You are on page 1of 21

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: Sinquefields 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. SMIs 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 rightwing 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 SMIs 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 Donors Capital Fund JM Foundation Jaquelin Hume Foundation Roe Foundation State Policy Network Castle Rock Foundation Cato Institute

Funding $567,941 $20,000 $125,000 $60,000 $87, 951 $20,000 $50,000

Years 2005-2010 2006 2007-2010 2007-2011 2007 2008-2011 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 INDUSTRYFRIENDLY 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.

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 ShowMe'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." 7

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 coauthored 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 ShowMe'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. Oiltycoons 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 Paycheck Protection

Show-Me Institute
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.

American Legislative Exchange Council (ALEC)


ALEC's Paycheck Protection Act is an attempt at unionbusting by making it difficult for public employee unions to raise funds for political activities.

Other SPN Member Think Tanks


Show-Me's push for paycheck protection is not unique to Missouri. SPN has made the antiworker 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. 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."

Americans For Prosperity (AFP)


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 ShowMe Institute also published a report in 2012 calling for a Parent Trigger bill, a wellknown 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.

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 Attacks on Teacher Tenure

Show-Me Institute
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 antitenure 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.

American Legislative Exchange Council (ALEC)


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."

Other SPN Member Think Tanks


Repealing teachers' rights and tenure has been pushed by many SPN think tanks, including in Illinois, Michigan, Pennsylvania, Minnesota, Texas, Wisconsin, and North Carolina.

Americans For Prosperity (AFP)


AFP-MO says Missouri needs to "examine tenure reform" in the education section of its 2013 Legislative Agenda.

Issue Healthcare Reform & Medicaid Expansion

Show-Me Institute
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. Over the years, the Show-Me Institute has published several reports against raising the minimum wage in Missouri.

American Legislative Exchange Council (ALEC)


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 EmployerPaid 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.

Other SPN Member Think Tanks


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 ShowMe's The Prognosis for National Health Insurance: A Missouri Perspective (August 2009).

Americans For Prosperity (AFP)


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

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 Pensions

Show-Me Institute
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. 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.

American Legislative Exchange Council (ALEC)


ALEC pushes for pension reform and definedcontribution pension plans in at least two model bills: the "Public Employees' Portable Retirement Option (PRO) Act" and the "Defined Contribution Pension Reform Act.

Other SPN Member Think Tanks


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.

Americans For Prosperity (AFP)


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

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 SuperMajority 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

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.

18

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 .................... 2010 .................... 2011 .................... 2012 .................... $169,265.00 $165,000.00 $166,729.00 $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.

19

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 MissouriColumbia, 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

20

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 Romneys 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.

21

You might also like