With the Clinton administration firmly ensconced in Washington D.C. and the Freedman administration entrenched in Hanover, as a conservative columnist, it is very easy to lapse into a pattern of only complaining about what is wrong in our nation and at our College.
Not eager to become, in former Vice President Spiro Agnew's words, "a nattering nebob of negativity," this week I wanted to let you know about a place where government is actually succeeding. The state is Michigan, and its governor is John Engler.
In 1990, Republican Engler defeated Democratic incumbent governor James Blanchard by two-tenths of a percentage point in perhaps the biggest upset in Michigan political history. Blanchard, a good friend of Bill Clinton, was very much a Clinton Democrat.
While claiming to be a new kind of Democrat, he ruled as a traditional tax-and-spend liberal. After promising not to raise taxes during his first campaign, once in office, he pushed through the largest tax hike in Michigan history. While Blanchard argued the additional revenue was needed to eliminate the state's budget deficit, over 80 percent of the money was actually used to increase state spending on social programs and industrial policy.
By 1990, the results of Blanchard's program were remarkably clear. Michigan had the highest unemployment rate of any industrialized state. Its state budget deficit was the second highest in the nation as a percentage of its state budget. Its citizens suffered from one of the highest tax burdens in the Midwest. And, Michigan ranked second, behind only Mississippi, in the percentage of its population receiving some kind of government assistance.
During the 1990 campaign, although Blanchard significantly out-spent Engler and held a double-digit lead in the polls up until election day, Michigan voters shocked the political experts by having "the courage to change."
While most politicians would probably have seen a slim victory as a warning to proceed cautiously, Governor Engler immediately set about to reverse the ship of state 180 degrees. Immediately, Engler dealt with the state's pressing fiscal crisis. While Michigan's state government was spending about $8 billion a year, Blanchard left office with a budget deficit of a whopping $1 billion.
While many other states with both Republican and Democratic governors were raising taxes to deal with similar situations, Engler stuck by his no new taxes pledge and balanced the budget by dramatically cutting state spending.
While the special interests squealed, Engler threw 80,000 people off welfare in one fell swoop by ending assistance to able-bodied males. He phased out government subsidies to art museums, opera theaters and other cultural activities. And he privatized many services that could be more efficiently provided by the private sector such as mental health care.
Contrary to the predictions of the liberal doomsayers, thousands of former welfare recipients did not die on the streets. Instead, studies have shown that many found jobs. Similarly, despite the protest of the state's arts community, Michigan's cultural life was basically unaffected by Engler's cuts.
Not content to allow the state's tax burden to even remain the same, this summer Engler embarked on a bold experiment to cut taxes and completely reform the state's educational system. With one stroke of the pen, Engler eliminated all state property taxes, the primary funding source for public schools.
While some replacement revenues will have to be raised to pay for education, Engler has promised the net result of his actions will be a substantial tax cut. Similarly, under the new school funding scheme, the state will more equitably fund school districts so that poorer areas will not suffer as they did under a property tax-based system.
As his price for signing legislation to fund the schools, Engler is demanding the legislature pass reforms to revolutionize the state's educational system. The cornerstone of Engler's plan is improving schools through competition and decentralization. To this end, Engler is proposing school choice, charter schools and vouchers to enable poor students to attend private schools.
Almost three years into Engler's term, Michigan has turned the corner. For the first time since 1978, the state's unemployment rate is below the national average. And while high-tax states such as New Jersey and California are still mired in recession, Michigan is experiencing strong job growth.
In 1996, the nation will need a strong leader with a proven record of accomplishment to work out of the mess that Bill and Hillary are creating. At that time, the GOP could not do much better than selecting Engler as their nominee.
