MIDLAND, Mich. — Senate Bill 911, passed today by the Michigan Senate, would put teachers and taxpayers at risk by reducing pension contributions into the school retirement system. The Michigan House may consider the legislation next week.

Below is a statement from James Hohman, director of fiscal policy at the Mackinac Center for Public Policy.

“Michigan owes $29.9 billion more than what has been saved. Lowering the amount of money going into the teacher retirement fund isn’t doing teachers or taxpayers any favors. Reducing pension contributions just pushes the debt further down the road, racking up interest and raising costs. The Michigan House should reject this legislation.”

School employees are the state’s largest creditors, because the state promised pension benefits but did not set aside enough money to pay for them. The legislation would allow the state to redirect more than $600 million — which is currently going toward paying down pension debt — and spend it on other priorities. The bill would delay debts from being paid down, costing taxpayers an additional $1.4 billion.

Learn more about the legislation here.