Contents of this issue:
- Study: School choice saves at least $444 million in tax money
- State retirement system causes problems for public schools
- Ex-DPS superintendent files lawsuit against district
- Howell union ties to block release of e-mails
- Election consolidation still unpopular in many districts
- Hillsdale offering free seminar for teachers
STUDY: SCHOOL CHOICE SAVES AT LEAST $444 MILLION IN TAX MONEY
INDIANAPOLIS — A study published by the Milton and Rose D. Friedman Foundation found that school choice has saved taxpayers
hundreds of millions of dollars, according to Education Week.
The study, "Education by the Numbers: The Fiscal Effect of School
Choice Programs, 1990-2006," shows that in all districts with
school choice policies, instructional funding per-student has
increased in response to competition from educational
alternatives, Education Week reported.
The study finds that most of the 12 voucher or tax-credit
programs operating before 2006 have resulted in savings, and all
are at least "fiscally neutral." Seven programs have been
established since 2006, according to a press release issued by
The Friedman Foundation.
"School choice saves. It saves children, and now we have
empirical evidence that it saves money," Friedman Foundation
Executive Director and COO Robert Enlow said. "In the face of
$444 million in savings, another excuse to deny children a
quality education has vanished before our eyes."
The study can be downloaded at
http://www.friedmanfoundation.org/friedman/research/ShowResearchItem.do?id=10079.
SOURCES:
Education Week, "School Choice," May 11, 2007
https://www.edweek.org/ew/articles/2007/05/11/37report_web6.h26.html
(subscription required)
The Milton and Rose D. Friedman Foundation, "School choice saves
$444 million," May 9, 2007
http://www.friedmanfoundation.org/friedman/newsroom/ShowNewsReleaseItem.do?id=20087
FURTHER READING:
Mackinac Center for Public Policy, "Is Every 'Choice' a Good
One?" June 8, 2006
https://www.mackinac.org/7767
Michigan Education Report, "Advancing the cause of educational
excellence," March 7, 2006
https://www.educationreport.org/7630
Mackinac Center for Public Policy, "The Case for Choice in
Schooling: Restoring Parental Control of Education,"
Jan. 29, 2001
https://www.mackinac.org/3236
STATE RETIREMENT SYSTEM CAUSES PROBLEMS FOR PUBLIC SCHOOLS
DETROIT — As school districts look to spare academic programs and
extracurricular activities while balancing their budgets, it is
becoming increasingly difficult as state pension costs continue
to rise, according to The Detroit News.
This year, schools are paying about $1,015 per-pupil into the
state retirement fund. This exceeds the combined cost of books,
buses, computer technology and building maintenance, according to
The News. School districts currently contribute 17.74 percent of
payroll to the Michigan Public School Employees Retirement
System, and could see their contribution jump to 30 percent by
2020, The News reported.
Phil Stoddard, executive director of the Office of Retirement
Services, said he thinks the system is fair, according to The
News. Tom Clay, former director of the state's Executive Budget
Office thinks differently.
"It's a time bomb," Clay told The News. "It's a train wreck. Use
whatever term you want. And it hasn't reached (the worst of the)
crisis yet."
The Detroit News found that about $2 million per year in tax
money is spent on retired school employees who work 102 hours at
age 60 or older to earn lifetime health care from the state, The
News reported. Additionally, hundreds of school administrators
are receiving pension benefits while still being employed at the
schools through a contracted company, costing taxpayers an
estimated $25 million each year, The News reported.
Currently, the state pension system has $25 billion in unfunded
liabilities for retired employees, according to The News.
"People don't understand what they're talking about," Al Short,
director of government affairs for the Michigan Education
Association union, told The News. "It's an excellent system that
serves as an incentive to keep people in education."
Tom White, director of legislative affairs for the Michigan
School Business Officials, said it is time for the state's
pension program to be reformed.
"We've got these big problems we've been trying to fix for
years," he told The News. "Yet we've not found a legislature that
has the political will to make these changes."
SOURCE:
The Detroit News, "Michigan's education time bomb: Costly,
loophole-ridden retirement system threatens public schools,"
May 10, 2007
https://www.detroitnews.com/apps/pbcs.dll/article?AID=/20070510/SCHOOLS/705100442/1026
FURTHER READING:
Michigan Education Report, "It's time to get serious about school
employee pension reform," Feb. 23, 2007
https://www.educationreport.org/8251
Michigan Education Report, "Pension costs seen as key reason
voters reject Proposal 5," Feb. 23, 2007
https://www.educationreport.org/8244
Michigan Education Digest, "Schools reel from mandatory pension
increase," May 4, 2004
https://www.educationreport.org/6620
EX-DPS SUPERINTENDENT FILES LAWSUIT AGAINST DISTRICT
DETROIT — Ex-Detroit Public Schools Superintendent William F. Coleman III believes his contract was not renewed because he
wanted the FBI to investigate questionable wire transfers from
the district's financial department, according to The Detroit
News.
Coleman believes he was fired because he asked for an
investigation into $12.1 million over 20 months in wire transfers
to Long Insurance Co. without bids showing evidence of contracts
or purchase orders, according to the lawsuit, The News reported.
Larry Long, CEO of Long Insurance, said the company has been the
district's insurance provider since 1976, but hasn't always had a
contract.
"Once you were the successful bidder, there was no contract,"
Long told The News.
Coleman believes he was fired after placing the district's
financial director, Dori Freelain, on paid leave. He is also
concerned about the fact that Freelain was allowed to vote
against him as a superintendent candidate after he placed her on
leave, according to The News.
Coleman has filed a lawsuit against DPS and is seeking at least
$25,000 in damages, The News reported.
SOURCE:
The Detroit News, "Lawsuit claims DPS errors," May 8, 2007
https://www.detroitnews.com/apps/pbcs.dll/article?AID=2007705080382
FURTHER READING:
Michigan Education Digest, "DPS creates inspector general
position," May 8, 2007
https://www.educationreport.org/8521
Michigan Education Digest, "DPS suspends two administrators,"
March 13, 2007
https://www.educationreport.org/8351
Mackinac Center for Public Policy, "Six Habits of Fiscally
Responsible Public School Districts," Dec. 3, 2002
https://www.mackinac.org/4891
HOWELL UNION TRIES TO BLOCK RELEASE OF E-MAILS
HOWELL, Mich. — The Michigan Education Association is suing the
Howell school district to stop a researcher from gaining access
to school e-mails about union activity, according to The Detroit
News.
Chetly Zarko alleges that union leaders inappropriately used
staff time, district computers and school records to advance
union goals and support candidates, The News reported.
Livingston County Circuit Court Judge Stanley Latreille issued an
injunction on the release of e-mails, but not before some
information was handed over to Zarko. He received copies of e-mails sent by Jeff Hughey, a Howell Education Association union
leader and high school teacher, according to The News.
HEA President Doug Norton said the e-mails were disclosed by
mistake and refers to this lawsuit as "friendly" because many
district officials believe the information shouldn't have been
released.
From what Zarko has seen, he believes there may be cause for
concern.
"I think there's pretty solid evidence from those e-mails that
(the union) has been using public resources to advance the
(union) and their political candidates," Zarko told The News.
SOURCE:
The Detroit News, "Judge issues injunction on e-mails in Howell
school battle," May 9, 2007
https://www.detroitnews.com/apps/pbcs.dll/article?AID=/20070509/METRO04/705090321/1015
FURTHER READING:
Michigan Education Digest, "Howell teachers union breaks
political mailing rule," May 8, 2007
https://www.educationreport.org/8521
Mackinac Center for Public Policy, "Tough Love for Labor Unions,"
Feb. 28, 2007
https://www.mackinac.org/8330
Mackinac Center for Public Policy, "Elected School Boards or
Unions: Who Rules the Roost?" Jan. 11, 2007
https://www.mackinac.org/8169
ELECTION CONSOLIDATION STILL UNPOPULAR IN MANY DISTRICTS
KALAMAZOO, Mich. — Most Michigan school districts are still
opting to hold their elections in May, despite a 3-year-old law
that encourages districts to move their election dates to
November and align them with other political races, according to
The Kalamazoo Gazette.
Only 35 of 539 school districts have voted to eliminate all costs
associated with school elections and move the date to November.
All other districts are still paying full price to hold elections
in May, The Gazette reported.
Justin King, executive director of the Michigan Association of
School Boards says this is because districts want their issues to
be the primary concern on Election Day.
"Education is hugely important in any community and it deserves
the right to be focused on separately rather than thrown in the
mix of everything else," King told The Gazette.
Tom Bower, of Saline, and a teacher at Washtenaw Technical Middle
School thinks keeping elections in May is fiscally irresponsible
and refused to support the district's proposed sinking-fund
millage.
"You're still holding the school-board elections in May, and
you're asking me for more tax money? I don't think so," Bower
told The Gazette.
Saline schools could save $13,000 a year if they consolidated
elections, according to The Gazette.
SOURCE:
The Kalamazoo Gazette, "Schools buck push to fall elections,"
May 7, 2007
https://www.mlive.com/news/kzgazette/index.ssf?/base/news-23/1178551207234510.xml&coll=7
FURTHER READING:
Mackinac Center for Public Policy, "Secret Ballot?" May 22, 2006
https://www.mackinac.org/7708
Mackinac Center for Public Policy, "A Voter's Checklist for
School Elections," April 28, 2006
https://www.mackinac.org/7688
Mackinac Center for Public Policy, "Is there a case for election
consolidation across the sate or should such matters be decided
at the local level?" June 10, 2002
https://www.mackinac.org/4409
HILLSDALE OFFERING FREE SEMINAR FOR TEACHERS
HILLSDALE, Mich. — Economics, social studies, civics and history
teachers are invited to participate in a free summer seminar July
15-21 as part of the Foundation for Teaching Economics program,
"Economics for Leaders." The seminar takes place on the campus of
Hillsdale College and will be led by Dr. Gary Wolfram, Munson
Professor of Political Economy at the school. The program is
based on the National Voluntary Standards in Economic Education.
Room and board is free, and each participant will receive a $150
stipend. Credit hours are available, and three SBCEUs are free of
charge for Michigan public school teachers.
Visit
http://www.fte.org/teachers/programs for more information,
or call (800)383-4335.
MICHIGAN EDUCATION DIGEST is a service of Michigan Education
Report (
https://www.educationreport.org),
a quarterly newspaper
published by the Mackinac Center for Public Policy
(
https://www.mackinac.org),
a private, nonprofit, nonpartisan
research and educational institute.
Font size:
