State proposal could dispose of scholarship

The ballot would redirect the annual $300 million payments to the state from tobacco companies to health care and smoking prevention efforts. The money is now disbursed among numerous state spending programs, including payments for the $2,500 MEAP Merit Award scholarships, which are given to graduating Michigan high school students who pass a series of assessment tests.

The Board of State Canvassers initially denied a spot on the ballot for the proposal, but the Michigan Court of Appeals overruled the board Friday, prompting the opposing group to appeal to the state Supreme Court.

Funding for the scholarships currently comes from the tobacco settlement and redirecting the settlement dollars to health care and smoking prevention would thus remove the current funding source for the scholarships. The pro-proposal group argues that the state has not adequately funded health care and smoking cessation programs – the original intent of the settlement reached with tobacco companies. The opposing group, People Protecting Kids and the Constitution, says the state has adequately funded those programs and the lawsuit was intended to recoup state health care costs in those areas, not fund new programs.

“The minority opinion was right on line as to how we see this,” said David Waymire, a spokesperson for the group seeking to keep the proposal on the ballot, in reference to the dissenting ruling from the Court of Appeals.

But Roger Martin, a spokesman for the pro-proposal group, took a differing view.

“We certainly believe the Court of Appeals was right,” Martin said, saying he expects the Michigan Supreme Court to uphold that decision.

The canvassers – in a 2-2 decision – denied ballot status for the proposal because they said the proposal’s language failed to mention that it would remove the governor’s ability to veto spending resulting from a successful proposal. In overturning that decision, the court said outlining every possible constitutional change is unnecessary.

The Michigan Student Assembly will likely begin the process of approving a resolution to oppose the proposal tonight at its weekly meeting, MSA President Sarah Boot said.

In a creative effort to criticize the proposal, attorney Peter Ellsworth, along with Waymire and David Doyle, both of the Lansing-based Marketing Resource Group, Inc., have registered with the state the “Healthy Michigan Foundation,” naming themselves as directors.

That foundation is now co-existing with another “Healthy Michigan Foundation” not yet registered with the state but founded by groups supporting the ballot proposal. A “Healthy Michigan Foundation” is slated to receive $3 million from the state every year if the ballot proposal is successful.

But a spokeswoman for the Michigan Health and Hospital Association, the primary backer of the proposal, said regardless, their own Healthy Michigan Foundation would be the recipient.

“We were the intended recipients of the funds,” said Sherry Mirasola, spokeswoman for the hospital association. “Any sort of ‘tada!’ is legally much ado about nothing.”

But MRG’s Waymire said the ease with which the stunt was pulled shows how poorly-planned is the proposal.

“This shows there’s a total lack of accountability as to how this money is funded,” he said. “It’s not subject to the Freedom of Information Act or the Open Meetings Act … and not subject to review by the (state) auditor general’s office.”