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Michigan’s largest debt declines
Gov. Whitmer asks to put less into the pension system
… for public school employee pension debt is down by roughly $5.2 … administration.
Lawmakers promised pension benefits to workers in a state-mandated … what was promised. State pension funds are not like Social … up. (They don’t.)
Instead, pension fund managers have flexibility … estimates, the costs for pensions are as employees are working, … more
Lansing’s $402M pension problem could become ours
City’s unfunded pension debt continues to grow, even with state help
The city of Lansing pays pensions to 1,790 former employees, but it lacks a fully funded pension system. If the city fails to fully fund its pension obligations, the burden will … Mackinac Center.
Lansing’s net pension liability was $402,497,602 … fire and police department pension system and $164 million in … more
Michigan taxpayers funded artistic and financial flops in last film-subsidy effort
In movies and subsidy programs, the sequel is rarely better
… filmed (at least partially) in the Great Lakes States. By the time it was over, several studios (and one town) were nearly bankrupted, teachers’ pension funds were raided to cover costs and only a small, short-lived blip of jobs appeared. The subsidies were widely derided by economists across the political … more
Don’t redirect pension funds
Lawmakers should be wary about lowering pension debt payments
… million out of the state’s pension debt payments and spend it … should be careful. Underfunded pension debts have a long history … part of the state-managed pension and retiree health insurance … pay for their employees’ pensions, and the state pays out pension checks to employees when they … more
The missteps of the Michigan Legislature were many in 2023
Forced unionization, pork, and corporate welfare are the story of first half of the 102nd Legislature
… unionization won’t help.
Pension exemptions
Michigan lawmakers eliminated the tax exemption for pensions in favor of a limited tax … Michigan Democrats reinstalled a pension exemption, claiming that it … had an exemption. And the pension exemption only applies to … receipts from conventional pension systems.
All seniors already … more
UAW strike grows by 4,000; now affects 29,000 workers
Workers at Mack Trucks voted to reject a contract and will join the 25,000 other UAW members on strike
… living allowances, job security, wage progression, skilled trades, shift premium holiday schedules, work schedules, health and safety, seniority pension, 401K, health and prescription drug coverage and overtime.
The 4,000 workers at Mack Trucks will join the 25,000 UAW members who’ve joined the strike … more
Whitmer pension grants are a $553M bailout for governments
Michigan municipalities that made promises they can’t keep get half-billion dollar bailout
… bailout to local government pension funds in the 2024 budget. … tweeted of the Protection MI Pension grants on Sept. 20, complete … pockets through Protecting MI Pension grants in 123 communities … government.
Even when public pension plans use accurate actuarial … wrote.
Hohman then turned to pensions. “It is state policy to prevent … more
Film incentives still don’t make sense for Michigan
Michigan corporate welfare meets Hollywood accounting: What could go wrong?
… resulting in only a small, temporary job blip.
There were multiple studio collapses, including one in Pontiac (which required a bailout from the teacher pension system) and one in Allen Park (which nearly bankrupted the city).
The state film office approved a $1 million subsidy for a Michael Moore documentary...a … more
Benton Harbor pension system only 39% funded
State law requires 60% funding; Benton Harbor has been on a corrective action plan for years
… poor job of managing its pension obligations that the state … requires local government pension plans to be 60% funded, at … submit a document, known as a pension corrective action plan, which … it will do to shore up the pension system.
In 2015 the city’s pension liabilities were funded at … more
The Whitmer agenda is a sop to the rich
Governor proposes EV subsidies that would benefit the well-off
… new law that expands tax breaks for retirement income, fully exempting pension income. Senior households already have some of their income exempt from … tax — $20,000 for single-filers and $40,000 for joint filers. So the new pension exemptions apply only to people who earn more than that in retirement, … more
Congress rebuffs ESG investing, but Biden expected to veto bill
How the Michigan delegation voted on allowing retirement funds to be used for ESG investing
… What you need to know about ESG investing
President Joe Biden opposes the measure, according to Reuters, which says:
A Republican bill to prevent pension fund managers from basing investment decisions on factors like climate change cleared Congress on Wednesday, setting up a confrontation with President … more
Whitmer’s tutoring plan is too little, too late to fix learning loss
Michigan students might have coped better with learning loss if governor had not vetoed a similar GOP plan in 2021
… million to study and encourage school district consolidation.
$800 million for school infrastructure.
$500 million for a reserve fund for the school pension program.
$900 million for a rainy-day fund.
In light of all this spending, getting kids back on track seems only a middling priority for the governor. … more
Under Democratic rule, Lansing is headed back in time
New legislative majority wants to play policy ping pong, not build the future
… earned income tax credit and exempting public pensions from taxes.
Expanding the Michigan EITC is nothing …
Policymakers repealed a special exemption for public pension income in 2011, but there have been repeated attempts … small benefit to retirees lucky enough to have a pension financed by taxpayers.
Lawmakers’ proposed labor … more
Senate Republicans can stop Whitmer’s attempts to trade income tax cut for corporate welfare
Whitmer’s great switcheroo must work on a tight timeline. Will Senate Republicans preserve a tax cut for their voters?
… lines. The House version, passed earlier in a much different form, passed 67-41. The earlier version passed by the House dealt only with repealing the pension tax.
These 11 Republicans voted with the Democrats on the earlier version of House Bill 4001:
Rep. Brian BeGole, R-Perry
Rep. Bob Bezotte, R-Marion … more
Michigan lawmakers are likely to keep taxing pensions
Raising the tax deduction for seniors is different from eliminating the pension tax, but don’t expect lawmakers to explain that
… campaign pledges to repeal the pension tax, Michigan legislators are likely to keep taxing pensions next year. Michiganders should … lawmakers will not repeal the pension tax is that there is no pension tax. There is a state personal … senior income. Calling this a “pension tax” is a simpler and more … more
Michigan budget delivers $2 million curling center in Traverse City
Traverse City breaks out the brooms for pork project in shuttered Kmart
… October 2021 of $28 million in revenue for 2022, a 3.4% increase over 2020, according to Traverse Ticker.
The city also has $40 million in unfunded pension liabilities. And Grand Traverse County is embroiled in a controversy over the county director’s plan to raise the millage rate for veterans affairs, … more
As ESG faces resistance from states, Michigan should join in
19 states allege consumer fraud; Michigan bill would ban public retirement systems from ESG investing
… oil and gas, which included 10 financial companies and 350 investment funds.
In Florida, Gov. Ron DeSantis eliminated ESG considerations for state pension funds.
A similar bill has been introduced in Michigan. Senate Bill 1192 would ban Michigan retirement systems from ESG investing. It was introduced … more
Jaye: Triple-dippers are draining governments in Michigan
Michigan offers ‘golden handcuffs’ to longtime workers who want to retire, denying opportunities for advancement to younger ones
… and start receiving their pensions and salaries at the same … into the taxpayer-funded pension program, like every other … “public servant” will receive a pension cash bonus payout. Triple … final year’s pay, on which pensions are based.
Triple dippers … then collect a taxpayer-paid pension and health benefits for life … more
Ten other numbers to know about the Michigan budget
Gov. Whitmer’s ‘10 most important budget numbers’ left out a few items
… and expected inflation in the upcoming year.
$2.275 billion: Amount of pension debt payments in the budget. Lawmakers have not set aside enough money to pay for the pension benefits earned by government workers. Paying down this debt protects pensioners … more
Faulty assumptions led to $2.3 billion catch-up on Michigan school pensions
Michigan has a history of underfunding the system but might now make extra debt payments
… underfunding public employee pensions.
Generous retirement promises, … Center for Public Policy. Pension liabilities are non-dischargeable, … state's failure to fund the pension plan fully. Most of the underfunding … occasion the state even used the pension system to bail out a bad deal … most recent increase in the pension debt is the result of better … more
We are not as divided as we think
When it comes to government spending, there’s got to be a better way
… need to find adoptive parents find a forever family?
Michigan raided its pension system, which was already underfunded by tens of billions, to give Michigan … make movies in the state. The company folded on its payments, and the pension system took a hit, further straining the finances of everyone else. Do … more
Teacher Pension Fund’s Good Earnings Last Year Not Good Enough
Still $16 billion short of amount needed to meet pension promises to school employees
… Iris Salters receives state pension benefits worth $190,600 a … earnings used to calculate her pension include the $186,000 annual … such arrangements, and their pension spiking came at the expense … underfunded public school pension system.
The school employee pension system had net earnings of … more
Michigan Teacher Shortage Turns 102 Years Old
Shouldn’t we have run out of teachers by now?
… family with insurance or a pension and things like this, which … traditional defined benefit pension. For example, a teacher who … scale would receive an annual pension of $44,200.
The state overhauled its pension system in 2017, after years … Employees Retirement System’s pension fund was $24.2 billion short … more
Detroit Sees Budget Shortfall In Five Years
City’s CFO says budget deficits are coming
… did not have to make contributions to its two pension funds, but it will have to resume making those … according to the Citizens Research Council. Those pension payments were made by the state of Michigan and … future, given baseline trends and projected legacy pension liabilities. With our conservative forecast assumptions, … more
Ann Arbor Police Use Big Overtime Totals To Boost Big Pensions
… Monroe retiring with an annual pension of about $159,160.
According … permits officers to boost their pension payout calculations by adding … result also pays off in higher pension benefits for the rest of their lives.
Monroe’s annual pension totals shown here are estimates, … Social Security.
Ann Arbor's pension system was 100% funded as … more
Michigan’s School Pension Fund Has A Great Year In The Market
A large $15.8 billion gain knocked down the level of underfunding by 31%
Michigan’s underfunded public school pension system had a great year in the market in 2021, but it still … retired school employees.
Auditors report the pension fund earned a net $15.895 billion on its investments … gains in 2020 of $2.920 billion.
In 2020 the pension fund was $35.0 billion short of the amount actuaries estimate … more
Disgruntled? Double-Dipping Part-Time School Teacher Was Doing Pretty Well
State law allowed her to return to the classroom while collecting a teacher’s pension
… another teacher.
When Groth retired, she began collecting a Michigan school pension of $42,264 a year and benefiting from some special carveouts enacted by … Manchester job, she was allowed to collect both the full amount of her pension and her part-time salary, a practice known as double-dipping. She also … more
Former Teachers Union Heads, Staff, Parlayed Big MEA Paychecks Into Jumbo Public Pensions
Ex-MEA presidents get state-constitution guaranteed six-figure pensions
… an annual Michigan school pension of $144,276.
The outsized public pension Maddox receives is due to … generate a higher school pension payout after he retired. … salary toward getting a state pension today — a payment guaranteed … applying to their public school pension. But they can no longer apply … more
Nice Work: $224,000 School Pension Plus $72,000 County Job
… 2019.
Lorenzo is also collecting $224,028 a year from a public school pension acquired over 29 years as president of Macomb Community College. Lorenzo … billion short of the amount actuaries estimate is needed to pay for the pensions of employees. more
Few Outside Government Get This Michigan School Retiree Benefit
Pension checks with 3% COLAs, which are mostly ancient history in the private sector
… get a 3% increase in their pension payouts every year. This represents … superintendent, collected an annual pension of $136,027.
In 2020-21, Washburn’s annual pension had increased to $175,992.
The 3% annual pension increase is a lucrative benefit … taxpayers.
The school retirement pension fund is $33.8 billion short … more
Small School District’s Retired Superintendent Gets Plus-Sized Pension Checks
… public sector. And the size of a public school pension is mostly a function of how much an employee was …
Ostrander is now collecting a $167,450 annual pension from the state. That’s the seventh-highest pension of any retired public school employee.
The public … more
Despite Costly Previous Failures, Michigan Governor Wants ‘Venture Capital’ Corporate Subsidies
Taxpayers would backstop favored firms’ losses
… money, dubbed “tax vouchers,” authorized to secure the funds. The program that became law used regular state revenue to cover the eventual losers, not pension fund dollars.
Eighteen years later, investors had claimed every one of the $450 million in tax voucher bailouts that had been authorized – exactly … more
Michigan’s Teacher Pension Fund Earned Just 5.3% Last Year
401(k) investors in a Vanguard stock-and-bond index fund did better
… on the state of Michigan's pension portfolio, which includes … managers of other government pension funds.
It’s also far below … stocks will beat a diversified pension fund that holds bonds, which … stability.
But the state's pension portfolio performance also … period Michigan’s school pension fund returned just 5.3%. … more
Teachers Who Are Paid $97K Annually Say Low Pay Is A Problem
… 2013-14 to $96,975 in 2019-20.
The couple brought home a combined income of $194,268 in 2019-20.
And each of them would be eligible for an annual pension of $35,250 (based on their salaries at retirement and 25 years of experience) and they would still be eligible for Social Security. more
Center-Left Interest Group's Whopper On Michigan Teacher Retirement Benefits
Most private sector workers only dream of such security
… paid $2.8 billion to fund public school employee pensions in 2020, and another $709 million for school … before 2018 received a defined-benefit annual pension. For example, a teacher that worked 35 years and made $70,000 a year, would receive an annual pension of $36,750 a year and would still be eligible … more
Michigan School Pension Deficits Eat District Budgets
Thanks to state underfunding, Lansing Schools' pension expense is up despite smaller enrollment and staff
… retirement benefits in the form of annual pensions to employees hired before … significantly, the cost of unfunded pension obligations owed to employees … February 2016 is on the rise.
“Pension debt hurts teachers and taxpayers … have done a lot stop future pension debts, they also got deep … contributions to the state-run pension system increased from $17.3 … more
State Pension Underfunding Enough To Give Pontiac Teachers $11,000 Bonuses
There are no bonuses; that's how much more district paid pension fund in 2020 vs. 2010
… each year to the state-run school pension system.
The district went from having … million extra it has to pay for pensions in 2020, compared to a decade ago, … state has neglected to fully fund its pension obligations.
The Michigan Public … years, annual contributions to the pension fund were below the required amount. … more
Michigan School Pensions Still Underwater, Democrat's Bill Would Sink Them Lower
Double pension credits for some who collected paychecks during pandemic
… is struggling with rising pension expenses caused by decades … officials underfunding the pension system.
In 2016-17, the district … million to the state-run pension fund for public school employees. … System over the years, the pension fund was still $33.8 billion … amount needed to meet its pension promises. That amount is about twice … more
Cost Of School Pension Underfunding In 2021: 42% Of Teacher Payroll Expense
Politicians overpromised, managers filled gap with rosy scenarios, taxpayers on the hook
… Michigan’s school employee pension fund has fallen short of projections … attempt to shore up unfunded pension promises.
That’s according … overly optimistic estimates pension fund growth. They also, he … smaller contributions to the pension fund.
All this means that … underfunding have left the pension fund more than $40 billion … more
How To Make A School District Appear Underfunded: Ignore Big Pieces Of Revenue
Michigan’s public school establishment and friends regularly do it
… district, or 85%. The district received additional state funding for certain categories of spending, such as special education, student lunches and pension expenses.
Public schools also receive federal dollars, which go predominantly to districts serving primarily students from low-income households. … more
Flint Has 29 Cents For Each Dollar Needed To Cover Pension Promises
Annual income: $100 million; total pension promises: $388 million; result: misery
… the amount it should have invested to cover the pension promises it has made to its employees. The amount represents just 29 cents for every dollar in unfunded pension debt.
Flint has also offered to provide post-employment … it should have $266 million set aside. Unlike pensions however, these payments are not guaranteed by … more
Government Workers A Protected Class In 2020
Some Westland cops put in a few hours in 2020 and retired with six-figure payouts during the pandemic
… $197,402 in 2020, with $40,745 in vacation time and $50,721 in sick time paid to him. That officer also had $21,979 in what the city called a “non-pension” payout.
Other police officers in the city received six figures due to retirement payouts. One officer had gross pay of $148,716 in 2019. This included … more
Biden Blowout: Spending Bill Unnecessary and Harmful
State lawmakers must act to minimize waste
… foreclosed. In addition, the legislation prohibits states from paying down pension debt with this money, something that would put states in a healthier financial … the long term. (This, even while other provisions of the bill bail out pension systems for labor unions that are on the verge of insolvency.)
If state … more
Report: Give Local Governments More Money, But Don’t Ask Taxpayers
That’s the gist of a new study on local government finance in Michigan
… can save some money through consolidating services and contracting out, which is a fine standalone recommendation. There’s also gains to be had in pension reform, because local government officials have racked up over $10 billion in debt to their own employees and retirees. But the report completely … more
Michigan Lawmakers Make Progress on Pension Debts
But taxpayers still owe more than $50 billion to state-run pension systems
… e’s a problem with public pensions in this country, but it’s … taxpayers have racked up in pension systems. This has been bad … assume that way to solve pension problems is to get more people …
But government employee pensions operate differently. Instead … how much they put in the pension system based on projections … more
Free Market Cato Institute Gives Michigan Gov. Whitmer 'F' On Fiscal Policy
… proposed increasing taxes on passthrough businesses. In a flip‐flop that is angering retirees in the state, Whitmer campaigned in 2018 on repealing a pension tax imposed by the prior governor, but now she seems to have dropped the idea. more
Recipe For School Budget Trouble: Enrollment Down, Teaching Staff Up, Pension Expense Rising
Bay City officials use the old ‘state funding cuts’ excuse — but their funding went up, not down
… aggravated by the growing burden imposed by an underfunded state-run school pension system. Like all school districts, Bay City must contribute to the underfunded … in 2011 to $11.81 million in 2019.
When that $3.78 million increase in pension expense was added to a 16% enrollment decline, and payroll expenses that … more
Superintendent Gets $240K, School District Out Another $100K In Pension 'Catch-Up Costs'
Past pension underfunding takes amount equal to 40% of school payrolls
Michigan’s public school employee pension system is $33.8 billion short of the amount officials estimate it needs to meet the pension promises made to employees, as of 2019.
What … Michigan Public Schools Employees Retirement System pension.
That’s about the cost of an assistant principal … more
Hazel Park Superintendent Talks Years Of Cuts, But Per-Pupil Funding Up
District’s inflation-adjusted state funding higher per student since 2011
… payments that all districts get to cover the expenses of school employee pensions.
Hazel Park received $9,069 per pupil [state dollars only] in 2018-19, … district they attend.
And like the other public school district, years of pension underfunding means Hazel Park Schools also faces higher retirement expenses. … more
Revisit Spending Priorities
Lawmakers won't have as much revenue to spend this year
… by an 18% gain in the number of full-time equivalent employees, and higher demands for retirement contributions from a system with $799 million in pension debt.
The state spends $138 million more on transfers from taxpayers to state universities. With each university getting a different cut with little … more
Lansing Activists Want To Defund Police
But city owes public safety retirees $764 million in benefits
… has promised retired police and fire department retirees $764 million in pension and post-retirement health insurance benefits.
Under the state constitution, pension promises made to employees by municipalities may not be broken. (Post-retirement … more
State and Local Bailouts Would Reward Fiscal Wastefulness
Congress should avoid bailouts
… before the pandemic began. Pension underfunding is one example. … enough money to fund their pension promises; now, they want taxpayers … billion-plus shortfall in its pension system’s obligations. Lawmakers … to subsidize their state pension fund. Another $9.6 billion … it, too, could make up for pension shortfalls that predate the … more
Does Defund The Grand Rapids Police Mean Take Their Pensions Too?
Police and firefighters have been promised a combined $530.7 million in pensions by the city
… associated with public safety departments – lifetime pension promises to officers and other staffers.
For … employees who are enrolled and vested in the pension system, and 710 individuals who are now collecting … city has committed to paying $530.7 million in pension benefits, as of 2019, to its police and firefighters. … more
Less Driving Means Less Gas Tax Revenue
Road funding will be affected by the pandemic
… sometime after the pandemic is over, and the effects will be smaller if the pandemic is shorter. The same could be said of income taxes, school revenue, pension funding, and the rest of the state budget. Road funding losses may also be mitigated by loosening the restrictions put in place by the executive orders … more
Mackinac Center Leads Coalition Letter Against Bailouts
States should use the tools they have to balance their budgets
… billion just to subsidize government pensions in the Land of Lincoln. Those pensions were underfunded by more than $100 … in Michigan — on state and local pensions. Forcing people in Michigan and elsewhere … government for permission to solve its pension crisis in an equitable way. This … more
Economic Well-Being Tied to Economic Freedom
The best economic development tool is a free market
… subcategories that comprise the three broad categories. They include the following:
Government consumption;
Transfers and subsidies;
Government pension payments;
Personal and corporate income and payroll tax revenue;
Top marginal tax rates at various income thresholds;
Property and other taxes that … more
How the Pandemic Will Affect Public Sector Pension Plans
The system currently has a lot of debt and is underfunded
… will show up is in their pension systems. But it will take a while.
Public pension systems are pre-funded. That … employee is working and earning pension benefits, the employer sets … grows, and is used to make pension payments when the employee retires.
When the market falls, pension savings take a hit. To make … more
Schools Feeling Short-Term Pension Pain For Long-Term Gain
One catch: Some benefits of a 2017 reform will take years to pay off a lot
… districts face with increased pension costs.
The district has seen … in 2019 dollars. Its 2019 pension payment was $25.5 million. … despite recent reforms to the pension system, and in the short term, … as of 2019, the state-run pension fund was $33.8 billion short … realistic projections of how much pension fund investments are likely … more
Michigan House Bill Package Increases Road Funding Without Raising Taxes
The state’s current budget debate is not about cuts
… adopt greater responsibility for paying down the $33 billion in school pension debt, for instance. Both schools and the state put $3.4 billion into the system last year. Tweaking the responsibility for paying down school pension debt can matter a lot more than how lawmakers prioritize tax revenue from … more
Charter School Profiteering? Don’t Turn That Lens On Larger, Richer District Schools
The really big money is in conventional school districts and all their intermediaries
… School District.
ANNUAL PENSION PAYOUTS
Sherman Ostrander, … Schools, receives an annual pension of $167,460.
Ostrander’s annual pension is more than three times the … employees who arranged special pension deals when they left their … accrue years of public school pension credits worth tens and even … more
Michigan’s Former Top Cop Given $639k In 'Deferred' Pension Benefits While Still On Payroll
Government solution to officer attrition from early pension eligibility was legalized double-dipping
… on a $640,000 nest egg of pension benefits awarded to her between … otherwise retire with full pension benefits, which come after … been eligible to draw on pension payments accumulated in a … advocate.
Separate from the past pension payments that were deferred … collecting regular current pension payments estimated at about … more
Pay Hikes Fewer But Still Happening At Fiscally Stressed Michigan School District
Falling enrollment and rising pension expenses mean cramped raises at Wayne-Westland
… the profile of ones in financial duress — falling enrollment and rising pension expenses.
The district enrolled 13,468 students in 2009-10, which fell … the district was required to contribute to the state-run school employee pension fund rose from $9.1 million (in 2011) to $20.6 million (in 2019).
However, … more
Use Better Assumptions to Pay for Pensions
Lawmakers should pay close attention to state pension systems
… to contribute money to the pension system during each employee’s … retirements of the people who get pensions. A well-funded pension system has enough money to … in the system to pay their pensions.
What employees earn for … long they will collect a pension. Likewise, how much the state … more
Michigan Teacher Pay Complicated Enough To Spin Many Narratives
Taxpayers ask a lot, pay a lot putting a teacher in front of a classroom
… teacher includes the high costs of maintaining a pension system and the health care benefits of active … Retirement System, which administers teacher pensions. The district also had to pay $5,771 for health … compensation that are used to determine teacher pensions. Pay for optional duties is included in an individual’s … more
Michigan Can Spend its Fuel Taxes on Roads
Reprioritizing revenue to roads is better than taking on bonds
… if lawmakers decide to move the taxes paid at the pump to the transportation budget. The state could agree to pay off more of school’s $33 billion pension debt than they do right now, for instance. School officials would be especially happy about that if lawmakers used money from its general or other … more
Bill To Increase State Transparency Could Reduce It
Wouldn’t be first time the legislative process worked against open government
… “Taxpayers already paid the salaries, perks, and pension benefits for public employees. We paid to create … much for which job. Public employee salary and pension records are public information. Period.”
Withholding … system? Who, by name, receives how much salary or pension for what unit of government?” he asked. “Without … more
State Worker Salaries Stagnate Due to Skyrocketing Cost Of Benefits
Costs $122,959 to employ a state worker; $54,845 of that is benefits
… $65,673.
Hohman said the main drivers of the skyrocketing benefit costs are increases in employee health insurance, contributions to a defined benefit pension system (which was closed to new hires in 1997), and payments for retiree health care coverage.
Some of this annual benefit expense is incurred for … more
‘The Nation’ Blames Michigan GOP For Cuts In School Budgets Signed By Dem Governor
Cuts came during single-state recession; funding only higher since GOP gained trifecta in 2011
… district they attend, but districts receive millions more from the state for things like special education, at-risk students and school employees’ pension benefits. In the Plymouth-Canton example, those three line items accounted for $23.8 million in state funding, and they were not part of the foundation … more
More Inaccurate Media On Amount Michigan Taxpayers Pay For Schools
Reports do reveal what school establishments want public to think about how much they get
… allowance - MLive ignored billions of dollars in state funding for other areas of education spending. These include special education, retired teachers’ pensions, extra dollars for districts with more low-income (“at risk”) students and more.
The MLive article then stated: “Including all funding sources, … more
Why Do Complaints About Teachers’ Pay Never Say How Much They Get?
Maybe not getting rich, but it’s a long way from poverty
… one teacher who earned a gross salary of $82,173 in 2018.
The district paid $32,467 to the state to cover the cost of funding this individual’s pension and post-retirement health insurance benefits. The district also paid $13,350 for the teacher’s current-year health insurance, $1,634 for dental coverage, … more
Teachers’ Pay Didn’t Fall, But Great Recession Did Drive ‘Reduction In The Rate Of Increase’
East Lansing illustrates one way this happened
… responsibility which can pay as much as an extra $9,300 a year.
Importantly, the extra pay also goes into the formula used for calculating each teacher’s pension benefits after retirement, making it even more valuable. Two years ago, the state of Michigan stopped providing breakdowns of all the extra income … more
Teachers Who Talk Down Their Profession Often Don’t Mention The Benefits
A decent pension and good health coverage for life among them
… retired and will collect a monthly pension check for the rest of his life, something … teaching. A teacher who had been accruing pension benefits for that length of time … eligible to begin collecting an annual pension of $38,210, plus health insurance. … deducted from that individual’s monthly pension checks. more
Warren Council Votes Self Free Lifetime Health Care; $228 Million Short On Workers’ Benefits
Unfunded liability for promised retiree health care benefits is double city’s annual revenue
… entire general fund budget for 2020 was budgeted at $115.8 million. Additionally, the city owes $178 million for unfunded liabilities in its employee pension system, which only has 75% of the amount actuaries say is needed to cover future retiree benefits.
“What the Warren City Council did should be an … more
Teachers Filing Union Unfair Labor Complaint Appear To Be Doing Well
Average pay at their Macomb district $79k; $100k+ not uncommon with optional duties
…
The Mackinac Center for Public Policy has obtained the gross salaries of all the teachers in Michigan who were enrolled in the state-run school pension system from 2013-14 to 2018-19. Michigan Capitol Confidential is using this resource to review the salary history of some teachers within the Utica … more
Taxpayers Pay $50 Million For State Police Double-Dipping Program Since 2015
Incentives let active officers also receive pensions during last six years on the job
… become eligible for a state pension has cost taxpayers more than … retirement-eligible troopers to get pension benefits and also remain on … participants receive early pension benefits that are deferred … start getting regular monthly pension checks.
This is essentially … regular pay and (deferred) pension benefits for up to six years … more
Government Pension Underfunding Threatens U.P. Hospital’s Future
Reforms may have been too little too late; federal lifeline sought
… carrying $20 million in unfunded pension liabilities, is seeking approval … the system’s substantial pension debt is a significant obstacle … hospital open and that the pension system is adequately funded. … stabilize it. The hospital’s pension plan, which covers nearly … 2016 to 35% in 2018. But the pension obligations, secured by the … more
State’s Pension Fund Managers Get The Big Bucks — Not The Governor
$438k for highest paid executive branch employee was a 7.9% increase from 2017
Teacher, Poet, Pizza Guy — At $82k, Says Side Job Needed To Pay Bills
But also said his pay is ‘by no means terrible’ at the Ann Arbor school district
… state-run system that will provide his traditional pension and post-retirement health insurance benefits. … behalf. Kass himself had to pay $265 toward his pension benefits. Based on those payments, if Kass retires this year, he will receive an estimated pension of $28,290 a year, with a 3% annual increase. … more
Octogenarian Bailiffs Finally Get Dismissed From Detroit Court
‘One of my favorite stories of government run amok’
… grandfathered into service at the 36th District. Along with enjoying job security, they were entitled by statute to receive $20,000 salaries and pensions funded by the court. (Most of their compensation came from fees paid by plaintiffs for carrying out court orders). By 1998, only 9 remained; 33 had … more
Media Misreports Whitmer’s 45-cent Gas Tax Hike, Even As Its Chances Fade
A substantial part of the money would not have gone to ‘fix the damn roads’
… instead of her 45¢ per gallon gas tax hike to come up with enough revenue to spend $2.5 billion on roads without taking money away from education, pensions, and other places, she remains open.”
The Escanaba Daily Press reported on Aug. 28: “The state Senate and House have both passed budget proposals, … more
Despite New Law, Some Cities Digging Deeper Pension Holes
Most towns making progress, but not Flint, Hamtramck, Eastpointe and Mt. Morris
Many Michigan municipal pension systems are inching toward solvency … falling even deeper into a pension-debt hole. The pattern has … scrutiny amid concerns that pension debt will swamp the ability … analysis of the health of pension systems in the state’s 100 … which covers the progress in pension funding between 2016 and 2019, … more
Road Workers Oppose Strike, Bail On Union
‘The union is using us as pawns in a power play’
… effort to pad the union’s struggling pension fund,” Rieth-Riley said in a news … Company attorney Chad Loney said the pension fund contribution is the “whole reason” … the strike.
Loney said the union pension fund contribution for nonunion members … ex-union member at Rieth-Riley said the pension fund issue “isn’t a hill worth dying … more
Teachers Union Opposed State Pension Reforms, Now Doing Same
Retired employees call union's changes ‘disaster,’ ‘radical,’ ‘extreme’
… to $113.3 million in 2018.
On the positive side, the union’s unfunded pension liabilities have declined. In 2011 the union’s pension plan had $109.0 million in unfunded liabilities. By 2018 this unfunded … more
School Superintendent Gets Raises And Funding Hikes, Complains Funding 'Broken'
Her districts’ inflation-adjusted increases range from 8.4 percent to 12.7 percent
… salary figures are what the county education agency reported to the Office of Retirement Services. In addition to being eligible for a Michigan school pension, Clark benefited from a $26,069 contribution her employer made to her annuity in 2018. more
71 Percent Of New School Employees Choose 401(k) Over Pension
Employees themselves now on the hook for pension underfunding
… traditional defined benefit pension and a 401(k) defined contribution … fact that defined benefit pensions have long been the rule in … lawmakers to close the old school pension system to new hires as of … added a big catch to the pension option they included in a … adopted because years of past pension underfunding has put a significant … more
River Rouge Not A Large School District, But Superintendent Paid $258k
There's a discrepancy between the amount reported by the district and by pension officials
… retirement office maintains individual pay data for purposes of calculating the pension and other post-retirement benefits owed to state and public school employees. … office to report a lower salary than the school district. This is because pensions are calculated by using not just an employee’s base salary; instead, the … more
Top 10 Michigan School Superintendents All Get Above $200,000
Life at the top of public education
… factors also helped boost Ostrander's pension when he stopped working.
Based on the pension formula used by the Michigan Public … retired with an estimated annual full pension of $118,300 a year.
Here’s a look … retirement system to calculate how much pension money the individual will receive … more
Fire Departments Spend Millions When They Don’t Have To
Data shows volunteer firefighters are just as effective as the professionals
… of additional training and pension payments for new firefighters. … lets employees spike their pensions by adding supplemental income, … cashing in unused sick days.
Pension spiking exacerbates pension underfunding. Most full-time … retirees defined-benefit pension plans but do not set aside … more
Michigan Schools Serving Poor Cities Get More Funding
An inconvenient fact for some public school interests
… educate a regular education K-12 student in Michigan is $9,590, which does not include transportation, food service or capital costs, and only includes pension costs at 4.6% of wages.”
But school districts in Michigan get far more than $9,590 per student once all local, state and federal dollars are counted. … more
Union Proposes Trimming Retiree Health Benefits to Save Money; Opposed It When Taxpayers Were Footing the Bill
Michigan Education Association asking its retirees to pay more and get less
… liabilities pile up over the past decade — dramatically going from $77 million in 2007 to $233 million last year. The change has entirely been driven by pension and retiree health care liabilities.
MEA spokesman Doug Pratt said the organization values its retirees who dedicated their careers to creating better … more
Township Wants Higher Taxes to Pay for Optional Employment Benefit
Insurance premiums offered to employees after retirement not fully prefunded
… residents owe little in official pension debt. But it has provided … borrowed $80 million to get its pension system fully funded. That leaves a better funded pension system, but an additional … borrowed enough to bring the pension system into full funding at … between what has been earned in pensions and what they’ve set aside … more
Married Couple Paid $163,000 As Teachers; Complain About Pay
Ann Arbor teacher spoke at MEA rally in Lansing about her family’s salaries
… for accepting extra duties.
Both teachers’ salary information come from the state’s Office of Retirement Services, which tracks total salaries for pension purposes. Michigan Capitol Confidential files an annual Freedom of Information Act request with this office for data on public school salaries. more
Overselling Whitmer’s Education Budget
Increase in line with years past, not 'game-changing' and 'historic'
… promises it has made, through MPSERS, to pay pensions to school employees. Anyone who compares one … that money into account. The extra money for pensions can be used right alongside other school aid … public schools do not participate in the state-run pension system and receive no state money to offer retirement … more
Union Negotiates Pay Cap, Highlights Capped Teacher’s Complaints
Imposing assembly line pay systems on skilled professionals has its price
… Horan, a teacher at Walled Lake Consolidated Schools, said she is not making what she earned 10 years ago, because she has to contribute more to her pension and health insurance benefits.
The article in the MEA Voice did not mention that Horan’s pay was $76,746 in 2017-18. The average teacher salary at … more
Michigan’s Auto Industry Matters Less to the State Workforce
One out of 25 jobs in the state is in auto manufacturing
… wages in the state in 2001 but less than 6% now. (Note that these figures do not include payments for additional benefits like medical insurance or pensions.)
It’s not that Michigan is producing fewer vehicles; it’s that fewer people make cars. By one measurement, Michigan vehicle production is nearly … more
2018 School Pension Underfunding Expense Enough To Fix The Roads
Decades of officials shortchanging pensions cost taxpayers $2.1 billion last year
… closed) defined benefit school pension system.
The amount almost … repairs.
The state-run school pension fund is $32.7 billion short … available to meet its promised pension payouts to teachers. The state … over the coming decades, the pension fund will earn annual returns … amount contributed to the pension fund. (The different rates … more
Traverse City A Step Closer To City-Owned Broadband
Critic questions business assumptions of city contractor
… higher costs that could arise due to shortfalls in the municipal utility’s pension and retiree health funds, which are only 60% funded. Utility officials tripled their spending on pensions from 2014 to 2017.
In phase 1, Fujitsu assumes that for the project to … more
County Road Commissions Fill Pension Potholes
Bills would encourage paying down retirement debts
… commissions to pay down their pension debt and prefund their retiree … required to give their workers a pension, though most do. If the road commission employees want a pension and their employers want to … set aside a dollar into the pension system for every dollar’s worth of pensions their employees earn.
This … more
Michigan May Have Turned a Corner on the Costs of State Employment
Benefits costs remain expensive but are declining
… system went from near full funding to owing employees and retirees $6 billion, which is a problem when the system isn’t supposed to have any unfunded pension debt. And this underfunding doesn’t make employment benefits any more generous, so the debt is bad for employees and taxpayers alike.
New employees … more
Questions About Traverse City’s Fiber Network Plans
Board set to vote on action soon
… this project proceeds? This should be especially troubling for TCL&P, considering its fiscal vulnerabilities related to a costly and underfunded pension debt.
The latest proposal’s “most likely” scenario would cost $4.2 million to serve an estimated 503 residential customers. Considering most plans … more
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