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LSJ editorial hits nail squarely on the head

by: Eric B.

Wed Jul 29, 2009 at 08:07:54 AM EDT


The Lansing State Journal has by far the best thing written yet about the Dillon plan in any newspaper so far.

The key problem right now is that Dillon and his supporters don't have the details to carry the argument. He's at the start of something beneficial for Michigan, but he's trying to move everyone into the end game.

For example, Dillon's proposal (found at www.newideasformichigan.com) recommends an action plan by Oct. 31, political and legal approvals by Nov. 30 and actual implementation to start by next January.

That's aggressive to and beyond the point of being unrealistic.

...snip...

Yet not all of that $900 million would be state dollars; in fact, most of it probably would not be. The real savings to be had would come from changes for schools and local governments.

For the state to benefit from these savings, the Legislature would eventually have to reduce per-pupil funding to schools and revenue-sharing payments to local governments - a point Dillon conceded. He added that his plan is "not a solution" to immediate budget problems. Nor did he expect "massive savings" in the next few months.

Michigan should explore a single insurance program. But a change of this magnitude is not going to fit into a schedule with a start date of January 2010.

There is little I say that you may take to the bank as Truth, but this is it.  All of it, from the vague framework with no concrete details to the fact that the state will either see no or little immediate savings (on the other hand, the Oakland Press, through the magic powers of wishful thinking, appears to believe that the savings to local governments can be tacked onto the $900 a year at the state level).

The truth is that some local governments and school districts have done good things in keeping health benefits in check.  A few years ago, the school district in St. Louis (Michigan) departed MESSA and opted for private insurance because the alternative for the teachers unions would be a bunch of layoffs.  This plan, were the state to take the steps necessary to actually squeeze $900 million a year, would punish that school district and others who did the same.  It would do likewise for local governments and institutions of higher ed that did the same.  At least, I'm assuming that no one really wants to see people who acted intelligently and with foresight punished.

more...

Eric B. :: LSJ editorial hits nail squarely on the head

It's taken nearly a week for this kind of context to work its way into the regular press.  Mostly, it was treated like a shiny new toy to be taken out and played with immediately.  For instance, Jack Lessenberry misses the point.

When I talked about this on Michigan Radio (WUOM/91.7 FM) the other day, one blogger attacked me at great length, saying I was "unhinged" for saying this plan might be worthy of some consideration. Others said I had betrayed my so-called liberal and compassionate credentials by suggesting that health care benefits should be cut for poor public sector employees. (I never said that at all, but, hey.)

Why, I'm a blogger who called him unhinged, although it had nothing to do with suggesting that the idea merits consideration.  Instead, it was because of his record of late, attacking the governor over things that aren't actually her fault (that is, unless there was another blogger who called him unhinged last week, which I suppose is entirely possible especially since I didn't listen to him on the radio). (Worth noting is that Lessenberry repeated his general complaint in one of his daily essays entitled "Time to Grow Up," and if the complaint is that people who don't hop on the bandwagon should come up with their own ideas it's valid. Lucky for me, I've been calling for looking at reforms to how local governments provide services for months ... none of the Very Serious People appear to think this is a Very Serious Idea, however, even after all the stern lectures last week that everything needs to be on the table.)

My complaint with his column, however, was a complaint at the way the plan was being covered in the press. That tone was, a Very Serious Person proposed a Very Serious Idea.  We must implement it immediately, and anyone who thinks otherwise is a poopypants fan of old, tired politics.

This may be true in some cases. The MEA has certainly taken to it like the NRA to background checks.  On the other hand, the thing I kept hearing last week from people who'd be affected by this down the pipe and who were generally receptive to the idea is that the devil is in the details.  Finally, in this morning's Lansing State Journal, someone who thinks this is a worthwhile idea to pursue actually started taking a look at those details.

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MEA = NRA?
Eric, the MEA is a union, not a PR firm. As much as we want and need public support, our first duty is to our members. And agreeing to let the government decide something as basic as health care coverage is not negotiable. We have to oppose such an idea.

As I've said, next is a statewide salary schedule. Why not? It'll save money.

Which of course would make joining a union worthless. So supporting this plan, even "in concept," puts you squarely in the anti-union/Mackinac Center crowd. Either you're for collective bargaining or against it.


Scorched earth campaigning...
One of the things I've always thought has made the NRA successful over the last two decades was that it refused to budge an inch and didn't particularly appear to care if its rhetoric came across as insane.  The strategy appeared to be that if they didn't want to debate real and substantive gun control that they'd instead refuse to budge on armor-piercing bullets and background checks, with their fallback line at assault rifles.  No matter how insane it came across to tie armor-piercing bullets and AK-47s to hunting, no matter how many editorial cartoons lampooned the ideas, they'd stick to it and insist they were entirely serious.  Today, gun control is an issue largely won by the NRA.

I assume that the MEA's position is to draw a line across which it won't let anyone cross, but a few yards in front of the real line they won't allow anyone to cross.

Among the Trees


[ Parent ]
and yet...
the same people on the right lining up and wanting to fast-track dillon's plan are the same ones crying that obama needs to SLOW DOWN on his plan.

lol...


Did anyone notice...
...that at his press conference yesterday Speaker Dillon threw out the idea that all Michiganders could potentially join his health insurance pool. Now where have I heard the idea of comprehensive health insurance reform before?  Oh, yeah, there's something going on in Washington, DC. It was on TV yesterday.

Maybe someone could introduce Speaker Dillon to the Hon. John Dingell?  Congressman Dingell has a great health care insurance idea too and, gee, he's chief sponsor of national health insurance reform legislation in the U.S. House of Representatives.  Maybe Mr. Dingell can be enlightened by the Dillon plan.  


I did not notice that
If health insurance reform falls through in Congress, it'd be nice if the state had a form of a public option.  I think, in fact, that it should be part of the original legislation, 'cause I don't frankly trust these kinds of promises made in press conferences.  Or, as I like to say, With one dollar of action, you can get 10 dollars of talk.

Still, you're right.  I just saw this morning that they're close to a health care reform deal in the Senate.  It might be nice to actually see what Congress produces before we take unilateral action.

Among the Trees


[ Parent ]
Question
The benefit of MESSA is that the insurance rates are negotiated between the union employees and the insurer and are fixed for the life of the contract.

By going off MESSA for private insurers, what this changes is that the negotiations over rates now occurs between the employer and the insurers.

Result: Employers reduce the amount they pay or increase copays which shift the cost of health insurance onto their employees at greater and greater amounts.

So my question is: Are these school districts actually saving money, or are they cooking the books by shifting health care costs onto the backs of teachers, thereby making the environment more unfavorable for teachers in Michigan?


Right now, or under this plan?
Presumably what would happen is that teachers would take serious cuts in benefits and probably pay more for insurance.  But, rather than going through the local school district, it'd go through the state.  The local school district would save money when the bargaining unit's contract expires and it enters into this new framework.

Of course, this would allow the state to justify cutting per-pupil funding because the money it currently gives local school districts to eventually pay for health benefits would stay at the state level.  As I said, districts that have done smart things with health insurance would be penalized under this, because the cut in money would presumably be across-the-board.  It's a way to save money by rewarding failure.

Among the Trees


[ Parent ]
What about now?
Are the school districts "saving" by simply allowing themselves to be the insurer's contact re: costs?

Are they saving money by shifting costs onto faculty by, say, changing the copays?


[ Parent ]
It varies from district to district
You could make the argument that the administration isn't shifting costs onto the faculty, but that the faculty are allowing themselves to take an increasing amount of the burden.

One union might bargain away higher co-pays within MESSA for pay raises.  One union might negotiate leaving MESSA to prevent layoffs (this is what happened in St. Louis a few years ago).  Others, where the district has some extra cash, might use it to beef up benefits as a teacher recruiting tool.  The idea that you can say, "Teachers have benefits such-and-such in excess of the private sector" is a bit misleading, because it varies from district to district; and the idea that teachers overall have made no concessions -- if anyone is really making that point -- is downright silly.

The thing that has been behind the labor strife, at least here where I live, is that districts can't negotiate long-term contracts because they don't know what numbers to expect from Lansing.  So, the teachers come to the table with one set of projected revenue numbers; the administration comes to the table with a different one.

I think, ultimately, whatever comes out of Lansing needs to address this, because the state hasn't been at all responsive to the problem of varying per-pupil funding.  In fact, I'm surprised that people who get up in arms over the loss of local control when you suggest that municipal governments combine services where prudent aren't up in arms about the potential of this, too.

Among the Trees


[ Parent ]
All the more reason
to remove health care from employment with a national health care system.

[ Parent ]
Oh, I agree...
A national universal system that strips health care away from employment and makes it a right as a citizen is the way to go.  That's why I think this idea ought to be put on the back burner until we get a better idea what if anything Washington plans to do.  Coincidentally, that ought to take about the same amount of time it takes to balance the state's budget without doing it in a rush.

Among the Trees

[ Parent ]
my theory...
...is that teachers will now simply bargain higher straight wages to offset any cuts in health care. for years they've been forgoing raises to keep good health insurance--once they no longer have to do that, they'll concentrate on getting it back on the salary end.

6 of one, half dozen of the other...


It depends on what the state does to per-pupil funding...
You're right, this takes away one of the tools districts could use to keep salary costs in line.  One of those articles floating around about education groups backing this made abundantly clear that this does impact collective bargaining, because one of the groups said that they spend weeks discussing health care issues.

On the other hand, this does nothing to address one of the other sticking issues to local bargaining, which is that increasingly districts are negotiating contracts without any idea what the state will do to per pupil funding over the years.  It changes, because the economy has gotten steadily worse.  So, contract talks are conducted like basically everything else that relies on state funding ... guesswork.  That guesswork is really what drags out negotiations, because no one can agree on budget numbers.  When they could, districts and teachers unions could settle on something relatively quickly and amicably.

The real question here is how much money then could be saved if the state could provide a more reliable funding picture more than six months into the future.

Among the Trees


[ Parent ]
i have a theory...
i have a theory districts really don't want to know the financial picture 100 percent. why? it allows them to play the "the sky MIGHT fall" at the bargaining table. it'd be a lot harder to stick it to teachers if, for example, it was KNOWN a bunch of money was coming down the pike in each of the next three years.

think about it.  



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