CANDIDATE FORUM:

 
Republicans Ken Horn and Tim Kelly Face-Off
for the 94th District State Congressional Seat

 
By Robert E. Martin

     With the August 8th Primary Election heating up the summer months, one of the more significant contests facing Saginaw County is the Republican face-off for the 94th State House of Representatives seat between Kenneth B. Horn and Tim Kelly.
       
Ken Horn is currently Vice-President of the Saginaw Community Foundation and has served as a commissioner on the Saginaw County Board of Commission since 1992, assuming the responsibility of overseeing 750 employees and a $150 million budget.
     
Horn taught in the Frankenmuth & Bridgeport/Spaulding School district for two years and was a small business owner from 1988-2002.  He was appointed by Governor Engler in 2002 to the Michigan Travel Commission and has served on several county boards, including the Saginaw County Convention & Visitor's Bureau and the Saginaw Transportation Authority Regional Services (STARS).  Horn was also recommended by Congressman Dave Camp as the Regional Chairperson for George W. Bush in 2004, heading an 11-county team during the 2004 Presidential campaign.
 
Tim Kelly is currently employed with Bolin Enterprises in Lansing and works with the former Director of the Michigan Department of Career Development in consulting with national, state, and local workforce enterprises. From 1999-2003 he was special advisor to the Director of the Michigan Department of Career Development and was appointed by Gov. John Engler as an Education Policy Advisor from 1995-1999, responsible for developing and implementing education policy and programs for Engler.
   
From 1993-95, Kelly worked as Executive Director for the Indiana Human Resource Investment Council and was responsible for advising the governor on policies concerning federal & state education, family assistance, and job training initiatives.
    
Recently I sat down with each candidate to discuss a variety of issues facing voters of the 94th District.

Review: What are the three biggest priorities that need to be addressed in Michigan, not necessarily from a statewide perspective so much as how your involvement in Lansing could impact the 94th District?

Kelly:  At the top of the list is economic development and creating more jobs. Second would be workforce preparation and development. We need to change from a low skill high wage mentality into a more knowledge-based economy. Finally, education is always a focus. Without a good foundation of K-12 education, we're unlikely to have people prepared for tomorrow's workforce.

Horn: Clearly for our area the economy is the number one priority.  In Saginaw County we have the auto industry struggling a little bit, but I believe as long as there is an automotive presence in Michigan, there will be one in Saginaw County. Delphi is here to stay in some form of another.
 
As for other areas of the economy, I see huge growth in the Agricultural industry and have big hopes with alternative fuels. Tourism is also a huge industry and Saginaw County is actually leading the way in the manner they market tourism.
 
In terms of medical initiatives, we were at the grassroots of that and over the next several years it will boom. We're very well positioned with skilled labor & engineers and capital and have all the components to develop a major '4th industry' out of the medical initiatives field. What we need to have are people in Lansing with the vision to take it from here to there and know the steps in Lansing to accomplish those goals.
   
Education is also important. We need to train our students, whether they go into college or into the workforce, and the public school system in the 94th District is superb.  In fact, Saginaw Township is going to lead the state with education for young students - doctors, lawyers, engineers - by training people specifically for the medical fields opening in our area through development of this industry.

Review:  Regarding the economy, our area is obviously in a transitional stage, not unlike moving from the lumbering era to an agricultural economy into an automotive base, which we've enjoyed for the past 70 or 80 years. What specifically can be done to improve the job situation in the area?

Horn:  We have the infrastructure already in place for medical device manufacturing, which is misunderstood somewhat by those that don't understand the internal workings. The average shop that falls within that category will make unique cutting scalpels and instruments; plus we already have Amigo, which is a unique industry in itself. The clustering of these various medical oriented industries is very important and there are different ways to do that.
    
Saginaw Township is our hope to be ground zero for this initiative. Delphi medical manufacturing went from zero to over $100 million in total sales for the medical field in 18 months because they discovered there isn't a lot of difference between producing a pump for your car and a pump for a dialysis machine.
 
In 1919 we had no idea what our next industry would be in Saginaw County, but in 1929 we did - it was the auto industry. We're only two years into the program for medical initiatives and its already happening.
      
As for Tourism in Saginaw County and Michigan in general, Illinois is spending a little over $50 million each year on marketing. We're a destination state, so people want to come here. We need to change the dynamics of how we market Michigan.  Back in 1996 Governor Engler changed the dynamics of how Michigan tourism was marketed by executive order. Convention & Visitor Bureaus have been asked to pick up the load and we need to reverse that trend.

Kelly:  First and foremost we need to make Michigan the most attractive state in the country for business investment. It's true that Michigan has gone from an agricultural to a heavy manufacturing base and is now transitioning into a knowledge-based economy, which requires higher skills.
     
The auto industry has served Michigan well for the last 70 or 80 years, but for the next 70 or 80 years auto related industries are not going to be the bread & butter of Michigan. Fortunately, we still have lots of auto expertise, which will bode well for us in terms of advanced manufacturing, research & development, and those types of things. But getting paid a big salary turning a screw to make a car - that's long gone and we' can't rely upon it anymore. It's hard to get the people of Michigan to understand that, because we've relied on it for so long and cannot do so anymore.
 
Agriculture has a bright future in Michigan, not only in the Saginaw Valley, but also throughout the entire state. We have two new ethanol plants going into our region that will need a lot of corn produced. We have bio-diesel plants being developed and a new wind farm in the development stage in the Thumb region, so all these things will not only bring jobs into the region but also make Michigan an alternative energy center. We definitely need to lose our dependence on foreign oil.

Review: When discussing the direction education is going the biggest debate is over whether charter schools do a better job than public schools. Which do you favor?

Kelly: Well, you must remember that a charter school is a public school. I worked for Governor Engler as his education policy advisor and the big thrust from 1995 throughout Engler's term were charter schools, or the expansion of parental choice. As we argued at the time, people want the choice & opportunity afforded through charter schools, and they are not going away and will only expand.
    
In a perfect world our neighborhood schools would be so terrific you wouldn't want an alternative, but the reality is that people do want a choice. They have voted with their feet and exercised options with charter schools and schools of choice and I think it's proven well. While a couple of charter schools have not faired well, neither have certain public schools. This is a market driven approach to education that is working and will continue to work.

Horn:  I have no opposition to Charter schools and think they're a great alternative under strict conditions. In the 94
th district we have one school chartered under the public school system, but I think each school in the 94th district is top-grade and Saginaw Township is leading the way.
     
Charter schools work fine when designed for a specific purpose and when they propel and lead; but apart from that, in order to keep our public schools healthy I don't believe they need more competition from Charter schools, especially with the open enrollment situation you have right now.
      
I taught for two years, one in an urban school and the other in a more rural setting, and there's a huge gap. We need to maintain our public schools and where they're suffering is through Proposal A, which caps how much can be spent per pupil and how much money schools can raise on the outside. Without changing Proposal A, we need to be able to maximize funding for each school before raising any more dollars. We need to look at cost containment, particularly with health care; or look at forming collaborations in order to cut costs without harming education.
    
Review: With this 'no boundary' approach to education what do you feel is the biggest problems holding schools back?  One big debate is whether or not we should shift to a 'merit' based system with teachers or maintain this 'tenured' system.

Horn: Merit pay is good to study but I'm not sure I agree with the premise. The system can use a bit of work but putting together a team of qualified teachers is what negotiations between administrators and teachers is all about.

 
Teachers are hired to not only teach but to inspire learning in students. With urban school systems and open enrollment you have kids leaving by choice in droves and coming from the East side of Saginaw into the Township & Carrollton, so I'd like to reverse that trend of witnessing schools in the City of Saginaw losing students. Something is definitely wrong when parents are making these moves.
 
Building those school districts up is not just a teacher issue but also a cultural parental issue. You have single families with students in foster care homes funding their own way to school. You see kids go into 'survival mode'. One of my priorities is to expand the Birth to Five program and work on instituting meaningful change in the culture that surrounds us.
 
If I buy a kid a book and teach him to read he'll find a decent job. But if I inspire his thirst for learning, he'll excel in life and buy us libraries. It's that passion for learning we need to instill. We need to get these kids out of survival mode and teach them they won't get beat up if they get 'A's.
 
Often problem children have a vocabulary of only 500 words and can't articulate their anger. Consequently, when they get mad, they answer problems physically instead of reasoning things out. We need to build vocabularies early.

Kelly:  One of the biggest improvements we could make is a merit-based system with teacher pay, or turn it around where those teachers with the best expertise are rewarded.

 
 Currently with the public curriculum, administrators in high school are lamenting the fact that more focus is being placed on science and math, yet we don't have the numbers of teachers qualified to teach those subjects. My answer to that is pay them for it. You'll attract qualified science and math teachers if their salary reflects their expertise. If it is important to us, we should show this through the pay scale and not the salary scale that currently exists with public education.

Review: What's your own background in government. Have you ever held an elected position? What do you feel are your biggest accomplishments with government?

Kelly: I started with Governor Engler in 1995 and previously worked for another administration in Indiana for seven years on vocational education. The biggest impact I believe we had that I helped fashion was with school expansion and setting higher standards for education.  I headed the committee under the Governor whereby we developed policies to get kids reading by the third grade, which was called 'Michigan Ready'. If a kid can't read by the third grade he is pretty much destined for failure throughout his scholastic career.

Horn:  Having been elected to the Saginaw County Board of Commissioners back in 1992 and continuing to serve on that body, I think my biggest accomplishment was bringing an end to the bitter, nasty, partisan politics that existed when I first came on-board.
      
I've worked very closely with every Chairman on the Board to bring Republicans & Democrats together because I believe this allows us to get real work done for Saginaw County, so I'm very proud of my ability to build relationships.
 
In terms of my accomplishments while on the Board, being appointed to the STARS Board was a very rewarding experience. Within six months we fired a corrupt manager and administrative board, changed the bylaws and policies of that system, and took something that the city wanted to turn its back on and within six months fashioned a system that people could trust and that would run efficiently.
     
In my time on the Board of Commissioners, I've consistently worked to bring everything that we do under 'clear skies' and develop transparent government. You may not agree with my votes, but you will always understand why I make them. We've gone out of our way so residents understand everything we are doing and why, so people can walk into a ballot box with open eyes.
     
As the Vice-President of the Saginaw Community Foundation, I'm very proud of accomplishing the 'Art of Green' project. Art & Culture as economic development is a dynamic within the community that we're just beginning to wrap our arms around. When the 'Brick Town Circle' is fully in place, this county will be unstoppable.
     
Life is not about collecting things. In the end it's all about how we treat each other. The friendships and professional relationships I've built up over the years will always be my ultimate accomplishment.
 
Review: In terms of economic growth in Saginaw County, are there any people or groups you feel are responsible for what is or isn't happening?

Kelly: Saginaw Future deserves kudos, as they've done a tremendous job of working and developing the resources we have here and were just cited as one of the better economic development corporations in the country.  I thing the Vision 20-20 Board works well. A lot of people out there are trying to do the right thing. Expansion of medical manufacturing is a good fit, given the regional health centers we've created, and I think that's a tremendous market to go after. I applaud them for it. Mainly, we need to create a climate in Michigan conducive to business and economic growth.

Review: Recently you wrote a letter to the Saginaw News critical of the Chamber of Commerce. Would you care to expand upon that?

Kelly: Mainly, I am concerned about the situation with the Road Commission. Two independent audits came out both saying that the department was filled with nepotism and cronyism, and after reading about it, I felt this somewhat indicative of Saginaw County politics in general, which is based upon a 'good boy' system where one hand washes the other.
    
You have a handful of people in the community that seemingly run the show, and if people connect the dots from who is who and their relationships, they wouldn't be happy about it.
    
I'm not saying these individuals don't do a fine job, but in a community this size is it plausible there would be so many people from one family that would sit on all these powerful positions? If you didn't have such a cozy situation in county politics these people would not have the jobs they do now. You can list on one hand some names that keep cropping up, which is not indicative of a vibrant, open community.
 
I think things could be better. I wrote a letter, which was prompted by the County Board of Commissioners voting down a probe of the road commission based on these two independent audits and my opponent voted alongside the majority, which refused to pursue this probe. This was a vote he didn't have to make because it was already going to be killed; but he voted along with those that like to obfuscate the truth and keep people in the dark in Saginaw County. With two independent audits, that should have been enough. Commissioner Pat Wurtzel wanted to pursue it and I applaud him for his courage, and The Saginaw News for keeping the Road Commission story in the news.

Horn: My opponent in the Primary Race is on record as saying that my experience is great for county government, but I'm not running for a county seat. His position on the Road Commission issue is troubling.  What he's failing to remember is that a few years ago 'Horn Launches Probe of Road Commission' was a headline that appeared in the Saginaw News, so I've looked into this issue many years ago and stayed on top of it.
 
The County Road Commission is basically a franchise of the State of Michigan. Other than collecting the millage for it, the authority over it is not a county authority but resides with the State of Michigan.
 
The probe Kelly misunderstands was designed to ask the Attorney General to investigate with a forensic auditor if our legislators request it, which we can already do through legislative committee.
   
When I voted 'no' on this issue, I'd just left a Saginaw Township meeting and also met with Thomas Township and Kochville. Nobody wanted to get involved with that and Ron Lee is on record for not jumping into this fray.
    
I've been community involved and active for two-and-a-half decades and Tim Kelly has been missing in action for all that time, not even in the district.
       
If he wants to fight that road commission issue, then he should run for the County board and I'll support him. Saginaw County has bigger problems than somebody getting paid questionable overtime for an extra 10-minute coffee break.

Review: Lets talk tax policy. You favor eliminating the Single Business Tax, yet obviously government needs funding in order to operate. If you eliminate the SBT what will you replace it with?

Horn:  The SBT was designed to combine seven different business taxes into one, which seemed like a good idea at the time to streamline the system. The problem is that legislative changes came along the way and with every rule change you have an unexpected consequence.
   
The SBT is a burden on businesses. Not only are we losing money in this state but it's immoral because it's not right to tax somebody for creating jobs.
       
We're at the bottom of States in the country and are experiencing a single state recession, so this is a moral issue for me. Other states can live without it and we need to look at where our taxes need to be and prioritize what it costs to do business in Michigan.
       
If we create a better business environment I think we can grow Michigan to the point where it is back to the premier spot, leading the nation in unemployment rates.
   
There is talk of increasing the sales tax as a replacement, but I'm not big on the sales tax. I think its just another burden we place on ourselves. We need a comprehensive business friendly environment that actually creates job, and shifting that tax is not the answer.

Kelly: There are a few scenarios being bandied about. One involves a business license tax whereby you are only taxed on the business you do here in Michigan, as opposed to out-of-state. The Detroit Chamber of Commerce is promoting this.
     
Another notion is the 'fair tax', which would eliminate property, and income and business tax and replace these with an increase in the sales tax, perhaps up to eight percent. This carries a lot of appeal to some people because it is a pay as you go kind of thing.
       
The third is the 'value added tax', which is where the SBT started out but has since been bastardized since it was instituted in 1976.
 
I think business should have some type of tax they pay, but whether this equals the $1.9 billion that will be lost by eliminating the SBT, I don't know. That's alright if the new replacement includes some type of tax cut for business, but as for generating revenue to run state government, we need to do things different. We need to create the right type of climate and I think we can lower taxes with government restraint in spending. Mainly, we need to put everything on the table and examine it. There will be a business tax of some sort because I don't think we should necessarily eliminate that entirely.

Review: Are there any local leaders, or leaders in general that you admire or have inspired you?

Kelly: Obviously, Governor John Engler. I enjoyed working for him and learned a lot because he always knew where he wanted to go and he got the job done. I see a lot of that in Dick DeVos. People are attracted to those types of leaders that can follow through on things and make changes for the better. If we had a leader like Dick DeVos we'd have a lot more new growth & investment in Michigan.

Horn:  I'd like to model myself after Dave Camp. He has a quiet way of leading. You don't see him on all the 'Talking Head' shows in Washington and he gets down there and gets the job done. He services his constituents superbly, so Congressman Camp is one local leader I do admire.
   
I also admire Ronald Reagan. He had an enormous crossover appeal because he made us proud to be Americans again. His conservative vision had great appeal, and I'd be truly humbled to think that our names might be brought up in the same sentence some day.

Review:  Recently Saginaw County enacted an 'anti-smoking' ordinance that has caused a lot of controversy.  There have been recent attempts in Lansing to enact legislation that would ban smoking in bars & restaurants throughout the state, even though in Saginaw County alone the Food & Beverage Industry is the third highest employer in the County.  In states that have banned smoking in restaurants & bars, the industry has recorded substantial reductions in revenue.  Are you in favor of these attempts to ban smoking statewide?

Horn:  No, I made a promise to the Michigan Restaurant Association a couple years ago that I wouldn't jump on this bandwagon and what's happening now is over the last ten years, we've already seen an increase in the number of non-smoking restaurants and bars in Michigan.
 
Mainly, this becomes a battle between health interests, the practicality of enforcement, and the issue of property rights - three major ideals that are colliding together. With all things being equal, freedom trumps all. In terms of property rights, the business owner's rights trump those of the State.
 
If I have a sign on my building that says parts of this establishment are not smoke free and it is your decision whether or not to enter, it comes down to the choice of the individual.
       
For me the bigger concern is this is not a Saginaw County issue. It wasn't started as a grass roots effort, but was brought to us by a lobbyist for the anti-tobacco industry that fired up a group and wanted to implement Ann Arbor rules on Saginaw County.
       
The Board changed those dynamics the best we could, but I believe that enforcing non-compliance is going to become a big headache; and proponents say they won't enforce it. Why? Because they want to get enough counties on board to build a critical mass so they can get a ballot initiative going at some point, even if those counties never vote on it.
 
This is a high-maintenance issue with a very low impact. It's not going to do one thing in Saginaw County that we didn't have before. It's just like mandating recycling for business in the mid-'90s. Not one business knows this, because they don't have the wherewithal to enforce it.

Kelly: I'm not in favor of anti-smoking legislation and I think it's an easy group to kick and one they've been very successful at doing.  I don't think you'll see such a ban statewide in the near future because they don't have the clout. I also think the recent Saginaw County ban is shortsighted.
   
Frankly, it's amazing to me. I mean who smokes in businesses anymore today anyway? I don't understand whom they're really going after?
 
Mainly, one of the things I'm worried about is that Michigan is becoming too much of a 'nanny state' telling us what we can or cannot do. We need to get the economy going but instead they focus on these ancillary issues that don't create jobs, and if anything, will cost us jobs in the long run.

Review: What about your candidacy do you think would appeal most to the independent thinking voter?

Kelly: I'm the right candidate at the right time because of my previous state government experience with the three critical areas we are facing - economic development, workplace development, and education. I think I'm uniquely prepared and Lansing ready to take on the job, not only because of my experience in those policy positions, but because I've been successful in working and developing solutions in those three areas.  The district needs someone in Lansing rooted in that type of experience, so we take the right path into the 21
st Century.

Horn: The fact is that occasionally, and much to the chagrin of my Primary opponent, I get along with Democrats. I may not agree with them, but certainly on the level of working in Lansing I can represent the interests of my constituents and agree to disagree with them, yet when we punch out, we can go have a cup of coffee together. 
 
Those relationships are something missing in Lansing & Washington right now. Division gets us nowhere.
 
My opponent tries to paint me as a Democrat in disguise, yet former Saginaw News reporter Avi Stern named me the most conservative member of the Board of Commissioners. 
      
I was a conservative before I was a Republican, and I'm a representative of the people that elect me before I'm a politician.