overwhelming public vote against a tax increase.

LOSERS

RICK SNYDER: Governor Rick Snyder suffered the biggest defeat of his administration, having until now largely had his way in winning approval of his major priorities. Mr. Snyder’s mantra of “relentless positive action” has proven successful on much of his legislative agenda, but his decision to bend to House Republicans in 2014 and agree to a plan that did not legislatively raise taxes severely backfired. The governor also will take heat for traveling around the country in the days leading up to the vote.

ENDORSEMENTS: The Yes campaign had endorsements from almost every major group, liberal and conservative, business and union, Democratic and Republican. The hope was that these organizations would succeed in persuading their members to vote yes and carry the proposal to victory. That clearly did not happen.

GROUPS PUSHING ANY ISSUE OTHER THAN ROADS AT THE CAPITOL: There will surely be an attempt to find new funding for roads – how substantive and how serious remains to be seen. If it becomes a serious endeavor, it will likely suck up all the oxygen at the Capitol again and make it difficult for other issues to move until it is resolved, much like what happened in 2014.

THE FIX ROADS WITH A BALLOT PROPOSAL CROWD: Surely some will suggest a simpler ballot proposal, such as raising the sales tax by 1 percent with all money going to roads. That probably will cause road construction interests, who put about $6 million into Proposal 1, to throw up in their collective mouths. Good luck trying to convince anyone to fund a ballot proposal after what happened tonight.

Additionally, the Legislature took an absolute beating for the past several months for “punting” the issue to voters that helped poison the well on the proposal before the campaign even started. Sending the issue back to voters would provoke another backlash and probably doom a second proposal too.


The only scenario where a proposal actually would generate the revenue would be a Proposal A of 1994-style proposal that forces voters to choose between two different tax increases, but it is hard to imagine this Legislature agreeing to a complex plan that guarantees a tax increase.

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