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Senate Considers MPSERS Closure: On November 30, the Senate Appropriations Committee reported out three bills that collectively would close the Michigan Public School Employees Retirement System (MPSERS) to new members. Senate Bill 102 (Pavlov) would instead direct new employees into a defined contribution plan with the same provisions as the State Employees Retirement System: a mandatory 4% employer contribution and a 100% match of employee contributions up to 3%. Senate Bills 1177 & 1178 (Pavlov) would revise the amortization schedule for payoff of unfunded actuarial accrued liabilities in the existing system. According to the Senate Fiscal Agency, SB 102 would result in additional costs of $1.6 billion to the state and employers over the first five years, with a total additional cost of $33 billion. The Governor has stated strong opposition to the bills based on the cost of closing the system.

 

Noncontiguous Annexation Gets Hearing: The Senate Education Committee on Tuesday took testimony but did not vote on House Bill 4265 (Price), which would allow annexation of an area that is not geographically contiguous into a community college district. MCCA staff expect the bill to come out of Committee this coming week.

 

Senate OKs Business Incentives: The Senate passed two major packages of economic development legislation that would move the state away from eschewing tax incentives. Senate Bills 1153 - 1155 would allow the state to annually authorize up to 15 new agreements where in exchange for creating at least 500 new jobs in the state (or 250 if they were paying 125% of the average wage in the county where they are located), a business could keep a portion of the income tax withholdings for those new employees. The bills would set a cap of $250 million. In related action, the transformational brownfield package (Senate Bills 1061 - 1065) could be used for large-scale, billion-dollar-type investments to revitalize certain downtown areas. It would allow developers to capture a portion of the revenues that would otherwise go to a downtown development authority and use those revenues to help pay for the project. Both tax incentive packages now go to the House Local Government Committee for consideration.

 
 

 

HELPFUL LINKS

Michigan Legislature’s website (bill tracking and committee meetings)

Michigan House of Representatives

Michigan Senate

Community College Legal Authority (Michigan Constitution)

Community College Act of 1966

 

For the map of the community college districts, click here.

 

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