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When the Legislature returns for one day on July 18, it's expected the Senate will take up the unfinished business of SB 1040. While the House passed its version of the bill, the Senate adjourned on June 14 before taking any action.

The Senate will take up the House version which includes the prefunding of the retirement system, giving new hires the option of a defined contribution plan, and a freezing of the retirement rate for school districts. All along, there have been Senators interested in forcing all new hires into a defined contribution plan, but at issue is the cost of such a move. The House version calls for a study analyzing the cost benefit.

Michigan high school students generally improved over last year in most subject areas of the Michigan Merit Exam (MME)--but if you recalculate previous scores according to our new scoring system--achievement is still low.

The state Department of Education (MDE) adopted the new scoring system in 2010 to better gauge if students are ready for college and careers. Despite the higher cut scores to determine proficiency, most high school juniors scored "proficient" in math, reading, writing and science. The MDE sees the improvement in the latest test scores as a result of the new scoring system.

Students also scored slightly better on the ACT college-entrance exam which is a part of the MME. The composite mean ACT score was 19.6 for 2012, up from 19.4 in 2011.

However, the scores do show a disturbing trend. A significant achievement gaps still exists for minority and low-income students with many leaving high school unprepared for college.

By the end of this week, Muskegon Heights Public Schools Emergency Manager Don Weatherspoon will have sold the entire school district to one of two for-profit charter school management companies—Leona Group or Mosaica Education. It’s an unprecedented move to eliminate the district’s $12.4 million debt and it signals the end to traditional public education for more than 1,400 students in Muskegon Heights.

The current school district would no longer exist, but would still have to pay off the debt using its local millage, a 3 percent fee from the charter school company, rent from its buildings and whatever other means the state Department of Education and Treasury approve. The charter school would be in charge of educating children and receive the district’s $7,397 per-pupil funding, but the school district would oversee the operations of the charter school company.

The Legislature reconvenes Tuesday for what could be its final week before their summer break and indications are that SB 1040 – the unprecedented assault on school employee retirement – will be on the agenda.

Many State Representatives are still unsure how they will vote on this bill that attacks the retirement security of future, current and retired school employees across the state.  Contact them today!  Urge them to vote NO on SB 1040.  It’s not a fix for a long-term problem—one that school employees didn’t create. It merely shifts the financial burden from school districts to current and retired school employees who are already paying more than their share.  Let them know that taxes on pensions, salary cuts and increased costs for health insurance are robbing you of the ability to support yourself and your family. 

We've gotten information that the House may be taking up SB 1040 today--the plan to gut school employee retirement. The House made several changes to the Senate version, but some of the most damaging portions are still in place, such as forcing retirees to pay 20 percent of their health care.

It's critical that you contact your Representatives and urge them to vote NO on SB 1040. It's not a fix for a long-term problem--a problem that school employees didn't create. It merely shifts the financial burden from school districts to current and retired school employees who are already paying more than their share.