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Fri May 14, 2010
MI schools assessing impact of retirement plan
By Rick Pluta, Michigan Public Radio Network
LANSING, MI –
School officials across the state are trying to assess the effects of new teacher retirement assessments on their districts. The plan was adopted early this morning in a marathon meeting of the Legislature.
Governor Granholm is expected to sign the retirement plan in the coming week, but school officials are already sorting through the details of 40 pages of legislation.
Lawmakers say the retirement plan should save a total of $700 million - which could offset big cuts in state aid in the coming school year.
David Martell is with Michigan School Business Officials. He says the plan only works if a district has a lot of veteran teachers who accept the retirement offer.
"It will be help this year, there's no doubt about that," he says. "But it's unfortunately it's not going to be even through all districts, so there's going to be winners and losers."
Martell also says it's hard to predict how much money the plan will really save because teachers won't have much time to make a decision on retiring--many eligible teachers may simply choose to stay put.