URGENT: Updates from Lansing

MCCEA Members:

 

You are all aware of the Legislative Attacks against Public School and State Employees throughout the nation.  More specifically here at home a number of bills have been rammed thru the Legislator which will have an ENORMOUS impact on your livelihood.  They are as follows:

 

Governor Snyder’s Budget – In the Governor’s Budget he is proposing to incorporate the Higher Ed Appropriations into the K-12 School Aid Fund, which could have a drastic impact on the funding for Community Colleges and Universities.  Basically, funding could be drastically reduced for these entities.  The Education Budget is slated to be introduced in April, which should reveal more details and specifics.

 

House Bill(HB) 4214/Senate Bill (SB)0153 – Emergency Financial Manager Bill – This bill allows for a district and/or a city, municipality, township to be taken over by a Financial Manager who would have complete authority to terminate collective bargaining agreements, dissolve school boards, eliminate superintendents, city councils, etc. and dictate what you should make, what benefits you should have, if any, dictate what class size should be, what materials needed and/or don’t need, etc.  This would also allow them the ability to layoff in whatever manner they want.  Once the collective bargaining agreement is voided, you would not be allowed to have one for 5 years.

 

Senate Joint Resolution – B (SJR-B) – This bill mandates a 5% pay cut for ALL Public Workers.  This does include YOU!

 

HB4152- This bill freezes step increases, makes employees pay any health care increases and allows for no retroactivity in pay increases once your collective bargaining agreement expires.  This means, when the KEA contract expires in 2012, if you haven’t negotiated a new one by the time the new school year starts, those members that would generally move to the next step on the salary schedule, would not step, any health care increases would be your responsibility and you would not be allowed to negotiate any type of retro-active pay increase if you bargain beyond your first work day.  The increase would not start until after the contract is ratified by the members and board.

 

SB-0007 – This bill would require that all public employees pay 20% towards their health care cost.  If the plan includes a Health Savings Account, you would be required to pay 10%.

 

HB 4306 – The bill mandates outsourcing transportation, food service and janitorial services for all school districts. 

 

SJR-C – This bill removes collective bargaining rights for health care for public employees and allows for state control.

 

HB 4059 – This bill prohibits paying union officials for conducting union business.

 

HB 4052  - This bill bars the use of taxpayer funded equipment and facilities for union or political activities.

 

MEA has joined with AFL-CIO, UAW, SEIU, AFT and many other unions across the State to fight these bills.  Many activities have already taken place at the State Capital, (i.e. Rallies, members testifying at hearings, etc.).

 

If you don’t believe these things can happen, just take a look at Wisconsin.  Those people are geared up and ready to fight this to the bitter end. 

 

There are many other bills pending in the legislature.  If you have not contacted your legislator, do so and tell them they need to stand up for your right to work under fair conditions at a fair wage.  If you do not know who your Legislator is, please check your voter registration card and/or consult Brian Harding or Paul Rozycki. 

 

Are you ready to answer the call and stand up for yourself  and what you believe is right, just and in the best interest of the Working Class?  If so, please stay tuned for further updates and directions from MEA. 

Important Message from Iris Salters, MEA President

UPDATE FROM THE MEA REGARDING ANTI-UNION EFFORTS

Iris Salters, President

If you have been listening to the news on radio or television, you know that unions are under attack all across this nation.  It seems to be a Republican strategy to see that unions are destroyed in this country.  The prime target states seem to be Wisconsin, Ohio, Indiana and now Florida.  The legislation seems to be on a fast track in these states.  Have no fear, it is also on the Republican agenda in Michigan.  The methods are different.

 

There is a LOT going on around the country and in Michigan by your unions to respond to this attack. And none of this is being done in isolation – we’re coordinating across departments, across unions and across unions and across other progressive organizations to ensure we’re successful on all fronts.

 

For a list of items we’re asking members to do (wear red, sign petitions, post Facebook/Twitter comments, lobby, etc.), be sure to read the MEA Voice Online email newsletter that is going out over the next couple hours to every members’ home or work email.

Sign up for the MEA Voice and/or Capitol Comments here:

http://www.mea.org/contact/signup.html

                                                                                

Here’s the full rundown of what’s going on:

 

On-the-ground in Wisconsin – Several MEA staff have been on the ground in Wisconsin for a week – we are responding to official requests from WEAC for help.  Hopping on buses for Madison isn’t a viable option for the vast majority of our members – but as Linda Myers (one of our staff on the ground there) said, those who can travel there would be welcome as a show of support. 

 

On-the-ground in Lansing – Tomorrow, unions are putting together a lobbying effort in Lansing around the emergency financial manager bills that would gut local control and bargaining rights (see MEA Voice Online for details).  (Note: There is another rumored “rally” at the Capitol on Tuesday that appears to be under development by another group – this is not being organized by labor, although it certainly sounds sympathetic to our cause.)

 

Our day for massive protest in Lansing may come, but there are other actions that make more sense for now, especially in light of the collaborative messages still coming from Gov. Snyder. Check out his comments in the Wall Street Journal this weekend – he doesn’t want to “pick fights,” so we’ll keep bringing real solutions to the table like our A+ Agenda…and questioning the un-balanced approaches taken in his budget and other policy proposals.

 

Financial contributions – NEA is working on a system to allow for members to make financial contributions not only to Wisconsin, but to all states that are currently under these threats.  Stay tuned.  Again, for now, the information Peggy sent out from Linda Myers is helpful – support the Wisconsin Senate Dems self-exile at http://www.actblue.com/page/solidarity.

 

State budget – Last Thursday, the MEA Message Center was sent out with talking points and sample letters in response to Snyder’s budget presentation.  These same points are also being used by our Rapid Response Team to generate letters to the editor and online comments.  President Salters’ column in the Detroit News this Wednesday will also address the budget.  And the same talking points were used in Capitol Comments.

 

As a note, the Message Center is a great new vehicle to get information about the key topics going on in Lansing and what you and your members can do about them.  They are all online atwww.mea.org/message_center.

               

Coalitions – As a matter of public and political strategy, MEA is engaged in several coalitions fighting key elements of this fight – working together with labor and non-labor groups to broaden conversations and bring more organizations and individuals to fight these important issues.

 

·        Citizens for Accountability in Reform (CAR) was founded in 2009 to fight the Dillon health proposal – now it has grown to be a voice on the broader issue of public employee compensation (this is the group that put out the study debunking Gov. Snyder’s claim about public workers making double the private sector). 

·        A Better Michigan Future (ABMF) is a group working to advocate for balanced solutions to Michigan’s budget crisis – their agenda and messaging are part of MEA’s overall budget strategy…and MEA is a key player at the ABMF table.

·        The newest addition to the coalition landscape is Working Michigan, which is an outgrowth of national labor discussions to have coordinated state labor tables work collectively with other non-labor partners to fight attacks on worker rights, such as so-called “Right to Work” laws.  NEA is a major player at the national labor table, and they have been and will be using several different methods to provide resources to Michigan and other states under threat.

 

A+ Agenda – This Wednesday, President Salters will be testifying before the House Education Committee on MEA’s A+ Agenda, sharing with lawmakers the areas where we can work together to improve public education. As we said when we launched this effort, this is a proactive plan that we will be working through all year but it’s not something that will yield instant results.  We are working with lawmakers to introduce legislation on many of the key topics – when those bills are introduced and there is action that needs to be taken, we’ll be in touch.

 

Local lobby efforts – The most important thing you can do as local leaders right now is to work with your Field-Based Lobbyist and UniServ/Executive Director to conduct Legislative Council meetings with your local representatives and senators.  The input they get “back home” is critical – it can either make or break any efforts in Lansing.  Further, this year’s round of “Back Home” Lobby Days is under development.  Stay tuned for more details on that.

An Important Word from NEA

 
WE DID IT!!!  WE WON!!!  A MAJOR VICTORY FOR EDUCATORS, STUDENTS, PARENTS, AND OUR NATION!!!

Recently, the House passed the education jobs/FMAP bill by a vote of  247-161 .  This means the bill only has to go to the President for signature and it becomes law!!!  The President will sign the bill this evening at 5:00pm, so that the implementation process can begin immediately!

New figures from the U.S. Department of Education estimate that some 161,000 educators who had received pink slips will be heading back to school this fall.

This victory is a result of an amazing team effort involving every level of this Association.  The participation by members, the multiple contacts with every single congressional office, the calls, e-mails, and personal visits by affiliate leaders and staff were unprecedented.  Together, we put together an unstoppable, persistent campaign that spanned the breadth of the Association, worked tirelessly on our members’ behalf, and overcame multiple pronouncements of the bill’s death by the press, advocates, and Members of Congress.  Our efforts were recognized as very impressive by congressional leaders, the media, our allies, and most importantly, by our members.

Our intergovernmental relations staff made countless contacts with intergovernmental organizations and state and local elected officials, including highlighting the issue at the National Conference of State Legislatures meeting, and working closely with the DGA.  The result was an unprecedented show of support from elected leaders, including letters from governors (NC, MA, OR, MD, IL, IA, KS, CO, OH, MI).  Letters from governors are posted on the NEA website (www.nea.org/lac).  In addition, three governors released press statements in support of the jobs package (NV, OR, IA); 25 governor s signed a letter supporting FMAP and an extension of the State Fiscal Stabilization Fund (AR, CO, DE, IL, IA, KS, KY, ME, MD, MA, MI, NH, NM, NY, NC, OH, OR, TN, VI, WA, WI);  and 25 governors signed a letter in support of the American Jobs and Closing Tax Loopholes Act of 2010 (AR, CO, DE, IL, IA, KS, ME, MD, MA, MI, MT, NM, NY, NC, NH, OH, OK, OR, PA, TN, VI, WA, WI, WV).
 
NEXT STEPS: We will be undertaking a number of steps in the coming days and weeks both to thank Members of Congress who supported us and to ensure that you have all the information you need regarding how states will receive the funds.  We will be sending you additional materials and information in future e-mails and ask that you keep an eye out for those communications. 
 
Distribution of Funds:  Governors have 30 days to apply for the money; otherwise, Secretary Duncan can distribute it to another entity/entities, such as school districts.  You should have received an initial e-mail from us yesterday with preliminary information about the bill and implementation issues.  It is very important that affiliates contact, preferably in writing, your state department of education and/or your governor’s office and urge them to apply immediately for the money and figure out which distribution method – the state funding formula or Title I formula – will save the most jobs in your state, based on the density of layoffs. 
 
NEA’s Education Policy and Practice Department will devote part of its standing monthly call for affiliates to provide guidance on steps to take in your state so you can follow the money and influence how it is spent.  Don’t miss it!  Call time is 2 PM EST on Thursday, August 12.  The call-in number is 1-800-207-7781 and the pass-code is 716643#.

 
We are also working with the U.S. Department of Education on guidance about the urgency of getting this money to flow. 

 

FORCED PAY CUT FOR MICHIGAN PUBLIC EMPLOYEES

FROM THE MEA: 

On Tuesday, May 25, the latest attack on the economic well-being of school employees at all levels, pre-K through and including universities, was reported to the floor of theMichigan Senate by the Reform and Re-structuring Committee. This attack is SJR "U", a joint resolution proposing that an amendment to the Michigan Constitution be placed on the ballot at this year's August Primary Election. This constitutional amendment would, if passed:

*       Require that the base salary of all public employees in Michigan, including employees of school districts, community colleges and universities, be reduced on October 1, 2010 by 5% from the base salary in effect for them on January 1, 2010.

*       Require that this forced pay reduction remain in effect for 3 years from the effective date of October 1, 2010.

*       Provides that any such pay reduction be reduced by any pay reduction that went into effect on or after January 1, 2009.

*       Provides that the section of the Michigan Constitution which protect contracts from being "impaired" by any law shall be amended to allow any contracts with or covering public employees may be impaired by the forced pay reduction called for in this resolution. In essence, such contracts could be voided by legislation to force pay reductions.

*       Has a provision that prohibits the state from enacting any law that grants a hearing over any pay reduction called for in this resolution.

*       Contains provisions to nullify the constitutional autonomy of universities in regards to setting pay rates for their employees.

MEA ANALYSIS:

We believe that the Senate leadership intends to move this bill as soon as possible, perhaps in the next day or two. Please contact your senator and urge her/him to vote NO on SJR "U" if it comes up for a vote. The reasons to vote NO are numerous, including:

*       Public employees have taken many cuts in compensation, both in salary and in non-salary areas such as benefits.

*       This is another "big brother knows best" fix coming out of Lansing. We don't need another one-size-fits-all panacea that will actually fit no one and will only exacerbate our problems.

*       Forced pay reductions will further shrink our already faltering economy. This will take 5% of pay out of spendable income of hundreds of thousands of employees and reduce economic activity dollar for dollar for all of the reduction.

*       This is the first time that any group of legislators has proposed legislating away contract provisions, a legal protection that is one of the bedrock foundations of capitalism and our democratic society. If the government can vacate thousands of public employee contracts today, it can vacate any and every contract tomorrow, a condition that would undermine our economy and our society.

New Retirement Law FAQs

(information updated as of May 18)

Below is a list of frequently asked questions MEA members have posed related to the legislative action on May 13 regarding an early retirement incentive and school employee pension changes. The answers below are meant to provide you with what MEA believes to be the latest and most accurate information; however, for your specific situation, you should seek guidance from the Office of Retirement Services (ORS) directly.

1. What is the incentive to retire?

The incentive is an increase in the pension multiplier from 1.5% to 1.6% on final average compensation up to $90,000, for those who are currently eligible to retire and choose to do so now. For those who are not currently eligible, but whose age plus years of service total 80, you will be able to retire with an increased pension multiplier of 1.55% on final average compensation up to $90,000.

2. How much will I get?

Exactly what you will receive is based on your final average compensation and years of service. You should carefully consider the financial impact of choosing to retire or to continue to work. You can download a basic guide to calculating your pension at www.mea.org/retirement/retirement_formula.pdf.

3. I have 30 years of service and am eligible to retire on July 1, 2010. What are the financial considerations whether to retire and take the incentive or continue working?

If you decide to retire on July 1, 2010, your final average compensation will be multiplied by 1.6%, instead of 1.5%. This 0.1% increase multiplied by 30 years of service results in an additional 3% retirement allowance. If you were to continue working, in two more years you will have recouped the additional 3%, plus you will have received your regular salary during those two years instead of a lower retirement allowance.

4. What is the deadline for applying in order to receive the retirement incentive?

A written application must be submitted to the Office of Retirement Services (ORS) on or before June 11, 2010.



5. If I submit an application to retire but later change my mind, may I withdraw my application?

An application to retire may be withdrawn on or before June 11, 2010, but the application is irrevocable after June 11.

6. When must I actually retire in order to receive the retirement incentive?

Your retirement must be effective no earlier than July 1, 2010, but not later than September 1, 2010. The effective date of retirement may be extended for up to one year with the agreement of your superintendent. Each school district may extend the retirement date for one employee and up to an additional 2,500 extensions shall be allocated throughout the state.

7. If I receive one of the extensions to allow me to work during the 2010-2011 school year, will I still receive a retirement incentive when I retire?

Yes.

8. If I submitted an application for retirement prior to the passage of this law, do I need to withdraw that application and file a new one in order to receive the incentive?

No. The ORS will consider applications filed before the new law becomes effective as eligible for the retirement incentive, as long as the effective date of retirement is on or after July 1, 2010, but not later than September 1, 2010.

9. Is there any active duty requirement in order to be eligible for the retirement incentive?

Yes. An employee must have worked for the school district from November 1, 2009 through May 1, 2010. An employee on layoff or an approved leave of absence is also eligible if the employee has actively performed services for the school district during some time period between November 1, 2009 and May 1, 2010.

10. When must my age and years of service credit total at least 80 in order to be eligible for the retirement incentive?

Your age and years of service credit must total at least 80 by August 31, 2010, in order to be eligible for the retirement incentive. Your effective date of retirement must be on or after the date upon which your age and years of service credit total 80.



11. Does purchased service credit count when determining whether your age and service credit totals at least 80?

Yes.

12. If I qualify for the retirement incentive based upon 80 or more total years of age and service credit, do I still suffer a reduction in my retirement allowance for each month that I am shy of 60 years of age?

No.

13. I am a member of the basic plan and have not paid into the Michigan Investment Program (MIP) plan. Am I eligible to retire based upon my years of service and age totaling at least 80?

Yes. Your pension will be calculated based upon the calculation of your final average compensation used for basic members, not MIP members.

14. Is my school district responsible for my health benefits through August, if I retire under this law?

This law does not affect your eligibility for health benefits prior to the effective date of your retirement. You will begin to receive health benefits from the Michigan Public School Employees Retirement System on the effective date of your retirement. If your effective retirement date is not until September 1, 2010, whether you receive health benefits from your school district during the summer will be determined by your collective bargaining agreement.

15. What happens if I choose not to retire?

If you choose not to retire, you will continue to earn service credit, but you will be subject to an additional contribution of 3% to the retiree health fund beginning July 1, 2010.

16. Are my health benefits into retirement guaranteed if I retire under this legislation?

No. The Michigan Supreme Court previously decided that health benefits are not guaranteed to retired school employees – the Legislature’s actions last week did not change this fact. The House version of the legislation would have created a right to retiree health benefits for those who will pay the additional 3% into the health benefits trust. Unfortunately, the final version of the bill that was passed did not include this provision.



17. Is it guaranteed that the 3% paid into a retirement health benefits trust will stay in that fund - protected from raid to cover "emergency" costs elsewhere?

The money will be placed into a trust account that may only be used for retiree health care. However, there is nothing that stops the Legislature from using those funds to cover some of the costs of health benefits for current retirees and no guarantee that it will be used for retiree health benefits for those who contributed the 3%.

18. If I retire from my school district employment on or after July 1, 2010, but continue teaching at a Michigan community college, are my retirement benefits affected?

It depends upon whether your community college participates in MPSERS and how much you earn at the community college. Assuming your community college participates in MPSERS, rather than an alternative retirement program, if your earnings from the community college during a calendar year exceed one-third of your final average compensation, then you will forfeit your pension and health benefits for as long as you continue to work for the community college or any other employer covered by the Michigan Public School Employees Retirement Act. Once you leave that employment, your pension and retiree health benefits will resume.

19. Will the "hybrid plan" apply to school employees who are laid off and return to work after July 1, 2010?

No. The so-called "hybrid plan," which includes a reduced defined benefit plan along with a defined contribution plan, only applies to school employees hired after July 1, 2010, who have not previously been members of the Michigan Public School Employees Retirement System. If you have any service credit prior to July 1, 2010, you will not be subject to the hybrid plan.

20. If I have deferred some of the pay that I earned during the current school year, is the deferred money that is paid to me after July 1, 2010, subject to the additional 3% contribution?

The Office of Retirement Services is currently considering this question and has not announced its position. MEA believes that the language of the statute clearly supports the interpretation that money earned prior to July 1, 2010, is not subject to the additional 3% contribution.





21. When does the 3% start coming out of my check? Is it all at once or per pay period?

The additional 3% will be deducted from earnings received after July 1, 2010. It should be deducted from each paycheck. The ORS may also decide that pay received after July 1 is subject to the additional 3%. See FAQ # 20.

22. I have a family member who will begin working in a Michigan public school after July 1, 2010. If the family member does not choose to contribute to the defined contribution plan during the first year of employment, is she still able to choose to contribute in later years?

The new legislation does not specifically address this situation. Therefore, it will be up to the ORS to decide. However, it is expected that school employees subject to the defined contribution plan will be able to change whether and how much to contribute, so long as the change does not occur so frequently as to create an administrative burden for either the school district or the ORS.

23. How does this affect those of us already retired?

The changes in the law should have no effect upon those already retired.

Please remember to check with the Office of Retirement Services regarding specific questions related to your retirement decision. The phone number for ORS is (800) 381-5111 or (517) 322-5103– online at www.mi.gov/ors.

Press Release from MEA - 4/23/2010

FOR IMMEDIATE RELEASE

Contact: Doug Pratt, Director of Communications, Michigan Education Association, 517-337-5508

Teachers and school employees launch ‘punching bags’ TV ad at Capitol rally

Thousands of postcards to lawmakers delivered by 600+ MEA members in Lansing;
10,000 expected at upcoming Capitol rally on June 24

LANSING, Mich., April 23, 2010 — More than 600 teachers and other school employees rallied outside the state Capitol on Friday to protest cuts to their public schools. At the rally, the Michigan Education Association also announced the launch of a new television advertisement that demands politicians “stop treating teachers and school employees like punching bags.”

“Parents, educators and taxpayers from across the state are fed up with Lansing politicians and their continued attacks on public education and public school employees,” said MEA President Iris K. Salters. “Like all Michigan citizens, school employees have shared in the state's economic pain, giving up nearly $1 billion in wages and benefits over the past few years. Enough is enough — the last thing our state’s struggling economy needs is further cuts to education.”

“Instead of attacking public school employees, politicians should be working on real, balanced solutions, such as finally ending ineffective corporate tax incentives and using the savings to plug the massive holes in our state’s education budget,” Salters said. “Politicians have been cutting public education for a decade – and we still have a budget crisisevery year. Voters are sick and tired of the budget games and gimmicks coming from Lansing – and they’re not putting up with it anymore.”

Aside from Salters, state Sen. Gretchen Whitmer and state Rep. Rebekah Warren both spoke at the rally. Also on the Capitol steps was a boxer with a punching bag emblazoned with the word “Teachers” – the same as featured in the new TV spot.

Following the rally, the gathered MEA members hand delivered more than 100,000 postcards that their colleagues back home sent with them for lawmakers in Lansing. Salters and other MEA leaders also carted thousands of MEA members’ postcards to Gov. Jennifer Granholm.

Friday’s events also kicked off a countdown to a series of local education rallies on the evening of May 24 and an even larger rally scheduled for June 24 at the Capitol. MEA expects more than 10,000 people to attend the June event, which will call for an end to attacks on public education and a commitment from lawmakers to provide the adequate, equitable and stable school funding that Michigan’s students deserve.

AD TITLE: “Punching Bags”

LENGTH: 30 seconds

LAUNCH DATE: Thursday, April 22, 2010 in Lansing; Monday, April 26 elsewhere

AIRING: Detroit, Grand Rapids and Lansing markets

ON THE WEB: http://www.mea.org/press (streaming and broadcast quality versions)

SCRIPT: “Politicians love to treat school employees like punching bags these days. But they’re ignoring that teachers and school support staff are sharing in our state’s sacrifices, spending money out of pocket for basic classroom supplies while their salaries and benefits continue to be cut.

“Enough is enough. Tell politicians it’s time to stop treating teachers and school employees like punching bags.”

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