Education issues dominate news at the Capitol

News of the Day
Governor Holds Round Table Discussions on Budget

Governor Granholm visited West Michigan last Friday to meet with superintendents, school board members and school staff looking for solutions to the education funding crisis.

The Governor met with members of the school communities in the Muskegon and Kent ISDs encouraging them to support her ideas for a short-term fix and long-term changes to how schools are funded. As she sees it, tax reform is key to avoiding any further budget dramas like we’re seeing now.

After the Governor explained the state’s financial crisis and her reasons for cutting an additional $127 from state aid, on top of the $165 already cut, she heard the impact the cuts will have on education—in addition to the budget slashing schools have already endured.

She heard of the potential elimination of 600 jobs in Kent County and 225 teaching jobs in Ottawa County. Kent City has already eliminated guidance counselors and day custodians. In Whitehall, this new round of cuts could mean cutting programs in fine arts and eliminating athletics and extra-curricular. The message was clear—schools are no longer cutting the number of programs—they’re cutting education quality.

John Mierz, a Whitehall teacher and MEA member, was invited to participate in the discussion. He told the Governor that it’s impossible for districts and staff to do any long-term planning when there’s such funding uncertainty.

Arch Lewis, MEA Research Consultant and a participant in the discussion agreed. “We need a long-term systemic. It’s obvious Prop A isn’t working. We need to get money to schools that will be a permanent revenue source.”

For the short term, the Legislature has 30 days to implement immediate solutions like freezing schedule increases in personal tax exemptions, or having special interest groups pay a percentage of their tax exemptions as a way of closing tax loopholes.

The Governor ended both discussions with the same challenge. “We have to mobilize like we’ve never mobilized before and fix this problem. Contact your legislator and tell them to vote for the needs of public education. Kids only have this moment. The Legislature must be convinced. Are you willing to help me?”


Emergency meetings deal with school funding crisis

In an emergency meeting on Monday, the State Board of Education urged the Governor and the Legislature to immediately find money to reduce the cuts in school funding. Meanwhile, the governor held another round-table discussion in Rochester.

Local MEA leaders and staff attended the meeting. They supplied stories about the cuts in their local districts and its effect on the classroom and students. Oakland County superintendents spoke of cost cutting measures they have been making over the past several years.

Sen. Mike Bishop (R) Rochester, Rep. Tom McMillin (R) Rochester Hills, and Rep. Kim Meltzer (R) Clinton Township were in attendance at the meeting.

Leon Drolet, former State Representative, organized a group of anti-tax proponents to demonstrate outside the Rochester Public Schools Administration building during the roundtable discussion. He had his huge pink pig parked in the parking lot to denote pork barrel spending.

At the urging of the Governor, contact your legislator today. Phone, email, or text legislators and tell them we must save public education. Urge them to look for revenue by reforming our antiquated tax structure and fixing our broken school funding system. For our economic survival, education must be a priority.

Dillon Health Care Plan – Prescription for Disaster
Hearing on 5345 Continues

A hearing is scheduled for Thursday, October 29, 2009, in Room 351 of the Capitol for 2 p.m. or after session, whichever is later.

Testifying on behalf the MEA will be Lori Spotts, President of the Tecumseh EA and Superintendent Mike Shibler, Rockford Public Schools.

The games continue and Education suffers

Here is the latest Capitol Chaos regarding the further cuts to education that Governor Granholm released yesterday. It is critical that you contact your legislators and demand that they find a way to fund public education. Find your legislator's contact information here.

News of the Day
Additional cuts proposed by the Governor

Late this afternoon, Gov. Granholm announced in a news conference a proration cut of $127 per-pupil for this year. The cut is based on revenue estimates for the School Aid Fund (SAF) by the Department of Treasury.

This cut is in addition to the $165 per-student reduction in the K-12 Fiscal Year (FY) 2010 budget that Granholm signed Monday.

Current law requires that the Treasurer notify the Governor if the actual revenue collections are less than the estimated revenue on which the budget is based. In that case, the Governor is required to notify the Legislature that payments to school districts will be reduced on a per pupil basis in 30 days unless the Legislature adopts a solution to the revenue shortfall.

The Governor’s action simply underscores the huge budget deficit faced by Michigan that results from the billions of dollars of permanent, special interest tax cuts enacted when the economy was booming. These cuts are now exacerbating the effects of the economic downturn. Unless the legislature comes up with a fix to this structural deficit, the Governor has no choice but to reduce funding to schools and other units of government.

Schools are feeling the effects of the economic squeeze. Sales tax revenue, which continues to come in below projections, are a major source of school funding. About 70% of funding for the state’s 552 school districts and 232 public school academies comes from the state in the form of sales and property tax collections with a smaller amount from the state’s general fund.

The minimum state grant to schools would drop from $7,316 per pupil last fiscal year to $7,144. Spending per pupil would range from $77,144 to $12,271. Such cuts are difficult for schools to address, as they are already one-third of the way through their fiscal year.

The Governor is holding school funding meetings around the state

Governor Granholm is going around the state setting up meetings with the school community to generate support/pressure on the legislature to come up with more revenue and funding for schools. MEA staff and members, along with school administrators, school board members and parents, have been invited to participate in the discussion with the Governor. The meetings are being followed by press conferences.

A meeting was held in Livingston County yesterday and meetings are scheduled in Muskegon and Kent Counties tomorrow.

Dillon Health Care Plan – Prescription for Disaster
Hearing on 5345 Continues

Cindy Nayer, President and CEO of the Center for Health Value Innovation, testified that access and affordability of care for chronic diseases, prevention wellness and mental health is the core for insurance design needed to provide a healthy workforce for Michigan.

Dr. Mark Frederick, Co-Director of the Center for Value Based Insurance Design with the University of Michigan, contends that the question the committee should respond to is “how to restore health to health care on limited resources?” He also stated that the cost going in such direction may not be less, but there would be a greater return on the investment of good health.

Keith Bruhnsen, Assistant Director of Benefits & Manager of the Prescription Drug Program at the University of Michigan, testified to the pooling of the prescription program at the University, which is a self-insured, self-administered program. As to savings, he stated that it depends on the plan design.

Dan Gilmartin, Executive Director & CEO, and Samantha Jones Harkins, Legislative Associate for the Michigan Municipal League, offered a neutral position on HB 55345. They questioned the cost savings within the bill without cutting benefits.

The next hearing is scheduled for Thursday, October 29, 2009. MEA is scheduled to provide testimony.

Capitol Chaos, October 12 edition

News of the day
K-12 Budget received with mixed reactions

Reactions by school officials were happy to have a final 2009-10 budget but angry that the cut was larger than they had been led to expect when schools developed their budget in June.

The House presented the Governor with the K-12 budget (HB 4447) Friday afternoon and she signed the bill today.

Due to the $165 per pupil cut, as many as 100 school districts are expected to be in deficit spending for the current fiscal year. However, once the governor signs the bill, schools will be ensured no interruptions in their state and federal aid payments. School aid payments will be smaller and schools will have to make adjustments.

There is concern that this budget isn’t really balanced, since the revenues proposed by the Senate to reduce the per-pupil cut from $218 to $165 haven’t been passed. It has been pointed out that $20 million in the General Government budget from license plate fees likely won’t be there.

The Senate package is designed to provide an additional $71 million in revenue and phase out the Michigan business Tax (MBT) surcharge. The Senate voted to freeze the Earned Income Tax Credit (EITC) at 10 percent, cut film credits, cap Brownfield credits and put an 18-month residency requirement on anyone claiming the EITC.

Meanwhile the House revenue plan is to generate an additional $400 million to cover its budget priorities – libraries, Medicaid, revenue sharing, the Michigan Promise and K-12 schools. So far three of the six proposed revenue bills have passed the house – a 3 percent physician’s tax or Quality Assurance Assessment Program (QAAP), a measure freezing the personal exemption allowed in the state’s income tax to last year’s levels and a shell bill that allowed doctors to write off their new QAAP tax as an MBT write-off.

This leaves an interesting end game for a compromise on enough revenue to cover the shortfall in K-12.

It’s time to stop corporate greed!
Business tax breaks cost Detroit about $15 million last year

The Detroit news reported Saturday that city-issued breaks cost Detroit about $15 million last year. The tax abatements were aimed to keep or add 25,000 workers, but about 7,500 were laid off.

This city cut taxes on $2.7 billion in investments over the past decade to businesses that failed to follow through on job promises. The question remains, do tax credits/abatements improve the economy of the cities and state or only the economy of the corporations?

Dillon Health Care Plan – Prescription for Disaster
Public Hearings on HB 5345 scheduled through November

A hearing on HB 5345 is scheduled for Thursday, October 15, 2008, at 2 p.m. or after session, whichever is later.

Hearings are also scheduled for October 22, 29, and November 5th.

State Employee Health Premiums Increasing

According to a 2009 survey completed by the National Council of State Legislatures (NCSL), state employee health premiums are on the increase.

There is a wide variation on cost-sharing among the 50 states. Most states are opting for lower-cost widely-available policy options. The national average for state employee health plans is envisioned as the benchmark for public employee benefits under the Dillon plan.

The national average that the Dillon Plan puts forth is a full family premium of $870 and a single premium of $437. If the Dillon plan is enacted Michigan employees would take a big loss in benefits. The average employee premium share is 8% for single coverage and 18% for full family.

Senator Whitmer's speech on our students

I posted the transcript of the speech last week, now watch it here

Monday's Capitol Chaos

K-12 Budget impasse halts federal funds

School districts were sent a letter last Friday notifying them that until the Legislature and Gov. Granholm enact a continuation budget or a full-year budget, the state can no longer disburse federal funds.

The affected federally funded programs include: Title I; Special Education; School Lunch Program; Adult and Child Care Food Program; Career and Technical Education; Educational Technology; Improving Teacher Quality; Charter School Funds; Even Start; Migrant Education; Comprehensive School Reform; and the 21st Century Community Learning Centers (After School Programs).

School districts and private organizations that operate federal programs normally are reimbursed their federal funds on a weekly basis, according to the Department of Education. Over a normal two-week period, the department processes about $43 million in payments.

The House and Senate have not reached agreement on how much money to put into a continuation agreement.

It’s time to stop corporate greed!

For the past two decades state government has passed through legislation approximately $5 billion/year in tax cuts. Such cuts were designed to stimulate our economy, bring in new industries to replace the dying auto industry, and be the ultimate in job creation.

History has proven this theory wrong as tax incentives have been provided with a modest number of businesses establishing themselves in Michigan, but with little job creation.

These corporate executives, led by David Branden and Doug Rothwell, are loudly proclaiming that if, the state would completely eliminate their tax burden, in addition to the roughly $2 million a year that have already been eliminated, the state will see economic growth, job creation and a stable state budget.

It is time for the legislature to balance the tax burden—not just on the backs of workers—but also on corporations. Without a balanced approach, Michigan can’t provide a sound public infrastructure, including public education and a place for businesses to develop and grow.

Without a balanced approach, public education suffers and businesses will leave the state. Michigan will continue to experience economic decline and job loss.

Urge Senate to Support Public Option and Oppose Taxation in Health Insurance Reform

This past week the Senate Finance Committee rejected amendments that would add a public option to the health insurance reform proposal under consideration in that committee. The proposal continues to include provisions that would tax insurance companies for plans over a certain value. Once the Finance Committee completes work on its bill, that proposal will be melded with one passed by the Senate Health, Education, Labor and Pensions Committee earlier this year, which includes a public option and no taxation of benefits.

NEA believes that health reform should guarantee a choice of plans and providers through a private health insurance plan, including one that an employee may currently have through his or her employer, and a public health insurance plan option. The public health insurance option will compete with the private insurance industry in terms of cost and quality. This choice is a fundamental feature of an American solution for health reform and another critical piece of cost control.

NEA opposes any tax on health benefits, including a tax on insurance companies, which would be passed off to consumers in the form of higher premiums. Many public education employees have traded salary increases for the long-term security of a comprehensive health plan. Telling them benefits will be cut or that they will pay more taxes would unfairly penalize them. In addition, such a tax would place the burden more heavily on some workers than others. Coverage is more expensive for employers whose workforces are older or female-dominated such as education.
Take Action: Tell the Senate to Include a Public Option and Oppose Taxation of Benefits in Health Insurance Reform Legislation.

Learn more about NEA’s position on health care.Read more about health insurance reform myths vs. facts.

Public Hearings on HB 5345 scheduled through November

It was reported that the hearing scheduled for this Thursday would be canceled due to budget discussions taking place all week. However, more than 30 citizens and organizations have requested the opportunity to testify on the legislation. Thus, hearings dates are being scheduled through November so that everyone has a chance to tell his/her story.

The fight for schools continues

After a very long legislative day yesterday, we are still in a fight for our schools. The House rejected the conference committee report that would have reduced the foundation allowance by $218 per student. The Senate Republicans remain determined to slash funding and future opportunities for our students.

There were a couple of interesting moments yesterday. First, there was a call of the House, which had the intentions of keeping the House members from communicating face to face with constituents and members. However, this did not slow the efforts of MEA, especially Erv and myself. Erv and I were able to communicate with Reps Huckleberry and Calley via text message and FaceBook. In fact, by doing this, we stayed in constant contact offering words of encouragement to continue fighting for our students and schools.

However, on the Senate side, the Belding and Lansing UniServ offices repeatedly tried to speak with Senator Cropsey about funding for the schools. On every occasion that we requested a meeting outside the chamber, Sen. Cropsey refused. It appears that he was too busy trying to cut funding for our schools. We knew before that Senator Cropsey was no friend of education but this reinforced my belief that he does not care about the future of our students and public education. In this case, thank God for term limits! It is critical that we get someone in this seat that will at least be open to listening to our concerns.

However, one senator stood out. Senator Gretchen Whitmer (D-East Lansing) gave an impassioned speech on the Senator floor this morning around 2:00 am. I have inserted the text of the speech below and will post the video of the speech when it is available. Here is a senator that believes that children and public education are our future and exposes the hypocrisy of Senate Republicans when it comes to their ideals and beliefs.

Statement of Senator Gretchen Whitmer (D-East Lansing) Opposing Cuts to Schools in the School Aid Temporary Budget Thank you Mr. President, Ever since this hideous conference report came out yesterday I have been agonizing about the 1.6 million children and the families of this state that are going to be hurt by the cuts in this bill. At 2:43 in the morning I finally turned on my light and started writing. You see I come from a family of educators, I am a product of the public schools in East Lansing and in Grand Rapids. My kids are in the East Lansing Public Schools. I believe that education is the great equalizer in our society - - the opportunity for kids to succeed. This past Sunday, I was at my church - - the People’s Church in East Lansing - - and my pastor began the service talking about how when children are around - - adults behave better. I kept the bulliten from which we jointly recited the following: “’Then he put a child among them.’ When we use long words and confusing sentences, put a child among us. When we let the cares of the world drag us down, when the demands of life seem overwhelming, put a child among us. When we are tempted to deceive or to selfishly sway an opinion, put a child among us. When we need love, recognition, or a great big hug, put a child among us. When we need the values of church, family, or community in proportion, put a child among us...” I was raised by 2 public servants - - who taught me many important lessons - - one of which is you’ve gotta get the facts, and two tell the truth, don’t sugarcoat it.

Well here are the facts:
1) The most critical time in a human being’s brain development are in the early years
2) Education is the most important factor in an individual’s ability to succeed in the new economy
3) Businesses of tomorrow need educated work forces

Now here’s the straight talk, where we don’t sugar coat the facts:
1) this budget rips apart the fabric of our education system - - a system I’m willing to bet that every one of you made campaign promises to uphold
2) 200 school districts will be forced into deficit spending - - 218 per pupil
3) ISD funding = another 22 per pupil for a grand total of 240 per pupil - - might as well tell people: plan on keeping your kids home - - your fiction of flexibility is clever but the reality is with less dollars districts will have to spend money on “NEEDS” and not “WANTS” meaning early childhood funding will be gone - - when we need it more than ever.
4) Schools, parents and students will have to be prepared for a 13th year because there will no longer be Credit Recovery.
5) Summer School will be gone.
6) After school programs, gone.
7) These cuts mean fewer bus routes themselves, meaning that that little 5 year old girl will walk farther to catch the bus, and when she gets on it, it won’t have been inspected. School Bus Inspections, gone - - have you checked with your school district what that means to your little constituents?
8) it eliminates early childhood education - - when we need it more than ever Since I know I can’t seem to appeal to you’re the right side of your brain - - or your hearts when I talk about kids - - let’s talk about the bottom line you’re so singularly focused on.
9) Jobs: minimum 12,000 – 14,000 losses. REAL losses - - felt in every community. If a private sector employer told you they’d have to lay off 13,000 employees, you’d be falling over your selves to introduce the bill to save those jobs and here we are slashing them - - and these aren’t just any jobs - - these people are educating our children, our littlest most vulnerable constituents. Can you imagine if it Amway or Domino’s Pizza? Well, job losses are job losses. And job losses of this magnitude will not only hurt our kids, they’ll have the same devastating impact on our communities as job losses in the private sector. 500 less teachers in Kent Co, will mean 23million less in the local economy - - when GRPS have right sized, and done everything right . . . they don’t have 4.2million more.

You like to rail against the MBT ad nauseum - - but how the heck are we to compete with China, India, or even Indiana for that matter when you balance the budget on the backs of our kids? I realize very few of you actually have kids in the schools anymore . . . and you don’t have to look YOUR principal in the eye every day. It almost brings me to tears what you are doing to the kids of our state . . . to think that I can’t you. I know some of you will retort that the schools are “okay” this . . . No they are not. Do they prefer amputation to death, maybe. Who wouldn’t? But this 25% of the school year is over. Their budget year began July 1st. So this is a mid year cut - - a legislative pro-ration. So let me be very clear: none of our schools, none of our 1.6 million kids - - nor their families are “okay” with this. And you shouldn’t be either. I ask that my comments be printed as my NO vote explanation.