Charles R. Spies T 202.572.8663 F 202.572.8683 Email: cspies@clarkhill.

com

Clark Hill PLC 601 Pennsylvania Avenue NW North Building, Suite 1000 Washington, DC 20004 T 202.772.0909 F 202.772.0919

clarkhill.com

February 6, 2014 ATTENTION STATION MANAGER Re: Democratic Governors Association False Advertisement Against Rick Snyder

On behalf of Rick Snyder and Rick Snyder for Michigan, we write about a demonstrably false advertisement sponsored by the Democratic Governors Association (DGA) that is currently airing on your station. DGAs ad propagates maliciously false information to your viewing audience about Rick Snyders funding for education. The claims in the advertisement are false, and have no legitimate evidence to back them up. Because this is not a candidate advertisement, but instead sponsored by a third-party group, you have no obligation to air this advertisement. If you continue to grant access and air it, then your station bears responsibility for its content. For the sake of both FCC licensing requirements and the public interest, we request that your station immediately cease and desist airing this malicious attack ad. FALSE STATEMENT OF FACT DGAs ad falsely claims: Rick Snyder cut over $1 Billion from education. This statement is indisputably inaccurate and a deliberate attempt to deceive your viewers, and has already been summarily dismissed as false by numerous news and fact check organizations, including MLive, the Associated Press, and the Detroit Free Press. As recently as yesterday, February 5, MLive.com performed a fact check analysis on the DGAs claims, stating: All told, the state ended up spending $12.75 billion in school aid for fiscal year 2012, according to the [Senate Fiscal Agency]. That was down from $12.98 billion the year before under a budget approved before Snyder took office, a net drop of around $235 million, far short of the $1 billion figure that critics cite. Jonathan Oosting, Fact check: Did Michigan Gov. Rick Snyder cut $1 billion from education or add $660 per student?, MLIVE.COM, Feb. 5, 2014, available at http://www.mlive.com/politics/index.ssf/2014/02/fact_check_did_michigan_gov_ri.html (Exhibit A).

February 6, 2014 Page 2 This past Saturday, February 1, the Associated Press refuted the DGAs allegations, stating: To combat Democrats allegations that he cut education funding, Snyder's ad says it is up under his watch. That is true. The state's K-12 spending, not including federal cash, has increased every year of his term. David Eggert, AdWatch: Snyder claims 'comeback kid' moniker, AP, Feb. 1, 2014, available at http://m.apnews.com/ap/db_268748/contentdetail.htm?contentguid=ZmUWkSpn (Exhibit B) On Sunday, February 2, the Detroit Free Press also combated the DGAs education claims, maintaining: Did Snyder cut $1 billion from K-12 education, as many critics claim? The answer is no, state records show. State funding for K-12 schools has increased by $723 million under Snyder, from $10.7 billion in fiscal year 2011 the last budget of former Gov. Jennifer Granholm to $11.4 billion in fiscal year 2014. . The story of the $1-billion cut dates to Snyders first budget, presented in 2011 for the 2012 fiscal year. But even the charge that Snyder cut $1 billion from schools in his first budget doesnt stand up to scrutiny. Paul Egan, Analysis: More money for Michigan's schools, but not for its classrooms, DETROIT FREE PRESS, Feb. 2, 2014, available at http://www.freep.com/article/20140202/OPINION05/302020053/michigan-schools-fundingrick-snyder-cuts-education-students-kids-budget (Exhibit C) In reality, since Rick Snyder took office in January of 2011, he has increased state funding for education by $800 Million. If the DGA had performed even minimal research, it would have learned that state funding for education has increased every year of Rick Snyders term as governor. The Senate Fiscal Agencys chart documenting the states school aid funding history makes patently clear that state funding for education has increased since January 1, 2011, the date Rick Snyder assumed office. See Senate Fiscal Agency, School Aid Funding History,

February 6, 2014 Page 3 available at http://www.senate.michigan.gov/sfa/Departments/FundHistory/FHk12_web.pdf (Exhibit D). This is precisely why MLive, the AP, and the Detroit Free Press have all debunked the DGAs bogus claim that Rick Snyder cut over $1 Billion from education. It is difficult to determine what source the DGA is relying on to support its spurious accusation because it fails to present any on-screen citation whatsoever. However, if prior DGA ads are any indication, it is possible the DGA is relying on a Senate Fiscal Agency bill analysis on FY 2011-12 school and budget appropriations that it provided as backup to its previous baseless attack on Rick Snyder. If this is the case, the DGAs so-called backup does nothing but refute its own claims. In fact, the Senate Fiscal Agencys bill analysis makes clear that any reduction in school funding that would have resulted in over $1 Billion in cuts to education were a direct result of the expiration of federal funds received under the federal stimulus and Federal Education Jobs Fund programs. As Governor, Rick Snyder had no control over the federal governments allocation of federal funds to the state under these programs, and he certainly did not have the ability to cut such funds. The allocation was entirely a product of federal law. As MLive makes clear, [i]n 2010-11, the school aid budget was bolstered by $184.3 million in federal stimulus funds and a $316.3 million federal education job grant, neither of which were available for Snyder's first budget. MLive article (Exhibit A). MLive determined: Bottom line: Snyder's first budget did cut school aid gross appropriations, but the spending reduction was much smaller than critics make it out to be and coincided with the loss of significant federal funds. Id. If the DGA is so concerned with the states decrease in education funding from the federal government, perhaps it should take its case to President Obama or its allies in Congress. Or, it should have pressured its favored gubernatorial candidate, Mark Schauer, to halt the expiration of federal education aid to Michigan while he was a Member of Congress and the reduction happened on his watch. What the DGA cannot do, however, is spread falsehoods about Rick Snyder to your viewing audience that he cut over $1 Billion from education when it has been exposed as an outright, indefensible lie by so many news and fact check organizations. The DGA has not provided a shred of legitimate evidence to support its allegation that Rick Snyder cut $1 Billion from education. The DGA would rather spread lies about Snyders record and trick Michigan citizens into believing blatant falsehoods than legitimately informing them about real issues or true policy stances. Your viewers deserve better. FCC OBLIGATIONS Importantly, this attack by DGA does not constitute a candidate use. Under Columbia Broadcasting Sys., Inc. v. Democratic Nat'l Comm., 412 U.S. 94 (1973), and Natl Conservative Political Action Comm., 89 FCC 2d 626 (1982), your network is not obligated to air any advertisements from third parties, such as DGA, as third parties have no guaranteed right of access to air their advertisements on your network. Thus, broadcasting stations are not protected

February 6, 2014 Page 4 from legal liability for airing a false and misleading advertisement sponsored by DGA. Moreover, you have a duty to protect the public from false, misleading or deceptive advertising. Licensee Responsibility With Respect to the Broadcast of False, Misleading or Deceptive Advertising, 74 F.C.C.2d 623 (1961). Failure to prevent the airing of false and misleading advertising may be probative of an underlying abdication of licensee responsibility. Cosmopolitan Broad. Corp. v. FCC, 581 F.2d 917, 927 (D.C. Cir. 1978). Michigan voters deserve to cast their vote knowing the truth about their candidates, and DGAs ad is a willful and knowing attempt to reinvent the truth. We urge you to recognize DGAs blatant disregard for the truth and we respectfully demand that your network refuse to air this false and misleading ad. We further request that you reject any attempts by DGA to purchase time for the future airing of this ad because of its material misstatements of fact and blatant disregard for the truth. Thank you in advance for your prompt attention to this matter. We would respectfully request the courtesy of a reply; and if you have questions, or believe that this ad is somehow fit for airing on your station, we ask that we have an opportunity to, as soon as possible, discuss this matter further. We can be reached directly at (202) 772-0915.

Sincerely,

Charles R. Spies James E. Tyrrell III Counsel to Rick Snyder for Michigan

Enc.

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