Michigan Transition 2019 was a transition and inaugural committee set up after the election of Michigan Governor Gretchen Whitmer (D) and funded by donations from utility companies, lobbying firms, labor unions, trade associations, and other donors with an interest in public policy in Michigan. 1 The nonprofit was the center of an ethics scandal in 2021 when it paid for a private jet for a Whitmer family trip to Florida. 2
Overview
Michigan Transition 2019 was created after Democratic candidate Gretchen Whitmer was elected governor of Michigan in November 2018. It was formed as a 501(c)(4) social welfare nonprofit to pay expenses related to Whitmer’s gubernatorial transition and inaugural events. 3
In 2022, Michigan Transition 2019 reportedly paid for margarita kits, including tequila, to be sent to some of Whitmer’s supporters around the time of her State of the State address. 4
Connection to Labor Unions
The founding president of Michigan Transition 2019 was Lisa Canada, the political director of the Michigan Regional Council of Carpenters and Millwrights, the state affiliate of the United Brotherhood of Carpenters (UBC). 3
Many of the largest donors to Michigan Transition 2019 were labor unions. Of the 17 donors disclosed by the nonprofit in the $100,000 to $50,000 range, six were labor unions or associated entities operated by the International Brotherhood of Teamsters (IBT), United Auto Workers (UAW), the Michigan Education Association (MEA), the Michigan Laborers’ Union, the Michigan Regional Council of Carpenters and Millwrights, and the International Union of Operating Engineers. Other union donors at lower levels included state federations, political action committees, or local unions of the United Food and Commercial Workers (UFCW), the Michigan Nurses Association, the AFT Michigan, the Michigan State AFL-CIO, the American Federation of State, County and Municipal Employees (AFSCME), the Michigan Corrections Organization, the International Association of Fire Fighters (IAFF), SEIU Healthcare Michigan, SEIU Local 1, SEIU Local 517M, and the United Association of Plumbers and Pipefitters (UA). 5
Unions would accomplish several key policy priorities under Whitmer’s administration, most notably Michigan repealing its “Right to Work” protections against compulsory union fees. 5
Charter Jet Controversy
In early March 2021, while Gretchen Whitmer was governor, one of her aides reached out to Air Eagle LLC, a company connected to a group of major traditionally Republican-aligned donors, to ask for a private jet that could take Gov. Whitmer and her Michigan State Police security detail to Florida to visit her ailing father, Richard Whitmer, the retired president and CEO of Blue Cross Blue Shield of Michigan. 6 7 Air Eagle and PVS Chemicals executive John Nicholson agreed and Michigan Transition 2019 chartered the jet for $27,521. Whitmer originally paid $855, which was the estimated price of her seat, from her personal funds. 8
On the return flight, Whitmer was accompanied by her two daughters. While she did not originally pay for their seats, she later agreed to do so after details of the flight had become public knowledge. 8
Once the details of the trip became public, Whitmer was criticized for having traveled out of state for non-essential purposes before receiving her initial COVID-19 vaccination, at a time when her state health department recommended against such travel. 9 Shortly after returning from her trip, Whitmer warned Michigan residents against traveling, particularly to Florida, during a spike of reported COVID-19 infections in Michigan. 10 The same month that the details of her Florida trip became public, Whitmer was also discovered to have violated her administration’s social distancing guidelines by attending a private event at an East Lansing restaurant where she was seated at a table with roughly a dozen unmasked people. 11
The discovery of the flight and Michigan Transition 2019’s role in it sparked investigations and complaints to the Internal Revenue Service, the Michigan Secretary of State, the Federal Aviation Administration, and other regulators. 12 13 One key question was whether paying for Whitmer’s personal travel violated prohibitions against 501(c)(4) nonprofit organizations using donated funds for personal benefit rather than public welfare. 12
In May 2021, Whitmer’s representatives blamed the decision to have Michigan Transition 2019 pay for Whitmer’s flight to Florida on a “miscommunication” and announced that it would be retroactively paid for by her campaign committee. 12 The campaign also reimbursed Michigan Transition 2019 for $22,670 it had spent to charter a plane owned by Michigan-based Solomon Plumbing Co. for Whitmer and her family to attend the February 2021 inauguration of President Joe Biden in Washington, D.C. 14
An FAA investigation found that the Air Eagle had violated federal regulations as it was not approved to operate a charter service, but the FAA did not impose any penalties. 15 In the wake of the scandal, PVS Chemicals released a statement that said, “In the future, PVS will follow a newly created policy to deny all requests to fly candidates or government officials.” 8
Funding
As a 501(c)(4) nonprofit, Michigan Transition 2019 is not required to publicly disclose its donors. It reported receiving $3,593,156 in donations during 2018 and 2019. 16
In 2019, it released a list of 182 donors for inauguration-related events broken up into broad sponsorship categories. The Michigan Campaign Finance Network news service characterized the donors as being led by “the state’s dominant electric utilities and multi-client lobbying firms.” 17 Other major donors included trade associations for the state’s credit unions, real estate agents, recycling companies, broadcasters, beer and wine wholesalers, hospitals, paving companies, theater owners, health insurance companies, funeral directors, restaurant and hotel owners, physicians, retailers, and small businesses. 1
Planned Parenthood of Michigan and the Michigan League of Conservation Voters also donated to Michigan Transition 2019. 1
After being largely dormant in 2020 and 2021, Michigan Transition 2019 became active again in 2022 as Gretchen Whitmer was reelected to a second term, raising $1,466,000 in 2022 and $855,021 in 2023. It reported ending 2023 with $55,348 in assets. 16
References
- “Who Funded Gov. Whitmer’s Inauguration?” Michigan Campaign Finance Network, February 11, 2019. https://mcfn.org/node/7155/who-funded-gov-whitmers-inauguration.
- “Whitmer’s Office Reveals Cost of Flight to Florida and Who Paid for It.” WXYZ 7 News Detroit, May 14, 2021. https://www.wxyz.com/news/whitmers-office-reveals-cost-of-flight-to-florida-and-who-paid-for-it.
- Wilkinson, Mike, Jonathan Oosting, and Sergio Martinez-Beltran. “Records: Shadow Nonprofit Paid for Whitmer’s Florida Flight amid Controversy.” Bridge Michigan, May 14, 2021. https://www.bridgemi.com/michigan-government/records-shadow-nonprofit-paid-whitmers-florida-flight-amid-controversy.
- Gorchow, Zachary. “Whitmer Thanks Supporters with a Margarita Kit .” Gongwer News Service, January 26, 2022. https://www.gongwer.com/blog/?postid=139101
- Whitcomb, Dan. “In Victory for Labor Unions, Michigan Governor Repeals ‘right-to-Work’ Law | Reuters.” Reuters, March 24, 2023. https://www.reuters.com/world/us/victory-labor-unions-michigan-governor-repeals-right-to-work-law-2023-03-24/.
- Mauger, Craig. “Whitmer Visited Father on Plane Shared by Three Prominent Donors.” Detroit News, May 6, 2021. https://www.detroitnews.com/story/news/politics/2021/05/06/whitmer-visited-father-plane-shared-three-prominent-donors/4975601001/.
- Melinn, Kyle. “Why You Should (Maybe) Care about Whitmer’s Plane Flight.” Lansing City Pulse, May 20, 2021. https://www.lansingcitypulse.com/stories/why-you-should-maybe-care-about-whitmers-plane-flight,17117.
- Egan, Paul. “Whitmer’s Campaign Will Pay for Controversial Florida Flight.” Detroit Free Press, May 27, 2021. https://www.freep.com/story/news/politics/elections/2021/05/27/gretchen-whitmer-florida-trip-father-jet/7464928002/
- Oosting, Jonathan, and Sergio Martinez-Beltran. “Michigan Gov. Whitmer Draws Fire for out-of-State Trip before She Was Vaccinated.” Bridge Michigan, April 19, 2021. https://www.bridgemi.com/michigan-government/michigan-gov-whitmer-draws-fire-out-state-trip-she-was-vaccinated.
- “Whitmer’s Chief of Staff Takes Blame for Lack of ‘clarity’ on Florida Trip, Says Travel Fund Paid for It.” FOX 2 Detroit, May 15, 2021. https://www.fox2detroit.com/news/whitmers-chief-of-staff-takes-blame-for-lack-of-clarity-on-florida-trip.
- “Gov. Whitmer Apologizes for Social Distancing Blunder.” Associated Press, May 24, 2021. https://www.fox2detroit.com/news/gov-whitmer-apologizes-for-social-distancing-blunder.
- Eggert, David. “Whitmer’s Campaign Will Pay for Florida Flight to See Dad.” AP News, May 27, 2021. https://apnews.com/article/florida-business-health-coronavirus-pandemic-government-and-politics-4bb1079abedddc083ae28134b8f5e5dc.
- Barrett, Malachi. “Whitmer Cleared of Campaign Finance Allegations for Florida Flight, Big Donations.” mlive, December 21, 2021. https://www.mlive.com/public-interest/2021/12/whitmer-cleared-of-campaign-finance-allegations-for-florida-flight-big-donations.html.
- Keene, Houston. “Whitmer Transition Fund Paid for Her Private Jet to Attend Biden’s Inauguration: Report.” Fox News, May 21, 2021. https://www.foxnews.com/politics/gretchen-whitmer-private-jet-biden-inauguration.
- Egan, Paul. “No Penalty for Detroit Aviation Company That Flew Gov. Whitmer to Florida, FAA Says.” Detroit Free Press, August 16, 2021. https://www.freep.com/story/news/politics/2021/08/16/governor-gretchen-whitmer-florida-trip/8147565002/.
- “Michigan Transition 2019.” ProPublica Nonprofit Explorer, 2024. https://projects.propublica.org/nonprofits/organizations/832430496.
- [1] “Who Funded Gov. Whitmer’s Inauguration?” Michigan Campaign Finance Network, February 11, 2019. https://mcfn.org/node/7155/who-funded-gov-whitmers-inauguration.