News Story

School District Payroll Increases Despite Pay Cuts for Some

West Bloomfield district’s overall gross salaries up 1.4 percent in 2011-2012

Despite highly publicized reports of 10 percent pay cuts within the West Bloomfield School District last year, a review of gross salaries of all employees who were on the payroll in 2011 and 2012 shows that there was a 1.4 percent overall salary increase.

About three of every four teachers took an overall pay cut from 2011 to 2012, which averaged to be 1 percent, according to salary information of all employees for 2011 and 2012 that was requested by Capitol Confidential. However, some top administrators saw hefty increases. The top 13 people on the payroll in 2011 and 2012 saw increases or a salary freeze.

For instance, the director of technology had a 19 percent salary increase from 2011 to 2012. The two assistant superintendents saw their gross salaries increase by 3.3 percent and 12 percent. A supervisor had her salary increase 6.6 percent. Two principals saw salary increases of 2.4 percent each, and two others saw salary increases of 7.2 percent and 16.3 percent. The superintendent, who has since left, had her salary frozen.

In fact, overall gross salaries of all 689 employees on the payroll in 2011 and 2012 increased from $27.7 million to $28.1 million.

But the story district officials were telling a year ago was of severe paycuts.

In 2011, The Detroit News reported: “The cut is retroactive to Dec. 1, and teachers will see a 6.9 percent reduction this year and 10 percent next year, said Rick Arnett, assistant superintendent of human resources and labor relations. The freeze in step payments took effect March 31.” The News story contined: “Pam Zajac, district spokeswoman, said five of its six bargaining units, including administrators, have already agreed to a 10 percent wage cut, 5 percent last year, 5 percent this year.”

Superintendent Gerald Hill, who was hired in May, didn’t return an email seeking comment. Zajac didn’t return a phone message.

There are some ways salaries could go up despite cuts in contracts and step increase freezes. Teachers could take on additional responsibilities, such as a coaching job, or administrators could get a promotion.

But of the 256 people identified as teachers on the spreadsheet provided by the district and who were on payroll both years, overall compensation of the teachers dropped only 1 percent.

The West Bloomfield district’s payroll dropped $2.3 million when considering 86 employees on the payroll in 2011 who dropped off in 2012.

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.

News Story

Home Health Care Ballot Initiative Would Usurp Power From the Governor

SEIU-backed proposal would lock union perks into the state constitution

Wording in a proposal to lock a forced home health care worker unionization scheme into the state constitution could also usurp power from Gov. Rick Snyder.

It looks likely that the union-backed proposal “Keep Home Care Safe” will be on the November ballot. The proposal is an attempt by the Service Employees International Union to continue receiving dues money from the Medicaid checks of people in the federal Home Help Program.

Language in the proposal would constitutionally place current members of the Michigan Quality Community Care Council (MQC3) board onto the board of a new entity, called the Michigan Quality Home Care Council (MQHCC). What's more, it locks those members into new four-year terms.

Gov. Snyder can name, replace and remove members of the MQC3 board. However, if the SEIU–backed proposal passes, he wouldn’t be able to do that for at least four years.

“Some people have to stop thinking of the constitution as a coloring book where if they don’t like something they just try to change it,” said Rep. Al Pscholka, R-Stevensville, chair of the House Appropriations Subcommittee on the Department of Licensing and Regulatory Affairs.

Sara Wurfel, a spokeswoman for Gov. Snyder, said all the potential ballot proposals are being reviewed by the governor's office but could not comment further until that process was complete.

In 2005, the SEIU targeted Michigan’s share of the federal Home Help Program as a dues-producing source. Under the federal Home Help Program, elderly patients and others suffering from various ailments and afflictions can be cared for at home instead of being placed in nursing homes or other institutions.

While Jennifer Granholm was governor, an “election” was held that set up the MQC3 as the dummy employer that made the scheme possible. Most of those who were unionized didn’t know they were being sent ballots.

As a result, Michigan’s 44,000 Home Help Program participants (since then it’s been as many as 61,000) were labeled as “home health care workers.” Dues started being deducted from their Medicaid checks after the forced unionization was accomplished. The union has taken more than $31 million from unsuspecting workers and, as its lawyer stated in a court hearing, is using that money largely for political purposes.

Roughly 75 percent of these so-called “home health care workers” are relatives or friends of the patients.

It is no coincidence that the dummy employer (MQC3) in the 2005 forced unionization and the MQHCC, which would be created by the proposal, have similar-sounding names. Basically, the proposal would place the framework of the SEIU scheme right into the constitution, with MQHCC serving as the new dummy employer.

Currently, the MQC3 board serves at the pleasure of the governor. Gov. Snyder could replace the members, but he has not chosen to do so. He could do so anytime before the November election.

If Snyder fails to act before the election and the proposal is added to the ballot and passes, the current MQC3 board members would start serving constitutionally mandated terms on the new MQHCC. Those terms would last through 2016.

Having a board appointed by Gov. Snyder that was less sympathetic to the SEIU’s forced unionization could make a difference even if the proposal were to reach the ballot and pass. It would conceivably give Gov. Snyder a voice in issues such as turning down contract extensions, asking for a new unionization election and reducing the administration fee, which is the amount of money that would come out of the Medicaid checks for those who choose to leave the union.

The pertinent language in the proposal reads as follows:

The Council shall be governed by a board of eleven (11) members, including:

a) Nine individuals appointed by the governor with expertise regarding participant needs, no fewer than seven of whom shall be current or former program participants, participant representatives, or participant advocates; however such positions shall initially be filled by those similarly qualified members of the Michigan Quality Community Care Council board who last filled those positions prior to the passage of this section. Upon expiration of each such initial member’s term of appointment, the position to be filled under this paragraph shall have a term of four years.

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.