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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Public Employee Unions, Bond Vultures Circle Michigan Taxpayers


    By Jack McHughs Blog, Section News
    Posted on Tue Jun 02, 2009 at 11:14:17 PM EST
    Tags: budget, political class (all tags)

    Today the Michigan Senate Appropriations Retirement Subcommittee took testimony from a bond brokers' lawyer on House Bill 4075, which would allow local governments to borrow to establish funds from which would be paid post-retirement health care benefits they've said over the years they would provide to retired government workers.

    Note the careful phrasing: "Benefits they've said over the years they would pay." The first "they" is current and past politicians, and the second "they" is future taxpayers.

    Read on...

    Note two words not contained in that opening sentence: "liability" and "obligation." Courts have ruled that unlike pensions, employers have no obligation to pay these retiree health care benefits.

    Of course, government and school employees and their unions want everyone to think that this is a real obligation. They implicitly reveal the truth with another bill discussed in committee today, House Bill 4073. This would explicitly convert those politicians' promises into real contractual obligations. Doing so would have future Michigan taxpayers choosing between pavement, teachers and police vs. gold-plated health bennies for age 50-something public retirees.

    These bills easily passed the House - the Democratic majority there makes no bones about being in the tank for public employees. The fact the bills are getting a hearing in the GOP-controlled Senate suggests that Repubs may be just as misguided about where their loyalty properly lies - with taxpayers or with politically powerful government employees and their unions.

    Here's my guess about the outcome: The Senate will pass the bills after adding some eye-wash in the form of marginally more stringent financial standards limiting which local governments may burden future taxpayers with this new debt. The Senate will not mandate that locals and school districts put all new employees in defined contribution pension and post-retirement health plans (401(k)s and HSAs). The bills are bad enough, but neglecting that condition would be fiscal malpractice of the worst sort.

    With or without that prerequisite, passing these bills would be just one more tragic example of the destructive priorities of this dysfunctional legislature. Especially for Republicans, who have pretended to be more fiscally responsible.

    Note that if the state, school and local governments just pulled the plug on all these health benefits, retirees would still be eligible for Medicaid at age 65. We're not talking about stepping over the bodies of ailing seniors here, but over the swim-suited bodies of age-50 something public retirees catching the Florida rays while enjoying health benefits courtesy of Michigan taxpayers.

    Oh, and the bond broker vultures? If the bills pass they will make millions brokering all these new public debt (bond) sales. Senators shouldn't give these people the time of day, much less a respectful hearing.

    Hey GOP senators - which side are you on? Taxpayers, or public employees and bond lawyers each with their big campaign contributiuon warchests.

    < Both Of Granholm's Big Initiatives Are Losers | Wednesday in the Sphere: June 3 >


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    Display: Sort:
    Side with the taxpayer! (none / 0) (#1)
    by Eric T on Wed Jun 03, 2009 at 09:22:02 AM EST
    These same kind of excessive benefits helped sink GM.

    Why do these employees need premium benefits, when the rest of the state is suffering, we got mass lay-offs, plants closing,  companies taking their business out of the state as fast as they can?

     Look at the shape this state is in. These public employees need to be on 401k and co-pay for health care. This state is in a depression, raising taxes to pay for premium benefits for state workers. That is just disgusting. People losing jobs and homes at a higher rate than anywhere else in the U.S.

    Instead of passing laws to help get the state back on the right track, they are focused on taking more for themselves.

    We need new members in that house, this batch is wrecking the state.


    • Ditto by kenmatesevac, 06/03/2009 09:55:18 AM EST (none / 0)
    HSA (none / 0) (#3)
    by Wendy Day on Wed Jun 03, 2009 at 02:36:35 PM EST
    We should be embracing Health Savings Accounts. They encourage smart consumerism for health care, lower premiums for employers and can serve as a retirement account of sorts for those who need it!

    National Leave Work Early Day (none / 0) (#4)
    by ReidR on Fri Jun 05, 2009 at 02:23:40 AM EST
    In my own opinion every workers even if it is government or private employee should be benefited by health/medical remuneration. We must think how these workers submit their effort, time and skills to serve people and give profit to the establishments. In relation, last June 2nd is National Leave Work Early Day.  No one knows just who cooked up National Leave Work Early Day, and it sounds like someone made it up to get out of work and it spread from there.  However, it has spread like wildfire.  Laura Stack, author of "Leave the Office Earlier" advocates checking out as soon as possible to maximize the work/life balance, for anyone, whether they're doctors, lawyers, or payday lenders.  Let us hope that no needs fast payday loans as a result of participation in National Leave Work Early Day. And also in the same date the National Bubba Day, and Yell "Fudge" at Cobras in North America Day were celebrated.

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