Company Run By Budget Director’s Brother Outbid For $5 million State Grant

Nov 22, 2013

A firm run by the brother of Michigan’s budget director will not get a $5 million grant from the state.

As The Michigan Public Radio Network’s Jake Neher reports, the decision comes after accusations of a conflict of interest.

Budget Director John Nixon’s brother is the CEO of the tech firm iSchool Campus. The company recently lobbied lawmakers to add the school technology grant to the state budget.  But the Michigan Department of Education says the grant will go to the Genesee Intermediate School District.

Bill DiSessa is an MDE spokesperson. He says the district was one of three organizations that outbid Nixon’s brother’s firm.

“There were some competitive bids,” he says.  “And as it turns out, this particular bid did not end up, point-wise, near the top.”

State Superintendent Mike Flanagan says he reviewed the connection between the bid and John Nixon. He says he was satisfied that the process was conducted properly.