Jansen: Senates school retirement plan saves nearly five times the House version
LANSING — After lengthy negotiations that fell short of producing an agreement on school retirement legislation Thursday, state Sen. Mark C. Jansen, a sponsor of the Senate plan, expressed frustration at the House’s inability to embrace the savings in the bill.
Over 10 years, the Senate Republican version of Senate Bill 1227 saves an estimated $2.8 billion, compared with $632 million in the House Democrats’ plan. The House plan generates five consecutive years of increased spending, totaling an additional $1.3 billion.
“Plain and simple our version of the school employee retirement plan will save billions of tax dollars,” said Jansen, R-Gaines Township. “The version the House wants enacted won’t save schools as much as the Senate plan and right now we need to save every penny we can.”
The Senate plan saves $211 million the first year, filling the $118 per-pupil hole in the School Aid budget, and the savings increase each year thereafter.
Jansen said negotiations between the Senate and House continue.
“We need these reforms in place to help save taxpayer dollars and to help our schools remain financially solvent,” he said. “I hope we can come to an agreement.”
SB 1227, sponsored by Sen. Jud Gilbert, R-Algonac, is one of a pair of reform bills introduced to save schools money and reduce the size of the state workforce. SB 1226, sponsored by Jansen, would save the state money by encouraging eligible state employees to retire.
Jansen is a member of the Conference Committee on Public School Employees Retirement, which is negotiating an agreement on the two versions of SB 1227.
SB 1226 is still being considered by the Michigan House of Representatives.
Posted: Friday, April 30, 2010
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