Battle of Annapolis titans over teacher pensions
Senate President Thomas V. Mike Miller is diving head-first into one of the most contentious issues in Annapolis this year: teacher pensions.
With the Maryland facing a $2 billion budget deficit, some state officials have been rethinking the system by which the state pays all teacher pension costs. Gov. Martin O'Malley floated the idea recently of shifting teacher pension costs from the state to local governments. But when he submitted his budget proposal, he kept the current plan intact. The governor's budget includes more than $600 million for teacher pensions, an increase of more the $130 million.
But Miller wants to rethink things. He's prepared legislation to freeze the state contribution to teacher pensions at the level after this year's budget is adopted. Future additional pension costs -- driven by new hires and salary increases -- would be the responsibility of counties and Baltimore. He said today he plans to introduce the bill on Monday.
It's unusual for one of the General Assembly's presiding officers to put their name on such a controversial and substantive piece of legislation -- especially one that will enrage a crucial constituency of Miller's Democratic Party.
"The object of being a leader is to bring issues to the forefront, and I am going to put it out there and let them discuss it and see where it goes," Miller told reporters today.
Miller's argument: the state has no control over how many teachers school districts hire or how large pay increases are. The pension contribution is basically a local government subsidy, he says, not money for education.
Still, the influential president is acknowledging that his plan may not have much of chance. "It might not pass," he said, "but it is going to let people know what the truth is."
There's no way local government leaders or the state's influential teachers unions will sit still, however. Union leaders have already let it be known that they plan to aggressively come after anyone who backs the plan. Teachers are arguably the most influential lobbying corps in the capital of a state whose schools recently received the top ranking in the nation.
Forget Miller versus Busch. The real battle of the titans in Annapolis this year could be Miller versus teachers.
Comments
Senator Miller needs to leave our pensions alone. Teachers work hard to make a living and receive some type of pension. We don't get paid the salaries that even Senator Miller gets paid (perks included) and the state pays his pension that is higher than that of teachers.
Senator Miller and others need to think of all of the testing mandates and data collection mandates that the state through both the legislature and MSDE place on locals. They don't provide all of the funding for the mandates they pass down to the locals, yet he wants to pass down the pensions.
Posted by: Cheryl Bost | February 6, 2009 4:41 PM
Isn't it interesting that no politician has suggested cutting their pay and benefits? Why should any elected official have a retirement plan that WE pay for? If they don't like it, they don't have to run for office! They are the ones who get us into these financial messes but we are expected to keep on pay for their mistakes.
Posted by: David Kirkey | February 7, 2009 5:44 AM
The only problem with Miller's argument: "the state has no control over how many teachers school districts hire or how large pay increases are." County governments dont have line items for board of education budgets either so in reality, if Miller hands it over to the counties, the only one guarding the hen house will be the fox! This is not to diminish teachers, but many other "county" employees dont get near the benefits and pensions of teachers.
Posted by: elaine | February 7, 2009 4:22 PM
What a shame. Of all times to limit local districts' ability to spend education money ON students, the Senate President chooses the worst. Now is the time to invest in our kids, not restrict the funds available to them. Moreover, this policy punishes the PAST decision makers in the systems where over-hiring took place. In Baltimore, we've cut over 300 positions from central office and shown a dedication to linking ed dollars directly to student achievement. This funding policy incorrectly disincentives these recent cost-saving efforts.
Posted by: Bill | February 7, 2009 7:12 PM
Local governments do not hire teachers or give them raises; Boards of Education do. Boards of Education are instruments of state government not county governments. It would be more accurate to refer to our schools as Maryland Public Schools at Baltimore, Harford, Montgomery, etc...
Now, that being said, I would be curious how freezing the pension payments would work. In theroy over time cost increases and inflation would render the state's frozen contribution to be less and less of the total cost until the State was effectively not funding the program at all. I know it would take a while for $600 million to become a footnote; however, I would imagine that you would only have to go back to the 1960's to find the entire State budget was less than $600 million.
Posted by: Confused | February 7, 2009 8:10 PM
I agree with Senator Miller. I think the people postings are missing out on the point. Their salaries and pensions will not be cute but the future increses in pension should be handled by the local governement.
We need to get the state budget in line with revenues and right now, it is out of whack.
lets see the proposal before passing judgement.
Posted by: Michelle | February 9, 2009 12:17 PM
Confused: That is not correct, particularly for Baltimore City. Boards of Ed are appointed by Mayors and County Executives (Baltimore is a bit different with the City-State Partnership, though). That's like saying the local government does not oversee the police because the Commissioner is an appointee.
Michelle: "handled by the local government" - what? You mean paid for by City residents? It's merely passing the buck, it's not at all "getting the state budget in line." Further, it's like selling off a toxic asset, just because it's not on your books doesn't mean that it doesn't effect the whole system at all levels (for further evidence, please refer to the lending markets).
Posted by: Bill | February 9, 2009 9:58 PM
Baltimore City is always the exception to everything; however, County executives/Commissioners do not appoint Board of Ed members. In some counties the Boards are elected and in others they are appointed. The appointments come from the governor. If an elected member steps down the replacement is appointed by the governor until the next election.
The important thing is that Boards of Education are instruments of government. The authority for a BOE comes from State law not County law. It is in COMAR, go the Education Article Title III.
Posted by: Confused | February 13, 2009 2:37 PM