LANSING – Members of the Michigan Legislature are set to iron out their differences on a retirement plan for more than 50,000 public school employees after the House voted Tuesday on a drastically different version of the legislation than what the Senate approved.

In an effort to meet a self-imposed deadline of completing SB 1227 by Friday, both chambers have named their conference committee members and a meeting has been scheduled for Wednesday. The conferees are Rep. Martin Griffin (D-Jackson), Rep. Mark Meadows (D-East Lansing), Rep. James Bolger (R-Marshall), Sen. Jud Gilbert (R-Algonac), Sen. Mark Jansen (R-Gaines Twp.) and Sen. Deborah Cherry (D-Burton).

The most dramatic difference the two sides come to the table on is whether or not to increase the pension multiplier.

House Democrats are backing an increase to the retirement multiplier at 1.7 percent for those retiring in the early summer, while those who retire through October 1 could still see a boost of 1.6 percent.

Senate Republicans stripped out any hike and left the multiplier at 1.5 percent. Governor Jennifer Granholm, who proposed the retirement measure back in January alone with a plan for state workers, included a 1.6 percent multiplier.

“Our plan is more of an incentive than it is a stick. Whether it’s too rich or too lean is something for the debate to examine,” Meadows said. Many believe the participation rate under the governor’s plan was too optimistic and the higher multiplier is expected to entice more buy in, he added.

“Probably the multiplier is key to getting people to retire early,” said Nick Ciaramitaro, director of legislation and public policy for the American Federation of State, County and Municipal Employees.

But House Republicans charged the revision made the measure more expensive then doing nothing at all.

“The House plan would take a reform and turn it into a spending spree,” said Bolger. “We would be better off, from a budget standpoint, to pass no bill at all.”

Bolger said he and other Republicans will be working on a compromise to the legislation.

“We all understand this is not the final day,” he said.

Meadows said while the impact of the reform would not be felt at the state level, it will give schools more flexibility in handling any per-pupil cut that may come their way with a $420 million deficit in the School Aid Fund next year.

Movement on the public school employee measure came with tremendous division between the two parties, with only one Republican, Rep. Tory Rocca (R-Sterling Heights), joining Democrats in supporting the bill, which passed 59-45.

Six Democrats broke ranks and voted with Republicans in dissent: Rep. Tim Bledsoe (D-Grosse Pointe), Rep. Jennifer Haase (D-Richmond), Rep. Richard LeBlanc (D-Westland), Rep. Shanelle Jackson (D-Detroit), Rep. Ellen Cogen Lipton (D-Huntington Woods) and Rep. Rebekah Warren (D-Ann Arbor).

The Michigan Education Association and Michigan Chapter of American Federation of Teachers supports the bill, while the Michigan Council of Charter School Authorizers, Michigan Association of Public School Academies, Wayne RESA, Genesee Intermediate School District, Michigan Association of School Administrators and Michigan Association of School Boards are opposed.

The bill got a poor reception from Senate Republicans.

“This has turned reform into a giveaway,” said Gilbert, the bill sponsor. “While it saves money in the first year, the next five years it will cost the state a considerable sum.”

But Cherry offered praise.

“Finally it’s a good bill,” she said. “I’m excited and happy to support a bill that recognizes that first of all we need to save money and second of all that are employees have done a great job.”

The Senate voted 12-24 to reject the House version of the bill and send it to conference committee. Sen. Dennis Olshove (D-Warren) and Sen. Michael Switalski (D-Roseville) joined all 22 Republicans to reject the bill.

Two senators, Sen. Buzz Thomas of Detroit and Sen. Raymond Basham of Taylor, were absent.

Senate Majority Leader Mike Bishop (R-Rochester) said it appeared Democrats were trying to please unions.

“I don’t know what they’re trying to do other than to support interest groups out there that aren’t really looking out for the long-term interest of the state,” he said. “It didn’t make any sense.”

Still, Bishop said he is hopeful of a deal.

“I think we can find a common ground,” he said. “The 1.6 was a sticking point, but we’re looking to find some sort of common ground. We recognize we need to do something. We want to work with the governor and come to a resolution on this thing.”

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com

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