Editorial

Teachers Union Said They Were Done Losing Members (They’ve Lost 17K Since)

MEA membership is down to 90,000 from 117,000 before right-to-work

By 2015, two years after Michigan had become a right-to-work state, the state’s largest teachers union said it was no longer losing members. The Michigan Education Association (MEA) had spent those two years erecting obstacles to members seeking to leave. The obstacles included maintaining a narrow annual opt-out window (now illegal), attempting to damage the credit rating of teachers who exercised their right to not pay dues and in some cases, bullying people who wanted to leave.

In January 2015, the Detroit Free Press reported:

Last year, the Michigan Education Association lost nearly 5,000 members as its membership ranks dropped to 110,000 during a highly publicized one-month window that the union’s teachers had to leave the union.

Nancy Knight, director of communications and public policy for the Michigan Education Association, said the union’s membership decline came after an intense, summer-long campaign waged by the Mackinac Center that targeted the union’s members.

“We feel that all of those members that intended to leave did leave,” Knight said. “We do not anticipate a future decline in membership.”

ForTheRecord says: Unions are required to file annual reports with the federal government, and the MEA’s most recent one was released this week. It reveals that membership is still on the decline. In 2012 (before right-to-work), the union had 117,265 members. The number fell to 113,147 in 2013; 107,868 in 2014; 94,559 in 2015 and 90,609 in 2016.

In other words, another 17,000 people have left the union in the two years since the MEA said it expected no further declines. That’s nearly a quarter of its currently employed members.

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

Pew Trust: State Pension Managers Failed Even To Meet Own Funding Estimates

A cascade of failures leave taxpayers on hook for $26.7 billion in unfunded pension promises

When the state of Michigan made its contributions to the public school employees pension system in 2014, the amount wasn't even enough to prevent the system from going even further into debt. Instead, the deposit was $560 million short of what was needed just to stay even.

The shortfall is among the findings of a report from the Pew Charitable Trusts, a Washington, D.C., nonprofit, in a report released in August.

This report sheds some light on how state officials have allowed a $26.7 billion unfunded liability to accumulate on the balance sheet of the Michigan Public School Employees Retirement System. Catching up on this underfunding is increasingly squeezing school budgets across the state.

The Pew report found that the state had calculated it should pay $2.223 billion in 2014. Of this, $317 million was for new pension promises made to school employees during the past year.

The remainder — $1.906 billion — was to catch up on $24 billion worth of underfunding plus assumed growth projections. In other words, the gap between how much the system has and how much it should have.

The state instead paid a total $1.663 billion that year, falling short of the "stay even" amount by $560 million. It thus failed to pay what its own actuaries said was required to avoid sending the pension plan even deeper into the hole. While this story is the failure of only a single year, it is one of many such failures that add up to the current unfunded liability of $26.7 million.

Caleb Buhs, spokesman for the Office of Retirement Services, didn't respond to an email seeking comment.

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.