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MICHIGAN EDUCATION DIGEST
April 11, 2006


Contents of this issue:
  • Saginaw schools consider staff layoffs

  • CMU saves millions without MESSA

  • Traverse City could move school elections to November

  • Ann Arbor schools want to learn from charters

  • Privatized subs can save schools money

  • Detroit teachers stage protest

  • One-quarter of Ironwood teachers to retire


SAGINAW SCHOOLS CONSIDER STAFF LAYOFFS
SAGINAW, Mich. — The Saginaw School District could layoff more than 250 employees, according to The Saginaw News.

The Board of Education approved Superintendent Gerald Dawkins's plan 6-0 at a special meeting in late March to send out layoff notices to 196 teachers and 61 administrators, The News reported.

The layoffs, for the 2006-2007 school year, would include all administrators except Dawkins and teachers with less than five years of experience, including 50 with tenure, according to The News.

Mary Ann Dupuis, president of the local teachers union, said she is upset that school board members made no comments during the meeting, The News reported.

"Why aren't they questioning the magnitude of this layoff? I was amazed," Dupuis told The News. "This is very alarming."

The News analyzed salary and benefits information for the district and found that if all 257 employees are laid off, the district would reduce costs by about $16 million, more than twice the projected $6.7 million deficit.

According to a 2005 survey by Michigan Privatization Report, the district has not privatized any non-instructional services, such as busing, custodial work or food service, a practice shown to cut costs at school districts around the state.

District officials also say they plan to move forward with a $70 million building improvement plan, including construction of a new elementary school, according to The News. Enrollment in the district has dropped 10 percent in 18 months, The News reported.

Dawkins said he should have a better idea within 45 days as to how the layoffs will affect the 2006-2007 school year, The News reported.

"There will be principals to greet our students and there will be teachers in classrooms on the first day of schools," district spokesman Michael Manley told The News.

SOURCES:
The Saginaw News, "School layoffs risky?" March 31, 2006
http://www.mlive.com/search/index.ssf?/base/news-18/1143814905296580.xml?sanews?NECN&coll=9

The Saginaw News, "Falling enrollment won't slow upgrade," April 5, 2006
http://www.mlive.com/search/index.ssf?/base/news-18/1144243368139660.xml?sanews?NECN&coll=9

FURTHER READING:
Mackinac Center for Public Policy, "Contract Out School Services Before Laying Off Teachers," Nov. 20, 2003
http://www.mackinac.org/5948

Michigan Education Digest, "School looks for donations," Jan. 3, 2006
http://www.educationreport.org/7503

Michigan Education Digest, "Bay City to close schools, cut staff," March 21, 2006
http://www.educationreport.org/7653

Mackinac Center for Public Policy, "Detroit Schools' Deficit Appears Linked to Adding Staff During Enrollment Decline, Says Analyst," July 29, 2004
http://www.mackinac.org/6712


CMU SAVES MILLIONS WITHOUT MESSA
MOUNT PLEASANT, Mich. — Central Michigan University employees no longer covered by the Michigan Education Special Services Association have saved taxpayers millions of dollars in the last few years, according to the Morning Sun.

CMU moved non-faculty staff to a self-funded health insurance system in 2003 after costs increased 20 percent the year before, the Morning Sun reported. Faculty members remain under MESSA, a third-party insurance administrator affiliated with the Michigan Education Association.

CMU estimates it reduced costs by $5.3 million in fewer claims from 2003 to 2005, the Morning Sun reported, and expects to reduce health insurance costs another $5 million by the end of fiscal year 2006, the Morning Sun reported.

"We take a very active role in managing our benefits programs," Maxine Kent, associate vice president of human resources, told the newspaper. "Many public entities have gone to self-insurance plans, but universities are not really there yet."

Kent told the Morning Sun a big reason for the drop in costs is a wellness program that offers incentives to employees, and the PPO emphasis on preventive measures.

The cost of a health insurance plan at CMU is $1,081.50 a month for a family of four, according to the Morning Sun. Other plans, including MESSA, cost $1,361.46 a month, or $3,350 more per year.

SOURCE:
The Morning Sun, "CMU saves millions on health care," April 8, 2006
http://www.themorningsun.com/stories/040806/loc_cmu001.shtml

FURTHER READING:
Michigan Education Report, "School districts wrestle high health care costs," March 7, 2006
http://www.educationreport.org/7611

Mackinac Center for Public Policy, "MESSA Reference Page," March 10, 2006
http://www.mackinac.org/7643

Michigan Education Digest, "Another school employee group abandons MESSA," Feb. 14, 2006
http://www.educationreport.org/7589


TRAVERSE CITY COULD MOVE SCHOOL ELECTIONS TO NOVEMBER
TRAVERSE CITY, Mich. — Traverse City Area Public Schools could move its school board elections to November starting in 2007, according to the Traverse City Record-Eagle.

The switch from May elections could reduce the district's expenditures by tens of thousands of dollars, the Record-Eagle reported. Trustee David Barr recently asked the district's finance committee, which he chairs, to study the change.

"The bottom line is we just voted to cut $2 million out of our budget, yet we're going to hold on to a May election," Barr told the Record-Eagle. "It comes down to cost."

Last May's school board election cost taxpayers $48,000, the Record-Eagle reported, which was about double the cost of the previous year's election. During even-numbered years, the school district would only have to spend about $350 if school board elections were held in conjunction with the general elections, Grand Traverse County Clerk Linda Coburn told the Record-Eagle.

Richard Crampton, also on the school board's finance committee, said the district needs to think about the possibility of school elections getting lost at the bottom of a general election ballot, according to the Record-Eagle.

This year's school board election will be May 2. The board would have to vote before the end of the year to change the 2007 date, the Record-Eagle reported. A change in state law last year consolidated elections in Michigan to four days in February, May, August and November. School elections previously were held in June.

SOURCE:
Traverse City Record-Eagle, "School elections may move," April 5, 2006
http://www.record-eagle.com/2006/apr/05elections.htm

FURTHER READING:
Mackinac Center for Public Policy, "Michigan Reforms Election Calendar," June 22, 2005
http://www.mackinac.org/7142

Mackinac Center for Public Policy, "Consolidating Elections is the Right Thing To Do," Dec. 15, 2003
http://www.mackinac.org/6046


ANN ARBOR SCHOOLS WANT TO LEARN FROM CHARTERS
ANN ARBOR, Mich. — The Ann Arbor Public Schools will study charter schools in an effort to retain students, according to The Ann Arbor News.

"The objective is (to obtain) a description of who they seek to attract and who they are getting," school board Trustee Glenn Nelson said at a recent meeting, according to The News.

Nelson passed out figures at the meeting showing overall enrollment in Washtenaw County's conventional public schools at about 45,600 students last year, The News reported. Area charter schools had almost 2,200 students. Ann Arbor schools' enrollment, with about 16,800 students, grew about 1.2 percent this year, while local charter school growth is at more than 71 percent.

"The charters are achieving rapid growth at a funding level below public schools," Nelson told The News, referring to the fact that charter schools receive fewer tax dollars per student than do conventional public schools.

District staff was directed to collect marketing materials from charter schools, including brochures and Web sites, The News reported.

SOURCE:
The Ann Arbor News, "Ann Arbor school board to study charters," March 31, 2006
http://www.mlive.com/search/index.ssf?/base/news-17/114381790195230.xml?aanews?NEA&coll=2

FURTHER READING:
Michigan Education Report, "Public schools step up marketing," Jan. 18, 1999
http://www.educationreport.org/1587

Mackinac Center for Public Policy, "School Competition Works," March 31, 2000
http://www.mackinac.org/2805


PRIVATIZED SUBS CAN SAVE SCHOOLS MONEY
GRAND RAPIDS, Mich. — School districts in West Michigan are considering contracting with private companies to oversee substitute teachers in an effort to cut costs, according to The Grand Rapids Press.

Kent County Intermediate School District hired a Caledonia company to administer its substitute teacher process, including hiring and training, The Press reported. Professional Educational Services Group also is discussing a similar arrangement with school districts in Ottawa, Muskegon and Newaygo counties.

Districts could reduce costs for substitute teachers by signing on with a private company, according to The Press. Most of the savings would be realized by not having to pay into the statewide teachers' retirement system for the substitutes, The Press said. Substitutes in West Michigan receive between $65 and $120 a day, depending on the district, while schools must pay an additional 24 percent of that for retirement and Social Security costs.

The private firm can handle scheduling, background checks and payroll for 18 percent of the substitute's pay, according to The Press.

SOURCE:
The Grand Rapids Press, "Substitute teachers may be shifted to private company," March 27, 2006
http://www.mlive.com/news/grpress/index.ssf?/base/news-28/1143474434146520.xml&coll=6

FURTHER READING:
Michigan Privatization Report, "Chesaning Union School District May 'Substitute' Privatization," Oct. 27, 2005
http://www.mackinac.org/7412

Michigan Education Report, "Schools hire private staffing firm to find substitute teachers," Aug. 18, 2004
http://www.educationreport.org/6736

Mackinac Center for Public Policy, "Substituting the Private for the Public," Feb. 1, 2000
http://www.mackinac.org/2727


DETROIT TEACHERS STAGE PROTEST
DETROIT — Detroit Public Schools teachers protested outside the Board of Education offices the afternoon of April 4, upset over their agreement to loan the district five days of pay this year while principals receive raises, according to The Detroit News.

Principals are to get raises, retroactive to last July, of between 4.7 and 10.6 percent, The News reported. The district has said the money is not really a raise because principals took a 10 percent pay cut in January 2005; and this is to bring them back up to previous wage levels.

Teachers had agreed to work five days without immediate pay this semester, The News reported. More than 1,700 teachers called in sick on March 22, forcing the district to close more than 50 schools and to deny instruction to more than 36,000 students.

SOURCE:
The Detroit News, "Teachers protest wage cuts, principals' raises," April 5, 2006
http://www.detnews.com/apps/pbcs.dll/article?AID=/20060405/SCHOOLS/604050332/1026

FURTHER READING:
Michigan Education Digest, "Teacher sick-out forces Detroit schools to close," March 28, 2006
http://www.educationreport.org/7656

Michigan Education Digest, "Detroit school district reaches short-term agreement," Aug. 30, 2005
http://www.educationreport.org/7327

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


ONE-QUARTER OF IRONWOOD TEACHERS TO RETIRE
IRONWOOD, Mich. — Some 16 teachers in the Ironwood Area School District, about 25 percent of the total, will retire between now and May 2008, according to the Ironwood Daily Globe.

The teachers opting for early retirement had to submit their names by April 1 in order to be eligible for an incentive package offered by the district, the Daily Globe reported. Each teacher who retires will receive $25,000 paid over three years, as well as $1,000 a year for 10 years to go toward health insurance costs, according to the Daily Globe. The district expects to recoup that money and reduce costs by hiring new teachers, who will start at lower salaries.

SOURCE:
Ironwood Daily Globe, "Teachers opt for early retirement," April 5, 2006
http://www.ironwooddailyglobe.com/0405rtir.htm

FURTHER READING:
Michigan Education Report, "Fact finder agrees with both sides in Ironwood," March 28, 2006
http://www.educationreport.org/7656

Michigan Education Digest, "MESSA at heart of Ironwood deadlock," Feb. 28, 2006
http://www.educationreport.org/7606

Mackinac Center for Public Policy, "Irony in Ironwood," March 23, 2006
http://www.mackinac.org/7654


MICHIGAN EDUCATION DIGEST is a service of Michigan Education Report (http://www.educationreport.org), a quarterly newspaper with a circulation of nearly 150,000 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.

Michigan Education Daily
"All Flint Community Schools administrators, including members of the superintendent's cabinet, are likely to receive layoff notices this spring, though the majority could be back next year." >>
"Sara McLaren is taking a once-in-a-decade opportunity to tie the U.S. Census directly to her civics and social studies curriculum at Niles High School." >>
"Research done by the dean of the University of Michigan school of education was featured at length in a New York Times magazine article recently about training effective teachers." >>
"A public education advocacy group said Monday that Michigan should begin taxing consumer services at 5.5 percent, while reducing the existing sales tax from 6 to 5.5 percent, as a way to generate $550 million for schools in 2011." >>
"Michigan Future Inc. has awarded an $850,000 grant to Detroit Edison Public School Academy to help it open a new high school this fall, the first in a planned series of grants." >>
"Members of the Fenton Education Support Personnel have voted to leave the Michigan Education Association and join Teamsters Local 214, saying they want better representation." >>
"The Kent County Circuit Court has upheld an arbitrator's decision that Grand Rapids Public Schools did not violate a labor contract when it privatized transportation workers in 2005, even though their contract with the district had not expired." >>
User Comments
Is it true that young ones today are losing interest on these subjects? Obviously, the White House is promoting programs that will help students on coping up with math and science subjects. But, The federal government thinks that the quality of math and science education can repair credit with the scientific community and improve US education with a few <a rev="vote for" title="U.S. Government Spends $250 Million on Science and Math" href="http://personalmoneystore.com/Payday-Loans/ ">payday loans</a> of sorts. In reality, it will take far longer to accomplish than they might think – US educators can't even get students to accept that "irregardless" isn't a word, and the difference between their, they're, and there – our students can't even learn their own language! It's a noble aim, to be sure, but throwing money at it may not work in the long run. >>
I am a teacher in the same county who is presently trying to quit the union. Like Caldwell, I strongly disagree with the MEA.

This article was timely.

Rob Olson
Pittsford Area Schools

>>
I agree this is a change worth making. I describe some of the uneven effects of the idea on my blog at http://rickolson.blogspot.com/2009/08/statewide-health-insurance-plan-for.html which you may also wish to read.

The devil will be in the details, so this is one we will need to monitor closely.

Rick Olson from Saline, former school Business Manager >>

Nowadays, saving money is very crucial and properly investing the money can keep you and your family away from the effect of the financial crisis. The sad news is that a lot of the options for short term funding have been drying up. Short term funding is a necessary thing to have around, and going through traditional channels such as banks isn't an option for a lot of people anymore – basically it's only open to Ken Lewis. Installment loans are an option, but some people, including senior citizens, have been thinking about raiding their retirement fund. Getting into your pension retirement plan or 401(k) funds is the last thing you want to do if you don't qualify for any withdrawals yet. The penalties are substantial, and you'll end up needing installments loans to pay them if you use retirement funds for <a rev="vote for" title="Installment Loans Reliable Option As 401(k)s are Dwindling" href="http://personalmoneystore.com/moneyblog/2009/05/17/installment-loans-reliable-option-401ks-dwindling/">short term funding</a>.


>>
I AGREE >>
Godfrey-Lee on the west side of the state has been running all-day, every-day kindergarten for several years. >>
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:
http://personalmoneystore.com/moneyblog/2009/03/10/state-advance-detroit-public-schools-70m/


>>
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.
>>
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?
>>
Specifically, 81 percent of students in religiously affiliated schools and 82 percent of students in other private schools have parents who report being "very satisfied" with their schools, compared to 55 percent of students in assigned public schools and 63 percent of students in chosen public schools.

High levels of satisfaction among private school parents also extend to opinions about their children's teachers, academic standards of the school, order and discipline at the school, the amount of homework assigned, and interactions with school personnel.

http://fitt.in >>