Retiree Pensions, Health Care Benefits Eyed in Education Funding Shortfall
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Cuts in retiree pensions and health care benefits are being eyed by the Michigan House of Representatives to "direct more resources directly into classrooms."
House Resolution 14, recently adopted, has retiree organizations and unions gravely concerned about the integrity of state obligations.
The resolution states: "Our school districts are facing the largest financial crisis since Proposal A was implemented in 1994. This is due in large part to rising labor costs, including health insurance and generous pension benefits. Despite increasing per-pupil funding, these school funding increases have been largely consumed by retiree and health care obligations."
The Republican stance is embraced by the wording of the resolution: "In an era when dollars are needed in the classroom to assure that each and every child in Michigan receives a world class education, new creative policies must be explored."
Educators have formed a "K-16 Coalition" that is promoting a rally in Lansing June 21. The coalition is backing legislation to provide minimum funding for public schools, intermediate school districts, community colleges and universities.
Two other bills introduced in the Michigan Senate, SB 55 and 56, also are a focus of education groups. The bills would end collective bargaining for health care benefits and establish a state health care insurance fundfor all state employees.
Vigorous opposition comes immediately from the Michigan Education Association (MEA), Michigan Association of Retired School Personnel (MARSP) and Sen. James A. Barcia, D-Bay City, among others.
"I do not believe that our problems with education funding are going to be solved by narrowly focusing on retirement and health care benefits that have been earned by teachers through the collective bargaining process and a lifetime of hard work," said Barcia. "That is why I am strongly opposed to SB 55 and 56."
The MEA says a state government takeover of school employee health care benefits "will drive experienced, tested and certified teachers from our local classrooms."
"The state currently runs another big health insurance fund -- Medicaid -- that is eating up a bigger share of the state budget each year and is nearly $1 billion under-funded," states the education organization. "SBs 55 and 56 could quickly put the state even further in the red. Getting the state out of the insurance business was one key reason why Governor Engler sold the Accident Fund workers' compensation insurance company in the early 1990s."
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