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MICHIGAN EDUCATION DIGEST
December 6, 2005

Contents of this issue:

  • Michigan Senate passes school health insurance bills

  • Texas Supreme Court rules education tax unconstitutional

  • Grand Rapids superintendent job could draw many applicants

  • High cost of fingerprinting school employees

  • Judge dismisses NCLB lawsuit

  • School district, parents sue former principal

MICHIGAN SENATE PASSES SCHOOL HEALTH INSURANCE BILLS
Lansing, Mich. — The Michigan Senate last week passed a package of bills that could help public schools lower health care costs by millions of dollars, according to Booth Newspapers.

Senate Bills 895-898 are designed to allow school districts to either self-insure or form regional pools in order to purchase health insurance for teachers and other employees, Booth reported.

"This option will create more dollars for the classroom," said Sen. Wayne Kuipers, R-Holland. "The (health) benefits don't need to change. Where you purchase those benefits will."

The legislation has the support of school administrators, the Michigan AFL-CIO and the Michigan Federation of Teachers, an affiliate of the American Federation of Teachers, according to Booth. The Michigan Federation of Teachers estimates savings of more than $150 million statewide in the first year and $230 million by the third year.

The Michigan Education Special Services Association, a third-party insurance administrator started by the Michigan Education Association, is against the bills. MESSA handles insurance for more than half the public school teachers in Michigan.

"Teachers and other school employees would be the only workers in Michigan not covered by the consumer protections afforded all other workers in multiple-employer pools," said Gary Fralick, a MESSA spokesman.

A similar pool has already been created by several school districts in Kent County, where costs are expected to fall 8 percent, Booth reported.

The bills now move to the state House of Representatives, which last week debated, but did not pass, House Bill 4947. That bill, according to MichiganVotes.org, would place new school employees into a defined contribution, or 401(k)-type plan, rather than the current defined benefit plan run by the Michigan State Public School Employees Retirement System.

SOURCES:
Booth Newspapers, "House, Senate look to reduce schools' pension, health care costs," Dec. 1, 2005
http://www.mlive.com/newsflash/business/index.ssf?/base/news-30/1133480954173970.xml& storylist=mibusiness

MichiganVotes.org, "2005 Senate Bill 895 (Allow school district health insurance pools)"
http://www.michiganvotes.org/Legislation.aspx?ID=42098

MichiganVotes.org, "2005 Senate Bill 896 (Create state "stop loss" pool for school health insurance)"
http://www.michiganvotes.org/Legislation.aspx?ID=42099

MichiganVotes.org, "2005 Senate Bill 897 (Allow school district health insurance pools)"
http://www.michiganvotes.org/Legislation.aspx?ID=42100

MichiganVotes.org, "2005 Senate Bill 898 (Allow community college health insurance pools)"
http://www.michiganvotes.org/Legislation.aspx?ID=42101

MichiganVotes.org, "2005 House Bill 4947 (401k type pension for new school employees)"
http://www.michiganvotes.org/Legislation.aspx?ID=40137

FURTHER READING:
Mackinac Center for Public Policy, "Michigan Education Special Services Agency: The MEA's Money Machine," Nov. 1, 1993
http://www.mackinac.org/8

Mackinac Center for Public Policy, "Collective Bargaining: Bringing Education to the Table," Aug. 1, 1998
http://www.mackinac.org/791

TEXAS SUPREME COURT RULES EDUCATION TAX UNCONSTITUTIONAL
Austin, Texas — The Texas Supreme Court last month voted 7-1 to overturn a statewide school property tax, according to the Houston Chronicle. The court also gave the Texas Legislature until June 1, 2006, to come up with a new school funding plan.

In an editorial, The Wall Street Journal welcomed the ruling, pointing out that Texas spends an average of $10,000 per student, which the court said meets the funding "adequacy" requirement of the state constitution. The court also declared "more money does not guarantee better schools or more educated students," The Journal said.

The Journal added that the decision is favorable for students in poor school districts, "because it shifts the policy emphasis from money to achievement." The court also spoke in support of parental choice, saying "public education could benefit from more competition."

An earlier decision by District Judge John Dietz said a statewide $1.50 tax per $100 of assessed value for school operations had become "a floor and a ceiling, denying school districts 'meaningful discretion' in setting their tax rates," the Chronicle reported. He ruled the valuation cap unconstitutional and the Texas high court agreed.

The Journal encouraged Texas Gov. Rick Perry and the Legislature to be open to a wide range of options as it restructures school financing, "including charters, vouchers, scholarships and rewards for quality, such as teacher pay for performance."

SOURCES:
Houston Chronicle, "Court rules state school finance system unconstitutional," Nov. 22, 2005
http://www.chron.com/disp/story.mpl/front/3477848.html

The Wall Street Journal, "Texas School Lesson," Nov. 29, 2005
http://online.wsj.com/home/us (subscription required)

FURTHER READING:
Michigan Education Report, "Jen and the art of education," Aug. 16, 2005
http://www.educationreport.org/7250

Michigan Education Digest, "Study Concludes School Funding Outpaces Inflation Under Prop A," Sept. 6, 2005
http://www.educationreport.org/7344

Michigan Education Report, "K-12 spending guarantee ignores economics," Aug. 16, 2005
http://www.educationreport.org/7249

GRAND RAPIDS SUPERINTENDENT JOB COULD DRAW SEVERAL APPLICANTS
Grand Rapids, Mich. — As many as 20 candidates could apply to be the next superintendent of Grand Rapids Public Schools, The Grand Rapids Press reported. Current Superintendent Bert Bleke will retire at the end of the school year.

Timothy Quinn of the Michigan Leadership Institute told the Grand Rapids school board two applications have been submitted, but that 30 to 40 people have been contacted, according to The Press. Quinn's MLI is conducting the candidate search. He speculates up to 20 people may apply, with 60 percent coming from out of state.

Quinn told the board he has placed ads in national education publications and on Web sites for state and national school administrators, The Press reported. Quinn said he hopes contentious matters such as school closings won't limit the number of candidates. Questions from those he has contacted have been about declining enrollment, achievement gaps and charter schools, according to The Press.

"I have no reason to believe that we won't have some outstanding applicants," Quinn said. "People who have been involved with urban education anywhere in the country are warriors and they won't shy away from Grand Rapids."

Quinn hopes to have eight to 10 applications for the board to review in January, with a final decision to be made in mid-February, according to The Press. The deadline for applications is Dec. 9.

SOURCE:
The Grand Rapids Press, "Twenty likely to be in line for Bleke's job," Nov. 29, 2005
http://www.mlive.com/news/grpress/index.ssf?/base/news-26/1133279158287580.xml&coll=6

FURTHER READING:
Michigan Education Digest, "New GRPS Superintendent Could Make $200,000," Oct. 18, 2005
http://www.educationreport.org/7384

HIGH COST OF FINGERPRINTING SCHOOL EMPLOYEES
Lansing, Mich. — A new law requiring all school employees to be fingerprinted will cost millions of dollars, although officials are unsure how to pay for it, according to recent stories in The Grand Rapids Press.

"It's a big chore and it's a big expense," said Ron Koehler, assistant superintendent for the Kent County Intermediate School District.

The law is part of the "Student Safety Initiatives," a package of bills passed earlier this year after more than two dozen convicted sex offenders were found working in Michigan schools, The Press reported. Schools will be required to fingerprint and conduct FBI background checks on all employees, even those who have been fingerprinted before or have no contact with students, The Press reported. State law has required background checks on new teachers since 1993.

Fingerprinting will cost about $74 per employee and must be completed by Jan. 1, 2008, according to The Press. The Michigan State Police would then provide a list after comparing criminal records against school personnel information.

Arthur Przbylowicz, general counsel for the Michigan Education Association, said the resulting list would be made public and may not be accurate.

"This could harm greatly the reputation of an individual," he told The Press. "The potential for error is tremendous."

SOURCES:
The Grand Rapids Press, "Tighter scrutiny ahead for Michigan school employees," Nov. 27, 2005
http://www.mlive.com/news/grpress/index.ssf?/base/news-7/1133090453250800.xml&coll=6

The Grand Rapids Press, "Schools balk at fingerprint mandate," Nov. 29, 2005
http://www.mlive.com/news/grpress/index.ssf?/base/news-26/1133279340287580.xml&coll=6

FURTHER READING:
Michigan Education Digest, "Granholm Signs Student Safety Bills," Oct. 4, 2005
http://www.educationreport.org/7373

Michigan Education Digest, "Commentary: Students' Safety More Important Than Privacy," Jan. 7, 2004
http://www.educationreport.org/6087

JUDGE DISMISSES NCLB LAWSUIT
Detroit — A federal district judge based in Detroit dismissed a lawsuit that asked to block the No Child Left Behind Act, according to newspaper reports. School districts in three states argued they should not have to comply with the law because they claimed its mandates were unfunded.

U.S. District Judge Bernard Friedman dismissed the suit, filed against U.S. Education Secretary Margaret Spellings by school districts in Michigan, Texas and Vermont, according to the Detroit Free Press. The National Education Association and NEA locals in 10 states also joined the suit.

An Associated Press story in the Minneapolis Star-Tribune reported that Friedman's ruling said, "Congress has appropriated significant funding" for NCLB and in exchange for that money it has the authority to require states to impose standards.

"This is a victory for children and parents all across the country," Spellings said. "Judge Friedman's decision validates our partnership with states to close the achievement gap, hold schools accountable and to ensure all students are reading and doing math at grade-level by 2014."

The NEA, a union of 2.7 million teachers and school personnel, plans to appeal, the Free Press reported.

One of the plaintiffs in the suit, Pontiac Public Schools Superintendent Mildred Mason, told the Free Press that the district complied with NCLB but "burned up all of our resources and reserves."

SOURCES:
Detroit Free Press, "Schools lose lawsuit, fear money crisis," Nov. 24, 2005
http://www.freep.com/apps/pbcs.dll/article?AID=/20051124/NEWS05/511240344

Minneapolis Star-Tribune, "No Child Left Behind lawsuit thrown out," Nov. 23, 2005
http://www.startribune.com/stories/484/5744851.html

FURTHER READING:
Michigan Education Digest, "Improvements Seen Under No Child Left Behind," Oct. 25, 2005
http://www.educationreport.org/7391

Michigan Education Report, "NCLB Underfunded?," April 11, 2005
http://www.educationreport.org/7021

SCHOOL DISTRICT, PARENTS SUE FORMER PRINCIPAL
Mt. Clemens, Mich. — Richard Zaranek is being sued by the Chippewa Valley School District and the Cherokee Elementary School Parent Teacher Organization, according to The Voice, a weekly newspaper in Macomb County. The school district and PTO asked a Macomb County Circuit Court judge last week to freeze Zaranek's assets until their civil case against him is finished, according to The Detroit News. That decision will be made Jan. 9.

Zaranek, 54, pleaded guilty in federal district court on Oct. 27 to embezzlement and money laundering and was ordered to repay about $400,000 to the school district and PTO. He also faces more than two years in prison and a $60,000 fine, The Voice reported.

"We will prosecute it to the fullest extent of the law when the community's money and/or property is stolen," Chippewa Valley Superintendent Mark Deldin told The Voice. "We will not tolerate it."

SOURCES:
The Voice, "Chippewa Valley to sue Zaranek for losses," Nov. 8, 2005
http://www.voicenews.com/stories/110805/loc_sue001.shtml

The Detroit News, "Court case targets ex-principal's assets," Nov. 30, 2005
http://www.detnews.com/apps/pbcs.dll/article? AID=/20051130/METRO03/511300368& SearchID=73228134809140

FURTHER READING:
Michigan Education Digest, "Former Union Official Accused of Embezzlement," Nov. 8, 2005
http://www.educationreport.org/7424

Michigan Education Digest, "East Detroit Schools' Accountants Failed To Report Embezzlement Scheme," Sept. 16, 2005
http://www.educationreport.org/5763

Michigan Education Report, "Financial scandals exposed in Michigan school districts," Nov. 17, 2002
http://www.educationreport.org/4835

MICHIGAN EDUCATION DIGEST is a service of Michigan Education Report (http://www.educationreport.org), a quarterly newspaper with a circulation of 140,000 published by the Mackinac Center for Public Policy (http://www.mackinac.org), a private, nonprofit, nonpartisan research and educational institute.

Contact Managing Editor Ted O'Neil at
mailto:med@educationreport.org

To subscribe or unsubscribe, go to
http://www.educationreport.org/pubs/mer/listserver.aspx.
Related Topics: Education
Michigan Education Daily
Sat., July 4, 2009
"Federal stimulus money has turned an educational experience into paying jobs for 18 students enrolled in a program at Beaumont Hospital." >>
Fri., July 3, 2009
"A recall effort against four school board members is under investigation by Michigan State Police, but a detective said that his work might not be finished before the recall election itself." >>
Thu., July 2, 2009
"The Ypsilanti school district plans to spend about $3 million more than it takes in during the 2009-2010 fiscal year, which means it also will have to file a deficit elimination plan with the state to explain the shortfall." >>
Wed., July 1, 2009
"The Algonac Community School District may privatize its custodial and bus services, but is giving current employees a chance to make a counter proposal first." >>
Tue., June 30, 2009
"Potential bankruptcy, continuing budget problems, more staff cuts and allegations of theft at Detroit Public Schools all were reported by Detroit media during the past week." >>
Mon., June 29, 2009
"Only 33 percent of the students enrolled in Grand Rapids alternative high schools graduated last year, a number the district believes can be improved by switching to online courses, extended days and hours and a lower student-adult ratio." >>
Sun., June 28, 2009
"African-American students are suspended or expelled at disproportionately higher rates than white students in Michigan." >>
User Comments
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QUEEN_BEE_09
I AGREE >>
colonelb
Godfrey-Lee on the west side of the state has been running all-day, every-day kindergarten for several years. >>
BenjaminY
We have a problem in Detroit Public School, their system had cash flow problem for years now. And honestly it getting worst in terms in progression with more children leaving to charter their schools almost every year. The state decided to give the Detroit school districts cash advance of $70 million so they would meet the schools expenses, as well as payment for teachers. Robert Bobb, the newly appointed emergency financial manager, requested the funds early in order for him to get the house in order before he had to start panicking. President Obama has been giving out large sums of money for troubled school districts, perhaps that’s where a generous portion of the aid came from. Getting Detroit Public Schools in working order is a worthy cause.

LINK TO READ FOR MORE INFO:
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>>
colonelb
I am all for school choice and think its great that charters are finally moving forward. However, I'm wondering if the research accounts for a playing field that is not level. I can't take my school buildings and move them anywhere I want, nor can I simply slap up a pole building and make it a school. If anything, public schools need less state regulation and oversight so we can play by the same minimal rules charters do. If you want public schools to compete to improve, remove the barriers to doing so. I will gladly except less funding per pupil if the playing field is level.
>>
karen
The purpose is to encourage non excercising children to excercise but my daughter's highschool gave her an improper body fat percentage and made my healthy daughter who trains 20 hours a week in tap jazz and ballet believe she was overweaghit instead of a person with muscles.
I believe the public schools do not have the right to make the diagnoses with these kids because they are using one measurement and recording it from their arms that they have a certain percetnage of body fat with one arm caliper test.
Does any one have feed back?
>>
deepakp9
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