- House Advances Budgets
- Support Reinvesting MPSERS Savings for Investment in the Classroom
- A Chance to Serve—Apply for a MASB Committee
House Advances Budgets
The House and Senate focused on budget work this week. Both chambers spent time debating the various departmental budgets and moved them to final passage. The House passed all its budgets on Wednesday, including the School Aid budget. No substantive changes were made to the School Aid Budget, and it passed by a vote of 56-50. MASB, MASA, MASSP, MAISA and MASO sent a copy of our press release in support of the HB5503 to the entire chamber, focused mostly on the MSPERS rate reduction (see next story).
The Senate is expected to act on its School Aid budget next week. The May Consensus Revenue Estimating Conference will be held on May 17 and will give final expected revenue numbers for the state and will be what the final budgets will be based on.
Support Reinvesting MPSERS Savings for Investment in the Classroom
The biggest difference between the budgets is the use of the savings from the school employees’ retirement system healthcare benefit unfunded liability payments. Because the health benefits side of MPSERS is now fully funded, the Governor proposed using the $670 million in various spots throughout the budget and the Senate followed suit. However, we have been pushing for that money to be reinvested in MPSERS to lower the rate that districts have to pay into the system for the unfunded liabilities. The House budget proposal reinvests $290.8 million and lowers the rate from 20.96% to 18%. While the exact benefit to districts will vary, on average, it will free up more than $200 per pupil to invest in classrooms instead of paying MPSERS liabilities.
MASB has been pushing for a 7% reduction in the rate, this reflects the amount that is paid into the health care benefits side of MPSERS. This reduction, from 20.96% to 13.96%, would create significant cost savings for Michigan’s public schools without harming the MPSERS system. The average savings for a district would be more than $450 per pupil. This financial relief is crucial, especially now that federal ESSER funds are expiring. The savings generated would guarantee the continuity of programs and services for our students and support for our staff.
We urge you to contact your legislators and tell them to use the $670 million to invest back into the MPSERS system and create savings for districts today and into the future. This money should be reinvested with the districts that have borne the cost of the unfunded liabilities through the years and not spread throughout other programs in the budget.
Your advocacy is crucial as the budgets head into final discussions. Share with your legislators what a 7% cut in your MPSERS liability would mean to your district as the funds are freed up to be spent on learning instead of retirement.
A Chance to Serve—Apply for a MASB Committee
Are you looking for a way to be more involved in your Association? Do you want to share your expertise and perspective statewide? Serving on MASB’s Government Relations Committee may be the right opportunity for you!
MASB committees bring together school board members from around the state to discuss vital issues and help shape your Association’s positions and actions. The Government Relations Committee monitors state and federal legislation and budgets pertaining to public education and school districts.
To apply, contact Cheryl Huffman at chuffman@masb.org or 517.327.5915 with your interest by June 30, 2023. More information on this and the two other open committees—Resolutions and Bylaws and Legal Trust Fund—is available on the MASB website. You can apply for any of these committees by contacting Cheryl.