LANSING, Mich. - In a bid to reduce state spending by up to
$450 million, Gov. Jennifer Granholm has proposed modifying the pension and
health care plans for future school and state retirees, but also would offer an
incentive to any who retire this summer, according to media reports.
Speaking to the Lansing Rotary Club, Gov. Granholm said
employees with at least 30 years of experience who retire between July and
September would get a pension boost ranging from $1,000 to $2,000 per year,
according to reports in the Lansing State Journal and The Oakland Press. But the
proposal also would cut spending by requiring employees to contribute more to
their own pensions and by cutting retiree dental and vision benefits, the Journal
reported.
Granholm also suggested consolidating school districts and
services, and aligning the school and state budget years, The Press reported.
The proposals would require legislative approval.
Michigan Education Association spokesman Doug Pratt called
the retirement incentive "pretty tiny" and a "political game and gimmick," the
Journal reported.
Steve Serkaian, spokesman for the Lansing School District, told
the Journal that aligning the state and school budget years would help schools
by providing state funding information earlier. Currently, schools must adopt
budgets by July 1 and sometimes don't know their per-pupil funding level until
the state budget is adopted Oct. 1, the Journal reported.
SOURCES:
Lansing State Journal, "Retirees
from schools get boost, but others to see cut in benefits," Jan. 30, 2010
The Oakland Press, "Granholm
proposes retirement plan to cut costs," Jan. 29, 2010
FURTHER READING:
Mackinac Center for Public Policy, "Public
Pension Plans Need to Reflect Reality, Jan. 3, 2006