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.

Capitol Chaos, September 28, 2009

News of the Day
House and Senate canceled Sunday sessions

When the House and Senate convene tomorrow morning, they will have less than 48 hours to pass a budget or force the state to shut down.

House speaker Andy Dillon (D-Redford Twp.) and Senate Majority Leader Mike Bishop (R-Rochester) announced Saturday that they had canceled sessions scheduled for Sunday afternoon. However, the three scheduled conference meetings were convened. They included committees on the Department of Corrections, the Department of Human Services and the Department of Education.

Session was not held today (Monday) because of the Jewish holiday of Yom Kippur.

Over the weekend Mr. Bishop expressed confidence that a deal might at last be close. He said negotiators had resolved one of the five troublesome budgets although he declined to say which one. He remained confident that the logjam might finally break and the House would pass the 2009-10 budget based on all-cuts, no tax increases model to which he and Mr. Dillon agreed.

Bishop loses straw poll

A straw poll conducted at this past weekend’s Republican Party conference on Mackinac Island gave business executive Rick Snyder the nod in the Republican gubernatorial contest, while Sen. Michelle McManus won the secretary of state race and Bill Schuette the attorney general nod.

Leading the attorney general’s race, Mr. Schuette, the former Court of Appeals judge, state senator and congressman, took 57.5% of the 1,212 votes cast. Senate Majority Leader Mike Bishop captured 36.8% while Sen. Bruce Patterson received 5.7%.

In the gubernatorial straw poll, 1,244 votes were cast. Mr. Snyder prevailed with 31% to 24.1% for Attorney General Mike Cox, 24% for Oakland County sheriff Michael Bouchard, 17.6% for U.S. Rep. Peter Hoekstra and 3.3% for state Sen. Tom George.

Ms. McManus took 34% of the 1,186 votes cast for secretary of state, while Sen. Cameron Brown received 26.2%, Calhoun County Clerk and Register of Deeds Anne Norlander received 20.9% and Rep. Paul Scott took 17.9%.

Just the Facts – Powers and Duties given to State Government by HB 5345
Speaker Dillon’s proposed mandatory government-run health plan

Each day we will provide some of the powers and duties that this legislation gives to state government that normally is provided at the local level by local school board members, city councils, county commissioners, etc.

• The Michigan health benefits program board is created as an autonomous entity in the department of management and budget. Sec. 3(1)
• The board shall exercise its powers independent of the director of the department of management and budget. Sec. 3(1)
• The state employer shall serve as chairperson. Sec. 5(1)
• After the first meeting, the board shall meet at least monthly. Sec. 5(1)
• State health scheme vs. federal health reform
  Would all public employees have exactly the same health insurance?
  State Plan
  No. Public employees would lose the plans they have today and would be forced to choose from a limited menu of plans mandated and designed by the state-run program.
  
  Federal Health Reform Plan
  No. National health care reform would preserve choice for people who have insurance today and extend coverage to provide affordable choices to people who are presently uninsured.

School Reform
House Bills 4787, 4788, 4789 – School Reform/Takeover

These bills allow so-called “failing schools” to be targeted for special help. Schools with chronically low student achievement would be placed under the oversight of a state reform/design officer and operated as a “redesigned school” with modified staffing rules that could be negotiated with employees.
The district could authorize special charter schools, or “turnaround schools.” That would provide students with an alternative education option.
These bills have passed the House and have been referred to the Senate.
The reform measures in these bills are as follows:

• Provide for improving the education of children and working conditions of employees.
• Control over the school is given to someone with experience and the authority to reform the school.
• Protects the rights of employees to bargain changes in working conditions. It also expands bargaining rights to include the ability to bargain over the privatization of support services, the terms of a leave of absence to teach in a charter school and the first day of school.
• Creation of a turnaround charter school is the last resort, not the automatic first option. Extensive oversight of the charter schools is provided
• Establishes alternative routes to certification.

MEA supports these bills.

Make sure you get this information out to your membership.

Rep. Calley on the Today Show

If you haven't seen this in the news, take an opportunity to read the story and watch the video. As Matt Lauer said, "No good deed goes unpunished"

More Chaos at the Capitol

Capitol Chaos – Monday, Sept. 21

News of the Day
Dillon, Bishop say votes will come on budget this week

Speaker of the House Andy Dillon (D-Redford Township) and Sen. Majority Leader Mike Bishop (R-Rochester) told Detroit Economic Club members today that they expect to act on several budget bills by the end of the week—and plan to have the entire budget on the governor’s desk before the September 30 deadline.

At this point, it looks like the budget will feature massive cuts, including cuts to education.

Dillon acknowledges that getting the rest of the House to sign on to $1.2 billion cuts that he agreed to won’t be easy, specifically citing cuts to Community Health, Human Services and revenue sharing as problematic.

Curiously, Dillon told the crowd of 150 that he would protect “life-and-death things like nursing homes, police and fire” but that “maybe the education things are more discretionary, even though they are our future.”

As for Dillon’s idea that “revenue enhancement bills” could soften the budget blows, Bishop said it wasn’t likely and that his members would vote against any tax increase that appears in the Senate.

Media coverage: http://www.freep.com/article/20090921/NEWS15/90921015/1319/Lawmakers--Budget-action-soon
http://www.detnews.com/article/20090921/POLITICS02/909210387/Bishop-keeps-veto-threat-in-mind-as-state-budget-moves-forward

Hear the entire address by clicking on both segments of WWJ Plus’“Michigan’s Countdown—Balancing the Budget” on the right side of your screen: http://www.wwj.com/pages/91467.php.


Don’t let up contacting legislators!

Pick up the phone. Send an e-mail. Tell your state representative to just say NO to the disastrous Senate budget cuts.
• 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).


Just the Facts
Speaker Dillon’s proposed mandatory government-run health plan

If you’re wondering what a worst case scenario might be under HB 5345, the proposed mandatory state-run health plan for public employees, take a look at North Carolina or New Jersey or West Virginia.

This year, North Carolina taxpayers will pay $250 million to bail out their plan. In two years, they’ll be paying $678 million because of cost overruns and little or no oversight. Investigators in New Jersey believe the state may have misspent $185 million in the last five years. And in West Virginia, the state is proposing to cut off all retirees from any health insurance coverage in order to balance its books.



Other Legislative News
Reform proposals on legislative agenda

While the budget and HB 5345 are front and center legislative news, there are two other packages of bills that would impact public education.

Rep. Tim Melton is the primary sponsor of legislation that would affect so-called “failing schools.” MEA supports House Bills 4787, 4788 and 4789 as a package as passed by the House. The bills have been referred to the Senate Education Committee. Go to www.legislature.mi.org and type in the bill numbers for more information.

Other legislation, primarily sponsored by Sen. Wayne Kuipers, would create new “neighborhood public schools.” MEA opposes Senate Bills 636, 637 and 638 because they create more charter schools. The bills passed the Senate Education Committee and are pending before the full Senate. To learn more, go to www.legislature.mi.gov and type in the bill numbers

Capitol Chaos, September 18

News of the Day

Public Hearings Continue on HB 5345

State Superintendent of Public Instruction Mike Flanagan testified Thursday before a House panel considering House Bill 5345, a proposed mandatory state-run health plan for public employees. Asked if forcing workers into a state-run insurance program would save $900 million, as purported by bill sponsor Rep. Andy Dillon, Flanagan pegged the savings as "between zero and $900 million."

Flanagan told the House Public Employee Health Care Reform Committee that public schools might be able to further cut spending by consolidating services and wringing other efficiencies, though other expert witnesses have questioned the alleged savings in this proposal. Flanagan also told the panel that he didn't want to see his teacher-daughter lose her health benefits -- and, he said, collective bargaining helps public employees.

"I think people would be screwed if they weren't represented by unions," Flanagan told lawmakers.

Brian Morris, a senior consultant at Gabriel, Roeder, Smith & Co., said based on the information he's seen in the revised white paper, he doesn't have an estimate on the possible savings.
Mr. Brian Morris, who is a health care actuary who works with public employers, told lawmakers he does see a potential for savings, particularly the part about administration of benefits, but savings are lowered when there are more than "tens of thousands" of benefit recipients in the pool.

Wayne Cass, chair of the Coalition of Labor Organizations at Michigan State University, said there is no guarantee that some employees won't see benefit reductions. The proposal doesn't address the real issue of rising health care costs.

The committee's next public hearing is Sept. 24.

Budget Drama

Budget Discussions Move to Committee

House and Senate leaders have named conferees to all appropriation subcommittees in order to reach agreement on the budget. It is reported that members of each of the conference committees will be working over the weekend with hopes of having consensus on the budget by Tuesday.

Serving on the K-12 School Aid Conference Committee are: Reps. Terry Brown, George Cushingberry, Chuck Moss and Senators Ron Jelinek, Cameron Brown and Mickey Switalski.


Just the Facts

Speaker Dillon’s Proposed Mandatory Government-run Health Plan (HB 5345) would end local control and eliminate collective bargaining over health benefits, gutting labor law protections that ensure employees have a voice in choosing the health insurance plan and doctor network that works best for them in their local areas. (Sec. 16)

More than MEA upset with Dillon

More and more labor leaders are calling Dillon out for his health care plan and his stance on the budget. Mark Gafney (state president of the AFL-CIO) is the latest to claim that Dillon is using public employees to launch a run at the Governor's office next year.

Once again, it appears that our elected leaders use (or abuse) public employees to advance their political careers.