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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    MEA pension plan will increase financial pain


    By EducationActionGroupdotOrg, Section News
    Posted on Wed Jan 28, 2009 at 10:00:10 AM EST
    Tags: fiscal responsibility (all tags)

    see the MEA's true motives at www.educationactiongroup.org

    The Michigan Education Association, the state's largest teachers union, is set to unveil a legislative plan today that will create a burden-shifting incentive for older teachers to retire by actually increasing pensions for retiring workers.

    The Muskegon-based Education Action Group is critical of the plan because it does nothing more than shift--and increase--the financial burden at a time when we can least afford it.

    While the MEA trumpets the alleged savings for school districts, the MEA plan says nothing about the added cost to the state or where the extra revenue is coming from to pay for the scheme.

    "They're taking the lead weight out of the front pocket of taxpayers and putting it in their back one.  At some point, taxpayers are still going to be caught with their pants down," said Kyle Olson, vice president of EAG.

    As the state is grappling with steep declines in the auto industry, a shrinking tax base and revenues, high home foreclosures, stagnant private-sector income, and continued stock market volatility, leave it to the MEA to continue devising ways of squeezing more out of the public system.

    "The MEA has yet to demonstrate a real willingness to conserve taxpayer resources unless it somehow directly benefits them," Olson said.

    We fear this is the MEA's way of "saving" money for schools so to ease the burden on other areas of the budget, most noticeably health care benefits.

    By doing so, the MEA is decreasing the need to seek health insurance savings, thus preserving business for MESSA, an insurer which is owned and controlled by the union.

    Is this a legislative plan devised by legislators or a special interest group that elected them?

    Reform-minded legislators need to look at this plan with increased scrutiny to assess the additional burden to the already stressed state budget, as well as decipher who--or what organization--exactly stands to benefit from such a plan.

    < Wednesday in the Sphere: January 28 | Call it like we see it... >


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    Display: Sort:
    This is our unfunded pension liability (none / 0) (#1)
    by Theblogprof on Thu Jan 29, 2009 at 12:11:02 AM EST
    See here to see some comments and year by year pension funding shortfall.  I predict $33 BILLION by fiscal year end.  Woohoo!!!

    Not a winner (none / 0) (#2)
    by Rougman on Thu Jan 29, 2009 at 05:18:21 PM EST
    This reminds me of a company that I used to work at.

    I had an office equipment repair budget and an office supplies budget.  The two were not to be mixed. I was out of money in the latter but had not yet touched the former.  When my old style print calculator went on the fritz I had to spend more money to repair it (because the money was available in the repairs budget) than it would have cost to buy a brand new one from a budget line where the money was exhausted.  (Being the rebel that I am I purchased the new one anyway.)

    This proposal adds to the overall financial obligation of the taxpayers even if it happens to save individual school districts some money.

    Either way, guess who gets caught holding the bag?

    Sounds like its time to put them on 401k (none / 0) (#3)
    by Eric T on Thu Jan 29, 2009 at 08:23:21 PM EST
    "As the state is grappling with steep declines in the auto industry, a shrinking tax base and revenues, high home foreclosures, stagnant private-sector income, and continued stock market volatility, leave it to the MEA to continue devising ways of squeezing more out of the public system."

    This is like trying to squeeze water out of a rock,

    I'm sure the guy that just had his job outsourced, and is now fightin' for that pizza delivery job, can hardly wait to have his mortgage payment jump up, to fund some teachers pensions, 401k is what most of us working in the non government jobs got.

    With this lousy economy, Why do these teachers feel they need royal treatment, and increases in their pensions. How selfish!!! Right now, values of our homes are falling thru the floor, the taxes should be going down with the home values dropping.

    Yet, we will get the same old story of how, the quality of education will be compromised, if we don't make sure these pensions are well funded.

    I hope there are some politicians care enough about the working class, to prevent these guys from ripping us of like this.


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