MEA Economist Ignores Billions In Education Spending
'The Truth About Funding' video repeats union's inaccurate claims
A Michigan Education Association video that says schools are getting less money under Gov. Rick Snyder does not tell the whole truth about education funding.
In the video, "The Truth About Funding," MEA labor economist Ruth Beier repeats the union's inaccurate claim that school funding is lower today than before Gov. Snyder took office. Never mind that the non-partisan Senate Fiscal Agency reports that the state has increased state funding for K-12 schools.
In the video, Beier cites a reduction in per-pupil revenue and says: "Let me give you the facts …" But she proceeds to cite only money from the per-pupil foundation allowance, which is only a portion of the funding a school district receives from the state. In some cases, the foundation allowance is only about half of the total revenue schools receive.
Beier used the Lansing School District as an example to try to make her case.
The Lansing School District received about $63.3 million from the state foundation allowance in 2013-14. Beier ignores about another $19 million the state give the Lansing School District in 2013-14 for expenses such as special education, adult education and payments for the district's employee retirement costs. The state made a $5 million payment this school year to Lansing for the Michigan Public School Employees Retirement System.
Beier did not respond to a request for comment asking why she only included the lower per-pupil foundation allowance in her presentation. But it is a common tactic used by many of Gov. Snyder's critics.
"The math is simple," Beier says in the video.
Actually, experts have said repeatedly it's not simple. That's because school funding is based on more than just the per-pupil foundation allowance that Beier cites.
For example, the Lansing School District received $8,929 per pupil in 2013-14 if all the state funding is factored in. The district received $8,742 per student overall in 2010-11, which was the final budget of Gov. Jennifer Granholm. Meanwhile, the district has lost about 1,375 students in those three years.
"The MEA is well known for only telling part of the story because it's easier to mislead people that way," said Ari Adler, communications director for Michigan House Speaker Jase Bolger, R-Marshall. "The reality is that state funding for K-12 has been increasing during the past few years, even while pupil counts were decreasing. …Basing numbers on only a single part of the funding available is fuzzy math and something I hope isn't being taught to kids in Michigan’s schools."
Adler said that according to the non-partisan House Fiscal Agency, the proposed School Aid Fund budget that funds K-12 education was $10.675 billion in 2010-11 and has increased every year under Gov. Snyder to the proposed $11.973 billion in the 2014-15 budget.
"Besides, as has been shown time and again, per-pupil funding is a poor measure of success for kids in Michigan," Adler said. "The now defunct Highland Park school district was receiving more than $14,000 per pupil in total state and federal funding and yet it was a dismal failure when it came to educating the students in that city."
Beier also serves as a councilmember for the city of East Lansing.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
Detroit Bailout Package
Handy link to descriptions of all 10 bills
A bipartisan 10-bill package has been introduced in the Michigan House related to a proposed Detroit bailout. A link to the concise, objective, plain-English MichiganVotes.org descriptions of all 10 bills is here.
It’s worth noting that the grant (or bailout) bills do not require passage of the reform bills to become law. Also, nothing would prohibit a future Legislature from repealing the reform measures, although in practical terms this could get complicated given that a potential federal court bankruptcy settlement may be all wrapped together with the grant and reforms — if they are approved.
The state money is intended to ease the tough choices the city must make to get relief from its debt and other obligations in federal bankruptcy court. Six of the bills would institute fiscal reform measures for the city. Most notably, one bill would establish a state oversight panel with authority over city budgets, borrowing, union contracts, etc. (House Bill 5566), and another that would end offering defined benefit pensions and post-retirement health insurance to new city employees hired starting in 2015 (subject to current union contracts), instead granting them generous 401(k)-type defined contribution benefits (House Bill 5568).
One reform bill would cap the value of city employee health insurance benefits (House Bill 5569), and another would prohibit any extension of a 10-year Detroit regional arts tax authorized by a 2010 law and 2012 ballot initiative (House Bill 5571).
Four of the bills would enable payment of a state grant to Detroit that many regard as a partial bailout (House Bills 5572 to 5575). Two of these grant bills envision a one-time $195 million up-front payment, while another would authorize state borrowing of $350 million as a means of ensuring future Legislatures follow through on the current Legislature’s commitment to deliver the money in annual $17.5 million installments over 20 years. The value transferred by either approach is about the same — $195 million right now is worth roughly the same as $350 million over 20 years. The Legislature would pick one or the other method, but not both.
People who have downloaded the VoteSpotter app can follow the progress of the package and give feedback to their legislators when votes are taken.
The House Fiscal Agency has posted its detailed summary of the full package here.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.
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