Budget Talking Points

The Governor has proposed a package of revenue enhancements and budget cuts to balance the budget for this year and into the future. Below are some talking points to support the Governor’s proposal.

• The governor’s budget proposals provide the right balance between investment, budget cuts, reforms and revenue increases. It is a package that MEA supports.

• Gov. Granholm’s vow to invest in education and her refusal to make mid-year cuts reinforce what MEA members have believed for years: an investment in education is an investment in Michigan’s economic future. It shows our students – and every other Michigan citizen – that education is the foundation of our economic plan. Education today will lead to jobs tomorrow.

• Education has suffered enough cuts. Additional cuts will mean even larger class sizes, fewer critical educational programs and further reductions in the number of qualified staff to help students achieve.

• Since 1994 when Proposal A was adopted, the Legislature has enacted some $3 billion in tax cuts, always with the promise that these tax cuts would result in economic development, job growth and a healthier, more diverse economy. Obviously is hasn’t worked

• The $3 billion of tax cuts has resulted in an enormous structural budget deficit. For four years K-12 has taken hits every year while higher education has had huge reductions over the past five years. It is time for the Legislature to step up and find sufficient revenue to provide the education that will be the engine of growth for the future.

• If the governor’s budget package is not enacted by this spring, the future of public education in Michigan is doomed. Legislators must solve our state’s financial crisis now – and not leave it for future lawmakers to fix.

• The Michigan economy now depends more on services than on manufacturing. We must look to the service industry to generate more revenue. The new 2-cent tax on services is set up to do just that.

• The proposed Michigan Business Tax includes a tax break for Michigan businesses to help offset increases they would experience under the 2-cent service tax.

Governor's Budget Proposal

In February, the Governor presented her proposal for adjustments to the 2006-07 budget and for the 2007-08 budget to the Senate and House Appropriations Committees. Below are the highlights that have an effect on education.

Implement a 2% sales tax on nearly all services in the State, to commence in June, 2007. The exceptions to this sales tax would be for educational and medical services.

Implement a new business tax to replace $1.5 billion of the $1.9 billion lost by repeal of the Single Business Tax.

Meet the shortfall in the School Aid Fund (SAF) in two ways:
• First, revalue the pension assets and reduce the pension contribution from school districts by $180 million, and then reduce state aid by a like $180 million
• Second, apply some $180 million of the revenue raised by the sales tax on services to the SAF to make up the remainder of the shortfall.

For community colleges, reduce the pension contribution by $10.9 million and reduce state funding to community colleges by the same amount.

For community colleges and universities delay the August state payment until October.

For 2007-08, increase aid to education at all levels (K-12, community colleges and universities) by 2.5%. For K-12 this means an increase of $178 per pupil with the basic foundations allowance going to $7,286 per pupil. The 07-08 proposal also contains $36 million for declining enrollment districts, increase pre-school funding by $200 million (targeted to full day kindergarten and pre-school programs), $1.4 billion for special education, $750 million for at risk programs, and $10 million for promoting cost sharing agreements and consolidation of service.

It is important to promote this budget and revenue proposal. Without them the state faces huge shortfalls this year and catastrophic deficits next year. The deficits will result in massive reductions in funding for education at all levels. It is finally becoming apparent to most responsible leaders in the state that the enormous permanent tax cuts enacted when the economy was thriving did nothing to enhance economic growth in Michigan. All they did was starve the state when the economy turned down and make it impossible to provide essential services to our citizens.

As more detail is available, we will disseminate it to you. In the meantime, here are links to the 2007-08 budget proposal of the Governor.

http://www.michigan.gov/budget/0,1607,7-157--134602--,00.html

Compare 500 Districts Administration

Click on image to enlarge.

Compare 500 Districts

Click on image to enlarge.

How much we pay for our insurance.

Click on image to enlarge.

Proposal 5 letter to the Holland School Board

Dear School Board Members,

This fall we have an opportunity ensure that the students of Holland Public Schools are provided with funding levels that guarantee a quality education. Proposal 5 is an education ballot initiative that requires the state to provide annual funding increases at the rate of inflation to Holland Public Schools. Voting yes on this proposal means the resources needed to teach and the resources students need to learn will be available. You can’t afford to let this opportunity to properly fund education pass by. The children of Holland Public Schools deserve a properly funded education.

Again this year, as in many recent years, HPS is choosing to avert a funding crisis by cutting programs, freezing budgets, and maximizing class sizes. Now we have an opportunity to solve our recurrent funding problem. In recent conversations with central office staff, reservations were expressed about what might happen if the foundation grant is reduced after the November election. Passage of Proposal 5 will not allow legislators to play games with funding levels and shirk their responsibility to the children of Holland.

According to the financial data from district’s Three-Year Financial Plan dated May 16, 2006, Proposal 5 will increase HPS revenues and decrease required expenditures. For the 2007-08 school year, revenues, based on student enrollment, will increase by approximately $356,000 over district projections, and state required expenditures will decrease by approximately $790,000 less than district projections. Even greater revenue additions and expenditure savings will be realized each following year. These figures do not account for the declining enrollment averaging provision of Proposal 5, which will increase revenues additionally.

State law allows school boards to discuss the support of statewide ballot proposals at open meetings as well as adopt resolutions supporting such proposals. School boards across the state have publicly supported a “yes” vote on Proposal 5. Jenison, East Grand Rapids, Rockford, and Kenowa Hills are a few of the local districts that have publicly supported Proposal 5 by passing a board resolution. The Michigan Association of School Boards recently sent Superintendent Garcia a copy of the resolution, asking him and the school board to support it.

Don’t miss this opportunity to guarantee the children of Holland the necessary funding for a quality education. I strongly urge you to publicly support the passage of Proposal 5.

Sincerely,
The HEA

Holland EA 2005-2008 Contract Fact Sheet

Holland EA 2005-2008 Contract Fact Sheet

• 3 year agreement, retroactive to beginning of 2005-2006 school year.
• Step advancements each year
• Salary increases: 05-06 = 0.5%; 06-07 = 1%; 07-08 = 0.5% with possible increases based on state revenue and student enrollment that year.
• Insurance: MESSA Choices II PPO with a $10/20 mandatory generic drug card. Teachers pay $40/month towards the premium in 06-07 and $60/month beginning July 2007.
• Up to 12 hours of professional development can now be mandatory after the school day (from 4-7 p.m.). Previously, all PD was done during the teacher’s work day.
• Changes in start and end times for students and teachers were negotiated as a result of the district restructuring for the 06-07 school year. The district had initially refused to negotiate this issue with the HEA.
• Rollbacks in pay for veteran teachers who mentor probationary teachers.
• Rollbacks in overload pay for teachers who have class sizes beyond the contractual limits. (50% of the previous amounts)