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.