News Story

Some Unions Still Battling Governor's Reforms; Taxpayers Left Holding the Bill

Cities, schools, government unions able delay health care savings

The unionized maintenance workers for the Brighton Area Schools pay between $400 to $600 a year for their top-shelf MESSA health insurance plan, far less than what most private sector workers pay.

Taxpayers by way of the school district pay $1,411 a month for the unionized maintenance workers' plan and absorb up to 12 percent of the yearly increases, according to the Brighton Educational Support Personnel Association’s contract, which expires in 2013.

Brighton privatized its unionized janitorial workers two years ago. The unionized maintenance workers include electricians and plumbers who receive MESSA, which is affiliated with the Michigan Education Assocation and considered the Cadillac of insurance programs.

Although those types of deals are less prevalent than they once were, taxpayers have yet to realize the full impact of Gov. Rick Snyder’s law that required public employers to pay no more than 80 percent of the annual cost of medical benefits.

While school districts have to implement the 80-percent mandate once union contracts expire, municipalities have the ability to opt-out.

For example, Salem Township employees do not contribute to health insurance premiums, says Robert Heyl, the Salem Township supervisor. The Salem Township board voted to exempt their employees from the state’s mandated cost-sharing program.

But there could be financial consequences if that continues into 2013.

Ken Silfven, deputy press secretary for Gov. Snyder, said in an email that what is being proposed is that municipalities that opt out could see a 10-percent cut in statutory revenue sharing fiscal year 2013.

But some unions aren't accepting the changes and Dearborn is facing legal action for trying to implement the 80 percent mandate.

Dearborn Mayor John B. O’Reilly said his city wanted to institute the state’s cost-sharing plan as soon as possible.

The city of Dearborn intended to begin collecting premiums from all full-time employees covered by city health insurance beginning January 1, said Mary Laundroche, the city’s spokeswoman. However, two city unions filed lawsuits saying the 80/20 plan shouldn’t begin until their contracts with the insurer expires July 1, 2012.

Currently, insurance benefits per public-sector employee are $7,149 more per year than in the private sector. According to the Kaiser Family Foundation, the average Michigan private-sector workers pays 22 percent of their health care, and the average for federal employees in Michigan is about 25 percent.

“The reason taxpayers won’t immediately benefit from this fiscally sound policy is that lawmakers decided to allow union contracts for government employees to trump state law for the time being,” said Michael Van Beek, education policy director at the Mackinac Center for Public Policy, in an email.

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.

Commentary

Governments Already Impose Hunger Games

Perhaps I’ve been toiling too long in the public policy salt mines, but my take on "The Hunger Games" is that it’s less an adolescent dystopian adventure/love story than an allegory of government rules run amuck.

I may be trying too hard to squeeze a square peg into a round hole, but bear with me:

The movie’s premise is a future nation, Pan-America, where warfare has been replaced by a reality television series in which selected teenagers battle each other to the death. Two teens are chosen to represent their respective districts in a process straight out of an earlier generation’s dystopian fantasy, Shirley Jackson’s "The Lottery."

Now, I’m no fan of wars in general, and judging by the antics of the theater audience attending the matinee I watched, I may not have a problem with groups of snooty teenagers being sent to the woods with the provision that only the noblest returns. So far, so good.

But just as most government programs begin with the best intentions, usually there are negative consequences in the results. In "The Hunger Games," those consequences include a group of impossibly attractive young adults portraying improbably gorgeous adolescents, dropping each other like pigs in a slaughterhouse.

The viewer is complicit with the theme that this isn’t cool. Donald Sutherland plays the government leader, and the audience just knows in their communal heart that this status quo will be challenged by our young protagonists in the film’s climax.

But, even as the teens play by the government-established rules of the Hunger Games, they discover it’s the government that’s changing the rules, to the detriment of the contenders. For example, when it appears the film’s pouty-lipped heroine is insufficiently keen on disemboweling her opponents, the game masters unleash nasty beasts and fireballs upon her. Naturally, this only strengthens her resolve to beat the rigged system.

Just so in the real — as opposed to reel — world: When it was discovered that growing layers of rules and regulations imposed on businesses were stifling innovation and investment, and that individual liberties and privacy were also being relegated to the backseat under the guise of protecting the public at large, concerned citizens — small business owners and Tea Party members, for example — took it upon themselves to fight back.

In response, lawmakers and regulators in this reality have unleashed their own version of fireballs and bloodthirsty mastiffs that kill jobs, curtail profitability and disincentivize investment. Sound far-fetched? How else would readers characterize Obamacare; green energy mandates;  "net neutrality;" massive housing, banking and auto bailouts, and more?

The movie's conclusion is an obvious setup for a sequel, leaving our intrepid protagonist with much, much more work to do to end the carnage. The same theme carries over to our current political environment. Much has been accomplished, but much more needs to be done to prevent our state and from nation winding up as an allegorical, lifeless stiff on the legislative and regulatory forest floor.

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Bruce Edward Walker (bwalker@heartland.org) is managing editor of The Heartland Institute’s InfoTech & Telecom News.

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.