From the start of my petition drive, I planned on paying circulators, but I planned to run the operation myself (with paid staff) rather than contracting with a signature-gathering firm. (Later, I decided that I'd have better luck attracting financial backers if I used professionals.) My approach to the project was different from how the professionals do it. I planned to do everything by mail. Circulators would be recruited using a form on my website. Packages of petition forms would be mailed along with instructions and a postage-paid return envelope. When the package was returned, the signatures would be verified using a copy of the Qualified Voter File and checks would be mailed to the circulators, paying only for valid signatures. The advantage to my system was that anybody anywhere in the state could be a circulator, and they'd never have to travel to an office. Also, interference from initiative opponents - unions, in this instance - would be less if circulators were not concentrated around a few cities and could not be observed entering or leaving our office. And only one office, or processing center, would be needed, and its location could be anywhere.

Here was my system design:

We will need a computer system to do several things for us:

• keep track of the number of signatures we’ve gathered for each initiative (so we know when we are done)

• verify that petition signers are registered in the county named at the top of the petition

• keep track of the number of valid signatures each circulator has gathered so we can write paychecks

• accumulate payment information so at the end of the year, we can send 1099s to those who earn $600 or more

• keep track of processed petition forms so stored forms can be retrieved if questions arise

We have obtained from the state Bureau of Elections a copy of the Qualified Voter File (QVF). It has over 6 million voter records. We plan to use it to verify that our circulators are registered in Michigan and that petition signers are registered in the county named at the top of the petition. We might also use it to provide walking lists to our circulators. A walking list is a list of registered voters on a specified street, in house number order. The QVF file is updated once a month. Each copy costs $22.50.

Recruiting circulators, sending initial package. We will begin signing up circulators a month or so before April 15. They will contact the Committee by phone or email or by sending a request using a form on our website. After checking the QVF to make sure the person is a registered voter, our staff will send them a package that includes petition forms, instructions, a form to collect the circulator’s social security number (if he or she desires to be paid) along with bank information should the circulator choose direct deposit, and an envelope for returning the petitions to us, with postage paid by the Committee.

The person sending the package will enter into our computer system the following information: 

• Circulator name and address

• Date the package was sent

The return envelope will have our address and USPS Business Reply Mail information printed on it.

A postage sticker for the package will be printed with the Stamps.com program, based on weight calculated by a digital scale plugged into our computer. 

Processing payment forms. The first package of petitions received from a circulator should include his payment form with his social security number and direct deposit information. A staff person will look up the circulator in our system and enter the following information:

• No pay indicator (circulator asks not to be paid)

• SSN

• Bank number

• Bank account number

The form is then scanned and the image file is saved using the circulator number as filename.

Processing petitions. To each petition, a staff person will affix the date received and a petition number. Petition numbers could be on tiny sticky labels printed by the computer with a serial number generating program.

The petition is then reviewed, looking for problems that would invalidate the entire petition, such as no circulator signature. If the petition is OK, the staff person will review the individual signatures for problems.  (We have a document from Secretary of State that tells which irregularities are acceptable and which are not.) The Qualified Voter File is checked to make sure each signer is registered in the county, and if he is, a transaction is done to record the petition number, initiative code and signature date to this voter's record in the QVF file (our version, that is). This is done so that if the voter signs the same petition again, the signature will be rejected and the circulator won't get credit. 

A line is drawn through each invalid signature. For each reviewed petition, the staff person will enter into the system the following information:  

• Petition number

• Circulator number (obtained from our system by searching the circulator file using the circulator’s name)

• County code (01-83)

• Initiative code (1-4)

• Invalid petition indicator (Y or N)

• Invalid petition reason code

• Number of good signatures

• Number of bad (removed) signatures

• Date signed by circulator

• Earliest signature date

• Date received

When the transaction is complete, the petition is scanned and the file is saved using the petition number as the file number.

When all the petitions submitted by a circulator have been processed, a new package is sent to replenish his supply. (Circulators will be informed in the initial instructions that they will be sent another batch of blank petitions when they submit completed ones, so if that’s not what they want, they should include a note.)

Paying circulators. Every day that petitions are processed, a payroll file will be produced from our computer system and transmitted to a payroll services provider, who will print and mail checks to circulators. At the end of the year, 1099 forms will be sent to circulators and the required IRS reports will be submitted.

We even had a budget:

1.    Paying circulators..................................................... $1,060,000

2.    Assembling packages........................................................ 3,136

3.    Initial circulator setup.......................................................... 800

4.    Processing payment forms.................................................... 800

5.    Processing petitions....................................................... 848,000

6.    Postage........................................................................ 14,136

7.    Printing petitions............................................................ 10,600

8.    Creating computer systems................................................ 4,000

9.    Payroll processing........................................................... 25,000

10. Office rent (8 months at $2000 per month)......................... 16,000

11. Computer rental, other office equipment and supplies............. 4,000

12. Banking services.............................................................. 3,000

13. Project management...................................................__100,000
                                                                             $2,089,472

Budget Notes:

1.	Paying circulators. Two of our 3 initiatives are amendments to the constitution, requiring 322,609 signatures - 10% of voters who voted for governor candidates in the 2010 general election. The other is a legislative initiative, requiring 258,088 signatures (8%). Assuming some invalid signatures will slip by our petition reviewers, we will shoot for 380,000 for each of the constitutional amendments and 300,000 for the legislative initiative. We will pay $1 per signature.
2.	Assembling packages. The package we send to circulators will contain 15 copies of each petition plus an instruction sheet, a circulator payment form for tax reporting and direct deposit, and a return envelope. Each petition has 15 signature lines; we’ll assume 10 valid signatures per petition, so 45 (3 x 15) petitions will get us 450 signatures. 1,060,000/450 = 2356 packages. 2356 x 5 minutes = 11,780/60 = 196 hours @ $16 per hour = $3136.
3.	Initial circulator setup. Number of circulators: 4 signers per hour = 12 signatures per hour. 15 hours per week (average) per circulator. 15 x 12 = 180 signatures per week per circulator. Six months x 4 weeks per month = 24 weeks. 24 weeks x 180 = 4320 signatures per circulator over 6 months. 1,060,000/4320 = 245 (we’ll say 300). Verifying to be registered voter, assigning circulator number, entering name and address into system, printing and affixing mailing label. 300 circulators x 10 minutes = 3000/60 = 50 hours @ $16 per hour = $800.
4.	Processing circulator payment information received with first returned petitions. Entering SSN and direct deposit info into system, scanning form and saving file with circulator number as filename, filing form. 300 circulators x 10 minutes = 3000/60 = 50 hours @ $16 per hour = $800.
5.	Processing petitions. Each petition has 15 signature lines. Assuming an average of 10 signatures per petition, 106,000 petitions would be needed to collect 1,060,000 signatures. Assigning petition number and putting that and the circulator number on each petition; checking for signature errors; verifying with QVF file that each of 10 signers is registered in the county, entering initiative code, petition number and date into QVF file; entering petition data into system (petition number, circulator number, county code, initiative code, invalid petition indicator, invalid petition reason code, number of good signatures, number of bad (removed) signatures, date signed by circulator, earliest signature date, date received); scanning petition and saving file with petition number as file name, filing petition. 106,000 petitions x 30 minutes = 3,180,000 minutes/60 = 53,000 hours @ $16 per hour = $848,000.
6.	Postage. We will send packages to our circulators that contain 15 copies of each petition form, which would be 45 8.5" x 14" single sheets. The package will also include an instruction sheet, a circulator payment form, and a return envelope. Estimated weight is 12 ounces. Figuring that each of the 45 returned petitions will give us 10 valid signatures, each returned package will give us 450 signatures. We need a total of 1,060,000 signatures. 1,060,000 divided by 450 is 2356, so we will send and receive 2356 packages. Postage each way is about $3, or $6 total. 24 times 2356 is $14,136. Note: Weight limit for first class, large envelope, is 13 ounces. Postage for between 12 and 13 ounces is $2.92.
7.	Printing petitions. Each petition has 15 signature lines. Assuming an average of 10 signatures per petition, 106,000 petitions would be needed to collect 1,060,000 signatures. Estimating paper and printing cost at $.10 per sheet, the total is $10,600.
8.	Creating computer systems. Two systems would be required, one for keeping track of donations and expenses so they can be reported to the Secretary of State and another for managing the petition drive. At this time, we are using a computer program provided by the Secretary of State for reporting campaign donations and expenses, but we may need something more sophisticated to deal with a project this big. The other system is needed to verify that petition signers are registered and to keep track of the number of signatures gathered by each circulator so that paychecks can be written and overall progress can be monitored.
13.	Project management. One full time manager for 8 months.

Note: Our largest expenses above are for petition circulators and office staff, and our estimates are based on the pessimistic assumption that all of them will have to be paid. Actually, we expect that we will have plenty of volunteers, and that will cut our costs considerably.