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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    VICTORY!!! (MEA pension bonndoggle goes down in flames)


    By Theblogprof, Section News
    Posted on Thu Mar 26, 2009 at 08:32:03 AM EST
    Tags: jobs, MEA, Michigan, pensions (all tags)

    From the freep this morning: Plan to boost some Michigan teacher pensions dies. For the record, the deal was to save $444 million by paying $4 billion over many years. Sounds like a heck of a deal, no? Well it was. Just that it was a heck of a deal for the MEA, and a raw deal for taxpayers. I had this to say about it in a prior post:

    "This is really a winning situation for everyone," [communication director for the MEA Doug] Pratt said. "Schools get to pay the extra amount over the long haul and open spots for new teachers."We're coming up on graduation day, and there's a lot of homegrown talent that is going to leave the state if there are no jobs for them." (emphasis mine)

    Maybe Pratt thinks we're too dumb to notice, but this proposal doesn't create a single new job. It's a retread of existing jobs in teaching. The same number of teachers remain. The theory of the MEA proposal is that the new teachers will make less than current teachers, and that that will save the district money. However, in addition to the new teachers' lower salaries, the districts will have to pay for the old teachers retirement benefits including healthcare. In a few years, the freshman teachers will climb the salary ladder and you will have the same problem you have now in addition to a bunch of retired teachers that you are paying for as well. How is this "a winning situation for everyone" again? The only benefit of this proposal is to the MEA. There is no way around the math no matter how long they stretch out the supposed pay-back period. Even there, spreading the cost out over 30 years rather than 5 is a false premise in itself because they don't put healthcare into the numbers. Any way you slice it, it's long term pain for short-term gain, even though the latter isn't true in and of itself!

    Anyway, from the freep article today:

    It's over for a plan to let retirement-age teachers clear out their desks with
    bigger pensions.

    Senate Education Committee Chairman Wayne Kuipers, R-Holland, shelved the proposal, which a study found would cost up to $4 billion over 30 years to boost pension checks for up to 29,000 eligible school employees.Kuipers had supported the MEA plan but could not be reached for comment Wednesday.

    MEA spokesman Ed Sarpolus said the plan had plenty of support in the Legislature but was tangled in election politics.

    Victory!!!! Still, there are some puzzling questions that need to be answered. My primary question is why Sen. Kuipers supported this boondoggle so fervently. That's the headscratcher. Also, how did anyone outside the MEA think this was a good idea? I mean - really.

    Previously: MEA Pension Boondoggle Awaiting Action
    Fuzzy Math in the MEA Pension Boondoggle
    It's Baaaack! - the MEA Pension Boondoggle
    MEA Boondoggle back in the News
    Kuipers/MEA pension boondoggle moving forward
    More on that MEA pension boondoggle
    MLive: Union, Granholm pitch different plans to buyout teachers
    MEA to MI: save money by making pension problem worse!

    < Thursday in the Sphere: March 26 | MI Senate Dems oppose cutting their own pay, defend $80K salaries >


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    MEA (none / 0) (#1)
    by dsheill on Thu Mar 26, 2009 at 09:57:16 AM EST
    Is Kuipers endorsed by the MEA? I'd like to see a complete list of Republican caucus members who are.

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