By Rick Pluta, Michigan Public Radio Network
http://stream.publicbroadcasting.net/production/mp3/wkar/local-wkar-907033.mp3
LANSING, MI –
Friday is the last day for veteran teachers and other eligible school employees to accept a retirement offer from the state. As Michigan Public Radio's Rick Pluta reports, fewer teachers than expected are taking the deal.
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Fewer teachers and school employees accepting the offer means schools will see fewer immediate savings in their payroll costs. Legislative leaders say they're going to wait and see how that will affect schools before deciding their next move.
State Senate Majority Leader Mike Bishop.
"We're in crisis-management mode," he explains. "We will find solutions, and that's what we do."
But Bishop says schools may also have to do some belt-tightening.
The impact will vary from district to district depending on how many teachers retire, how many are replaced, and how much the new hires are paid.
At the same time, the School Aid Fund remains flush with money, and schools will see some savings because district employees now have to contribute more toward their health and retirement benefits. And fewer retirements means lower pension costs further down the road, which will boost schools' long-term savings.