Michigan has 4.5 million individual taxpayers, and the state gave the film studio $39.7 million to shoot the movie in Pontiac. That works out to a subsidy of $8.82 per taxpayer while average ticket prices nationwide are $7.96.

The subsidy was granted in 2010 when the program refunded up to 42 percent of Michigan expenses to film makers — essentially a check from the treasury to Hollywood studios. The program expired, but the Legislature, dominated by Republicans, overwhelmingly decided to keep it around.

As part of the financing process, the filmmakers wanted to borrow about about $18 million in municipal bonds. In order order to do that, they needed a backer. So the state stepped in, and agreed to use its state worker pension funds as a guarantee. "If the investors failed to pay," the New York Times reported in a piece on the deal last December, "the retirees would be on the hook."

Michigan Motion Pictures Studios, which is being celebrated in the local media for having made the movie, "Oz The Great and Powerful," in Pontiac, has missed its last three payments on $18 million in bond obligations...

According to state officials, the state retirement system has made three payments since February of last year totaling $1.68 million.

In March 2012, Raleigh Studio's then-chief financial officer Steve Lemberg blamed the studio’s financial struggles on the film tax credit being reduced.

The state reduced the tax credit from $100 million when the studio was being built in 2011 to $50 million last year. Gov. Rick Snyder has $25 million budgeted for tax credits this year.

The city of Allen Park recently requested an emergency manager after losing what will turn out to be tens of millions of dollars on a failed movie studio project that promised to create 3,000 jobs. It created none and left the town nearly bankrupt.

Within two months, 24 movies had signed up to film in Michigan — up from two the entire year before. The productions estimated that they would spend $195 million filming there, and in return they would be refunded about $70 million in cash.

Before long, residents were rushing out on their lunch breaks to catch a glimpse of celebrities like Drew Barrymore, who was filming her movie “Whip It” in Ann Arbor, and Clint Eastwood, who was shooting “Gran Torino” in the Detroit area. Even Michael Moore, who was filming a movie about corporate welfare called “Capitalism: A Love Story,” sought and received incentives.

Ms. Granholm declared the city in a financial crisis in February 2009 and appointed an emergency manager, Fred Leeb. The city’s budget was $54 million a year, but it was overspending by an estimated $7 million to $12 million. Pontiac was also still weighted down by old incentives it had given to businesses like G.M.

The movie studio was an added challenge, since it was seeking financial incentives from the city — not to mention from other branches of the government. It won redevelopment tax credits from the federal government and separate aid from the state that included incentives for technology companies that hire residents.

Job creation became a point of contention with beleaguered Pontiac, which was being asked to waive virtually all property taxes for the studio. The investors claimed that thousands of people would be employed, but Mr. Leeb said that when he asked for job numbers to be written into the contract, the investors refused. “We started seeing some backpedaling,” said Mr. Leeb, who added that the negotiations featured “knock-down, drag-out fights.”

Over the objections of some local officials, the state agreed to use the state workers’ pension funds to guarantee the bonds. If the investors failed to pay, the retirees would be on the hook.

The studio had created only 200 positions by the summer of 2011, according to correspondence between the company and local officials. And when temporary construction workers were excluded from the tally, Pontiac’s records show, the studio reported only two employees in 2010 and 12 the next year.

The city later had problems collecting some of the taxes because Disney operated through a separate business entity that was difficult to track down, he said.

“This is a glamorous industry if you want to talk about Hollywood, but it’s not very glamorous for the municipality that wants to collect something,” Mr. Schimmel said. Pontiac, he said, was outgunned.

Disney declined to comment.

When the bill for the studio’s bond interest came due in February this year, it paid only a portion, $210,000. The state pension fund had to pick up the remaining $420,000....

In August, the studio defaulted on the entire $630,000 payment on the bond, despite a decision by Mr. Snyder to temporarily allocate some film incentives.

The United States, over time, became a global superpower with its hard work and know-how leading to innovations in new manufacturing, health care and information technologies. Now China is trying to use cyber espionage and theft to take a short cut to achieving superpower status.

It began with China stealing hard-copy business plans and sensitive research-and-development information from U.S. and other Western companies when their executives traveled to China. U.S. companies soon began noticing a surge in counterfeit products as their innovations were being stolen, re-engineered, and sold by Chinese companies on global markets.

With the Internet boom, China turned its focus to cyber espionage and began stealing the hard work and innovations of U.S. companies on a far larger scale.

Rogers should be careful—if he says 'China' any more times, Fu Manchu might appear in the mirror and drain his 401(k). Once he's got the reader good and scared of the Yellow Menace (having thrown in a few emotional appeals to hardworking Michigan autoworkers for good measure), he explains how CISPA is needed to take care of all those annoying regulations that limit government power and protect people's privacy:

Unfortunately, American companies are not getting the best protection available.Today, the U.S. government has intelligence information about the threat posed by nation-state actors that could help the American private sector better protect itself. However, we don't currently have a mechanism for allowing the government to share intelligence about cyber threats with the private sector, nor do we have the ability for private sector companies to share information with others in the private sector, and with the government on a voluntary basis, so that the private sector can better protect itself.

And you know what? That's fine. Even though there is a lot of debate about the true scope of foreign cyber threats, if there is a way for the government and the private sector to share anonymous network analysis data in order to improve technological defenses against hacking and malware attacks, it makes sense to legislate a mechanism for them to do so. Unfortunately, CISPA goes way beyond that—now explicitly so.

This goes back to my opinion when CISPA was amended and passed in the House: my initial reaction that it had gotten much worse was partially incorrect, but even though the amendments did technically limit the government's power under the bill, I still had (and have) a problem with the way they expanded the stated intent and purpose. From the very start, CISPA supporters have insisted (as Rogers does in this column) that it's basically all about technical considerations in fighting off foreign cyber attacks. Initially, privacy and civil liberties groups objected that it would allow the government to do much more, including accessing the private data of American citizens without a warrant—and the response was basically "no, no, it has nothing to do with that".

Right up to the last minute of debate before the House vote, CISPA's backers held to the talking points and expounded on the threat from China and the need to share technical network data. But, to appease privacy groups, they supported an amendment to limit the ways the government could use shared data under the bill to a set of explicit purposes. And what were those purposes? Far from just foreign threats, they include investigating domestic cybercrime, investigating domestic violent crime, protecting children from exploitation, and of course the catch-all "national security" that was already in the language.

It feels trite to add the obligatory preventing violence and protecting children is a good thing here, because d'uh, but when exactly did CISPA become a bill about these things? If the government wants new exceptions to privacy laws for the purposes of fighting crime, that's a major discussion with obvious constitutional implications—a discussion that privacy groups have been trying to start all along, but have been brushed off with claims that CISPA is just about rebuffing those devious foreigners. Now CISPA explicitly includes provisions for collecting evidence on domestic crime, but Rogers is still writing editorials like this one that don't mention anything to do with child exploitation, violent crime, or anything else that doesn't have the word China attached to it.

Rogers finishes the piece with a rather astonishing little rallying call:

It took Michigan's auto industry decades to achieve its prominence and the United States centuries to become a global superpower. We cannot let China steal it all away in a few short years.

I'm not sure how long it's been since Rogers visited Flint, but I think it's changed a little since he was last there. Nonetheless, the point is clear: if the government can't snoop your data for child porn and affiliations with Anonymous, the Chinese are going to start manufacturing American cars and destroy the Michigan auto industry, in turn toppling the U.S. as an economic superpower. Wait, did I say "clear"?

A US Department of Justice test of the CelleBrite UFED used by Michigan police found the device could grab all of the photos and video off of an iPhone within one-and-a-half minutes. The device works with 3000 different phone models and can even defeat password protections.

"Complete extraction of existing, hidden, and deleted phone data, including call history, text messages, contacts, images, and geotags," a CelleBrite brochure explains regarding the device's capabilities. "The Physical Analyzer allows visualization of both existing and deleted locations on Google Earth. In addition, location information from GPS devices and image geotags can be mapped on Google Maps."

"I mainly just wanted to stimulate discussion," he told me. "I didn't think the bill would be likely to pass, but I thought I'd put it out there and if there was any support from your profession, we'd move forward. Heck, I thought it might be helpful to legitimate journalists," he said.

Indeed, he made some valid points. "There are fewer legitimate reporters who cover the legislature all the time. I see stuff being written by people I never heard of, and I don't know whether they have any credentials.

"You have bloggers and editorial writers who write about what we are doing who never come up here and have no idea what's going on. If I need a plumber, I want one who has credentials and who is licensed by the state."

At about 30 inches high, it's half the size of the original and has a different face and other distinct features, including larger breasts. "We've gotten a lot of heat about that too," he says

Psychologists have long known that people tend to overestimate the odds of rare events. Applying that behavioral insight, finance professor Peter Tufano of Harvard Business School has devised a clever program called "Save to Win." Launched earlier this year for members of eight credit unions in Michigan, it is a cross between a certificate of deposit and a raffle ticket. Members who put $25 or more into a Save to Win one-year CD are entered into a monthly "savings raffle" for prizes up to $400, plus one annual drawing for a $100,000 jackpot.

These are somewhat puzzling concerns to raise at all given that Google has historically been absolutely obsessive about improving the quality of its search results and archiving useful data. But it also ignores a more fundamental point: Michigan, and Google's other library projects, aren't granting Google exclusive access to anything. Under the terms of the Google-Michigan agreement, Google returns each book after scanning it, and Michigan is free to sign up with other scanning projects, including Google's competitors. It's true that Michigan has agreed not to share the Google-created digital files with others. But the important point here is that those files wouldn't exist at all if not for the agreement. It would hardly be reasonable to expect Google to spend tens of millions of dollars to create digital files that would immediately be available to Google's competitors.

In short, Google is anything but a monopoly. There are already competing book-scanning efforts under way, and if Google's project is a success we can expect more such efforts to be launched in the future. And because Google isn't a monopoly, it doesn't make sense for universities to treat it like one by trying to micromanage every aspect of the service it ultimately offers. In the unlikely event that Google Book Search turns out to be a lousy product, consumers will punish Google by switching to the competing offerings of Microsoft, Yahoo, or others. It's pointless to try to force Google to produce a high-quality product when its competitors already give it plenty of reasons to do so.

Vaidhyanathan also characterizes the Michigan scanning program as "massive corporate welfare," but this, again, doesn't make a lot of sense. The vast majority of the books Google is scanning spend most of their time sitting on shelves unread. In principle, Google is no different from any other library patron: it checks out books, reads them, and returns them. The only difference is that it's doing it on a much larger scale than a normal library patron would. But there's no evidence that Michigan has been playing favorites. If another company approaches Michigan seeking to scan its books on the same terms, and is turned down, then people would have strong grounds for criticism. But that doesn't appear to have happened. Google's just made the best offer so far. The "corporate welfare" label just doesn't fit.