Senate Majority Issues Statement on Retirement Reforms and Budget Cuts/Balancing

From the Senate Republicans today. Nothing in response yet from House or Senate Democrats:

Senate Republicans approve retirement reforms that will save taxpayers billions of dollars

Senate Majority Leader Bishop urges Granholm and Dillon to follow the Senate's lead and pass the bills

Senate Majority Leader Mike Bishop

Senate Republicans bucked political pressure by passing two significant reforms to the public employee retirement system that will help the state and our schools save $245 million next year and more than $3.1 billion during the next 10 years.

The critical reform measures are part of the Senate Republican plan to address Michigan's $1.4 billion budget shortfall without raising taxes. The initiatives will bring much-needed savings and financial stability to public education and control the cost of state government.

Since 2000, private sector compensation dropped 19.7 percent, while public sector wages and benefits increased 11 percent during the same period - a 31 percent difference. Republicans understand that this course is unsustainable.

Senate Bill 1227 will save schools $211 million (more than $118 per pupil) for the coming school year that, when coupled with the K-12 budget passed by the Senate last month, will keep school aid whole. Along with Senate Bill 1226, the reform's substantial savings will help the state and our public schools balance their budgets without laying off teachers. These measures are equally about saving jobs and reducing the cost of government.

Senate Republicans made a few changes to the governor's plan to make the reforms fiscally responsible. Her proposed increase in the multiplier was removed because it was estimated to cost schools $500 million in the long term.

Senate Majority Leader Mike Bishop urges Gov. Jennifer Granholm and Speaker Andy Dillon to persuade the House to join with the Senate and immediately enact public employee retirement reforms.

Senate Republicans agree with Speaker Dillon's recent call for `bipartisan action' to enact cuts and reforms. We have introduced reforms to save more than $2 billion and several of our initiatives have already passed the Senate.

It is not about politics, it is about the future of our state. However, as the governor continues to remind us, schools need time to plan. We must approve the public employee retirement reforms now.