More Than Half of School Districts Ignore Governor's Request For Health Care Reform
Benefits still better for government union workers than for private sector workers
Nine months after Gov. Rick Snyder signed a bill that mandated public sector employees pay 20 percent of their health care costs, a report from the Michigan Department of Education shows how reluctant public schools and charter schools are to make their employees pay more.
To get an extra $100 per student, school districts had to meet four of five "best practices" the state put forward. Yet 358 of the 714 qualifying districts chose to not meet the best practice of having employees pay at least 10 percent of their health care costs.
By contrast, private sector workers pay 20 percent or more for their health care costs.
A 2009 survey of every school district showed that teachers contributed just 4 percent on average to the cost of their health insurance premiums. In 300 districts, teachers paid nothing.
Some districts signed contracts that extended into 2012 and 2013 so getting employees to pay more would have required re-negotiations.
Harrison Public Schools, for example, had a contract from 2007-2011 where the district paid 100 percent of its teachers' health care costs. Although the contract expired in 2011, Superintendent Tom House said a new contract has not yet been reached. House said the district has decided to enact the "hard caps" option, which are set costs districts cannot exceed on health care. House said the hard caps will become effective July 1. The hard cap for a single employee is $5,500, $11,000 for an employee and spouse and $15,000 for a family plan.
Michael Van Beek, education policy director at the Mackinac Center for Public Policy, estimated that a district going from paying 100 percent of its health care premiums to 80 percent could save about $100 per pupil.
Amanda Fisher, assistant state director of the Michigan chapter of the National Federation of Independent Business, said it is "unheard of" for people in the private sector to pay less than 10 percent of their health care premiums.
Fisher said that about half of the schools deciding not to address health care costs shows how badly a law was needed to mandate it.
"That is exactly why it had to be a law," Fisher said.
It also cast doubts on public school union claims that Snyder's cuts were hurting school children while many unions weren't willing to pay even 10 percent of their health care premiums.
"It just shows how false these cries are that 'Oh, it's hurting their kids,' " Fisher said. "You don't see the unions bending over backwards to make it easier for the kids — not even 10 percent. They are obviously not interested in helping the kids and paying their fair share. It’s crocodile tears. They could get more money and chose not to."
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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June 22, 2012, MichiganVotes.org Weekly Roll Call
The Michigan Legislature has entered a summer recess. Many bills were passed in the legislative sessions just before the break.
Y = Yes, N = No, X = Not Voting
Senate Bill 1129, Authorize local “pension obligation bonds”: Passed 25 to 11 in the Senate
To allow local governments to borrow money to cover unfunded employee pension liabilities if the local has closed its traditional “defined benefit” pension system to new employees. Unlike other local government borrowing (usually called “bonding” or “selling bonds”), no vote of the people would be required.
Who Voted "Yes" and Who Voted "No"
House Bill 5477, Increase corporate subsidy overhead cap: Passed 29 to 7 in the Senate
To increase from 15 percent to 25 percent a cap on the overhead expenses allowed for recipients under certain "Michigan Strategic Fund" corporate subsidy programs. Also, to require subsidy deals to contain more specific "claw-back" provisions requiring repayment of subsidies if specified performance measures are not met, the details of which would be open to the public. Finally, the bill would authorize investments or loans of taxpayer dollars to "micro-enterprise lenders."
Who Voted "Yes" and Who Voted "No"
House Bill 5414, Establish more “dark sky preserves”: Passed 26 to 10 in the Senate
To designate Wilderness State Park, a portion of Port Crescent State Park and certain state forestland in Emmet County as “dark sky preserves.” Also, to prohibit any "dark sky preserves" in the Upper Peninsula, or restrictions on motorized and other recreational use based on the designation.
Who Voted "Yes" and Who Voted "No"
House Bill 4116, Require review and posting of state agreements with feds: Passed 38 to 0 in the Senate
To require that when entering any "memorandum of understanding," agreement, compact, or similar binding agreement between this state and the federal government or another state, a state agency must assert that it does not violate the state constitution, or exceed the agency's statutory authority. Information on each agreement would also be posted on a state web site.
Who Voted "Yes" and Who Voted "No"
House Bill 5468, Revise prepaid cell phone 9-1-1 tax: Passed 29 to 7 in the Senate
To replace current taxes imposed on pre-paid cell phone service to cover the cost of government 9-1-1 service, with a new 1.92 percent levy imposed at the point of sale (like sales tax). The current 9-1-1 service tax regime would still apply to other kinds of cell phone accounts.
Who Voted "Yes" and Who Voted "No"
House Bill 5714, Authorize temporary administrative law drug bans: Passed 38 to 0 in the Senate
To give a state agency the power to ban a drug it says poses an “imminent danger” even though the legislature has not voted for a new law banning the drug, and to establish procedures for this.
Who Voted "Yes" and Who Voted "No"
House Bill 5164, End government inspections of non-motorized rental boats: Passed 31 to 6 in the Senate
To eliminate a requirement that rental boats that are non-motorized, including canoes, kayaks or rafts, must get government inspections. The bill would slightly increase the fees for annual rental motorboat inspections and revise other details of boat rental regulations.
Who Voted "Yes" and Who Voted "No"
Senate Bill 1146, Expand historic vehicle registration discount during Dream Cruise month: Passed 109 to 1 in the House
To establish that during the month of August all vehicles 25 years old or more which are owned solely as a collectors item and not used for daily transportation will be considered “historic vehicles” for purposes of obtaining a discounted vehicle registration. During August, use restrictions associated with the discounted licenses would be waived.
Who Voted "Yes" and Who Voted "No"
Senate Bill 789, Authorize temporary administrative law drug bans: Passed 107 to 0 in the House
To give a state agency the power to temporarily ban a drug they say poses an “imminent threat,” even though the legislature has not voted for a new law banning the drug.
Who Voted "Yes" and Who Voted "No"
House Bill 5701, Expand auto theft prevention authority: Passed 96 to 12 in the House
To expand the duties of a state automobile theft prevention authority to include insurance fraud related to unlimited medical benefits provided by Michigan's no-fault law, overhaul its structure and authorize $21 million in assessments (taxes) on insurers to pay for this.
Who Voted "Yes" and Who Voted "No"
House Bill 5302, Require local road agency reforms: Passed 63 to 45 in the House
To make state funding of local road agencies contingent on their adopting “best practices,” including requiring employees to contribute a certain amount to their health insurance fringe benefit; capping the cost of employee retirement plans (watered-down from requiring that new employees get 401[k] plans rather than "defined benefit" pensions); and adopting specified transparency and accountability measures.
Who Voted "Yes" and Who Voted "No"
Senate Bill 1085, Project labor ban “re-do”: Passed 63 to 44 in the House
To “re-do” the law passed in 2011 prohibiting “project labor agreements” in state, school and local public construction projects, so as to circumvent a union lawsuit that has prevented enforcement of PLA ban. Project labor agreements require non-union contractors bidding on a government project to pay employee union dues and contribute to union pension and health insurance benefit funds, even though their employees are not union members.
Who Voted "Yes" and Who Voted "No"
SOURCE: MichiganVotes.org, a free, non-partisan website created by the Mackinac Center for Public Policy, providing concise, non-partisan, plain-English descriptions of every bill and vote in the Michigan House and Senate. Please visit https://www.michiganvotes.org.
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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