MI schools complain about ‘cuts’ as they get $377M for retiree benefits
By James H. Hohman | Michigan Capitol Confidential
School district officials are wrong on two counts when they complain about education “cuts.”
Not only will they get increases in state funding, but they also will receive close to $400 million more to pay for employee pensions.
Under the new state budget, taxpayers will send $882.7 million to school districts to pay for retirement contributions, up from $505.5 million last year. That is $377.2 million more in payments that will support public employee pensions.
The $882.7 million total is just a fraction of the total cost of the school pension fund. The annual contributions required for the system total $2.4 billion, meaning that $1 out of every $6 provided by taxpayers to public education goes to paying for retirement benefits.
at Michigan Capitol Confidential.