Michigan Federation of Teachers & School Related Personnel
|
Michigan Federation of Teachers & School Related Personnel
|
|
Capitol Report Archives Go to current Capitol Report for links to complete archive. 2001 May April March February January 2000 |
Return to Legislative Hotline
Drastic School Aid Budget Cuts Proposed HOUSE BILL 4371 - K-12 SCHOOL AID REDUCTIONS
 Return to Top Labor Day School Holiday: Sunset Elimination Proposed House Bill 4491 (Shackleton, R-Sault Ste. Marie) would delete the specific school years of 2001-2002 and 2002 - 2003 from the Public Act 141 of 1999, prohibiting public schools from holding classes on the Friday before Labor Day indefinitely. This bill narrowly passed the House and has been sent to the Senate for their action. Return to Top Post Retirement Earnings Limit Extended and Expanded In 1999, the Public School Employees Retirement Act was amended so that the earnings limit placed on retirees becoming re-employed by a "reporting unit" (a public school, intermediate school district, charter school, community college, etc.) does not apply to post-retirement employment in the case of an emergency situation that necessitates the hiring of a retiree in order to prevent depriving students of an education until July 1, 2002. The emergency employment cannot exceed three years, and the retiree is not eligible to use the service or compensation attributable to the post-retirement employment for a recompulation of his or her retirement allowance. Also, there is an earnings limitation placed on the retirant equal to the lesser of one-third of the retiree’s FAC or the maximum earnings permitted under the Federal Social Security Act. The emergency exceptions apply only to retirees who retired before July 1, 1999. House Bill 4789 (Allen, R-Traverse City) would:
Return to Top Higher Education Sent to Conference Committee Members have been appointed to the conference committee on House Bill 4258, however, to date they have not scheduled a meeting. Return to Top Community College Budget Approved by Conference Committee The Conference Committee on the Community College Budget adopted their report but do not plan to sign it until the get a copy of the Conference Committee Report on the Higher Education Budget. Highlights of the Conference Committee Report on House Bill 4253 include:
The Conference Committee recommends the following funding for community colleges represented by the MFT&SRP:
Return to Top School Aid Fund Losing Hundreds of Millions in Tax Dollars Because out-of-state sellers are not required to collect sales and use taxes that are owed for catalog and internet purchases, the State of Michigan is losing approximately $150 - $300 million in revenue in 2001. Of this amount, approximately $110 - $245 million is lost from the school aid fund. It is estimated that the total loss will rise to $350 million by 2003, of which approximately $220 million will be lost to the school aid fund. Each of us help finance public education every time we buy something and pay sales tax. Most of sales and use taxes go to fund local schools. The loss of tax dollars hurts school districts and school children and threatens the tax reforms that have been in place for six years. If Michigan's local school districts continue to lose revenue because of growing catalog and Internet sales, a tax increase or a series of them will be required to make up for the lost school revenue. It is not fair that store-front retailers be required by law to collect six-percent sales tax on merchandise they sell while Internet, catalog, and other direct ship merchants are not. These out-of-state merchants are being given a six-percent advantage over Main Street retailers who anchor their local communities. These are the businesses that support our local schools not only through taxes but with donations of money and merchandise to sports and extra-curricular activites. Michigan is participating in a nationwide tax simplification process to make it easier for Internet retailers to collect and remit sales taxes–and easier for shoppers to meet their legal obligations to pay those taxes. THIS IS NOT AN ADDITIONAL TAX - IT IS COLLECTION OF EXISTING SALES AND USE TAXES. Senate Bill 433 (Emmons, R-Big Rapids) would allow the state to join a multi-state sales and use tax agreement which would result in remote sellers charging sales and use taxes on the same basis as charged by in-state sellers. This bill has passed the Senate and is now being reviewed by the House Tax Policy Committee. The Michigan Federation of Teachers and School Related Personnel supports this bill. Return to Top Agricultural Use Tax Could Reduce School Aid Fund Under House Bill 4456 (Gilbert, R-Algonac), farmland could be exempted, for up to twelve years, from the general property tax and would instead be taxed on its agricultural use value. The alternative tax would apply only to property for which an agricultural production exemption certificate had been approved by the local unit of government and the State Tax Commission. As introduced, House Bill 4456 could have serious negative fiscal implications for local school districts, intermediate school districts, operating budgets, special education services, and community colleges. It has been estimated that as much as $25 million would be lost annually to the School Aid Fund. Therefore, we lobbied with other educational organizations to amend this bill requiring intermediate school districts, local school districts, community colleges, and the school aid fund reimbursed for all revenues lost as a result of the establishment of agricultural production districts the issuance of certificates under this act. This bill has passed the House and now moves to the Senate. bk:opiue42aflcio |
