Contents of this issue:
- MESSA insists: "we do not earn profits"
- Michigan public schools have $1.7 billion in budget surpluses
- Hart teachers vote in favor of board insurance plan
- State Superintendent calls for service consolidation
- Coopersville Public Schools projects budget surplus
- Cassopolis teachers see raises, insurance changes
- New issue of Michigan Education Report; win an iPod
MESSA INSISTS: "WE DO NOT EARN PROFITS"
LANSING, Mich. — The Michigan Education Special Services
Association reported a net gain of $130 million in fiscal 2006
and $88 million in fiscal 2005, according to the MIRS Capitol
Capsule. MESSA is a third-party administrator affiliated with
the Michigan Education Association, a school employees union.
Citing a report circulated by MESSA, MIRS reported that MESSA's
total assets stand at $269 million. After its $88 million gain
in 2005, MESSA raised rates 4.5 percent, according to MIRS.
As a third-party administrator, MESSA is not required to carry
reserves, MIRS reported.
In a memo to members of the Michigan Legislature, Gary Fralick,
MESSA's director of communications and government relations,
said that MESSA is a non-profit 501(c)(9) organization that does
"not earn profits."
State Rep. Brian Palmer called MESSA's gains "outrageous," MIRS
reported.
"MESSA is (the MEA's) generator. MESSA is their big engine that
generates all this money," Palmer told MIRS. MIRS reported that
Palmer believes that if MESSA can make these gains, school
districts should be able to save on the school employee health
benefits they purchase from MESSA.
Palmer also supports legislation that would make MESSA claims
data available to school districts so they can shop for more
competitive rates.
SOURCES:
MIRS Capitol Capsule, "MESSA Assets Up To $268M," Feb. 23, 2007
https://mirsnews.com/capsule.php?gid=684#10796
(subscription required)
Michigan Education Special Services Association, "MIRS on MESSA:
MESSA Members are Helping Districts Save Money," Feb. 28, 2007
FURTHER READING:
Michigan Education Report, "Require MESSA data-sharing to let
districts shop around," Dec. 15, 2005
https://www.educationreport.org/7484
MICHIGAN PUBLIC SCHOOLS HAVE $1.7 BILLION IN BUDGET SURPLUSES
LANSING, Mich. — Part way through 2006, Michigan public schools
reported a combined $1.7 billion in budget surpluses, according
to the Detroit Free Press.
State Rep. Jack Brandenburg finds this to be a problem in a time
where people perceive that all school districts are short on
cash and he wants to cap the amount that districts can hold in
their fund balances at 15 percent of operating costs, the Free
Press reported.
"At a time when we've got the governor running around talking
about how cuts to schools are going to cause bankruptcies... we
ought to be looking at these numbers," Brandenburg told the Free
Press.
The report showed that many districts had reserves exceeding 25
percent of their operating costs. Wayne County's intermediate
school district holds about $15 million in surplus, or about
five times what would be allowed under the 15 percent cap,
according to the Free Press.
Tom White of the Michigan School Business Officials noted that
districts need to keep some money in reserve to avoid problems
when state aid payments are halted in September, while also
keeping savings in case of troubles in the future, the Free
Press reported.
SOURCE:
Detroit Free Press, "Schools rolling in cash?" Feb. 28, 2007
https://www.freep.com/apps/pbcs.dll/article?AID=/20070228/NEWS06/702280403/1008
FURTHER READING:
Michigan Education Digest, "Thirteen districts have budget
surpluses," Dec. 12, 2007
https://www.educationreport.org/8113
Mackinac Center for Public Policy, "Six Habits of Fiscally
Responsible Public School Districts," Dec. 3, 2002
https://www.mackinac.org/4891
HART TEACHERS VOTE IN FAVOR OF BOARD INSURANCE PLAN
HART, Mich. — Hart teachers recently voted 56-25 to approve a
new contract and accept the school board's preferred health
plan, according to the Oceana Herald-Journal.
The board implemented a new health insurance plan earlier this
school year that has a $2,500 annual deductible, and the
district created a health savings account for teachers to use
for co-payments. The district will pay for $2,500 in co-payments
for teachers with family plans and $1,250 for single teachers,
the Herald-Journal reported.
According to Michigan Education Digest, the switch to SET SEG
will save the district at least $250,000 annually. That savings
is effectively a $195.35 per-student increase in funding,
according to the Mackinac Center for Public Policy.
"The board would like to commend the teaching staff for
remaining extremely professional during this lengthy and
sometimes frustrating process," board President Vince Greiner
said in a statement, according to the Herald-Journal.
Under the new contract, teachers will receive a 3.5 percent pay
increase for both 2006-07 and 2007-08. Both the board and the
Hart Education Association are pleased with the outcome,
according to the Herald-Journal.
SOURCES:
Oceana Herald-Journal, "Hart board, teachers OK 2005-2008
contract," March 1, 2007
http://www.oceanaheraldjournal.com/news.php?story_id=24074
Michigan Education Digest, "Hart schools leave MESSA,"
Dec. 5, 2006
https://www.educationreport.org/8104
Mackinac Center for Public Policy, "Potential Per-Pupil Savings
Resulting from Health Benefits Changes Made in Michigan School
Districts," March 6, 2007
https://www.mackinac.org/8337
FURTHER READING:
Michigan Education Digest, "Hart teachers upset about insurance
savings plan," Dec. 12, 2006
https://www.educationreport.org/8118
Michigan Education Report, "Blue Cross and MESSA," Sept. 6, 2006
https://www.educationreport.org/7907
STATE SUPERINTENDENT CALLS FOR SERVICE CONSOLIDATION
LANSING, Mich. — At a recent conference for social studies
teachers, State Superintendent Mike Flanagan declared his
support for having the state's intermediate school districts
provide the non-instructional services currently performed by
individual school districts, according to MIRS Capitol Capsule.
Flanagan believes that school districts should focus on student
achievement, rather than costs for food service, busing and
custodial work, MIRS reported. He would like to use a $10
million incentive from the state to encourage districts to
consolidate services. He also favors the consolidation of school
districts, according to MIRS.
State Board of Education President Kathleen Strauss expressed
concern over the contracting of noninstructional services and
said that unions would also disagree with the decision, MIRS
reported.
SOURCE:
MIRS Capitol Capsule, "Flanagan Wants Education Consolidated
Around ISDs," Feb. 27, 2007 (subscription required)
https://mirsnews.com/capsule.php?gid=686#10834
FURTHER READING:
Michigan Education Report, "Map: School contracting continues to
grow," Feb. 23, 2007
https://www.educationreport.org/archives/2007/mer2007-01maps.pdf
Michigan Education Digest, "Gov. Granholm pushes for district
consolidation, power to merge," Feb. 15, 2005
https://www.educationreport.org/6982
Mackinac Center for Public Policy, "School Districts: Is Less
More?" July 11, 2001
https://www.mackinac.org/3544
COOPERSVILLE PUBLIC SCHOOLS PROJECT BUDGET SURPLUS
COOPERSVILLE, Mich. — While the majority of Michigan school
districts are operating with budget deficits, Coopersville
Public Schools is projecting savings of $420,000 this year,
according to The Grand Rapids Press.
Business Manager Catherine McClatchy attributes this success to
a number of factors, including increased enrollment, having a
single campus and having relatively new buildings, according to
The Press.
Coopersville also has increased the number of steps in the
teaching staff's pay schedule, so it takes longer for teachers
to reach the highest pay level.
"The long-term effect of this structure is that our lifetime
cost for each teacher is less than what it would have been had
we had a more traditional schedule," Superintendent Kevin
O'Neill told The Press.
O'Neill also said that this allows the district to give more
cost-of-living raises to teachers and preserve smaller class
sizes, The Press reported.
SOURCE:
The Grand Rapids Press, "Coopersville: School district projects
surplus," Feb. 27, 2007
https://www.mlive.com/news/grpress/index.ssf?/base/news-1/1172591517293270.xml&coll=6
FURTHER READING:
Michigan Education Digest, "Ewen-Trout Creek Schools uncovers
deficit," Dec. 5, 2006
https://www.educationreport.org/8104
Michigan Education Digest, "Holland budget projection off by $6
million," May 23, 2006
https://www.educationreport.org/7710
Mackinac Center for Public Policy, "School Budgets: A Crisis of
Management, Not Finance," Feb. 11, 2005
https://www.mackinac.org/6980
CASSOPOLIS TEACHERS SEE RAISES, INSURANCE CHANGES
CASSOPOLIS, Mich. — A new two-year contract calls for teachers
in Cassopolis to receive a 1.75 percent pay increase this year,
while contributing more to their health plan, according to the
South Bend Tribune.
Next year, teachers are set to receive a 2 percent pay increase,
but that may be reduced by one-tenth of a percent for each 5
percent increase in health insurance costs. For 2006-07,
teachers will contribute $45 a month to their own health
insurance and $65 next year, according to the Tribune.
The district currently contracts with Michigan Education Special
Services Association, a third-party health insurance
administrator affiliated with the Michigan Education Association
school employees union. According to Business Manager Scott
Thomas, the district has seen its insurance costs increase 15-20
percent in some years. The increase between the 2005-2006 school
year and the 2006-2007 school year was 5 percent, the Tribune
reported.
SOURCE:
South Bend Tribune, "Cassopolis approves teacher contract,"
Feb. 28, 2007
http://www.southbendtribune.com/apps/pbcs.dll/article?AID=/20070228/News01/702280402/-1/NEWS01
FURTHER READING:
Michigan Education Digest, "Berrien ISD settles contract,
rejects MESSA," Feb. 27, 2007
https://www.educationreport.org/8325
Michigan Education Digest, "Hart schools leave MESSA,"
Dec. 5, 2006
https://www.educationreport.org/8104
NEW ISSUE OF MICHIGAN EDUCATION REPORT; WIN AN IPOD
MIDLAND, Mich. — The expanded spring issue of Michigan Education
Report is being mailed now, and can be accessed on the Web at
www.educationreport.org.
Michigan Education Report is offering readers a chance to win an
iPod when they comment on articles in its spring 2007 issue.
Comments can be made via e-mail about stories on the U.S. House
Fellows program (
www.educationreport.org/8238),
school district health benefits savings (
www.educationreport.org/8239),
whether private employees in public schools provide the same quality of
service as public employees in public schools
(
www.educationreport.org/8254
and
www.educationreport.org/8255),
a community college cooperating with home-school students
(
www.educationreport.org/8228)
and the role of profit in public schools (
www.educationreport.org/8250).
Please visit
www.educationreport.org for more information.
MICHIGAN EDUCATION DIGEST is a service of Michigan Education
Report (
https://www.educationreport.org),
a quarterly newspaper with a circulation of approximately 150,000 published by the Mackinac Center for Public Policy (
https://www.mackinac.org),
a private, nonprofit, nonpartisan research and educational institute.
Font size:
