Capitol Chaos – Tuesday, Sept. 15

Budget Talks Heat Up

On Tuesday, in a radio interview, Majority Leader Mike Bishop announced that he and House Speaker Andy Dillon agreed to move forward with a 2009-10 fiscal year budget based on the Senate- passed cuts.

Under this plan, once the budget is completed, the House would consider tax increases to pay for the restoration of some spending. The Senate would consider any revenue proposals passed by the House. However, Mr. Bishop stated that there are no votes currently in the Senate Republican caucus to support a tax increase.

Later in the day, Senator Bishop clarified his morning comments by stating that there is no agreement on the budget. He did say, “We have an agreement on process and that is to get these conference committees moving and get some forward momentum on our ultimate goal. …All we’ve done is told our subcommittee chairs that they need to go out and negotiate using the cuts that we’ve put on the table.”

Mr. Bishop also said that he and Mr. Dillon agreed that if they are unable to complete a budget before October 1, they would pass a continuation budget to buy officials more time to craft a plan.

Appropriations subcommittee chairs planned to caucus today after session.

Our message remains to tell your legislator to say “no” to the disastrous Senate budget cuts.

Thank you to all members and staff who made calls to legislators today about the budget shortfall.

Just the Facts
Speaker Dillon’s Proposed Mandatory Government-run Health Plan

A mandatory state government-run health plan could actually make Michigan’s long-term structural budget deficits worse. Now is not the time to add billions more in financial liability at the state level. North Carolina’s $2.2 billion mandatory state health fund just needed a $658 million taxpayer bailout. As proposed in HB 5345, Michigan’s fund will be twice as large – making the financial risk twice as large as well. Other state government-run health funds are also in serious trouble. To keep funds solvent, New Jersey’s voluntary state health plan just increased premiums by 25 percent for participating school districts.

In addition to putting state taxpayers on the hook when the plan runs a deficit, Sec. 20 of HB 5345 also makes counties, cities, townships, universities, school districts and other local governments financially liable for any shortfalls. In testimony September 3 before the House, Speaker Dillon’s paid consultant said that when the state-run health plan ran a deficit, the state would bill local governments and school districts.

Committee Notice
Public Employee Health Care Reform Committee

More testimony is scheduled to be heard on HB 5345 on Thursday, September 17, 2009. The hearing will begin at 1 p.m. or after committees are given leave by the House to meet, whichever is later. The hearing will be held in room 519 of the House Office Building in Lansing.

Testimony will be given by the following:
Mike Flanagan, Superintend of Public Instruction, Michigan Department of Education
Brian Morris, Senior Consultant, Gabriel, Roeder, Smith & Co.
Richard Cauchi, Health Program Director, National Conference of State Legislatures
Wayne Cass, Chair of the Coalition of Labor Organization at Michigan State University

Alert and Call to Action

We have received word that the Speaker of the House has agreed with the Senate budget plan. This plan contains only cuts to programs, no additional revenue. If this plan is adopted, it will mean a $110 cut to the foundation allowance and cutting almost all categorical programs in education. Adoption of a budget based on the Senate cuts will be devastating to education.

House leaders are reportedly ready to approve the Senate budget that cuts more than $1 billion from the state budget. They are rushing to do something rather than taking the time to do the right thing.


For K-12 public education, per pupil funding would be reduced by $110 and almost all categorical funding would be eliminated -- a total slash of almost half a billion dollars.


Pick up the phone. Send an e-mail. Tell your state representative to just say NO to the disastrous Senate budget cuts. (Remember: Don't use your school email or phone)


· Tell them to maintain funding for public education -- the only way to ensure our long-term economic recovery is to prepare our students for the jobs Michigan needs.


· Our leaders in Lansing must stop the political maneuvering around other issues (such as the mandatory health plan for public employees and ill-advised school reforms) -- it's time to focus on fixing our budget.


The only way to fix our budget is to update our antiquated tax structure and bring in revenue from the areas of our economy that are growing (such as services).

Lansing Update

Budget Update

Budget talks are moving very slowly with no evidence of progress.

· Senate Majority Leader Mike Bishop stands pat on his Senate-passed budget cuts (see attachment).
· Governor proposes an estimated $600 million in additional revenues.
· House is still sitting on its passed budget, which provides for a continuation budget for 2009-10, but lacks the revenues to fund it.

The stage is set for a repeat of 2007 with reforms being offered up for revenues in the dead of night. The question now is what those reforms might be. Possibilities include:

· Modification of PA 312 for police and fire.
· Modification of PERA.
· Failing schools reform.
· Creation of Neighborhood Public Schools
· Eliminate University charter caps.
· Certification changes.
· Changes to the Tenure Act.
· Public employee health care.

The attempt to gain additional revenue by the governor would provide an additional $200 million to the school aid fund, which would reduce the need to make cuts nearly in half.

The only good news is that August revenues were higher than anticipated. That means that only $75 million of the stimulus money padding that was placed into the 2008-09 budget will get used up instead of the prior projection of $134 million. While that helps, it will not cure the projected shortfall for 2010-11.

On the Reform Front

SB 336, SB 337, & SB 338 Awaiting Senate Action

The Senate Neighborhood Public Schools (NPS) package is on General Orders on the Senate floor awaiting action by the full Senate. The package includes SB 636, SB 637, and SB 638.

This package of bills allows for the creation of neighborhood public schools where a majority of parents and teachers agree to split the school away from the home district.

There is no limit to the number of NPS that can be created or chartered. Each of these schools would have less accountability, less transparency and more control than other charters. Teachers in an NPS school would be exempt from their bargaining unit and could not accrue tenure.

MEA opposes this package of bills.

Just the Facts
Speaker Dillon’s Proposed Mandatory Government-run Health Plan

Speaker Dillon’s idea is not a structural fix for the state budget. In fact, a state government takeover of all public employee health insurance would add about $4 billion in new financial liability for the health care of hundreds of thousands of local employees to the state’s long-term structural budget. Sec. 18 of HB 5345 creates a “MI health benefits fund” in the state treasury to collect premiums and pay plan expenses, putting the good faith and credit of state’s taxpayers on the line.

Your Health Care is on the Chopping Block

Your new health plan will be whatever the state says you can have.

Your health benefits will be cut, but you’ll be paying more for them.

A state Control Board will determine who your doctor will be and what treatments you can have.
Bargaining with your school district for health insurance is no longer your right.

This is your future as a public school employee if you let Speaker Dillon’s Michigan Health Benefits Program become law.

This scheme claims to save millions of dollars by putting all public employees—including school employees—into one giant health plan. But the only way to do that is to gut your benefits and force you to pay more out of your pocket for them.

Time is running out for you. This bill is on the fast track.

Act now to stop this attack on your health benefits and bargaining rights:

1. Go to www.mea.org to read the latest information on the mandatory public employee health plan.

2. Contact your state legislators. Urge them to oppose this plan since there’s no evidence the state can effectively manage such a project or that it will actually save money. Share your stories of wage freezes, concessions and other efforts you’ve made to help your district save money.

3. Volunteer to attend and testify at the committee hearings. Contact your UniServ director for details.

Get educated! Get involved! Fight for your right to bargain quality health care!

PAC Update

Esther Turner has been hired as a PAC Snap for the Kent County. She is available to assist in any capacity with your local PAC drive. The major push is for all contributions to be turned in by October 31, 2009. This year's goal is for 100% participation and $20/member.

"We want this to be an exceedingly banner year!" says Esther. "The opposition is determined to continue to take away our bargaining rights. We need to say 'heck no,' we will survive, and PAC is our voice."

You may contact Esther at eturner1@hotmail.com or 616-957-1944.

Action Needed Now

Speaker of the House Andy Dillon has proposed a statewide health care plan for all public employees that would slash your coverage and strip your rights to bargain them. His proposal is anti-union, anti-collective bargaining and anti-public school employee.

This plan has gotten a lot of press – and MEA has been at the heart of this fight. The fight for health care that keeps you and your family safe. But to win this debate, we need your help in getting the facts out and ensuring that your legislators in Lansing understand how strongly you oppose the Speaker’s scheme.

A close examination of Speaker Dillon’s conceptual white paper makes it clear that:

- Speaker Dillon calls for the creation of a new government agency that would be empowered to review and approve or reject diagnoses and treatment plans between patients and their doctors.

- Speaker Dillon is clearly proposing a government-run health care fund and huge expansion of state government.

- His white paper presents his idea in the abstract, while offering little factual evidence or credible research to support any claims of real savings. In many cases, Speaker Dillon himself is unsure how his idea will be translated into legislation.

- No public policy debate of any value can be conducted until Speaker Dillon’s legislation is introduced.

- It will take at least two years, and likely more, before the state takeover and health fund could be implemented. There are no budget savings for at least three years, if ever.

- Increasing state government’s financial responsibility for another $4 to $6 billion in health care costs is risky and could be a big budget-buster.

- Speaker Dillon’s limited concept completely ignores the real research that should drive a public policy debate about public employee compensation: a fair analysis of total compensation, including salary and benefits; a history of bargaining; and consideration of the value of quality benefit packages to attracting talented individuals to careers in public service.

What are the facts?

- During the past three years, Michigan’s school employees have already saved taxpayers more than $700 million in health insurance costs by accepting lower cost health coverage or paying more out of pocket for co-pays and premiums.

- Through salary and wage concessions during the past three years, Michigan school employees have saved taxpayers an additional $200 million.

- In order to save $900 million, Speaker Dillon's plan would have to massively cut school employee health care premiums (and coverage) - some by as much as half.

- Currently 90% or more of the public employee health insurance market is served by Michigan companies. Speaker Dillon’s plan could export Michigan jobs and taxpayer dollars to other states and overseas if a large national insurance player wins the bid to underwrite the state-run health plan.

- Health care is a national problem that requires a national solution – one that our leaders in Washington are working on right now.

Your legislators in Lansing need to hear these facts from you. They need to stand up and demand that the Speaker provide details and legislation to back up his claims. They need to defend the health care and bargaining rights of half a million Michigan public workers and their families.

Kent County Representatives
Justin Amash 517-373-0840 justinamash@house.mi.gov
Tom Pearce 517-373-0218 tompearce@house.mi.gov
Robert Dean 517-373-2668 robertdean@house.mi.gov
Roy Schmidt 517-373-0822 royschmidt@house.mi.gov
Kevin Green 517-373-2277 kevingreen@house.mi.gov
Dave Hildenbrand 517-373-0846 davehildenbrand@house.mi.gov

Please call or write your representative today! Tell him/her that the Dillon Plan is bad for Michigan.

Outside of Kent County
Look-up your representative at:
http://www.mea.org/gov

OR

http://house.michigan.gov/find_a_rep.asp

Sample Script: "I am a public school employee. I strongly urge you to oppose Speaker Dillon's health care proposal for all public employees. It is anti-employee, anti-collective bargaining and anti-union."

Also, as you see coverage of the Speaker’s scheme in the news, be sure to write letters to the editor or post comments on Web sites stating your opinion.

We can’t let this assault on public employee health benefits and bargaining rights go unanswered. Together, as union members, we can and will stop this attack and promote real solutions to our state’s budget crisis, including closing hundreds of millions in inefficient tax loopholes and restoring the promise of Proposal A to fully fund public education in our state.

We Need Your Support!

A Public Hearing has been scheduled to discuss
the “Dillon Plan”: 

Thursday, August 6th 

1:00p.m. – 3:00 p.m. 

At the Michigan State Building in Grand Rapids 

(350 Ottawa Ave., Grand Rapids) 

Speaker Dillon’s plan to create a statewide health care plan for all public employees
is based on questionable estimates of cost savings and a state government that can’t
even balance a budget. We need members to speak at the hearing about the following
topics:

Where are the savings coming from? There is no way this plan will deliver on its
promise to save millions without drastically cutting benefits and shifting
increased costs to employees.

Public school employees have already delivered millions in savings by accepting
lower salaries, cuts to their benefits and sharing in the cost of health care. (Give
specific examples from your experience.)

Public school employees are already part of large pools. Creating an even larger
pool for health care, as Speaker Dillon proposes, will, at some point, become a
cost increase.

Do we really trust the government to run anything on this large a scale? How has
it done so far?

Speaker Dillon’s plan will eliminate any local control over costs and benefits.
Why should we strip local school districts and local governments of the ability to
make the right decisions regarding their employees and their communities when
it comes to health care benefits?

Public Employees are taxpayers. This does not save them anything. It merely
shifts the costs and burdens to them.

Speaker Dillon’s plan is not the way to deal with the health care issue. We need
national leadership from Washington to deal with a national issue – not a risky
experiment in Lansing during disastrous economic times.