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MICHIGAN EDUCATION DIGEST
June 24, 2008

Contents of this issue:
  • Lawton administrators change insurance, share in savings
  • Petoskey to continue savings with food service privatization
  • DPS overspending pegged at $408 million for 2009
  • MESSA costs go up 17.5 percent for Swan Valley
LAWTON ADMINISTRATORS CHANGE INSURANCE, SHARE IN SAVINGS
LAWTON, Mich. — Administrators in the Lawton Community Schools will share in the savings after agreeing to switch to a less expensive insurance, according to the Paw-Paw Courier-Leader.

The administrators agreed to switch from MESSA SuperCare I to Choices II, saving the district about $18,000. Half of that will be returned to the administrators, either in cash or an annuity, the Courier-Leader reported. The Michigan Education Special Services Association is a third-party administrator affiliated with the Michigan Education Association school employees union. MESSA outsources insurance underwriting to Blue Cross Blue Shield of Michigan, and then resells the insurance to school districts.

Lawton administrators also will receive a 2 percent raise, according to the Courier-Leader.

SOURCE:
Lawton Courier Leader, "Lawton schools add full-day kindergarten," June 23, 2008
http://www.zwire.com/site/news.cfm?newsid=19795322&BRD=2188&PAG=461& dept_id=414962&rfi=6

FURTHER READING:
Michigan Education Digest, "MESSA targets Lawton schools for attaining claims data," April 29, 2008
http://www.educationreport.org/9424

PETOSKEY TO CONTINUE SAVINGS WITH FOOD SERVICE PRIVATIZATION
PETOSKEY, Mich. — Petoskey schools has extended its contract with Chartwells after saving $150,000 in its food service program, according to the Petoskey News-Review.

Chartwells, which had been overseeing the supervision of Petoskey's food service, took over operations last year as well, the News-Review reported.

SOURCE:
Petoskey News-Review, "Petoskey School Board votes to continue outsourcing food service," June 20, 2008
http://www.petoskeynews.com/articles/2008/06/20/news/doc485bb9006359e951733529.txt

FURTHER READING:
Michigan Education Digest, "Petoskey schools contract for food service," Aug. 7, 2007
http://www.educationreport.org/8874

DPS OVERSPENDING PEGGED AT $408 MILLION FOR 2009
DETROIT — Detroit Public Schools could cut 1,400 staff members in an attempt to solve a $408 million overspending issue in the fiscal 2009 budget, according to The Detroit News.

DPS enrollment is expected to drop to about 98,300 students when classes resume in the fall, The News reported. That is down from 167,000 students in 1999-2000. The number of teachers during that time span has fallen from 8,600 to 6,300. About 800 teachers could be included in any staff reductions.

SOURCE:
The Detroit News, "Detroit schools' layoff target balloons to 1,400," June 21, 2008
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080619/SCHOOLS/ 806190352/1409/METRO

FURTHER READING:
Michigan Education Report, "DPS loses 12,000 students, $90 million in revenue," April 22, 2008
http://www.educationreport.org/9418

MESSA COSTS GO UP 17.5 PERCENT FOR SWAN VALLEY
SHIELDS, Mich. — Swan Valley schools is facing a $33,000 budget hole, thanks in part to a 17.5 percent increase in union insurance costs, according to The Saginaw News.

Swan Valley will pay MESSA about $190,000 more next year, The News reported.

The Michigan Education Special Services Association is a third-party administrator affiliated with the Michigan Education Association school employees union. MESSA outsources insurance underwriting to Blue Cross Blue Shield of Michigan, and then resells the insurance to school districts.

"We were doing pretty good until we got hit with those skyrocketing health care costs, which threw our budget off $250,000," interim Superintendent Richard P. Dyer told the school board, according to The News.

SOURCE:
The Saginaw News, "Swan Valley schools face deficit of $33K+," June 21, 2008
http://www.mlive.com/news/saginawnews/index.ssf?/base/news-26/ 121402561298450.xml&coll=9

FURTHER READING:
Mackinac Center for Public Policy, "School Boards Empowered to Save Insurance Dollars," Dec. 3, 2007
http://www.mackinac.org/9148

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

Contact Managing Editor Sarah Grether at
mailto:med@educationreport.org

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Related Topics: Education
Michigan Education Daily
Tue., March 9, 2010
"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." >>
Tue., March 9, 2010
"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." >>
Mon., March 8, 2010
"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." >>
Mon., March 8, 2010
"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." >>
Sun., March 7, 2010
"The Detroit school board and its emergency financial manager must work together on a school redesign plan if they want to receive federal funding intended for low-achieving Michigan schools." >>
Sat., March 6, 2010
"Hudson Area Schools and Morenci Area Schools are considering sharing a superintendent and other services, though the plan is still exploratory." >>
Fri., March 5, 2010
"Michigan did not make the cut in the first round of Race to the Top, though it can try again this fall." >>
User Comments
JackI
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. >>
beggarsall
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

>>
rickolson
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 >>
MichelleO

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>.


>>
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:
http://personalmoneystore.com/moneyblog/2009/03/10/state-advance-detroit-public-schools-70m/


>>
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
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 >>