Legislative Alert

Your help is needed!

SB 1074 – The Mandatory Outsourcing of Non-Instructional Support Services (Pappageorge (R)-Troy) would require all school districts, including ISDs, to outsource all custodial, food service and transportation services no later than January 2011.

The bill allows the current union to bid on the services and mandates acceptance of the lowest bid.

The bill specifically provides that the outsourced employees may not be employed by the school district. This means those employees would automatically lose their credit in the school employees’ retirement system.

Right now, there is no hearing scheduled on the legislation to move it out of committee.

And to help keep things that way, please contact all members of the Senate Committee on Reforms and Restructuring.

Urge them to VOTE NO in committee on SB 1074.

Members of the committee include:

Senator Mike Bishop, (Chair) 517/373-2417 or
senmbishop@senate.michigan.gov

Senator Jud Gilbert, (Vice-Chair) 517/373-7708 or
senjgilbert@senate.michigan.gov

Senator Tom George 517/373-0793 or
sentgeorge@senate.michigan.gov

Senator Wayne Kuipers 517/373-6920 or
senwkuipers@senate.michigan.gov

Senator Mike Prusi (Minority Vice-Chair) 517/373-7840 or
senmprusi@senate.michigan.gov

Senator Tupac Hunter 517/373-0994 or
senthunter@senate.michigan.gov

Senator Deb Cherry 517/373-1636 or
sendcherry@senate.michigan.gov

In addition, call your own Senators and alert them of the bill. Urge them to VOTE NO on SB 1074

Proposed K-12 School Aid budget for 2010-11

The Governor proposed the following for next year's school aid budget:

Remember – there will be significant changes before a School Aid Bill is enacted.

• The Governor’s budget assumes an increase in sales tax revenue (from expanding the base to include some services and reducing the rate from 6% to 5.5%). She estimates that this will increase School Aid Fund revenue by $554 million, negating the need for an additional $255 per pupil cut.

• The $165 per pupil cut from 2009-10 remains in place for 2010-11.

• ISD operational funding will still be 80% of 2008-09 levels. (The 20% cut remains through 2010-11).

• All of the remaining ARRA funds (184 million) will be used in 2010-11. This still leaves the School Aid Fund short by $165 per pupil (plus $255 per pupil with no tax increase or reallocation of revenue. The $255 reduction will change as new revenue figures arrive throughout the year).

• By 2011-12, for all of the following services:
1. Purchasing services
2. Payroll services
3. Financial accounting services
4. Facilities maintenance services
5. Pupil transportation services
6. Human resource services
7. Technology services
8. Food services

ISDs must calculate a per pupil cost as if the ISD provided the service in the most “cost-effective method”. If a district’s costs are less than the ISD’s calculations, all is fine. If a district’s costs are more than the ISD’s calculations, the district has to enter into an agreement with the ISD to provide the service or forfeit 1% of their foundation allowance.

• There is no change in the foundation allowance.

• Instead of 30 snow hours, here is the new language – “the first 6 days or equivalent hours for which pupil instruct is not provided because of conditions not within the control of school authorities….shall be counted as hours and days of pupils instruction.”

• The MPSERS rate is 19.41%, ALTHOUGH – the act includes this language, “ the contribution rate for 2010-11 may be reduced… if reforms in the public school employees retirement system are enacted by the end of calendar year 2010.”

Watch Out!

Many legislators and politicians are working very hard to take money away from you to fund the budget crisis in Michigan. It is important to stay connected with your legislators and keep your best interest in their ear.

Here are some of the possible proposals that could become bills in the next few weeks:

• Eliminate dental and vision coverage for all future retirees after this school year (2010).

• Increase the retirement multiplier from 1.5% to 1.6% for anyone that retires between July 1 and Sept. 1, 2010 (this is good for anyone who will retire this year).

• Employ a cost-effective, self funded retirement plan for new employees hired after Oct. 1, 2010 (move away from a pension plan).

• Outsource all support services (Transportation, food service, custodians, etc). This eliminated the retirement $ for those employees plus stops local control of services.

• Enforce a 5% pay-cut for all public employees (Depending on your salary/wages, it could range from $2,000 - $4,000 per year).

• Public employees to pay 20% of their current insurance premium (could be approx. $3,000-$4,000 per year).

• Increase your retirement contribution by 3.0% (most already pay over 3%) could range from $1,000 - $2,000 per year).

IF ALL THE FINAL 3 PROPOSALS ARE IMPLEMENTED IN THE NEXT WEEKS, YOU COULD LOSE BETWEEN $6,000 - $10,000 PER YEAR- POSSIBLY BEGINNING NEXT YEAR!

Please use the link below to contact your legislators concerning some or all of these items. Legislators are in the process of writing bills that could enforce these proposals. We can make a difference by letting them know that we are not in support of making the public employees shoulder most of the burden for the problems with the Michigan budget. There are many other methods in which they can create revenue to fix the school and public funding.

http://capwiz.com/nea/mi/state/main/?state=MI

You can also call Jennifer Granholm (she is in favor and supporting some of these proposals) and other state officers:

Jennifer Granholm: 517-373-3400

Again, WE CAN MAKE A DIFFERENCE!