Upload
progress-missouri
View
4.426
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Progress Missouri today released a new report exposing direct ties between the Show‐Me Institute (SMI) and the Koch Brothers-funded State Policy Network (SPN), a national network of like‐minded 'think tanks' that promotes disinformation and the American Legislative Exchange Council (ALEC) agendas in state Capitols. The Show‐Me Institute has also received significant funding from the Donors Capital Fund, which is also connected to the notorious Koch Brothers, and other out‐of‐state right‐wing organizations such as the Roe Foundation and the Cato Institute.
Citation preview
While the Show-Me Institute (SMI) is often regarded as a Missouri-focused organization formed and
funded to advance the extreme agenda of right-wing billionaire Rex Sinquefield, Progress Missouri's
research shows that the organization is actually part of a much larger web of 'belief tanks' called the
State Policy Network (SPN). Like other SPN franchises, many of the Show-Me Institute's policy proposals
and programs do not originate from Missouri or Sinquefield, but are borrowed from the American
Legislative Exchange Council (ALEC), would benefit wealthy out-of-state backers, and are carbon copies
of proposals distributed throughout the country as allegedly state-based solutions.
Key findings from our research include:
Sinquefield’s Show-Me Institute serves as the Missouri face of the national, Koch-funded
'State Policy Network' and the disgraced American Legislative Exchange Council, sometimes
taking direction from ALEC on key issues. From its first year of operation, the Show-Me Institute
has been a formal member of the State Policy Network (SPN), a national web of like-minded
'think tanks' that promote disinformation and ALEC agendas in state Capitols. ALEC has
presented policy “solutions” to the Show-Me Institute, which SMI has subsequently promoted
as its own agenda. SMI’s advocacy mirrors that of other groups in the SPN web.
The Show-Me Institute receives significant funding from Koch-connected organizations and
other out-of-state groups. The Koch-funded Donors Capital Fund has provided at least $567,941
to SMI since its founding in 2005. SMI has also received funding from other out-of-state right-
wing organizations such as the Roe Foundation, the State Policy Network, and the Cato Institute.
The Show-Me Institute peddles policy changes that would benefit its wealthy backers. SMI has
pushed for ALEC proposals that would benefit Sinquefield and wealthy out-of-state backers like
the Kochs, including opposing minimum wage increases and backing ‘fair tax’ measures.
The Show-Me Institute's 'Chief Economist' received huge salaries from the organization on top
of his 'Ken Lay Chair' salary at the University of Missouri. Campaign finance records show he is
also paid regularly to generate industry-friendly studies.
This report is broken down as follows:
The Show-Me Institute and ALEC: Joined at the Hip ....................................................................... 7
An Integrated Agenda: The Show-Me Institute, ALEC, SPN and Americans for Prosperity ........... 13
Funding from Koch-Backed Groups ............................................................................................... 17
Other National Funders ................................................................................................................ 18
Show-Me Institute Leaders & Staff ................................................................................................ 20
BACKGROUND
The Show-Me Institute was co-founded in 2005 by Rex Sinquefield, a billionaire GOP donor who has
bankrolled numerous campaigns and ballot initiatives to advance his extreme political agenda, and
wealthy conservative Crosby Kemper III. SMI was immediately praised by like-minded ideologues, such
as Ethelmae Humphreys, Dick Armey of FreedomWorks, disgraced former Speaker Rod Jetton and
Tracie Sharp of the State Policy Network for providing an air of unbiased research to advance their right
wing agenda.
The Show-Me Institute is organized as a 501(c)(3) nonprofit corporation headquartered in St. Louis,
Missouri. Annual receipts for the organization exceeded $1.4M in 2010 and 2011, the most recent years
for which 990 tax forms are available.
THE SHOW-ME INSTITUTE IS A FRANCHISE OF THE RIGHT-WING, KOCH-FUNDED 'STATE
POLICY NETWORK'
From its first year of operation, the Show-Me Institute has been a formal member of the State Policy
Network (SPN), a national network of like-minded 'think tanks' that promote disinformation and
American Legislative Exchange Council (ALEC) agendas in state capitols.
SPN is a web of conservative think tanks across the United States, founded in 1992 by Thomas Roe (of
the Roe Foundation and South Carolina Policy Council). In addition to its state think tank affiliates, many
other national right-wing organizations are associate members of SPN, including the American
Legislative Exchange Council (ALEC), Americans for Prosperity, the Cato Institute, the Franklin Center,
the Heritage Foundation, the Heartland Institute, and the National Right to Work Legal Defense
Foundation. SPN has played a major role in supporting ALEC, serving as a sponsor of the 2013 and 2011
ALEC Annual Conferences and acting as a voting member of several task forces. Since its founding, SPN
has been funded by conservative organizations including the Koch-funded Donors Trust/Donors Capital
Fund, the Bradley Foundation, the Roe Foundation, and the Kochs' Claude R. Lambe Charitable
Foundation; and the Center for Media and Democracy (CMD) recently revealed that SPN has been
funded by such corporations as Reynolds American, Altria (formerly Philip Morris), Microsoft, AT&T,
Verizon, GlaxoSmithKline, Kraft Foods, Comcast, Time Warner, Facebook, the for-profit online education
company K12 Inc., and the e-cigarette company NJOY (Center for Media and Democracy: EXPOSED: The
State Policy Network: The Powerful Right-Wing Network That Is Trying to Hijack Our State Politics and
Government, October 2013).
SPN gave $87,951.49 to the Show Me Institute in 2007, according to its 2007 990 tax form.
Show-Me's advocacy on issues ranging from education privatization to attacks on benefits given to
public workers is similar to the advocacy of think tanks in other states that are also part of the
conservative State Policy Network. For instance, in 2009, SPN 'think tanks' in Florida, Texas, Virginia,
Pennsylvania, Minnesota, Louisiana, Nebraska, and Colorado released nearly the same, word-for-word,
report against the Affordable Care Act. In Missouri, Show-Me titled the report “The Prognosis for
National Health Insurance: A Missouri Perspective.”
THE SHOW-ME INSITTUTE IS A KEY COG IN THE SINQUEFIELD MACHINE
Rex Sinquefield is the President of the Show-Me Institute. The "belief tank" complements his issue
campaigns, his affiliated public affairs firm, Pelopidas, and affiliated advocacy organization, United for
Missouri. The output of the "belief tank" supports Sinquefield's goals of enacting radical, regressive tax
policy in Missouri and other states, privatizing public education and removing local control of local
schools as well as statewide evaluation and hiring practices. Sinquefield's agenda is extreme and
unpopular. Despite spending hundreds of thousands on political candidates, he has been mostly
unsuccessful in persuading legislators to make his radical tax and education ideas law. In 2012,
Sinquefield faced widespread criticism after he expressed a belief that the public school system was
intentionally designed by Ku Klux Klan members to hurt black children.
The Sinquefield Charitable Foundation has given $4,300,000 to SMI from its founding in 2005 through
2011, according to the foundation's public tax filings: $900,000 in 2011, $950,000 in 2010, $1,200,000 in
2009, $700,000 in 2007, and $550,000 in 2006.
THE SHOW-ME INSTITUTE IS ALSO FUNDED BY SEVERAL KOCH-CONNECTED ORGANIZATIONS
Charles and David Koch, each worth about $36 billion, could be the most influential pair of private
citizens in the United States. These brothers have accumulated their fortune through Koch Industries, an
oil refining, chemical, paper products and financial services company with revenues of some $100 billion
per year. Together and with like-minded allies, the Koch Brothers use their billions to manipulate some
in the public into voting for their right-wing agenda and to push policies that strip protections for
workers and human and environmental health.
While its support from Sinquefield is well known, the Show-Me Institute has also received significant
funding from entities associated with the Kochs. The Koch-funded Donors Capital Fund has provided at
least $567,941 to SMI since 2005. Donors Capital Fund is a “donor-advised fund,” which means the
millionaires and billionaires who send money to Donors control where their money is spent, but DCF
keeps their identities hidden, and therefore adds another layer of secrecy behind SMI’s funding.
SMI has also received funding from other out-of-state right-wing organizations such as the Roe
Foundation (of SPN founder Thomas Roe), the State Policy Network, the Coors’ Castle Rock Foundation,
and the Cato Institute. Documented support from national right-wing organizations includes:
Donors Funding Years
Donors Capital Fund $567,941 2005-2010
JM Foundation $20,000 2006
Jaquelin Hume Foundation $125,000 2007-2010
Roe Foundation $60,000 2007-2011
State Policy Network $87, 951 2007
Castle Rock Foundation $20,000 2008-2011
Cato Institute $50,000 2006
Source: American Bridge Conservative Transparency Project; SourceWatch
SMI also participates in the Charles G. Koch Summer Fellowship Program, through which it can receive
funding for summer interns. In addition, SMI research fellow and Southern Illinois University at
Edwardsville Professor Rik Hafer received an $8,000 grant from the Charles Koch Foundation in October
2012 to fund curriculum changes in the SIUE School of Business. (Southern Illinois University
Edwardsville press release, October 11, 2012.)
AN INTEGRATED AGENDA: THE SHOW-ME INSTITUTE, ALEC, & AMERICANS FOR PROSPERITY
Though the Show-Me Institute promotes itself as a Missouri-focused think tank, it advocates for many of
the same controversial policies as national right-wing organizations like the American Legislative
Exchange Council (ALEC) and Americans for Prosperity (AFP), with which it shares common funders.
Show-Me has repeatedly hosted ALEC events, collaborated with ALEC on at least two reports, and cited
ALEC research in is materials. For example, in February 2012, ALEC's Jonathan Williams gave a
presentation at the Show-Me Institute on pensions, taxes, and economic policy. Since then, Show-Me
has pushed for the suggestions ALEC made in the presentation. The policy "solutions" include replacing
pensions with defined-contribution plans and lowering corporate taxes. (Source: Show Me Institute: The
Facebook page for the event can be seen here and PowerPoint presentations can be found here.
Show-Me pushes for ALEC proposals that also benefit Sinquefield and other wealthy backers, including
opposing minimum wage increases and backing consumption taxes or the so-called “fair tax.”
It is also worth noting that Pelopidas, the Sinquefield-backed for-profit lobbying and advocacy firm, was
a major sponsor of a 2013 ALEC conference. (Associated Press, 8/8/13)
THE SHOW-ME INSTITUTE'S 'CHIEF ECONOMIST' RECEIVED HUGE SALARIES FROM THE
ORGANIZATION ON TOP OF HIS 'KEN LAY CHAIR' SALARY AT THE UNIVERSITY OF MISSOURI.
CAMPAIGN FINANCE RECORDS SHOW HE IS ALSO PAID REGULARLY TO GENERATE INDUSTRY-
FRIENDLY STUDIES.
Joseph Haslag is the Show-Me Institute's "Chief Economist," and is also the Kenneth Lay Chair in
Economics at the University of Missouri-Columbia. Haslag's position at the University of Missouri was
made possible by the University's most notorious alumnus, Ken Lay, and was vacant for four years
before Haslag took the position. In addition to his $160,000 annual University salary, Haslag has also
received significant funds from the Show-Me Institute. Haslag was paid annual salaries of $120,000,
$119,500 and $90,000 by SMI from 2008-2010. Public records show these Show-Me Institute salaries
were paid on top of his annual University salaries of $135,000-$160,000.
Beyond his SMI and University income, Haslag has also been paid by numerous ballot committees to
provide research that advances their issue campaigns. Campaign clients include the MO Petroleum
Marketers + Convenience Store Association PAC and Missourians for Equal Credit Opportunity (Payday
Lenders') PAC.
It is noteworthy that despite his considerable income and public benefits, Haslag has advocated against
defined benefit retirement plans and against minimum wage increases.
CAMPAIGN FINANCE RECORDS SHOW SMI STAFFERS WORK DIRECTLY FOR REPUBLICAN AND
IDEOLOGICAL CAMPAIGN EFFORTS.
The Show-Me Institute's Communications Director, Rick Edlund, was a paid consultant for Cole
McNary's unsuccessful campaign for Treasurer in 2012 and Sarah Steelman's failed US Senate bid. He
was also paid to consult for the House Republican Campaign Committee in 2010, and worked for
former Senator Jim Talent's 2000 campaign.
Patrick Tuohey, SMI's "Western Missouri Field Manager," was press secretary for Steelman's US Senate
bid, previously served as Director of Communications for Frank Luntz's polling firm, and manages (or
managed) the Missourians for Responsible Government 501(c)(4) organization that has moved millions
of dollars on behalf of the payday lending industry to protect the lenders' triple digit interest rates.
Brenda Talent, SMI's Executive Director, is the spouse of Jim Talent, the former Republican Senator and
Congressman. Former Show-Me Institute policy analyst Christine Harbin went on to become a research
manager at ALEC and a federal policy analyst at the Koch-founded and -funded Americans for Prosperity.
7
The Show-Me Institute is an affiliate of the State Policy Network, and has worked with ALEC extensively.
Rex Sinquefield often uses ALEC research in his writings for the Show-Me Institute. Sinquefield has
several other connections with ALEC, largely through the Sinquefield-backed public affairs firm
Pelopidas.
Known ALEC/Show-Me Institute collaborations
2008-2009: Rex Sinquefield used ALEC research at least twice in Show-Me reports and messages
distributed in his name
April 2010: Show-Me Institute hosted an ALEC event during ALEC's Spring Task Force Summit;
Show-Me's Dave Roland led a roundtable discussion of healthcare
August 2011: Show-Me coauthored report with ALEC on Education and Property Taxes
February 2012: Show-Me hosted ALEC's Jonathan Williams for a Policy Breakfast on economic
policy
March 2012: Show-Me coauthored report with ALEC on the Affordable Care Act
Show-Me and Sinquefield use ALEC research on economy and taxes
In a 2013 report on taxes, the Show-Me Institute used a study by ALEC on economic rankings of states,
"Rich States, Poor States."
ALEC research appeared in a similar 2009 report co-authored by Rex Sinquefield
Sinquefield also used ALEC's "Rich States, Poor States" report in his message in the Fall 2008
edition of the Show-Me Quarterly.
Show-Me hosted at least one ALEC 'task force' summit
The Spring 2010 edition of the Show-Me Quarterly shows that the Show-Me Institute hosted ALEC's
Spring Task Force Summit in April 2010 at the Show-Me Institute's new office in St. Louis. From In Show-
Me's 2010 annual report, the think tank states:
When the American Legislative Exchange Council (ALEC) held its Spring Force Task Summit in
Saint Louis, the group came to the Show-Me Institute's newly opened office in the Central West
End to hold the launch party for the 2010 edition of the Laffer Institute's book Rich States, Poor
States. This also made it an ideal opportunity to demonstrate the Show-Me Institute's new
Interactive Database for Economic Analysis by State (IDEAS) tool, which allows users to track
taxes in all 50 states.
Show-Me led an ALEC roundtable discussion against health care reform in 2010
The Show-Me Institute's Dave Roland was as a guest attendee at ALEC's Health and Human Services Task
Force meeting in April 2010, where he led a roundtable discussion on "ALEC's Freedom of Choice in
Heath Care Act."
8
Show-Me coauthored a report with ALEC on education and property taxes
In August 2011, the Show-Me Institute released the report, Home, Taxes, and Schools, which was co-
authored by Christine Harbin, the research manager of ALEC's Tax and Fiscal Policy Task Force.
ALEC formally co-presented research with the Show-Me Institute's 'Chief Economist' in 2012
A February 2012 report (with a video) on Show-Me's website states:
Early in the morning of February 8, 2012, Jonathan Williams of the American Legislative and
Exchange Council (ALEC) and Joseph Haslag, University of Missouri Professor of Economics,
presented their thoughts and findings relating to the current and potential future of Missouri's
economy to an enthusiastic audience in the Show-Me Institute's office in the Central West End of
Saint Louis. Among the topics discussed were the impact of tax rates and regulation on economic
growth and investor uncertainty. An in-depth audience Q&A followed the presentations.
This event was marketed as a "Policy Breakfast with ALEC." The Facebook page for the event can be
seen here. Williams' and Haslag's PowerPoint presentations can be found here.
Show-Me coauthored a report with ALEC condemning health insurance marketplaces
In March 2012, Show-Me's Patrick Ishmael and ALEC's Christie Herrera authored a report for Show-Me
against the creation of a healthcare exchange under the Affordable Care Act.
During a 'Policy Breakfast with ALEC' at the Show-Me Institute in February 2012, ALEC's Jonathan
Williams gave a presentation on pensions, taxes, and economic policy. In the presentation, Williams'
identified several policy "solutions" or "pro-growth" policies to the Show-Me Institute. Since then,
Show-Me has pushed for ALEC's suggestions.
The Show-Me Institute vocally supports ALEC-inspired 'paycheck protection’ legislation in the
Missouri legislature – deceptive anti-worker legislation that does nothing to advance SMI's
stated economic policy agenda.
In April 2013, Show-Me's Patrick Ishmael presented to the Missouri House Workforce Development and
Workplace Safety Committee in favor of paycheck deception legislation. ALEC has pushed its “Paycheck
Protection Act” around the country to make it difficult for public employee unions to raise funds for
political activities.
Show-Me's push for paycheck deception is not unique to Missouri. SPN has made the anti-worker
proposal a priority, dating back to the SPN 2000 Conference where SPN think tanks worked with
Americans for Tax Reform on a potential collaboration to push paycheck deception. Since then, many
SPN think tanks have pushed the proposal, including in Michigan, Florida, Kansas, Washington, and
Pennsylvania.
The Show-Me Institute and ALEC fight against a higher minimum wage for Missouri workers.
The Show-Me Institute has been a long time opponent of raising the minimum wage for Missouri
workers. In at least three policy studies in 2006, 2011, 2012, the Show-Me Institute argues against any
increase in the minimum wage. In May 2013, Show-Me's Patrick Ishmael was a featured guest on a St.
Louis Public Radio program. On the radio program, Ishmael argued against raising the state's minimum
wage, calling President Obama's proposal for a $9 minimum wage "problematic" and reiterating Show-
Me's pro-corporate philosophy to "let the market dictate" wage rates, which could mean Ishmael was
against any minimum wage. When one caller asked about the Show-Me Institute's connections to Rex
Sinquefield and why actions are taken in Missouri that "go after workers instead of helping them,"
Ishmael defended Sinquefield.
Show-Me's advocacy against the minimum wage could help lead to higher profits for many of its
corporate backers and their allies, be it founder and investment banker Rex Sinquefield, the Coors family
through its Castle Rock Foundation, the Koch brothers, or corporate executives that sit on Show-Me's
board of directors.
ALEC has approved several "model" bills to oppose minimum wage laws, including the "Resolution in
Opposition to any Increase in the Starting (Minimum) Wage" and the "Living Wage Mandate Preemption
Act."
The Show-Me Institute defends a tax system that would disproportionately raise taxes on the
working and middle class, while lowering taxes on the very wealthy.
In 2009, the Show-Me Institute released a study defending a “fair tax” (consumption tax) proposal in
Missouri. Unfortunately, the "scholarly" report, written by Show-Me's Abhi Sivasailam and Joe Haslag,
ignored facts behind "fair tax" measures (similar to ALEC's flat tax).
Studies conducted by The New York Times and the Economic Policy Institute have found that a flat tax
proposal would disproportionately raise taxes on middle and working class families, while lowering the
tax burden on wealthy, like the Show-Me Institute's billionaire co-founder Rex Sinquefield. The same
results have been found for a "fair tax" (consumption tax) by the Center on Budget and Policy Priorities,
CNN, and Tax Analysis. The Missouri fair tax plan was criticized for the same reason by The Riverfront
Times and in a joint study by the Institute on Taxation and Economic Policy and the Missouri Budget
Project. Other related works by the Show-Me Institute on the "fair tax" or replacing the income tax with
a higher sales tax include a 2012 essay by David Stokes, Attacks on Fair Tax Are Propaganda, Not
Economic Analysis, and a 2009 essay coauthored by Rex Sinquefield, Why a Sales Tax Is Better for
Missouri than an Income Tax.
ALEC's "Flat Tax Option Act" would create a "flat tax" system, ensuring lower taxes for those at the very
top and often higher taxes on middle and working class families. ALEC's "Principles of Taxation" is also
similar to Show-Me's "Fair Tax" idea. Other related ALEC models include the "The Use Tax Elimination
Act" and the "Personal and Business Flat Tax Act."
ALEC wants to attack workers’ pensions.
ALEC's Williams called a "defined-contribution plan" the solution for problems with Missouri pensions.
ALEC pushes for pension “reform” by replacing defined-benefit pension plans that protect retirees with
risky defined-contribution plans in at least two model bills: the "Public Employees' Portable Retirement
Option (PRO) Act" and the "Defined Contribution Pension Reform Act"
What has the Show-Me Institute done on pensions since ALEC came to town?
While Show-Me started attacking pensions long before ALEC's February 2012 policy breakfast, its
support for defined-contribution plans continued in the following reports after ALEC suggested it as a
"solution":
A Comparison of Missouri Pension Plans, December 2012
Missouri's Public Pensions: Worse Than They Appear, March 2013
Public Employee Pensions In Missouri: A Looming Crisis, March 2013
The Cost of Teacher Pensions, August 2013
ALEC wants lower corporate taxes for its funders.
ALEC's Jonathan Williams' suggested "pro-growth" tax policies such as a corporate income tax reduction,
eliminating the capital gains tax, and eliminating the business tax at a 2012 'Policy Breakfast with ALEC.'
What has the Show-Me Institute done on corporate taxes since ALEC came to town?
Despite the fact that the Show-Me Institute had previously pointed out that the state of Missouri was
continuing to see large revenue shortfalls, the institute called for lower, or in some cases, the
elimination of corporate taxes, much like ALEC's suggestion, in the following reports since the February
2012 policy breakfast:
Cutting The Ties That Bind: End Missouri's Corporate Income Tax, November 2012
Corporate and Pass-Through Income Taxation: Time for Reform, March 2013
The Show-Me Institute and ALEC fight to protect corporate polluters like Koch Industries.
The Show-Me Institute has opposed several clean energy reforms in Missouri and nationally. In a 2011
report, the Show-Me Institute opposed President Obama's efforts to create and invest in more forms of
clean energy, including through subsidies to wind, solar, and other alternative energy companies. In a
2008 report, the Show-Me Institute was critical of renewable energy standards, a clean energy initiative
that would require energy utilities to get a portion of electricity from renewable energy sources. Oil-
tycoons and right-wing billionaire brothers David and Charles Koch have also opposed these types of
measures, which could ultimately lower their corporate profits. Not surprisingly, the Show-Me Institute
has received significant funding from Koch-funded organizations like Donors Capital Fund and the State
Policy Network.
ALEC's anti-clean energy agenda includes the "Electricity Freedom Act," which repeals renewable energy
mandates, and the "Resolution in Opposition of Carbon Dioxide Emission Standards," which opposes
environmental protections on carbon dioxide emissions.
The Show-Me Institute's agenda consistently overlaps with ALEC, the Koch-backed State
Policy Network, and the Koch-backed Americans for Prosperity organization.
Though the organization promotes itself as Missouri-focused, the Show-Me Institute advocates for many
of the same controversial policies as national right-wing organizations like the American Legislative
Exchange Council (ALEC) and Americans for Prosperity (AFP), with which it shares common funders. As
Missourians can see in the chart below, there is regular overlap in ideological advocacy between SMI,
ALEC and AFP.
Issue Show-Me Institute American Legislative
Exchange Council (ALEC) Other SPN Member Think Tanks Americans For Prosperity (AFP)
“Paycheck
Protection”
In April 2013, Show-Me's
Patrick Ishmael presented to
the Missouri House
Workforce Development and
Workplace Safety Committee
in favor of deceptive
“paycheck protection”
legislation.
ALEC's “Paycheck Protection
Act” is an attempt at union-
busting by making it difficult for
public employee unions to raise
funds for political activities.
Show-Me's push for “paycheck
protection” is not unique to
Missouri. SPN has made the anti-
worker proposal a priority, dating
back to the SPN 2000 Conference
where SPN think tanks worked with
Americans for Tax Reform on a
potential collaboration to push
“paycheck protection.” Since then,
many SPN think tanks have pushed
the proposal, including those in
Michigan, Florida, Kansas,
Washington, and Pennsylvania.
Missouri's Americans for Prosperity
chapter lists "paycheck protection"
on its 2013 Legislative Agenda.
AFP-MO also issued a press release
in March 2013 "applauding" Sen.
Dan Brown's "leadership" on
passing a “paycheck protection”
bill.
Privatizing Public
Education
Over the years, the Show-Me
Institute has produced
numerous reports and
"studies" supporting
privatizing public education
through school vouchers and
charter schools. The Show-
Me Institute also published a
report in 2012 calling for a
“Parent Trigger” bill, a well-
known ALEC bill.
Education privatization is a key
component in ALEC's extreme
agenda. ALEC's school voucher
"models" include the
“Education Enterprise Zone
Act” and “The Parent Choice
Scholarship Program Act.”
ALEC's charter school models
include the “Charter Schools
Act” and the “Next Generation
Charter Schools Act.” Finally, a
“Parent Trigger” bill introduced
in Missouri in 2012 (HB 393) is
nearly identical to the ALEC
model.
Most SPN think tanks support
privatizing public education through
vouchers and charter schools. SPN
has made education privatization a
priority at past conferences, and
even hosted an "Education Reform
Summit" in 2006, with featured
speakers from other SPN think tanks
in Michigan, Washington, Arizona,
and Pennsylvania. Not surprisingly,
ALEC also partook in this summit for
a discussion on "effective
collaborations with state
legislators."
AFP-MO lists expanding charter
schools and school vouchers on its
2013 Legislative Agenda. AFP is
also connected to many of the
national and state-based groups
that push “Parent Trigger”
legislation.
Issue Show-Me Institute American Legislative
Exchange Council (ALEC) Other SPN Member Think Tanks Americans For Prosperity (AFP)
Attacks on
Teacher Tenure
The Show-Me Institute has
supported various changes
to teacher tenure that attack
the rights of teachers
through its reports and
publications. In addition,
Show-Me co-founder and
President Rex Sinquefield is
well-known for funding anti-
tenure campaigns and
organizations in Missouri,
specifically through
TeachGreat.org, an
organization entirely funded
by Sinquefield whose sole
purpose is to repeal all
teacher tenure laws.
ALEC has produced numerous
"model" bills that attacks
teacher tenure, including the
cleverly-named "Great
Teachers and Leaders Act" and
the "Teacher Quality and
Recognition Demonstration
Act."
Repealing teachers' rights and
tenure has been pushed by many
SPN think tanks, including in Illinois,
Michigan, Pennsylvania, Minnesota,
Texas, Wisconsin, and North
Carolina.
AFP-MO says Missouri needs to
"examine tenure reform" in the
education section of its 2013
Legislative Agenda.
Issue Show-Me Institute American Legislative
Exchange Council (ALEC) Other SPN Member Think Tanks Americans For Prosperity (AFP)
Healthcare
Reform &
Medicaid
Expansion
The Show-Me Institute has
been consistently opposed
to the 2010 Affordable Care
Act in its publications and
reports. Show-Me's Dave
Roland led a roundtable
discussion on "ALEC's
Freedom of Choice in Heath
Care Act" at an ALEC
conference in April 2010.
The Show-Me Institute is
also strongly opposed to
Gov. Nixon's plan to expand
Medicaid under the
Affordable Care Act, which
would provide healthcare to
260,000 Missourians. The
institute has released several
reports against Medicaid
expansion and also testified
to the state legislature
against Medicaid expansion.
ALEC has issued several
"model" bills against the 2010
Affordable Care Act, including
the Freedom of Choice in
Health Care Act and the
Resolution Opposing Employer-
Paid Health Care Mandates.
ALEC's Guide to Repealing
Obamacare is a guide for state
legislators to repeal the
Affordable Care Act, and urges
them to reject Medicaid
expansion and federal grants
for Medicaid.
Between August and September
2009, SPN think tanks in Florida,
Texas, Virginia, Pennsylvania,
Minnesota, Louisiana, Nebraska,
and Colorado released nearly the
same word-for-word report against
the Affordable Care Act as Show-
Me's The Prognosis for National
Health Insurance: A Missouri
Perspective (August 2009).
AFP-MO lists its opposition to Gov.
Nixon's plan to expand Medicaid
under the Affordable Care Act in its
2013 Legislative Agenda.
Minimum Wage Over the years, the Show-Me
Institute has published
several reports against
raising the minimum wage in
Missouri.
ALEC has produced several
"models" to oppose minimum
wage laws, including the
“Resolution in Opposition to
any Increase in the Starting
(Minimum) Wage” and the
“Living Wage Mandate
Preemption Act.”
Many SPN think tanks have released
reports or produced commentary
against raising the minimum wage,
or repealing the minimum wage all
together, including in Illinois,
California, Washington, Wisconsin,
Pennsylvania, North Carolina,
Montana, Massachusetts, and
Kentucky.
Americans for Prosperity has been
opposed to increasing -- or called
for an all-out repeal of -- the
minimum wage. In a 2012 report,
AFP said minimum wage laws were
simply "labor market barriers" and
lawmakers should let "businesses
freely decide" what to pay their
employees.
Issue Show-Me Institute American Legislative
Exchange Council (ALEC) Other SPN Member Think Tanks Americans For Prosperity (AFP)
Pensions The Show-Me Institute has
released several reports
calling for the state to shift
away from defined-benefit
public pension plans to risky
defined-contribution plans
to solve the "unfunded
liabilities" problem, including
during legislative testimony
in March 2013.
ALEC pushes for pension
“reform” and defined-
contribution pension plans in at
least two “model” bills: the
"Public Employees' Portable
Retirement Option (PRO) Act"
and the "Defined Contribution
Pension Reform Act.”
SPN has been a longtime advocate
of pension “reform” through
defined contribution plans, and
many of its member think tanks
have followed suit, including in
Ohio, Michigan, Arizona,
Pennsylvania, Maine, Florida,
Washington, Wisconsin, Oklahoma,
and Nebraska.
AFP-MO list addressing "unfunded
liabilities" in its 2013 Legislative
Agenda. AFP has also supported
defined-contribution plans in other
states, including in Michigan,
Montana, Florida, Illinois,
Pennsylvania, and Nebraska.
Taxes & Spending The Show-Me Institute has
issued several reports calling
for lower taxes and
government spending limits,
including a 2005 report
calling for Missouri to adopt
a so-called Taxpayer Bill of
Rights (TABOR). Show-Me
co-founder and president
Rex Sinquefield is well
known for funding
campaigns and initiatives to
eliminate taxes in Missouri,
likely creating a large deficit
for the state.
ALEC has called for tax cuts
through several “model” bills,
including the “Capital Gains Tax
Elimination Act,” “Flat Tax
Option Act,”and the “Federal
TABOR Resolution,” which
would limit government
spending and require a
"supermajority vote of both
houses of Congress" to override
the spending limit. In addition,
ALEC bills that would restrict
government spending include
the “Tax and Expenditure
Limitation Act” and the “Super-
Majority Act.”
In 2005, SPN held a joint summit
with the right-wing Atlas Economic
Research Foundation to develop a
campaign to push TABOR measures.
The agenda included workshops on
marketing and message
development, working with
lawmakers, and preparing for the
opposition. Many SPN think tanks
have pushed for TABOR measures,
including in Arizona, Maine, Florida,
Michigan, Colorado, North Carolina,
and Connecticut.
AFP-MO has called for several tax
“reforms,” including changes to
property taxes and capping state
spending, in its 2013 Legislative
Agenda. AFP has also been one of
the leading organizations pushing
for TABOR laws across the country,
including in Texas, Florida, Maine,
Colorado, Arizona, Georgia, and
Kansas.
THE SHOW-ME INSTITUTE RECEIVES SIGNIFICANT
FUNDING FROM KOCH-BACKED GROUPS
Between 2008 and 2010, the Show-Me Institute received $467,941 from the Koch-funded Donors
Capital Fund, which has been called the "dark money ATM of the conservative movement" by Mother
Jones. The funding from Donors to Show-Me between 2008 and 2010 made up 7% of the institute's total
revenue over those three years. These contributions included:
$355,000 for a "transparency project." This was likely for Show-Me's ShowMeLiving.org
website.
$10,000 for a 2009 health care project. This was likely for Show-Me's August 2009 report, The
Prognosis for National Health Insurance: A Missouri Perspective. This project appears to be a
coordinated effort by SPN to advocate against federal healthcare reform at the same time that
the Affordable Care Act was being considered by the U.S. Congress. Authored by Arduin, Laffer,
& Moore Econometrics, a conservative economic consulting firm, the same report would be
slightly tailored for various states and released as a state-based report by the SPN think tank in
the state. Most reports share the same title, research data, and share word-for-word exact
language. Along with Show-Me's copy, this "Prognosis" report was released by SPN think tanks
in at least Florida, Texas, Virginia, Pennsylvania, Minnesota, Louisiana, Nebraska, and Colorado
between August and September 2009.
$102,941 for general operations, capacity building, and professional development.
OTHER NATIONAL FUNDERS & BACKERS
A review of national right-wing organizations' tax documents shows numerous donations and grants to
the Show-Me Institute in recent years.
KOCH BROTHER-FUNDED DONORS CAPITAL FUND
Donors Capital Fund ................................................... $50,000.00 ........................................ 2010
Donors Capital Fund ................................................. $235,000.00 ........................................ 2009
Donors Capital Fund ................................................. $182,941.00 ........................................ 2008
Donors Capital Fund ................................................... $50,000.00 ........................................ 2007
Donors Capital Fund ................................................... $50,000.00 ........................................ 2005
STATE POLICY NETWORK
State Policy Network .................................................. $87,951.49 ........................................ 2007
JAQUELIN HUME FOUNDATION
Jaquelin Hume Foundation ........................................ $25,000.00 ........................................ 2011
Jaquelin Hume Foundation ........................................ $25,000.00 ........................................ 2010
Jaquelin Hume Foundation ........................................ $25,000.00 ........................................ 2009
Jaquelin Hume Foundation ........................................ $25,000.00 ........................................ 2008
Jaquelin Hume Foundation ........................................ $25,000.00 ........................................ 2007
ROE FOUNDATION
The Roe Foundation ................................................... $10,000.00 ........................................ 2011
The Roe Foundation ................................................... $10,000.00 ........................................ 2010
The Roe Foundation ................................................... $15,000.00 ........................................ 2009
The Roe Foundation ................................................... $15,000.00 ........................................ 2008
The Roe Foundation ................................................... $10,000.00 ........................................ 2007
CATO INSTITUTE
Cato Institute ............................................................. $50,000.00 ........................................ 2006
CASTLE ROCK FOUNDATION
Castle Rock Foundation ............................................. $10,000.00 ........................................ 2011
Castle Rock Foundation ............................................. $10,000.00 ........................................ 2008
JM FOUNDATION
JM Foundation ........................................................... $20,000.00 ........................................ 2006
Sources: Media Matters, Show-Me Institute; SourceWatch, Show-Me Institute; American Bridge
Conservative Transparency
18
MEET THE SHOW-ME INSTITUTE LEADERS & STAFF
The Show-Me Institute calls itself a nonpartisan "educational institute dedicated to improving the
quality of life for all citizens of Missouri" and to increasing "economic opportunity for ordinary
Missourians." However, it is led by wealthy conservatives and Republican campaign operatives who
have advocated for policies that would harm ordinary Missourians.
REX SINQUEFIELD, PRESIDENT
Rex Sinquefield, a notorious conservative donor in Missouri, co-founded the institute in 2006. In 2012,
the New York Times reported that since 2008, when Missouri abolished campaign contribution limits,
Sinquefield has donated more than $20 million to local candidates and political committees, largely to
Republican and conservative causes and campaigns. More than half of Sinquefield's contributions,
according to the article, have gone to advance his signature cause: eliminating state and local income
taxes in Missouri, a major source of government revenue, and replacing them with sales taxes.
The overwhelming majority of Sinquefield's contributions on candidate elections go to Republican
candidates and PACs, including the ‘Now or Never PAC' that assisted Todd Akin's US Senate campaign in
2012, Sarah Steelman's US Senate campaign, embattled Wisconsin Governor Scott Walker, and other
state and federal GOP candidates and committees around the country. He has also given at least a
quarter million dollars to the conservative “heavy hitter” PAC Club for Growth.
Sinquefield's private Sinquefield Charitable Foundation has given hundreds of thousands of dollars to
the Koch Brothers' Americans for Prosperity Foundation, millions to the Show-Me Institute, hundreds
of thousands to the Children's Education Alliance of Missouri (CEAM) and thousands to the CATO Club.
ETHELMAE HUMPHREYS, FORMER BOARD MEMBER
The Joplin-based Humphreys Family has given millions to right-wing causes across the country. Ethelmae
and her children, David Humphreys and Sarah Humphreys Atkins, are members of the Koch Brothers'
exclusive ‘Million Dollar Donor Club.' Notable Humphreys Family donations include:
$1,000,000 to the Restore Our Future Super PAC created to support the presidential candidacy
of Mitt Romney in 2012. David Humphreys and Sarah Atkins both wrote $500,000 checks to the
super PAC.
$530,000 to embattled Wisconsin Governor Scott Walker from David Humphreys and Sarah
Atkins.
$250,000 to the 'Protecting Michigan Taxpayers' campaign in October 2012 from Ethelmae
Humphreys. The campaign opposed Proposal 2, a ballot proposal that would put collective
bargaining protections in their state constitution.
$50,000 to the New Prosperity Foundation, a political organization created by former Bush
Pioneers to "shape Midwest elections."
Undisclosed support from Ethelmae Humphreys for the Michigan-based Mackinac Center, an
overtly anti-union organization.
19
JOSEPH HASLAG, CHIEF ECONOMIST
Joseph Haslag is a professor and the Kenneth Lay Chair in economics at the University of Missouri
Columbia. Haslag's position was made possible by the university's most notorious alumnus, Ken Lay, and
was vacant for four years before Haslag took the position. He has been employed at the University of
Missouri since 2002. Haslag's annual university salaries are as follows:
2002 ...................... $86,195.00
2003 .................... $108,630.25
2004 .................... $112,384.44
2005 .................... $124,275.00
2006 .................... $139,720.58
2007 .................... $140,888.57
2008 .................... $158,334.00
2009 .................... $169,265.00
2010 .................... $165,000.00
2011 .................... $166,729.00
2012 .................... $171,230.84
(Source: University of Missouri payroll records, provided to Progress Missouri via Sunshine Law request)
Beyond his significant university salary, Haslag also received significant funds from the Show-Me
Institute. In 2009, he was paid $119,500 as the SMI Executive Director, and in 2010, he was paid
$90,000 as the organization's "Former Executive VP." Public records show these Show-Me Institute
salaries were paid on top of his University salaries.
In addition to his SMI and University income, Haslag has also been paid by numerous ballot committees
to provide research that advances their issue campaigns. Campaign income includes:
MO Petroleum Marketers + Convenience Store Assoc PAC ....................... $20,000 in 2012
Missourians for Equal Credit Opportunity (payday lenders' PAC) ............. $3,750 in 2012
MO Coalition For Lifesaving Cures .............................................................. $937.50 in 2007
MO Coalition For Lifesaving Cures .............................................................. $25,000 in 2006
Missourians Against Tax Abuse ................................................................... $23,875 in 2006
Committee To Improve Missouri Roads And Bridges ................................. $3,000 in 2004
Tax files for the Sinquefield Charitable Foundation show Haslag was paid an additional $30,000 for
research in 2005.
Joseph Haslag is married to Sara Haslag, who appears to have been SMI's Director of Development from
March 2008 to December 2009.
It is noteworthy that despite his considerable income and public benefits, Haslag has advocated against
defined benefit retirement plans and against minimum wage increases.
20
CROSBY KEMPER III, CHAIRMAN AND CO-FOUNDER
Crosby Kemper III is executive director of the Kansas City Public Library and former CEO of UMB
Financial Corporation. He co-founded and is chairman of the Show-Me Institute.
MICHAEL PODGURSKY, BOARD MEMBER
Michael Podgursky is a professor of economics at the University of Missouri–Columbia, where he served
as department chair from 1995 to 2005, and is a fellow of the George W. Bush Institute at Southern
Methodist University. Podgursky's Curriculum Vitae states that he has provided Education and Economic
Policy "consulting" for the Sinquefield Family Foundation.
GERALD A. REYNOLDS, BOARD MEMBER
Gerald A. Reynolds is general counsel, chief compliance officer, and corporate secretary for the LG&E
and KU Energy company based in Louisville, Kentucky. He was a deputy associate attorney general in the
U.S. Department of Justice. In 2004, George W. Bush named him chairman of the U.S. Commission on
Civil Rights, and in 2002 appointed him assistant secretary of education for the Office of Civil Rights.
RICK EDLUND, COMMUNICATIONS DIRECTOR
Rick Edlund is a GOP campaign consultant and former KPLR news anchor. He was a paid consultant for
Cole McNary's failed 2012 campaign for Treasurer, Sarah Steelman's failed 2012 US Senate race, the
House Republican Campaign Committee in 2010, and Jim Talent's 2000 campaign.
PATRICK TUOHEY, WESTERN MISSOURI FIELD MANAGER
Patrick Tuohey joined the Show-Me Institute in January 2013 as the western Missouri field manager. He
previously served as an aide to U.S. Rep. John L. Mica (R-FL) in Washington, DC. In 1995, Patrick became
director of communications for Frank Luntz's polling shop, representing the firm and its research to
members of the U.S. Senate and House, as well as regularly attending congressional staff meetings.
Tuohey is (or was) the owner of Market and Communications Research, Inc. (Marcom). Clients include
Mobil, Monsanto, Merck, Bristol-Myers Squibb and Eli Lily. He was paid directly by Rep. Jay Barnes'
campaign committee in 2012. Tuohey manages the Missourians for Responsible Government 501(c)(4)
organization that has moved millions of dollars on behalf of the payday lending industry to protect the
lenders' triple digit interest rates.
JASON HANNASCH, FORMER VICE PRESIDENT
Jason Hannasch, a founding staffer of the Show-Me Institute, was president of the now-defunct
Missouri News Horizon, a Missouri affiliate of the Franklin Center for Government & Public Integrity.
The Missouri Watchdog website is also a Franklin affiliate. The Franklin Center hosts conservative
investigative reporting outlets that focus on the state legislature in states across the country. Many of
the Center's affiliates have been accused of faulty reporting and manufacturing news coverage to
benefit its conservative interests. The Pew Research Center's Project for Excellence in Journalism, using
a sliding scale of highly ideological, somewhat ideological and non-ideological, ranked the
"Watchdog.org" franchise (the Franklin Center's website in many states) "highly ideological." Since its
21
founding, the Franklin Center has been funded by conservative organizations including the Koch-funded
DonorsTrust/Donors Capital Fund and the Bradley Foundation.
CHRISTINE HARBIN, FORMER POLICY ANALYST
Former Show-Me Institute policy analyst Christine Harbin went on to become a research manager at the
American Legislative Exchange Council (ALEC) and a federal policy analyst at the Koch-founded and -
funded Americans for Prosperity.
BRENDA TALENT, EXECUTIVE DIRECTOR
Before joining the Show-Me Institute, Brenda Talent served as counsel to the Saint Louis law firm Bryan
Cave. Her husband, Jim Talent, is a former U.S. senator and congressman.
PATRICK ISHMAEL, POLICY ANALYST
Patrick Ishmael holds several degrees from Saint Louis University. Missouri Ethics Commission records
that he was reimbursed for travel expenses by now Senator Rob Schaaf's campaign committee in 2010.
ELIZABETH LANIER-SHIPP, DIRECTOR OF DEVELOPMENT
Elizabeth Lanier-Shipp is a former intern for the Tennessee Republican Party.
SCOTT TANNER, DEVELOPMENT ASSISTANT
Scott Tanner is a former Republican campaign staffer and legislative clerk. He is a 2011 graduate of the
College of Wooster, where he received a B.A. political science and government. Scott joined the
development office of the Show-Me Institute in July 2013. He previously worked for Mitt Romney’s 2012
presidential campaign, as a clerk in the Iowa House of Representatives, and as an intern with the
Republican National Committee (RNC).
DAVID STOKES, POLICY ANALYST
David Stokes spent five years as assistant to Saint Louis County Councilman Kurt S. Odenwald and is a
board member of the St. Louis County Pachyderm Club.