Legislators Cut Teacher Benefits in What Moss Calls 'Historic' Bill
Newly hired Michigan public school employees would pay more for their pensions and lose state-funded health care during retirement under a bill headed to Gov. Rick Snyder for approval.
Newly-hired public school employees in Michigan would pay more for their pensions and lose state-funded health care in retirement under a new bill headed to Gov. Rick Snyder for approval.
Sponsors of Senate Bill 1040, which was approved last Wednesday in the Republican-controlled Michigan House, said it will save school districts an estimated $300 million annually and trim $15 billion in legacy debt, according to The Detroit News.
The bill, which reforms the Michigan Public Schools Employees' Retirement System (MPSERS), eliminates long-term pension and health care liability for Michigan's public schools.
MPSERS, a statewide defined-benefit plan for employees, has liabilities currently totaling more than $48 billion — all of which schools must pay.
"This is truly a historic day for Michigan students, our public schools and thousands of public school retirees who are relying on a viable retirement system," said State Rep. Chuck Moss (R-Birmingham) in a release.
"We can finally say, after years and years of talk and inaction, after years of debate and analysis, that we've found a solution to the biggest challenge facing Michigan public schools," he added.
If the bill is signed into law, employees hired after Sept. 4 would pay $2,000 into a health care account, plus a matching contribution of up to 2 percent of their pay toward a 401(k)-type account.
The Bloomfield Hills Schools recently reached a new three-year pact with the the Bloomfield Hills Education Association that is expected to save roughly $2 million over the next two years. Much of those savings are anticipated through changes in health care benefits where teachers will now share a greater financial responsibility for through the establishment of health-savings accounts.
Of Interest:
- OPINION: BHS Teacher Contracts Don't Show Much Fiscal Restraint
- BHS Considers Wellness Center For Employees
According to Moss's office, Michigan schools have been expected to pay more and more into the state retirement system since 1994. Then, schools paid 5 percent of their payroll into the retirement system. Now schools spend up to 27 percent of their payroll on retirements costs, with payments expected to jump as high as 35 percent in coming years.
"The legislature has finally dealt with the unfunded pension bomb that has haunted Michigan public schools for years," Moss said. "We're capping our liabilities and paying down the debt while providing retirees with a fair and sustainable benefit program for their future."
Michigan Democrats see the bill differently.
"Attacking teachers this way is just another assault on our students who are already suffering mightily from the budget cuts imposed by the governor and the Republicans in the last two budgets," state Rep. Ellen Cogen Lipton, D-Huntington Woods, responded Thursday in a press release.
Rob Lawrence, a Birmingham school board member who campaigned about unfunded liabilities of the Teachers Pension Fund while campaigning for state representative in Aug. 7 primary, said the bill is a good step but far from changing "the fact that the plan will remain significantly under funded."
"While lawmakers will proclaim a great feat has been accomplished, no one will be fully satisfied with this result," Lawrence added. "People will speak of fairness, promises, and support for schools. In reality the system has been broken for many years, but it was convenient to ignore the problem."
Patch Editor Art Aisner contributed to this report.
Linda P
3:48 pm on Tuesday, August 21, 2012
No Doubt the BHSD will find some innovative way to blow these savings and give them away in carefully crafted new benefits a la the new medical clinic.
rob dehko
8:47 am on Wednesday, August 22, 2012
Anyone who thinks this is good is as smart as a monkey, teachers make no money, man i can not understand anyone who would want to become a teacher, all they do is get cut, cut, cut
Linda P
7:07 am on Thursday, August 23, 2012
Yea, Rob just like all other private sector employees. Teachers live in the real world
Ike the rest of us not some glass bubble.
Linda P
11:33 pm on Thursday, August 23, 2012
People who are underemployed or unemployed wold love to be a teacher. You have lost sight of what a good job is.
Sue Bernstein
8:48 am on Wednesday, August 22, 2012
I have a great idea! Let's take away all health care benefits for all Oakland County Commissioners and all state politicians (you know-the ones that are in office for a few years and get health care benefits forever!! )In addition, we need to get rid of one of the state houses and make the other part time with pay and benefits actually commensurate with the work they do for us.
Jenny Greenwell
9:54 am on Wednesday, August 22, 2012
Good point. If you ran for Commissioner, I'd be happy to vote for you! I wonder when the state legislature will address your concerns? Legacy costs are killing us!
Nancy Jo Brown
10:51 am on Wednesday, August 22, 2012
Our teachers are very well paid and have great benifits. How many of our Bloomfield residents, the payers of property tax, would love to A. have a job; B. have a job with any benifits; C. have a pension of any kind. This is no longer the 90's. We have run out of money.
Linda P
7:08 am on Thursday, August 23, 2012
Yeah, Nancy and Sue right on!
Rod Myers
11:52 am on Wednesday, August 22, 2012
Do away with defined benefit pensions and free health care for life after retirement. It's a noose around the taxpayer's neck. Each retiree will receive a million or more in benefits. Do the math. People are living longer (a good thing) and therefore sucking more out of the system and taxpayer (a bad thing). Meanwhile our schools crumble and basic services are being cut back. Look no further than what's going on in California.
R Gibson
12:53 pm on Wednesday, August 22, 2012
Who exactly do you want teaching your kids? There is an old saying; "you get what you pay for". Yes we need to get rid of tenure, yes we need to get rid of bad teachers, yes teachers should have to work 30 years to get the full set of benefits, yes the MEA has done us all, teachers included, many disservices. Yes the State Government under the democrats and the MEA saw this problem coming and for decades did not do a darn thing about it. I think you will be hard pressed to keep and attract good and qualified teachers while slashing their pay, cutting their benefits, insisting that they do more and more with less and less. Policeman, Fireman, and Teachers perform a unique and unmatched service in our community. It takes a rare person to make a good and effective teacher. I should know, I am married to one. I see what she goes through on a daily basis. The miserable Principals she has to endure, the board of education that is for the most part clueless, the parents who believe their little angel is perfect in every way, the administration that could not find a coherent thought if their life depended on it, the outrageous spending that does on in the central office on things like computer equipment and software. Don’t think for a moment that the only real cost is all due to the teachers. There is waste beyond belief in every school district. And they may not be as openly corrupt as the city of Detroit, but the wast that goes on is none the less egregious.
Ken Jackson
1:22 pm on Wednesday, August 22, 2012
Mr. Gibson,
I couldn't agree more. But I think you are (perhaps in frustration) missing a rather disturbing point. You seem to assume that most are interested in your leading question. Many are certainly. But there are increasingly many who could care less. They see public education and teachers, in particular, as the cause of all economic problems and would be happy to have public education -- not reformed, as you suggest -- but done away with. Please note one of the above posts which seems to suggest most residents of Bloomfield, Michigan would change economic positions with public school teachers. We live in strange times. Unfortunately, Mr. Moss -- based on his voting record -- is one who thinks his job is to end public education. I am quite curious to hear from his Republican successor and hope that Mr. Moss finds profitable work in the private sector.
Rod Myers
1:26 pm on Wednesday, August 22, 2012
Pensions and free healthcare paid for life in retirement create legacy costs that are impossible to calculate, especially with all the "spiking" that goes on. Virtually all "middle class" folks don't have this benefit which is draining city coffers. Even the New York Times is coming around to this fact since it's squeezing out other liberal causes. People sipping iced tea on the beach isn't a great use of taxpayer dollars. I say put everyone on SS and see what happens.
R Gibson
1:36 pm on Wednesday, August 22, 2012
Ken, You bring up an interesting point that I had not considered. I foolishly thought that we care about our kids education. It had not occured to me that we would not. I agree that many like Moss, believe that teachers are the cause of all of Michigan's problems and that if we just got rid of all these evil pensions and benefits that all will be well. Just like GM did when we dumped all our pension liabilities on the US Gov. Newsflash folks, all those benefits that the UAW folks were getting, they are still getting, instead of GM paying we are. Well I guess we all need someone to blame other than ourselves. As for changing positions with my wife, a 2nd grade teacher, no way. I couldn't do what she does, and very very few can, successfully. It's a whole different mindset.
Linda P
7:11 am on Thursday, August 23, 2012
Gibson....I agree with ya on this one......I'd rather see more teachers and less staff and overhead....but if I recall correctly, you have been on the side of big Millage increases for buildings .so don't you think you have been inconsistent here
R Gibson
8:34 am on Thursday, August 23, 2012
I think these 2 positions can coexist. As you know, the funds for everything from teacher salaries, to computer equipment, to tennis balls, comes to us from Lansing. However, the funds for facilities come directly from us, not Lansing. My position on the new building was pretty consistent overall. Yes I think there is some grand parts to that plan that if I was in charge we would not do. I don’t think a 12 lane pool is really necessary, I think the current theater is perfectly salvageable. But we had been arguing over it for over a decade and it was time to be done with it. But when we talk about instruction dollars there is a difference. Those dollars come to the districts and they have to be spent. Otherwise they won’t get that same funding the next time, the bean counters will cut it back. In addition, there are instances where not the most qualified people run departments in central office. I have a close friend who works in a district on the west side of the state in the computer department. The head of the department is the football coach at the high school. He knows nothing about IT or the computers. They rely totally on the outside vendors to support all their equipment and software. When my friend took the job, he about fell out of his chair at the prices the district was paying for hardware and software. Hundreds of thousands of wasted dollars, year after year. I could go on.
R Gibson
8:45 am on Thursday, August 23, 2012
So I do believe there are many areas where the local, intermediate, and state education could vastly improve. Why does each district have to have it’s own computer centers. Each district paying to purchase, license and maintain their computer networks. A huge % of that could be pulled together and housed at one site that maintains many of the basic functions of day to day life like email, inventory, attendance, and budgeting, etc. My problem with Moss and others like him is they are going after the politically easy target to score points with their anti-union base. And please don't misunderstand I hold the MEA just as guiltly as the Democrats in Lansing, and Gov Granholm, and Engler just as culpable for getting into this mess. This was years in the making. I want the best Teachers, Fireman, and Police period! When my daughters go to school I want them taught by the best. When I pick up that phone cause someone is trying to break into my house I want the best cops to show up guns drawn. And when my daughter had a seizure when she was 3, I was so happy that those fireman showed up and saved her life. I want the best fireman money can buy.
Ron Beier
12:55 pm on Wednesday, August 22, 2012
Let's do away with all pensions and retirement health care benefits. That way everyone Except for rich republicans can work until they drop dead. Seriously a teacher supporting a family of four on forty thousand dollars a year who puts two thousand dollars a year into a 401k will have about 100k. Nobody will be able to retire on that especially with no healthcare. Say farewell to the middle class
Rod Myers
1:20 pm on Wednesday, August 22, 2012
These defined benefit pensions and free healthcare add about 40-50% to an average teacher's salary in the form of benefit when you consider how long it will be paid out and how generous it is. Admittingly I left one thing out of my post. I say do away with the pension and healthcare benefit but ADD the 40-50% to the teacher's salary. That way, the cost is OPEN for all to see what the true cost is and REMAINS PREDICTABLE regardless of what fanciful investment return assumptions you place on the funds set aside to pay for it. The taxpayer isn't left guaranteeing anything if there is a shortfall either.
It's not doing away with the middle class, it's called "Welcome to the middle class."!
Paying someone $40,000/yr + $12,000 per year in free healthcare benefits for 25 years of retirement = $1,300,000, all guaranteed by the taxpayer!!! Most "middle class" folks don't have that sort of nest egg at retirement. You know there are many example of much higher payouts.
R Gibson
1:26 pm on Wednesday, August 22, 2012
Ron it isn't just the teachers. We all have the same problem. People don't get it. There is no way any of us can save enough money in our lives to fund any type of pension. With 50% of us not paying any taxes, with record numbers of people filing for Soc Sec Disabilities benefits, and the other 50% of us paying the whole way, the system is doomed to collapse. It isn’t just Obama, it goes back 40 years to Nixon, and Ford. Since the early 70s, we have been systematically dismantling the middle class in this country and we didn’t know it. It started with shipping all the electronics overseas, then the clothing industry, the autos, now its India and China. If we don’t employ our own people, who is going to buy the products that we produce?
R Gibson
1:21 pm on Wednesday, August 22, 2012
Personally, after watching Chuck Moss' "here's the deal" and listening to his other rants, I think I will vote for someone else next time. Looks to me like he is just another typical self-serving politician who only wants to hear himself talk. Yes the system needs to be reformed, but I would like to point out to Mr. Moss that to compare the school teachers to GM is a little dumb. GM built bad products. No one wanted their products. The UAW didn’t directly bankrupt GM, it was the fact that they couldn’t keep their market share. If GM had built products that everyone wanted to had kept their 53% market share, we wouldn’t be having this conversation. Maybe I shouldn’t mention it, but the boys and girls in Dearborn didn’t take any money, they didn’t go bankrupt, and they managed to keep all their union workers and contracts in place with retirees. Yes there needs to be reform, I agree with that. But what you are doing is throwing the baby out with the bath water. Just like the democrats who forced Obamacare down our throats, the republicans in the state house, while they have all 3 branches are going to do everything they can to destroy what the democrats put up.
R Gibson
1:21 pm on Wednesday, August 22, 2012
What do you think is going to happen when the Republicans get voted out and we have a democratic legislature and Governor. Instead of making real long term changes that everyone can live with, both Dem and Rep, Moss and his ilk have swung to the other side so far, that all they do is get themselves forced out of the majority, and then the MEA will swoop back in and put all those items back in. We are still faced with the same problem as before, with no real solution in place. If you don’t believe me look at the federal government and what is happening now. What I think is the real problem in this state is the politicians who pander to one constituency or another and never have the courage to reach across the aisle to make real, meaningful, and long term solutions to very serious problems. Something that everyone can live with.
Ken Jackson
2:46 pm on Wednesday, August 22, 2012
I find it interesting and at least potentially encouraging that most ignored the Moss endorsement of Potts and the candidacy of Mr. Lawrence (following Moss from the Bham school board with the same single focus on scapegoating teachers) failed badly. Mr. McCready seems to tow the party line in his general (but vague) statements about education but he doesn't seem to understand his candidacy to be ONLY about a war with teachers; or, at least, he doesn't seem to lead with that issue. Perhaps he will be willing to listen to the majority of voters in the district who want some kind of reform of public education -- not an ideological attack that makes things worse. It is hard to imagine any Democratic swing back any time soon at the state level.
sue
11:18 pm on Wednesday, August 22, 2012
Teaching Special Education in Michigan you need at least a Masters Degree, multiple state testing, and continuing education. You need more education than many other careers, but obtain much less pay. Teaching K-12 requires more than a 40 hour work week. It amazes me all the uneducated people who think teachers work 30 hours a week with summers off. After I obtain my degree, I will move to a state or country that appreciates the hard work of teachers.
Linda P
7:23 am on Thursday, August 23, 2012
They also have the shortest school year in the world, generous benefits, generous sick days. The problem is educators and staff have had it so much better than the rest of us working stiffs and for so long that any attempt to being them back in line is regarded as an attack.....it's not an attack it's reality and get used to it. Lots of money could be saved and enhance teacher salaries at the same time by combining school districts......why does Michigan need 500 school districts each with a high paid superintendent and the requisite high paid staff? Other comparable sized states don't do this. Birmingham an BH today have a combined school population that BH had 20 Yeats ago but we still have two superintendents - why? Because superintendents and school boards don't want to lose their power and inluence as well as their lucrative salaries. I am more interested in reducing overhead And staff than attacking teachers. It lets be honest here, teachers do have very very generous retirement benefits.
R Gibson
8:57 am on Thursday, August 23, 2012
Yes Linda teachers do enjoy so very nice benefits in retirement. But not more than many other local, state, and federal employees, including Fireman and Policeman. They are just an easy target cause they are one group, under 1 program managed at the state level. Here is something to consider. Yes education is the 2nd biggest thing in the state budget. But #1 is Medicaid. If memory serves it is much bigger than education. Why isn’t anyone talking about reforming that, making sure we have it running as efficiently as possible. The answer is, because it is a lot harder to tackle then a bunch of teachers and politically it is easy
.
Nancy Jo Brown
4:09 pm on Thursday, August 23, 2012
The still employed people that I know all work many more than 40 hours a week. Most of them have paid for advanced degrees and get an average of 12 vacation days a year. Teachers are not suffering in Bloomfield.
Linda P
7:31 am on Thursday, August 23, 2012
So here we go, a new Millage gets passed to combo high schools, improve Andover and what do we get for it, a proposed new medical clinic fully staffed with medical personnel, a new IB coordinator ( added position I believe) ?....squandering money again.....maybe if I didn't have to pay for all of this I would he more amenable to funding tea her salary and enrichment.....but you can't have it both ways.
R Gibson
8:49 am on Thursday, August 23, 2012
Linda remember these are 2 different buckets of money. The facilities funding comes directly from us. The Instruction dollars come from us via Lansing. Personally, I think this clinic is a bad idea, and I don't care for IB anyway, so any money spent towards that I think is a waste.
Jenny Greenwell
7:56 am on Thursday, August 23, 2012
The Declaration of Independence was "historic," and so was the Alamo, D-day and Pearl Harbor. This bit of legislation is not "historic." The reason teachers take it on the chin (i.e., in the wallet) is because there are so many of them. So, a tweek in compensation for the aggregate has a huge effect, be it one way or the other. If we cut the pay of, say, accordian players, it wouldn't cause a ripple.
Jenny Greenwell
8:51 am on Thursday, August 23, 2012
Regarding school funding: BHSD taxpayers pay a premium tax to add operating funds to the mix. It's called the "Hold Harmless," and that reflects our intention to hold the district "harmless" from the effects of Prop A. So, our state foundation grant (per pupil funding) is issued by Lansing, but we add our own local "spiff," the HH, on top of that. Local bonds and millages such as the Sinking funds are paid by BHSD taxpayers and the money remains in our district, without taking that round trip to Lansing. At this moment, the BHSD is the top-funded district in Michigan, topping the funding of 550 districts. BHSD taxpayers have been very generous, for decades.
Ken Jackson
9:12 am on Thursday, August 23, 2012
Mr. Gibson is spot on again in his comments about teachers and their pensions relative to other groups. Politically speaking, they are an easy target -- often caught between the extreme positions of union leadership and those frustrated with other economic disasters. This is very bad for the state. And Chuck Moss style triumphalism is making a bad situation worse. Getting talented, smart young people to become teachers is tough (for over a hundred years we lucked out in one respect because women interested in working had limited career options and brilliant people found their way in to second grade classrooms -- many are still there but the numbers are dropping as opportunities for women expand). Young people leave this state in droves. We have one of the worst brain drain problems around. That we don't have the money teachers were told they were have is, in large part, not because of their greed but because of limited financial intelligence in government. Financial savvy -- not just cutting -- matters more than ever.
Isaac Barr MD
10:08 am on Thursday, August 23, 2012
I am happy that there is a discussion about our teachers. Remember that the duty of MEA is to protect their members while demanding more and more benefits. To achieve these goals MEA supports heavily Boards of education trusties who in turn will vote in favor of the Union with little concern to quality of teaching and district finances. I know a number of trustees in BHS who got money from MEA for their election campaign. This must be viewed as a conflict of interests. I do not blame MEA for trying to influence government, federal and local. It is the elected officials that may be bribed. On a larger scale, Charter schools allow free financing of teachers. I do not mind to pay an excellent teacher $150.000....I do not mind if a bad teacher will be fired. Suggest two programs: 1 "waiting for superman" 2. John Stossel stupid in America. . Also make sure to vote for a totally independent Jenny Greenwall who will not get a penny from MEA or any organization that may create conflict of interests.
Neal Charness
10:33 am on Thursday, August 23, 2012
With all of "Dr" Barr's conspiracy theories I'd like to know one thing: Who really shot JFK. He'd at least have a theory.
Nancy Jo Brown
11:06 am on Thursday, August 23, 2012
I have watched "Waiting For Superman" and read Stossels book. Both of these were eyeopening.
Ken Jackson
11:24 am on Thursday, August 23, 2012
I enjoyed both Stossel and "Superman" to a certain extent. But my concern is this: there are many people -- some bright, some not so bright -- who can ruminate about educational theory. That is, we need "this kind of curriculum, that kind of change, more like the Japanese, more like the Germans" and so on. There is much discussion to be had; I indulge in it myself all the time. But the basic long term funding structures for public education are severely damaged and out of date. You seem new long term systems that can train, pay for, and retain talented teachers. Building and evaluating proposed systems takes a certain expertise.
Rod Myers
11:59 am on Thursday, August 23, 2012
Retirement benefits mask the true cost paid to teachers and administrators due to a variety of factors. Computing the true cost of these benefits must take into account things that will not occur for years into the future (e.g. life expectancies, final salaries, returns on investments, pension spiking, etc.)
The taxpayer is left holding the bag for these costs that have spiraled out of control, are massively underfunded if looked at on an intellectually honest basis, and quite frankly unreasonable as compared to the private sector. I say increase teacher and administrator salaries by 40-50% to reflect the true cost of these retirement benefits and let them pay for them themselves. Take some investment risk like the rest of us.
R Gibson
12:54 pm on Thursday, August 23, 2012
Rod I think you answered your own question. "Compared to the private sector". But I am confused why are we just talking about teachers, what about Police and Fire? They get many of the same benefits as teachers. In fact, in some cases, they are much better paid then teachers. Their costs are just as high to us. In fact they probably cost us more. They have a much higher risk of injury so I am sure that their health care insurance is much much higher. If we are going to be intellectually honest about it, shouldn't this whole conversation be around all public employees?
Ken Jackson
12:12 pm on Thursday, August 23, 2012
Mr. Myers,
I agree to a certain extent. Many live and think pay check to pay check. What distinguishes -- or should distinguish -- Bloomfield from many other areas is that we have people here who seem to understand finance and money and, in particular, the long term complexities you cite.
R Gibson
1:00 pm on Thursday, August 23, 2012
Ken there is a marvelous article in the the Detroit News about this very subjuct, living pay check to pay check. The new movie is called the "The Queen of Versailles." it is a real life story of a billionaire and his trophy, scientifically enhanced wife, and 7 spoiled rotten kids. He is virtually broke now, they saved nothing, spent everything and continue to do so.
Rod Myers
2:15 pm on Thursday, August 23, 2012
R Gibson,
The problem is about 50% worse when it comes to Police & Fire - don't even get me started. I though this was a forum regarding teachers only. There should not be unions when it comes to public employees. It creates incestuous relationships laden with conflicts of interest all over the place while the taxpayer sits idly by paying for it all.
R Gibson
8:04 am on Friday, August 24, 2012
Morning Rod. Well at least we have that out on the table. I hope you never have to have the EMS show up to your house on a Saturday morning at 7 a.m. for a 3 year old have a fever induced grand maul seizure. If you do, it will forever change your tune. Do you understand why unions evolved into public education? Because of an "incestuous relationship laden with conflicts of interest" and blatant discrimination against women by the Superintendents and Principals in the 1930', 40's and 50's. Do you prefer an educational environment that has some checks and balances between the administration and the teaching staff. Or would you prefer one where the Administration is in total charge and can do whatever and appoint or hire whomever they want. Don't misunderstand, I beleive the MEA, MI Dept of Ed, and Oakland County intermediate school district have done us and the teachers a complete disservice for decades. But to put all the screw ups and mistakes on the back of those on the front lines is just ignorant of the facts. Did GM go bankrupt because of the union, directly no, did it contribute yes. But GM negotiated the deals with the unions that allowed them to have 96 different job codes in a plant. GM negotiated the jobs banks. GM also, and the real cause is, designed and built some very very bad vehicles. GM was and remains arrogant and ignorant. It was the lose of markets share and crappy cars that killed GM, not the union. They helped, but that not the cause.
jon cherney
7:30 pm on Thursday, August 23, 2012
Money deducted from salary doesn't "add" to your salary. This entire anti-teacher pension exercise is designed to misdirect the public from the fact that our government mismanaged the money in the teacher's retirement fund. In 2000, our fund had almost exactly the amount of money in it necessary to cover the pension obligation. Unlike private pensions MIP is contributory. They deduct a pension contribution from our salary to pay toward the cost of our pension. Last Year the accrued normal cost of teachers pensions was $364,000,000 of this $332,000,000 was contributed by deduction from the teacher salaries. The normal cost for the entire state was only $32,000,000 or about $175 per teacher. Why do we have this crisis? Working teachers hired in before 1989 don't contribute, and the state contributes for their pension. The state acts to guarantee the pension. The state estimated high rates of return in the pension system. This meant they didn't have to invest money in the plan. They used very high rates of return to keep from putting money in the plan. They then lost about a quarter of the money through bad investments. Rather than putting the money they lost back into the plan, they let the deficit compound over a decade. Now interest rates have collapsed and they can't pretend they will achieve these high rates of return. So even though teachers are contributing MORE than the entire normal cost of the plan,we are being blamed for the politicians losing our money.
Rod Myers
7:44 pm on Thursday, August 23, 2012
Mr. Cherney,
How much do teachers contribute toward their health care benefit that will run for about 30-40 years after retirement at a clip of $12,000-$15,000 cost per year? I keep reading $0, but the papers may be wrong. When teachers were asked to contribute 3%, that was struck down as unconstitutional. (I pay over 20% toward this benefit as do most others.)
R Gibson
8:42 am on Friday, August 24, 2012
Rod, it is on a district by district basis. It wasn't until recently, did the state start to get involved when the repubs got elected. Over the last several years the % of what teachers put in towards their current health care has risen significantly. My wife will pay 20% towards her health care starting this year say $2,000 (10K X 20%). In addition, while we have enjoyed generous Presciption benefits, that is gone away as well and with much higher co pays (up 150%), Deductalbe for a family it is now 2K, for us. She is now required to pay 7% of her salary towards her retirement benefits (Say ave of 60K so $4,200). This is on top of a 6% pay cut ( $3600) over the last 3 years of 3%, 2%, and 1% respectively; and no increases for the 5 years previous to that (7,600 roughly) So the result is that a teacher making 60K a year has taken a net pay cut of 29%. In addition, this does not factor in the rate of inflation or the actual cost of living, which is much higher then the 2-3% the gov tells us. But just for giggles lets use 1.5% COLA, so for the last 8 years of no pay increases thats another 7,600 or 13%. So, if my math is correct, it's early and I haven't had the full load of coffee yet, in the last decade, roughly, the ave teacher has seen about a 43% decrease in his or her salary. Lastly, we need to add in another 1%. About 600.00 a year is what my wife puts in out of her pocket for her kids. This goes to supplies and food for the kids whose parents don't provide.
Ken Jackson
8:58 am on Friday, August 24, 2012
Mr. Gibson,
You might want to add that no public school teacher worth his or her salt works 40 hours or less per week. Grading, shopping for supplies, prep, in services on technology, answering parent emails, school functions, etc. If the teacher is an elementary school teacher factor in physical labor: untied shoes, coats, boots, gloves, and so; toss in limited breaks (kids can't be left alone in the classroom when you need the toilet!); work can't be done at the Original Pancake House over breakfast at 10AM or on the golf course. So: financial reform -- yes -- needed -- absolutely -- by skilled experienced professionals who can figure out how to fairly fund public education over the long term. Politicians or ideologues who scapegoat and demonize teachers and school systems (read: Moss, et. al.) -- no.
R Gibson
9:54 am on Friday, August 24, 2012
Hey Ken, fantastic points all of them. As a 2nd grade teacher my wife has every one of those and many more. Classroom teachers are also responsible for identifying children who are at risk from a 1,000 different things. Maybe it is ADHD, Autistic, broken home, etc. all the paperwork and documentation is prepared by the teacher, meetings with specialist, meetings with the family, meetings with the social workers. In addition, teachers are also by law required to report to social services the issues of abuse. My wife just had a little girl removed from her classroom last May cause the father was beating the daughter. Let me also point out that here in Oakland County, we have a very high number of arab families and caaldean families. Many from Iraq and they don't speak english, are very far behind, particularily the girls. Some of these kids are suffering from Post Tramatic Disorders. Sometimes I think the perception by many of what we may have gone through as kids, is the way it is now. I can tell you first hand, what we went through as kids in elementary school is in no way representative of the complexity of the day to day a teacher faces in 2012.
Linda P
11:42 pm on Thursday, August 23, 2012
Neal stop your obsession with Dr. Barr. Everyone who reads Patch knows by now, that you have an issue with him. So move on to more constructive postings which talk about issues and let the reading public judge Dr. Barr's comments or anyone elses for that matter by themselves.
Isaac Barr MD
9:20 am on Friday, August 24, 2012
Readers focus on one item, teachers, at the time that we need to focus on education. To this goal the whole structure of education in Michigan should be changed. We have 550 school districts. Each has educational and financial responsibilities which are. Board members must be qualified in education and business. Boards have to focus on education. Finances should be reserved to another authority. BHD students get about $12.500 per student/year while next door Pontiac students get $7.500 or 40% less. The relationship between property taxes and education must stop. Money for education must be replaced with a state tax or any other method. Education districts finances have to be centralized which will save individual administration money. All Michigan kids deserve the same opportunities regardless of the value of their parents home. Centralizing finances will result in greater accountability to residents, create a large employer who will negotiate with unions effectively. It will eliminate the need for costly millages. Taking away complex finances from boards of education will allow them to focus on education. Items that need to be discussed including the International Baccalaureate (IB), early education, prolonging school year etc. This is what Japan #4 in global scholastic achievements is doing. Many will not agree to my pragmatic suggestions, but our legislators and governor should consider the future of our kids first.The antiquated system must be replaced by a modern one.
Ken Jackson
9:32 am on Friday, August 24, 2012
Mr. Barr,
I am pleased to find some points of agreement with you. Pragmatism is critical, I think. And so is financial experience and expertise. Future (next 5-10 years especially) school boards will need serious people capable of sorting through all sorts of different money and number tangles. They are out there. I am pretty confident in what I know about education (generally) but I have been fortunate to have several folks who know numbers walk me through critical issues.
R Gibson
10:02 am on Friday, August 24, 2012
Wow, Dr. Barr, you have said some crazy things in the past, but this one takes the cake. There is no direct correlation between dollars spent in a school district and the results students show. Each district in the state of michigan gets the same base funding. Only a handful of districts get the addtional dollars you site as part of the hold harmless. Based on your argument, every district in the state, excluding those that are part of the hold harmless, should have the same educational results. Well that is not the case. Look at the city of detroit and pontiac vs a community like Alpena or Reed City. Basically, they get the same amount of funding on a per student basis. But the results are dramatically different.
Rod Myers
1:56 pm on Friday, August 24, 2012
My main point here is to do away with unions that do not necessarily have the taxpayers best interest in mind (and quite frankly not even the teachers they represent at times) since they are not spending their own money. (Nor should union and taxpayer interests align, hence the crux of the problem.)
Pensions create unsustainable and unpredictable liabilities that must be paid regardless of how, even if it means cuts to essential services. There can be a value placed on what a pension is worth that is typically paid over 30-40 years along with the free (or heavily subsidized) post-retirement healthcare* municipal employees receive.
I say we do away with pensions and just bump up salaries to make up the difference (probably a 40% immediate raise) so everyone can see what the total compensation package looks like and is costing the taxpayer. The way things currently work, this is all hidden from view, hard to predict and continues to creep up and up, crowding out other essential services.
*A benefit rarely seen in the private sector and with good reason - its' extremely expensive.
R Gibson
8:00 am on Monday, August 27, 2012
Rob You make some very valid points. I think the problem we are going to see is the baby boom generation is the first generation to reitire since the massive reduction in pension plans has occured. In about 10 to 15 years we are going to see lots and lots of seniors in a situation that they never anticipated or are equipped to deal with. THey have saved virtually nothing, we tax savings at a unforgiveable rate, we penalize wealth creation, and about 75 millin people are going to find out that they can't live on what social security provides and it will be bankrupt. Stealing from their kids and grandkids to support an unsustainable model. Like the UAW, corporations dumped the retirement benefits and pension obligations off on the taxpayer. Now we and my kids and grandkids will bear the burden. I hope you like the tast of alpo