Senate hopefuls Pam Byrnes, Rebekah Warren differ on plan that asks teachers to dig more into pockets

Pam Byrnes

Analysts say the reform could save Michigan taxpayers more than $3 billion over the next decade, but on the losing end of the deal are teachers who will pay more into pension funds.

That leaves some wondering whether Warren's vote of opposition will translate into campaign support from the Michigan Education Association heading into August, or whether Byrnes will earn the favor of voters for backing spending reform.

Byrnes was one of 14 Democrats who joined the House Republicans in Friday's vote to pass the legislation, which increases teacher retirement premiums and removes any guarantee of retirement health benefits. The bill was opposed by the MEA, Michigan Association of School Boards, the Michigan Association of School Administrators and other labor unions.

Byrnes said her decision to support the plan wasn't an easy one, but will save taxpayers hundreds of millions of dollars while helping to curb teacher layoffs and keep class sizes down. She also said it opens up jobs for new teachers who otherwise might leave Michigan.

The plan makes more teachers eligible for retirement by allowing employees whose age and years of service total 80 to retire early. It sets up a new trust designated for retiree health care and requires teachers to contribute 3 percent of their salary toward it starting July 1.

Rebekah Warren

Warren said the reform pushes out experienced teachers while taxing new teachers to pay for it. And on average, new teachers in Michigan make $16.80 an hour.

"I firmly believe that public education is the key to Michigan’s long-term prosperity, and continually attacking the very people we trust to educate and care for our children in order to balance the budget is not only unconscionable, it undermines a sensible strategy for our recovery," Warren said.

“What we have done is left our already struggling school districts with fewer veteran educators to guide our children and mentor new instructors, and diminished Michigan’s ability to attract and retain quality teachers."

As the state's fiscal crisis continues to linger, Byrnes said Michigan must look for more ways to reform government and modernize its tax structure to properly fund schools.

"It's unfortunate that so many lawmakers treat 'revenue' and 'reforms' as toxic words because they are more worried about their own political career than Michigan's future," Byrnes said. "We need to have a very frank discussion on funding schools in Michigan, instead of passing the buck from year to year. We have to take ownership of our school funding crisis and do what's right for our kids — no matter the political fallout."

Warren said the reform doesn't solve the retirement funding dilemma, nor does it help local school districts balance their budgets.

She said educators in several Washtenaw County school districts already have made concessions over the last few years to help balance district budgets. The reform legislation takes an additional 3 percent of their pay, and Warren claims it doesn't offer any savings to the local school districts. Rather, it puts added pressure on local negotiations, which now must take into account the additional cut to teacher compensation.

“The simple question is whether we truly believe that public education is fundamental to Michigan’s future,” Warren said. “If so, then we cannot rely on piecemeal plans and short-term savings. Instead, we must work together to implement a fair and progressive tax structure that recognizes the shift in our economy and ensures that Michigan’s working families do not unfairly bear the tax burden.”

Byrnes said the state can't keep laying off teachers while class sizes balloon.

"The solution lies in creating the reforms and finding revenues to give our schools the resources they need so our children receive the top-notch education to succeed at work and, more importantly, in life," she said.

"We all lose when schools don't have the resources they need," she added. "Our children lose out on the high-quality education they need to compete for good-paying jobs. Communities lose out on jobs because businesses will not locate to places without a highly educated workforce. Education is one of the major building blocks of the Michigan of tomorrow — we can't expect our students to excel unless we invest in education."

Warren argues alternatives could help the state and local districts save money without compromising the quality of teaching. Probably the biggest systemic impact, she said, comes from enhancing early childhood education. For every dollar invested in those programs, she said, seven are saved through decreased costs in corrections and human services.

Warren also said simple policy changes like requiring the Legislature to finalize the School Aid Fund budget by June 1 can help stabilize the school finance system. She argues a reduction in fiscal volatility during the school year will result in fewer over-expenditures, reducing pressure on the state. 

"We fund schools with our least predictable revenue sources — the sales tax and the lottery — and we don’t tell them how much money they will have until well into the school year, making effective budgeting nearly impossible," she said.

“These solutions are out there, but it takes time, innovation and a commitment to investing in the people of this state. Policies like the one we passed Friday morning let everyone down — our children, our teachers and the residents of Michigan who are yearning for the visionary leadership that will guide us through this time of crisis.”

Washtenaw County Commissioner Jeff Irwin, a Democrat who is seeking Warren's seat when she leaves the House this year, also came out in opposition to the measures taken by the Legislature on Friday. He said the bill is yet another example of Lansing’s poorly-targeted budget reduction measures.

"Attracting jobs and lowering unemployment are key goals for Michigan, but our legislators are focusing cuts on the most important element of economic success: education," Irwin said.

Citing recent studies that examine the effectiveness of Michigan's tax incentives directed toward corporations, Irwin said education and quality of life factors far outweigh taxes as reasons that businesses choose to locate or expand in Michigan.

"Instead of cutting tax loopholes and corporate welfare programs that have been shown to be ineffective, the Legislature is once again targeting teachers," he said. "I can't understand protecting ineffective programs while cutting the most proven method of job attraction."

Ned Staebler, vice president of capital access and business acceleration for the Michigan Economic Development Corp., also took a stance on the issue. Staebler faces Irwin in the Aug. 3 Democratic primary.

"It is clear that right now priority No. 1 in Michigan should be creating jobs by diversifying and growing our economy," he said. "This bill is an example of the short-sighted policies that have caused this mess in the first place. In the name of 'reform,' we're overcrowding our classrooms and leaving our children unprepared to lead in the 21st century. Worst of all, this bill will likely not save local school districts money."

Staebler recently picked up endorsements for his campaign from two teachers union groups. Ann Arbor Education Association President Brit Satchwell announced that after a rigorous screening and review process, the AAEA and MEA recommended that their members support Staebler in the 53rd District state representative race.

The MEA is a self-governing education association representing more than 157,000 teachers, faculty and education support staff throughout the state. Ryan J. Stanton covers government for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529.