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Update

Posted on 04/18/12 at 1:37pm

Pontiac may lose state aid for failing to reduce debt

Even after two rounds of staff layoffs—the most recent on April 13—the Pontiac school district still hasn’t reduced enough of its $24 million deficit to receive its April 20 state aid payment.
The move by the Michigan Department of Education, who is overseeing the progress of the district’s deficit elimination plan, has questions about the district’s progress.  Not only does the district stand to lose $1.25 million in state aid this Friday, future aid payments will also be withheld.
Forty teachers were laid off last Friday with only two days notice. Substitutes were hired to cover those classes.
Walter Burt, Pontiac’s interim superintendent, is looking to staff to bear the brunt of the deficit elimination plan since they are the most costly. However, mismanagement of funds by the administration is the reason the district is so deeply in debt.

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Court of Appeals will make final ruling on immediate effect lawsuit

Posted on 04/10/12 at 1:16pm

In the next phase of the continuing House battle over the immediate effect of recent legislation, the Court of Appeals issued a stay on an Ingham Circuit Court decision ordering House Republicans to stop ignoring Democrats’ demands for roll call votes on immediate effect.

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Challenges to PA 4 repeal based on technicalities

Posted on 04/10/12 at 1:18pm

Just before yesterday's 5 p.m. deadline to challenge PA 4 repeal petitions, the Citizens for Fiscal Responsibility criticized the drive on technical issues. PA 4 allows the appointment of an emergency manager to municipalities and school districts when a financial emergency exists.

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Senators get an earful on SB 1040

Posted on 04/12/12 at 3:57pm

The Senate Appropriations Retirement Subcommittee heard six hours of testimony yesterday on SB 1040 from a variety of people—current school employees, retired teachers,  community college employees, a student teacher, and a concerned parent. 

Different people—same message: “SB 1040 isn’t fair.” 

SB 1040 is the most sweeping attack on school employee retirement benefits in history. It breaks promises made to both current and active retirees, while discouraging the best and the brightest from ever entering the profession. The proposed legislation continues the 3 percent employee contribution to retiree health care and further increases out-of-pocket contributions to a total of 8 to 11 percent of salary. And current employees would have to be 60 years old before they could receive any health care benefits. Retirees would see an increase in their health care premiums.  

Nevertheless, members of the Subcommittee are convinced SB 1040 is the solution to rising retirement costs for school districts, the Michigan Public School Retirement System’s $45.2 billion unfunded liability and the sustainability of the current system. And in front of hundreds of concerned school employees and retirees gathered in the hearing room, Subcommittee Chairman Mark Jensen boldly said, “We ‘re not out to get anyone. We just want to make sure we can uphold those promises.” 

It was clear from those who testified, they certainly felt like targets. 

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CSR defends middle class in SB 1040 opposition

Posted on 04/12/12 at 4:05pm

Prior to the Senate Appropriations Retirement Subcommittee’s day-long hearing on SB 1040, the Coalition for Secure Retirement-Michigan (CSR) held a news conference denouncing the legislation for “undermining the retirement security of current and future school retirees and dramatically increasing employee contributions.” MEA is a member of CSR, which represents active and retired school employees, corrections employees and nurses—the middle class.

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