David Jesse

DetroitFreePress

Top donors to the Great Lakes Education Project Dick DeVos, businessman and former Republican gubernatorial candidate, $330,000 Betsy DeVos, businesswoman and former Michigan Republican Party chairwoman, $280,000 Richard DeVos, founder of Amway, $260,000 Helen DeVos, homemaker and wife of Richard DeVos, $230,000 J.C. Huizenga, businessman and founder of charter management company National Heritage Academies, $155,000 Jim Walton, businessman and son of Walmart founder, $100,000 John Walton, businessman and son of Walmart founder, $100,000 Michael Kojaian, Bloomfield Hills real estate investor, $60,000 Ron Weiser, businessman, former Michigan Republican Party chairman and former U.S. ambassador to Slovakia, $50,000 Sidney Jansma, president of Grand Rapids-based Wolverine Oil and Gas Co., $50,000 Top recipients of direct and indirect campaign contributions from GLEP Mike Cox, former Republican state attorney general and Republican gubernatorial candidate, $75,000 Jase Bolger, Republican state representative and current House speaker, $59,035 Jim Stamas, Republican state representative, current majority floor leader, $40,252.60 Bill Schuette, state attorney general, $34,000 Rick Baxter, former Republican state representative, $29,971.40 Paul Scott, former Republican state representative, $29,441.35 Dave Hildenbrand, Republican state senator, $27,721.82 George Cushingberry, current Detroit City Council president pro tem and former Democratic state representative, $22,725.16 Cliff Taylor, former chief justice of the Michigan Supreme Court, $22,500.20 Alicia Ping, former Republican candidate for state representative, $22,347.81 *Note: Indirect contributions include advertising purchases on behalf of a candidate.

After voting with pro-charter Republicans against a variety of proposals that would have tightened Michigan’s oversight of charter schools, state Rep. Paul Muxlow did an about-face that almost ended his political career in December 2011.

He voted against lifting the limits on the number of charter schools in the state.

The blowback was swift. Within months, Muxlow — a mostly party-line GOP lawmaker from Brown City — found himself struggling to survive a primary election against a challenger well-funded by the Great Lakes Education Project (GLEP), a powerhouse pro-charter lobby that also supports school choice and other education initiatives.

One of GLEP’s major contributors, then and now, is J.C. Huizenga, who founded National Heritage Academies, Michigan’s largest charter school operator. Huizenga has given GLEP $155,000 over the years, including $15,000 in January. Huizenga, through his representatives, declined to speak with the Detroit Free Press.

■ Full coverage:Free Press special report: State of charter schools

Muxlow’s punishment showcases the power charter lobbyists increasingly wield in Republican-dominated Lansing. GLEP has spent more than $1.3 million since 2003 in direct and indirect contributions to candidates, state records show.

Such muscle-flexing by lobbyists isn’t uncommon. GLEP has announced it intends to spend up to $1 million in this fall’s election, on candidates deemed friendly to its causes.

GLEP spent the most it has ever spent on any one state House race in trying to defeat Muxlow, one of five Republicans to break party ranks in voting against lifting the cap — which did pass. It didn’t matter that Muxlow had voted against other proposals to increase charter schools’ transparency and put limits on which for-profit companies could operate them. Of GLEP’s top 10 expenditures since the group was founded in 2003, four were tied to the campaign to unseat Muxlow.

Despite that, Muxlow retained his seat — barely — and is still in the Legislature.

Charter school supporters say getting the cap lifted involved more than just GLEP.

“Parents across Michigan got the bill passed,” said Dan Quisenberry, president of the Michigan Association of Public School Academies, dismissing the idea that pro-charter money was the key. His group advocates for charter schools.

“Demand (for more charters) was strong historically, but by 2011, the limits on growth created new political pressure,” he said.

GLEP increased its full-time employees from one to four in 2014 and is expanding its involvement in education issues, including supporting the Common Core, a set of standards adopted by Michigan and 44 other states that outline expectations for students to be college-ready.

“We want to promote quality options (for students),” GLEP Executive Director Gary Naeyaert said. “We think quality is to be praised regardless of the governance model. More choices are good.”

Plenty of money to influence legislators’ votes

Rich Robinson, executive director of the nonprofit Michigan Campaign Finance Network, which monitors campaign spending, said GLEP’s influence and the influence of other lobbying groups on various issues “is just the way the legislative process works.”

Nowhere was that felt more than in the debate over Senate Bill 618, the proposal to lift the charter school cap in late 2011. The bill passed by nine votes in the state House and two in the Senate.

A Free Press review of campaign finance records shows 66 of the 78 legislators who cast yes votes for the bill received campaign finance donations from either GLEP or Huizenga at some point, most in the 2010 election.

GLEP spent about $30,000 in donations to state senators. Huizenga, an influential Republican, pitched in nearly $40,000 more.

Another $115,000 went to state House members in direct donations and advertising. That included nearly $60,000 on media buys for House Speaker Jase Bolger, who voted for the bill. Huizenga gave more than $50,000 to state House members — including more than $40,000 to a political action committee controlled by Bolger — who voted to lift the cap.

Charter supporters say the money is needed to battle traditional school lobbyists and the deep-pocketed Michigan Education Association, the teachers union. It has long opposed charter schools and in 2010 gave $1.15 million to candidates, according to campaign finance filings. The MEA lobbies on a variety of education issues, not just charter schools.

“School lobbyists are very powerful,” said state Sen. Phil Pavlov, R-St. Clair Township, who has been a big supporter of charter schools and is chairman of the Senate Education Committee. “It was still tough sledding (getting the charter cap bill passed). Superintendents are very powerful people in local communities.”

Getting rid of the cap had been the top legislative priority for years, GLEP chairman Jim Barrett said.

“We’re trying to help elect people to public office who support choice,” he said. “I’ve never checked how the votes came out compared to campaign donations. We have tried very hard to support those candidates open to choice.”

GLEP was founded by Dick and Betsy DeVos, longtime funders of the school choice movement. Dick DeVos recently founded a self-managed charter school, one of the most innovative in the state.

GLEP’s board is made up of Betsy DeVos, Barrett and Greg McNeilly — each involved in Republican politics in Michigan and across the nation. Barrett and McNeilly do not have a charter school of their own. Barrett is former president of the Michigan Chamber of Commerce, and McNeilly is chief operating officer at the Windquest Group. McNeilly ran Dick DeVos’ campaign for governor in 2006.

Various members of the DeVos family have contributed $1.1 million since 2004 to GLEP. In total, the group has raised more than $1.9 million in that time. Contributors are a who’s who of Republican politics, including Gov. Rick Snyder, who gave $4,000 in 2005, and University of Michigan Athletic Director Dave Brandon, who gave $10,000 in 2004 before he was at U-M.

‘The dirtiest campaign I’ve ever been involved in’

GLEP members thought Muxlow would support them and felt betrayed by his vote.

Muxlow, a former school board president, said he voted “no” because he didn’t support unlimited expansion of charter schools — though he said he would have supported a limited expansion. He said he was worried about the effect charter schools might have if they came into small rural school districts such as his and siphon off students, potentially devastating traditional schools.

“There are small school districts in Sanilac County, they have good teachers, good test scores,” Muxlow said. “They (for-profit companies) would rather charter up there than in Detroit. They could make their money and have good results. But it would kill those districts.”

At the time, Muxlow didn’t think much about his vote. But less than six months later, a political consultant dropped by Muxlow’s office to give him a heads-up — he was about to be punished. The consultant, who wasn’t working for Muxlow, told him he had been approached by GLEP to run an opposing primary campaign.

In July and August 2012, the organization pumped out $184,718.40 to try to defeat Muxlow. His opponent, Bob Eick, spent only $33,847 himself.

GLEP papered Muxlow’s Sanilac County and St. Clair County district with 18 postcard ads featuring photos of Muxlow, Barack Obama and Nancy Pelosi in hopes of tying him to the Democrats. And there were 23 radio ads, robocalls and cable television ads.

“It was all because of the charter vote,” Muxlow said. “This was the dirtiest campaign I’ve ever been involved in.”

Muxlow won re-election by 132 votes.

“Paul Muxlow was in a key district,” said Barrett. “In our candidate questionnaire, he said he would support charter schools. When it came time to vote, he didn’t. We felt it was important to support someone who’s heavily supportive (of charter schools).”

A property tax break goes to for-profit charter companies

A seemingly minor provision in the charter cap bill underscores the industry’s influence.

In 2011, the state tax tribunal turned down NHA’s request for a property tax exemption on property owned in Washtenaw County’s York Township and ordered it to pay taxes for 2001 to 2005. NHA had argued that although the land was owned by a for-profit company, it should be exempt from property taxes because it houses a school.

Five months after the tax tribunal decision, Pavlov introduced the charter cap bill, which contained a provision exempting charter schools from paying school property taxes, even if the land is owned by a for-profit company. The exemption survived the legislative process and was included in the final bill, which was passed and signed into law by Gov. Snyder.

In explanation, Pavlov said that charter schools are unable to rely on millages to pay for buildings, and companies end up fronting a considerable amount of money

The nonpartisan Senate Fiscal Agency said the financial impact from the tax break on the state is unknown, but any money lost from the exemption would have to be made up from other sources to keep the state paying the promised funding levels to all schools.

Pavlov said charter schools and for-profit management companies — he declined to name specific companies — had raised the property tax concern.

“We wanted to give them a break,” he said.