Investigate and Dissolve The Michigan Crossroads Council

The 2012 consolidation of 9 Michigan Boy Scout councils in the Lower Peninsula and creation of the Michigan Crossroads Council (MCC) was intended to increase membership, deliver the Scouting program more efficiently, improve the program, and increase unit assistance. However, since 2012, total youth participation in the MCC declined by about 12,000. From 2014 through 2018, the total number of Scouts declined by about 9,000 and total adult participation declined by about 2,000 to 3,000. There are now far more paid employees in the MCC than in the former 9 councils. Over half of MCC revenue (59% in 2018) is spent on salaries and other employee compensation. The vast majority of unit leaders have not experienced improved program or improved assistance to their units from the MCC.

The MCC has sold 6 of 16 scout camps serving the Lower Peninsula of Michigan since the 2012 consolidation. The latest is Paul Bunyan Scout Reservation near Rose City, sold on August 12, 2019. Two more camps are currently for sale including Lost Lake Scout Reservation near Farwell and Silver Trails Scout Reservation near Jeddo. Three other camps are owned by Rotary Clubs and a Kiwanis Club. That leaves just 5 of the original 16 camps currently owned by the MCC, even though the stated purpose of the 2012 consolidation was not about selling camps.

In late May of 2019, rumor leaked that MCC signed a binding agreement to sell Silver Trails Scout Reservation to AMC Mid Michigan Materials for gravel mining. This will be, by far, the most destructive sale of any of the Michigan scout camps. The sale price is said to be $1.8 million dollars with the final sale pending gravel testing. Upon leak of the pending sale, MCC scrambled to issue media statements and hold informational hearings during which they attempted to explain why they suddenly decided to sell Silver Trails to a gravel company while failing to notify other interested parties. There are still many unanswered questions surrounding the sale, such as who the actual buyers and partners are. The sale of Silver Trails has clearly demonstrated the lack of basic communication and transparency in the MCC.

The financial condition of the MCC is unclear, but based on public information and an August 4 Detroit Free Press article, the council lost about $5.5 million dollars from 2013 through 2017, running a deficit of about $92,000 per month. The Free Press article states that MCC recently increased their line of credit with two banks to $8 million total. At the same time, MCC took in about $5 million dollars in camp sale revenue. There is conflicting information as to how this camp sale revenue is allocated. The MCC says that it is deposited in a capital fund for the maintenance and improvement of other camps. However, the Detroit Free Press article said that a portion of this revenue is being used to pay down debt.

Executive compensation in the MCC, and BSA in general, is exceedingly high for a non-profit organization. Based on the MCC 2017 Michigan tax return, executive compensation ranged from a low of about $139,000 to a high of about $225,000. Based on the MCC 2018 annual report, the council took in less than $15 million dollars in revenue, but spent over $15 million dollars. Of their total expense, 59% was spent just on employee compensation. The numbers are similar for previous years. To put this in perspective, the sale of Silver Trails Scout Reservation at $1.8 million dollars would provide MCC employee compensation for less than 3 months.

The financial situation of various camps is unclear because the public has not been able to review details, the accounting for camps is a complicated mix of material and program expenditures, and the MCC controls use of and investment in the camps. In the case of Silver Trails, the former Blue Water Council had an endowment fund of at least $1.5 million dollars, a portion of which was dedicated to Silver Trails. This fund was taken by the MCC upon consolidation in 2012 and co-mingled with other funds. The fund is never mentioned by the MCC when they talk about alleged financial deficits for Silver Trails. Whether all or a portion of the endowment fund was dedicated to Silver Trails is beside the point. Annual dividends from that fund could have been used to off-set the costs of running Silver Trails. MCC statements about the condition of buildings at Silver Trails have been exaggerated. All of the main buildings and other infrastructure are in good operating condition. The main lodge has a new metal roof and the kitchen is in current use.

The Friends of Silver Trails began circulating a survey recently seeking opinions on the functioning of MCC, the sale of Silver Trails and other Scout camps, and actions people are likely to take as a result. With about two-thirds of the respondents being current BSA members, the results are overwhelmingly clear. The vast majority of unit leaders have not experienced any improvement in unit service, membership, program, or participation that they can attribute to the MCC. Nearly all of those indicating any improvements attribute them to their own unit efforts. If anything, unit service is now worse than it was under the former councils and a clear majority of respondents, nearly 75%, favor returning to the original councils. A minority favor reorganization of the MCC, and only a few people favor leaving the MCC as it is. All but a few comments are very negative toward the sale of Silver Trails and other Michigan camps. While there is not a clear consensus on individual actions, almost all of the respondents intend to either stop donating to Friends of Scouting, stop buying fundraising products, limit use of MCC camps, or a combination of these actions. Only about 40% of current members are planning to re-register with the MCC in 2020.

The Friends of Silver Trails understands that there have been membership and financial difficulties in the Boy Scouts of America in recent years, and particularly in Michigan due to the economy. However, we believe that much of this difficulty has been created by the MCC itself and the failure of the consolidation plan. The MCC has had 7 years to prove itself, the last 4 or 5 years under favorable economic conditions. The MCC has failed to live up to the grand promises as set forth in the Area 2 Project and the 2012 consolidation. While we could perhaps understand selling a few camps, the huge sell-off by the MCC strikes most as a misguided attempt to prop up a failing organization, or worse, a disgusting effort to loot the assets before BSA goes under. Adding insult to injury is the lack of transparency, misinformation, and complete disregard for the many Scouts, Scouters, and other community members in the old councils where camps are being sold.

For these reasons and more, we hereby petition the national Boy Scouts of America to dissolve the Michigan Crossroads Council, allowing the current members and charter representatives to recreate the original 9 councils or otherwise reorganize the current Field Service Councils.

In addition, due to the mismanagement of MCC, misinformation, and potential conflicts of interest surrounding camp sales, we are also calling on the Michigan Attorney General to broaden its current investigation of the Michigan Crossroads Council and camp sales.