News Story

School District's Costly Decisions Protect Union Interests

Fruitport school union, board of education, cut deal that pushes more than $240K back on taxpayers

In less than a year, the Fruitport Community Schools Board of Education made two decisions involving union contracts that cost the district hundreds of thousands of dollars.

On the day before a state law would have mandated its employees pay 20 percent of their health care costs, the school board unanimously approved a teacher union contract that called for 12.5 percent health care contributions in 2011-12, and 15 percent to 17.5 percent in 2012-13.

If government union school employees paid the same amount toward their health care costs as federal employees in Michigan (27 percent), taxpayers would save at least $500 million a year.

Then, in June 2012, the school board agreed not to privatize its custodians, which cost $240,000, according to MLive.

At issue is a potential conflict many critics of government union collective bargaining say is widespread. Two members of the Fruitport School Board have strong ties to unions.

School board member Benjamin Gillette unsuccessfully ran for state representative in the 91st district in 2010 and had a laundry list of union support. The SEIU, AFSCME, AFL-CIO, International Brotherhood of Electrical Workers and several other unions were among his top campaign donors. Gillette has also been a featured speaker at Michigan Education Association events.

Board Member Steve Keglovitz is a representative of the West Michigan Labor Council AFL-CIO.

The National Federation of Independent Business is critical of such arrangements, saying it sets up a potential situation where union-sympathetic board members are approving union contracts in an "elect your own boss" scenario.

"The people who get left out are the taxpayers," said Michael Van Beek, director of education policy at the Mackinac Center for Public Policy. "They don’t have a seat at the table."

However, Fruitport Superintendent Bob Szymoniak said Gillette’s and Keglovitz's "union orientation" did not affect the two deals.

Szymoniak said the motivation was not to force anything upon the union but to get them to work toward selecting a less expensive form of insurance.

By negotiating in good faith, "we were able to still make gains with an eye toward greater gain down the road."

Gillette said the school board wasn't involved with the negotiations and just got updates.

"If the union is in agreement and the administration is agreeing to a contract, it must be pretty good, right?" Gillette said. "I'm one of seven (board members). I have no extra power or influence."

The school districts broke even on the teacher’s contract despite not getting the teachers to pay 20 percent of their health care premiums because the union gave up other concessions, Gillette said.

"That move was a goodwill move with the unions and it wasn’t going to cost the district money because what we agreed to was going to give us a comparable savings," he said. "When it comes to making decisions on the board, to me it is students first."

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

October 12, 2012, MichiganVotes.org Weekly Roll Call

The Legislature will meet just one day this month, on Oct. 17, so rather than votes this report contains several newly introduced bills of interest.

Y = Yes, N = No, X = Not Voting

 

Senate Bill 1245: Ban Obamacare Medicaid expansion
Introduced by Sen. Bruce Caswell (R), to prohibit Michigan from expanding Medicaid eligibility to include all residents up to 133 percent of the federal poverty level, including single individuals without children. The federal “Patient Protection and Affordable Care Act” originally mandated the expansion, but a U.S. Supreme Court ruling made it optional. Medicaid is a medical welfare program funded by a mix of tax dollars raised by the federal and state governments and originally targeted primarily at low income families with children. Referred to committee, no further action at this time.


Senate Bill 1255: Authorize per-mile auto insurance pricing
Introduced by Sen. Coleman Young (D), to allow insurers to offer “pay-as-you-drive” automobile insurance, meaning the price is determined by the number of miles driven rather than just the term of the coverage. Referred to committee, no further action at this time.


Senate Bill 1263: Revise state “civilian conservation corps” program
Introduced by Sen. Phil Pavlov (R), to authorize conversion of the state “Civilian Conservation Corps” into a nonprofit run by a private entity. The bill is part of a CCC package comprised of Senate Bills 1261 to 1265. Referred to committee, no further action at this time.


Senate Bill 1269: Grant medical facility rationing exception to McLaren Health Systems
Introduced by Sen. Mike Kowall (R), to authorize a special exception to the health care facility rationing imposed by the state’s “Certificate of Need” law, which would allow McLaren Health Systems to build a new facility in Clarkston. The bill would also revise details of who is on this government rationing board. Referred to committee, no further action at this time.


Senate Bill 1270: Allow late return of military and overseas absentee ballots
Introduced by Sen. Gretchen Whitmer (D), to allow overseas and military voter absentee ballots postmarked by the close of the polls on election day to be counted. Under current law, election clerks must physically receive the completed ballots by the close of election day. Another bill, Senate Bill 1254, would allow these ballots to be returned by email. Referred to committee, no further action at this time.


Senate Bill 1278: Declare Iosco County as the “birding capital of Michigan”
Introduced by Sen. John Moolenaar (R), to establish as law that Iosco County and no other county shall be declared the official “Birding Capital” of Michigan. Referred to committee, no further action at this time.


House Bill 5778: Raise business income tax rate
Introduced by Rep. John Olumba (D), to increase the state income tax on business earnings from 6 percent to 15 percent. Manufacturers and firms “primarily engaged in the business of research” would have a 6 percent rate if they added at least five new jobs during the preceding year. Referred to committee, no further action at this time.


House Bill 5780: Allow public safety “step” pay hikes after union contract expiration
Introduced by Rep. John Walsh (R), to exempt police and firefighter employees and unions from the provisions of a 2011 law that prohibits seniority-based automatic pay hikes for individual employees (“step” increases) when a government employee union contract has expired and no replacement has been negotiated. Referred to committee, no further action at this time.


House Bill 5782: Mandate insurance rate cuts in Detroit
Introduced by Rep. Lisa L. Howze (D), to force auto and property insurance companies to cut renewal rates by 20 percent for residents of a depopulating city (one whose population fell at least 10 percent in the last census, including Detroit), if rates there exceed nearby communities by 50 percent. The bill would also restrict rate hikes after a first-time claim in those cities. To pay for the mandated rate cuts the bill would impose a $50 million tax on the MCCA, the statewide reinsurance provider that covers medical claims above $500,000. Referred to committee, no further action at this time.


House Bill 5790: Earmark court money to new Detroit crime lab
Introduced by Rep. Richard LeBlanc (D), to earmark certain court assessments and fees to a potential new Detroit crime lab. The previous Detroit crime lab was closed after an audit revealed extensive abuses and errors. Referred to committee, no further action at this time.


House Bill 5805: Exempt “health care sharing ministries” from insurance regulations
Introduced by Rep. Lisa Lyons (R), to establish that “health care sharing ministries” are not subject to state insurance regulations. Health care sharing ministries are an alternative to insurance that provide health care cost-sharing arrangements among people of similar and sincerely held beliefs. Referred to committee, no further action at this time.


House Bill 5808: Subsidize charitable doctor care
Introduced by Rep. Jim Ananich (D), to authorize a state income tax credit of up to $5,000 for free medical services donated by a physician to a patient who is not eligible for medical welfare (Medicaid). This would be a “refundable” credit, meaning that a check is sent to the taxpayer for the balance of the credit exceeding taxes owed. Referred to committee, no further action at this time.

 

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.