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Michigan Education Association v. Secretary of State
488 Mich. 18
Mich.
2010
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Background

  • MEA represents public school employees; MEA-PAC is a separate segregated fund under MCFA.
  • Gull Lake Schools’ CBAs require the district to administer payroll deductions to MEA-PAC, with MEA prepaid for administration costs.
  • Secretary of State ruled payroll deductions to MEA-PAC violated §57 (169.257) of MCFA, prohibiting public resources for political contributions/expenditures.
  • Trial court voided the ruling; Court of Appeals reversed, holding administration was an expenditure prohibited by §57.
  • Michigan Supreme Court granted review to decide if public-body payroll deductions to MEA-PAC are allowed under MCFA.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Does § 57 prohibit a public body from administering payroll deductions to MEA-PAC? MEA argues no prohibition because administration falls outside expenditure/contribution. Secretary of State and Respondent contend administration uses public resources for political purposes in violation of § 57. Yes; the court held administration is permissible (reversed Court of Appeals).
Is the payroll-deduction administration an ‘expenditure’ under MCFA? Administration falls within general expenditure, applied to benefit MEA-PAC. Administration is excluded as an expenditure because it is for establishment/administration of contributions to a segregated fund. Not an expenditure due to statutory exclusion.
Is the payroll-deduction administration a ‘contribution’ under MCFA? Costs transfer to MEA-PAC could be a contribution. Prepaid/advance costs negate net transfer of value, so no contribution. Not a contribution where costs are prepaid; no net transfer of value.
Does the plan constitute ‘volunteer personal services’ prohibited by § 57? Administration could be volunteer services by public employees. MEA prepayment means no volunteer services by public employees. Not volunteer services under § 57.

Key Cases Cited

  • Mich Ed Ass’n v Secretary of State, 280 Mich App 477 (2008) ( Court of Appeals decision addressing MCFA §57 and expenditures)
  • Mich Ed Ass’n v Secretary of State, 483 Mich 1001 (2009) (Supreme Court order directing briefing; discusses statutory interpretation)
  • Mich Ed Ass’n v Secretary of State, 486 Mich 952 (2010) (Court decision granting leave; discusses scope of MCFA post-Citizens United)
  • Tryc v Michigan Veterans’ Facility, 451 Mich 129 (1996) (statutory interpretation principles and public funds; ABSENT)
  • Sun Valley Foods Co v Ward, 460 Mich 230 (1999) (absurd results doctrine in statutory interpretation)
Read the full case

Case Details

Case Name: Michigan Education Association v. Secretary of State
Court Name: Michigan Supreme Court
Date Published: Dec 29, 2010
Citation: 488 Mich. 18
Docket Number: Docket 137451
Court Abbreviation: Mich.