A loyal EMUTalk.org reader (perhaps this person would be interested in becoming a regular contributor to EMUTalk.org?) sent me this: from WWJ Newsradio, “Senate Leader: Cut All Public Workers’ Pay, Benefits.” The bullet point that caught my eye/wallet:
Reduce pay for all school, university, community college, state and local government workers by 5 percent, and freeze pay at that level for three years. Estimated savings: $1.2 billion.
Clearly the state has got to do something, but a) I’m obviously not personally crazy about a 5% pay cut, and b) it seems to me that universities occupy a sort of weird place in all this. I mean, we’re sort of state employees, sort of not, right? 100% of the Michigan Department of State comes from the State of Michigan, but the state only funds about a third or so of the operating expenses of universities like EMU. It strikes me as unfair for EMU employees to be asked to take the same kind of cut.
In any event, I have a feeling there may be some more poly-ticking about this one in Lansing before it’s all said and done.
You raise a very good point when you note that since the State contributes less than 30% or our budget, it is questionable whether or not the State has the right to dictate salaries or salary cuts. I would think since the State cuts it’s contribution to universities whenever there is a fiscal crisis they ought to butt out of trying to run universities. “He who pays the piper calls the tune” and the State is not paying.
You can Reach Senator Mike Bishop at:
E-mail Address: SenMBishop@senate.michigan.gov
Office Address:
S-106 Capitol
Mailing Address:
Senator Mike Bishop
P.O. Box 30036
Lansing, MI 48909-7536
By Phone:
(517) 373-2417
By Fax:
(517) 373-2694
I think what is meant is that the Senate GOP is lining up to propose at least a 5% cut to state appropriations for Universities and Community College. It’s hard to tell exact intent from a sinle line in a press release, but usually the state doesn’t care if the cut gets passed down to university employees. My math is very rough, but I think that means about a $4 million cut to EMU.
CEOs from three large Michigan businesses are also proposing this kind of cut for public employees as part of the Michigan Turn Around Plan. In addition, they are promoting an increase in employee-pay share of benefits.
http://www.michiganturnaroundplan.com/budget_reforms.php
The three CEOs are John Rakolta, Walbridge Aldinger; Anthony Earley, DTE; and David Brandon, Dominos. The plan was unveiled at the Detroit Economic Club in December. While it also includes other items, and some I would support, (i.e., requiring a two-year budget process), it seems like it bashes state government and public employees.
Our state legislators collect full lifetime health benefits starting at age 55. They only have to spend six years as elected officials. Lt. Gov. Cherry has been collecting a state pension of just over $99,000. for several years for spending 38 years in government. Wow what a deal. The Michigan Turnaround Plan has few details on how to implement the suggestions, nor does it discuss consequences good or bad.
Link to pension article: http://www.freep.com/article/20100124/NEWS06/1240405/1001/news