MARSP News & Announcements

As the Michigan Legislature heads into the 2020 lame-duck session, the state’s economic picture is better than expected, says Matt Kurta of Karoub Associates, MARSP’s lobbyist. Noting the positive impact of federal stimulus money and better than expected tax revenue in the midst of the pandemic, Kurta says economic predictions for 2020 were thankfully inaccurate.

“Dire economic projections from economists this spring thankfully were off by quite a bit,” Kurta pointed out. “The federal stimulus money really saved us. When they closed the books, they were able to carry money forward into the current fiscal year.”

Michigan will still face budget challenges next year, however, as stimulus money goes away and tax revenue is more uncertain, Kurta explained, adding that the school aid fund still seems to be in good shape. The Legislature will begin a new 2021-2022 session in January. Following the Nov. 3 elections, Republicans held on to the majority in the Michigan House of Representatives, which again will be comprised of 58 Republicans and 52 Democrats. The new Speaker of the House will be Jason Wentworth (R-Farwell) and the new Chair of the House Appropriations Committee will be Rep. Thomas Albert (R-Lowell). The new House Democratic Leader will be Rep. Donna Lasinski (D-Scio Township). Due to COVID, some legislative session days in early November were canceled.

“The lame-duck session might be shorter this year,” Kurta predicted, noting that it may still offer an opportunity for MARSP and other education groups to gain traction on the issue of making it easier for retired teachers to return to work in classrooms and help with teacher shortages. Outdated and overly complex restrictions on retirees’ ability to return to work hindered the ability of school districts to fill classroom teacher shortages before the coronavirus pandemic, and those restrictions have only made the situation worse as schools lose staff due to infections and/or quarantines.

As Michigan responds to the fall surge of COVID-19 cases, challenges to Gov. Gretchen Whitmer’s new orders limiting the operations of some businesses and social gatherings, the makeup of the Michigan Supreme Court following the November elections and efforts by some groups to impeach the governor.

Since the Governor is no longer able to exercise emergency powers under the 1945 law, which was recently ruled unconstitutional, she is operating under a separate law enacted during the Spanish Flu of 1918 allowing the state health department to issue emergency epidemic orders to protect public health. More challenges and lawsuits are expected as business closures or shutdowns are ordered.

Michigan Supreme Court election results on Nov. 3 will give Democratic Party nominees a 4-3 majority in January, and the philosophy of the court could change somewhat, Kurta speculated. Chief Justice Bridget Mary McCormack held on to her seat and Elizabeth Welch replaced Stephen Markman, who was unable to run again because he had reached mandatory retirement age.

Although some talk of impeaching the Governor is in the wind, Kurta said such an effort would be an uphill climb.

The Michigan Legislature is finalizing the state budget for 2020-2021, and we are happy to report that MPSERS annual funding levels will continue as planned. We are pleased with this result and believe long-standing MARSP advocacy and support paired with better than expected tax revenues for the year were major factors in this process. In May, state economists forecasted over a $3 billion shortfall for the current 2020 state fiscal year. By August, they revised that number downward significantly to around $900 million due largely to the positive impact of federal financial stimulus, allowing that additional revenue to be carried forward to mitigate cuts in the upcoming state fiscal year.

MARSP members and MPSERS beneficiaries will still need to stay vigilant in the coming year as some of the dollars used to support the shortfall in the School Aid Fund are one time revenues and can not be guaranteed next year.

Factors that contributed to the improved revenue picture include a stronger than expected economic impact from federal stimulus money, strong consumer spending — which has outpaced all other states — and higher than anticipated sales tax collection for online purchases.

“All those factors combined to provide significantly more state revenue in Fiscal Year 2020 than state officials initially projected, reducing the size of the Fiscal Year 2020 state budget deficit projected in May by roughly two-thirds,” MARSP’s lobbyist Matt Kurta of Karoub Associates explained. “Although a $900 million deficit in the upcoming year still presents challenges, it’s much better than $3 billion. As a result, legislative leaders and the Whitmer Administration were able to craft a budget deal with no reductions in overall K-12 funding for the current school year instead of draconian cuts that appeared unavoidable just a month ago.”

Bills would ease restrictions for substitute teaching by retirees

Three bills in the Michigan House would reduce restrictions on public school retirees going back to work, but may not see action this year, HB 5357, sponsored by Rep. Steve Johnson (R-Wayland), HB 5497, sponsored by Rep. Sheryl Kennedy (D-Davison), and HB 5921 sponsored by Rep. Gregory Markkanen (R-Hancock).

Teacher shortages and the need for substitutes affect many districts, even as schools provide virtual instruction, Kurta explains.

“Almost every legislator has heard from constituents on this issue, and they know that something needs to be done,” he said, adding that with Election Day less than two months away, the political climate may not be favorable to further action on the bills yet this year. MARSP will continue to monitor these bills and alert members to developments or calls to action.

Power to be split in upcoming Lame Duck session

Kurta pointed out that this fall’s lame duck session will be the first in 10 years with split power between the Governor and Legislature, and to expect a lot of “horse-trading.” Who wins the White House for the next four years could affect the outcomes of Congressional seats and state House races. Control of the Michigan House is also in play. Next year, the Independent Citizens Redistricting Commission will begin work, and districts could undergo significant changes.