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!

Retirement Benefits Attacked

Today the state budget director, Bob Emerson, outlined proposed changes to the Michigan Public School Employees Retirement System.

The proposed changes:

Public school employees who are members of the Michigan Public School Employees Retirement System (MPSERS) will be subject to the following changes effective October 1, 2010:

* To ensure MPSERS is financially sound, employee contributions to the plan will increase by 3 percent for all employees except those in the MIP Plus program whose contribution was increased in 2008. MIP Plus members' contribution will increase by 0.9 percent.

* Elimination of subsidized retiree vision and dental coverage for school employees retiring with an effective date after October 1, 2010. Retirees will be able to purchase this coverage for a monthly fee through the plan.

* The retirement multiplier will be increased from 1.5 percent to 1.6 percent for employees who retire with an effective date between July 1 and September 1, 2010, which will be paid by the applicable school districts.

* A new, more cost-effective hybrid retirement plan for new employees hired on or after October 1, 2010, will be created. New employees will participate in both a base defined benefit plan and a defined contribution plan.

* Phased retirement option for retiring employees age 60 or older. Phased-in retirement will be allowed for up to three years, enabling employees to collect their DB plan retirement with a workload of no more than 20 hours per week for a previously full-time employee. This option is available to the employees at the discretion of the school districts.


Check back here for more information on this attack on your benefits.

News of the Day

State Legislators Pass “Race to the Top” Legislation
Both Houses Adopt Conference Reports for HB 4787, HB 4788, SB 926 and SB 981

On Saturday, the RTTT bills passed the Legislature. Thanks to the hard work of many MEA members and staff, these bills came a long way from their initial form. However, the final bill regarding turning around “failing” schools contained language that attacked the collective bargaining rights of our members in buildings put under control of a state school reform officer.

President Salters and AFT President David Hecker put out a joint statement which included the following:

“MEA and AFT-Michigan came to agreement with legislative leaders on every necessary aspect of Race to the Top, including alternative certification, using student data as a component in employee evaluation, and measures to turn around struggling schools. However, the absolutely unnecessary language in the bills stripping educators of their voice in helping students in those struggling schools is something neither union can or will support.

“During the marathon sessions in the past three days, MEA and AFT agreed to countless changes which would have put Michigan in excellent position to compete for RTTT funds. The overreaching of the Legislature with regard to the collective bargaining rights of employees in struggling schools taken over by a state school reform officer is simply a step too far -- and one not needed for RTTT.”

Issues included in the RTTT Package

There were several bills that were passed under the RTTT banner which dealt with many topics, including:

- Turning around low-performing schools

- Expanding alternative certification

- Expanding charter and cyber schools

- Using student data as a factor in evaluation

- Starting with this year’s 6th graders, increase the mandatory attendance age from 16 to 18

- Allowing greater personalization of the high school curriculum

- Requirements for bidding before privatizing

- A “Teacher Bill of Rights” which assists educators in obtaining books and other necessary supplies

- NOTE: The bills DID NOT modify tenure.

More details will be available next week as our experts further analyze the bills that passed. Stay tuned.

News of the Day

MEA Launches ‘Reading Program’ for Legislators
Encourage leaders in Lansing to READ bills BEFORE they VOTE on them

Reading is fundamental – especially for legislators.

That’s why, today, MEA is launching a new “reading program” for our elected leaders in Lansing. Just as it’s critical for our students to read their assignments before taking a test, our state representatives and senators must READ any bills on school reform before they VOTE on them.

With the federal Race to the Top deadline looming, negotiations in Lansing around RTTT-related legislation will stretch well into the evening hours. These various House- and Senate-approved bills are in conference committee where six legislators will have significant influence over any compromise. They are Sen. Wayne Kuipers (R-Holland), Sen. Gerald Van Woerkom (R-Muskegon), Sen. Buzz Thomas (D-Detroit), Rep. Tim Melton (D-Auburn Hills), Rep. Doug Geiss (D-Taylor), and Rep. Phillip Pavlov (R-St. Clair).

In these kind of last-minute negotiations, it’s common for legislators outside the conference committee to not have the opportunity to fully read compromise bills before voting.

But with our students’ futures at stake, it is essential that our leaders in Lansing do the responsible thing, read whatever bills come before them, and carefully consider the reforms they are enacting. The details of these reforms are critical – they will impact the education that students receive for years to come.

Critical areas for them to look for and oppose include:

- School reform that narrowly focuses on instituting building level reforms without addressing dysfunctional bureaucracies.

- Expansion of charter schools without proper oversight, transparency and accountability, as well as unregulated cyber schools or other new school models that don’t ensure a high-quality education for students.

- The elimination of teacher tenure and other assaults on school employee rights that ensure good working environments for employees – and good learning environments for students.

Act now!

E-mail and call your state representative and senator today (leave a voicemail if no one is available to take your call in person). If one of your legislators is on the conference committee, urge them to consider these issues in finalizing compromise bills. If your elected officials aren’t on the committee, share your concerns and ask that they consider them as they make their decisions in the coming days.

But above all, insist that all our leaders in Lansing take the time to READ this significant legislation BEFORE they cast a final VOTE.

News of the Day

Governor Granholm to Delay School Proration

At a 4:00 p.m. press conference yesterday, Gov. Granholm announced that she will delay the $127 per pupil proration cut in school aid payments this month. She justified making the move because state revenues in November showed the first increase since last January.

The cuts were to take effect this month after the Legislature failed in November to take action to reverse the pro-ration she ordered because of declining revenues.

The cuts will be delayed until the January revenue conference, which is scheduled for January 11, 2010.

Treasurer Bob Klein and Budget Director Bob Emerson reported that spending on several K-12 categoricals from 2009 was lower than anticipated giving the School Aid Fund (SAF) a carry-forward balance going into fiscal year 2010.

Meanwhile, figures released by the Senate Fiscal Agency showed that November revenues totaled $1.6 billion, up .8 percent from November 2008 and the first monthly revenue increase since January.

With the delay of the $127 pro-rata cut, the total amount cut in fiscal year 2010 would be $165 per pupil.

Urgent

Please contact members urging them to call their legislators NOW!

The House is taking up bills (HB 5623 & HB 5636) which would:
--Require districts use "data on student growth" as a "significant" factor in teacher evaluations. It defines "significant" as 60%!
--Require districts to implement what many have called "pay for performance." It states it shall performance will be based at least in part "upon data on student growth as measured by assessments and other objective criteria."

Some talking points:
--These requirements go far beyond what the federal government is requesting in the Race to the Top grants

--These ignore such factors as:

student attendance (teachers will be evaluated on student performance even if the student is NOT there most of the year)
student at-risk status
student disabilities
parental support

--This is a "one size fits all" approach that ignores local control

--Most districts have sound evaluation processes that take into account many important factors to assess teacher performance

--This will penalize teachers who work with the students who have the greatest needs.