Here we examine the GPPSS budget developments, inclusive of the 2016 audit and the 2017 budget.
Tag: MPSERS
10 observations on proposed Michigan School Aid Fund budget recommendation
Here are my top ten observations prompted by my review of two presentations on the State of Michigan budget along with my previous years of analysis of state and local education budgets.
Budget trend more important than point in time measure
At the Board of Education meeting on June 25th, we passed the 2012-13 budget. My presentation (embedded below) had a couple themes. The first is the importance of a district’s structural financial condition. This is defined as the relationship between its operating revenues and expenses that, unless otherwise altered, will yield…
Headwinds, tailwinds: 2012 Michigan K-12 Budget
In February of last year, I wrote Rick the Nerd and the Blustery Day, which offered this summary commentary of Michigan governor Rick Snyder’s initial K-12 budget proposal and its $920 million proposed school funding reduction: Snyder should get credit for showing real political courage – holding at bay ideologues on both…
School aid bills vary only by amount of funding reduction
The School Aid Bill proposals in the State of Michigan that will determine K-12 funding for 2012-13, have become increasingly complex. Versions proposed by Gov. Snyder, the House, and Senate vary, but the net effect of each would result in yet another loss of revenue for Michigan school districts. The issue is further complicated by…
Midland report references “Grosse Pointe formula”
Midland (Michigan) Public Schools (MPS) is struggling with how to establish fixed costs (via employee contracts) against a backdrop of decreasing state aid and increasing retirement and health care costs. An arbitrator is now trying to mediate a deal. To allow their new contracts to cope with these variables, the…
MPSERS reform report published
Late in 2011, Michigan Speaker of the House Jase Bolger and Senate Majority Leader Randy Richardville seated a workgroup to explore the problem posed by an increasingly underfunded Public School Employee Retirement System. Their report was sent on February 1, 2012 and captured in the letter below. Lots to chew…
New depths for old obligations
I’ve written about the state of Michigan’s public school employee retirement system (MPSERS) so much, I almost don’t have the energy to do so anymore. But this problem is so enormous, we have to continue to bring attention to it. If you don’t understand MPSERS you cannot understand school budgets…
If you seek an unpleasant legacy cost problem, look about you
The City of Detroit’s finances took the unenviable spotlight this week when Mayor Dave Bing gave what will be known as his “Detroit needs to be run by Detroiters” speech. Bing’s speech appears to be a pre-emptive strike in what may turn out to be a state takeover of Detroit’s…