Salem Township employees don’t contribute anything to their health care costs.

And they won’t have to contribute up to 20 percent of their health care costs as a new state law mandates after the Salem Township board voted 7-0 to exempt itself from the law at its Dec. 13 meeting. Municipalities need a two-thirds vote from the governing body to be exempt from the law.

The Publicly Funded Health Insurance Contribution Act (Public Act 152) states that as of Jan. 1, 2012, “a public employer shall pay not more than 80% of the total annual costs of all of the medical benefit plans it offers or contributes to for its employees and elected public officials.”

The township's resolution states: “Salem Township further believes that the determination of compensation and benefits for the township employees are most properly under the venue of township’s elected representatives, and not the State of Michigan or its officials.”

Salem Township Supervisor Robert Heyl defended the vote in an email.

“We exempted ourselves to allow us time to work on a complete benefits package for our employees,” Heyl said. “Our only union employees are the paid on-call firefighters, and none of them have opted for health insurance. Our other employees currently do not contribute to health insurance. This will more than likely change.”

Jack McHugh, senior legislative analyst for the Mackinac Center for Public Policy, said no private-sector businesses would contemplate paying 100 percent of health care costs.

“Does government exist to serve the people, or the other way around?” asked McHugh. “Township officials who vote for excessive benefits show they're confused about who really deserves their loyalty — taxpayers or government employees and their unions.”

The average Michigan private-sector worker pays 21 percent of their health insurance, and the average federal employee in Michigan pays about 25 percent.

Salem Township is located in Washtenaw County.

For Immediate Release
Wednesday, Jan. 18, 2012
Contact: Michael D. LaFaive
Fiscal Policy Director
989-631-0900

MIDLAND — Gov. Rick Snyder’s 2012 State of the State address included five proposed expansions of government and one limitation, according to Mackinac Center Fiscal Policy Director Michael D. LaFaive, who has tallied and categorized annual State of the State addresses as far back as 1969.

“Gov. Snyder seemed to focus more on new programs than on limiting government’s scope,” said LaFaive. “However, if last year’s address is an indicator, he may be understating his plans to lessen the impact and cost of government in the coming year. Like last year, the governor intends a series of legislative updates, which along with his budget presentation may give us a better understanding of his policy agenda.”

LaFaive noted that last year the governor offered a disappointing three limitations of government in his proposal, only to rein in the state in many more areas than he outlined in his address.

“I am hopeful that the actual work accomplished by his administration is once again more inspiring than the vision laid forth tonight,” LaFaive added.

The results of the annual tally are below. The tally has long been premised on proposed limitations and expansions of government as presented in the speech. Analysts at the Mackinac Center are sometimes forced to make judgments as to whether a particular proposal deserves inclusion or not. For example, the governor tonight mentioned his urban initiative — first announced in last year’s address. What went unmentioned in the tonight’s speech — but reported by at least one media outlet — was that the governor intends to expand that initiative by opening three new government offices. In addition, the governor implied that a new transportation system might be created and he called for investing in Michigan roads and highways, but details are too sketchy to label these an expansion of government.

The results of the annual tally are below.

Proposed 2012 Expansions

1. Place into statute the "Education Achievement Authority."
2. Pass an autism insurance mandate.
3. Create a "Michigan Health Marketplace," (also called an "exchange").
4. "Pure Michigan Fit" program.
5. Develop a new bus rapid transit system in southeast Michigan.

Proposed 2012 Limitations

1. Continue working to eliminate unnecessary and costly regulations.

*These tallies are not based on exact science. Some decisions require judgment calls based on the highly nuanced language of these addresses.

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