State taxpayers’ share of MPSERS debt would increase under various proposals
Amid the discussions around continuing to pay down Michigan Public School Employees’ Retirement System, MPSERS, unfunded accrued liability (UAL), various proposals would also adjust the percentage of the unfunded accrued liability that K-12 school districts will be asked to pay in the future.
As of today, the first 20.96% of each year’s unfunded accrued liability contribution is paid by local school districts, and any amount required above that is paid by the state (for 2023, that amounted to around a 7% state contribution).
The proposals aim to manage the Michigan Public School Employees’ Retirement System’s $29 billion in unfunded pension liabilities by adjusting the caps, which would have a major impact on the budgets of the state and local school districts.
The chart provided (using Reason Foundation Pension Integrity Project modeling of MPSERS) compares total contributions from 2024 to 2038, both state and employer, under various proposals with all amounts adjusted for inflation.
State | Employer | Additional State | |
House Proposal (18% K-12 district UAL cap, stepping down to 0%) | $36.2 b | $13.8 b | $26.6 b |
House Bill 5803/Senate Bill 911 (13.9% K-12 district UAL cap) | $20.7 b | $29.3 b | $11.1 b |
Governor’s Proposal (20.00% K-12 district UAL cap) | $11.1 b | $38.9 b | $1.5 b |
Status Quo (20.96% K-12 district UAL cap) | $9.6 b | $40.4 b | – |
Takeaway
The proposals would all involve having the state pay more for local district personnel costs. The range of total contributions over the 2024-2038 period does not change across the proposals. However, the distribution of these costs between the state and the employers (K-12 districts) varies significantly, with the House proposal requiring over $26.5 billion in additional state contributions.
Full Backgrounder: Various Proposals Would Increase State Share of MPSERS Debt
The post State taxpayers’ share of MPSERS debt would increase under various proposals appeared first on Reason Foundation.
Source: https://reason.org/backgrounder/state-taxpayers-share-of-mpsers-debt-would-increase-under-various-proposals/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Humic & Fulvic Liquid Trace Mineral Complex
HerbAnomic’s Humic and Fulvic Liquid Trace Mineral Complex is a revolutionary New Humic and Fulvic Acid Complex designed to support your body at the cellular level. Our product has been thoroughly tested by an ISO/IEC Certified Lab for toxins and Heavy metals as well as for trace mineral content. We KNOW we have NO lead, arsenic, mercury, aluminum etc. in our Formula. This Humic & Fulvic Liquid Trace Mineral complex has high trace levels of naturally occurring Humic and Fulvic Acids as well as high trace levels of Zinc, Iron, Magnesium, Molybdenum, Potassium and more. There is a wide range of up to 70 trace minerals which occur naturally in our Complex at varying levels. We Choose to list the 8 substances which occur in higher trace levels on our supplement panel. We don’t claim a high number of minerals as other Humic and Fulvic Supplements do and leave you to guess which elements you’ll be getting. Order Your Humic Fulvic for Your Family by Clicking on this Link , or the Banner Below.
Our Formula is an exceptional value compared to other Humic Fulvic Minerals because...
It’s OXYGENATED
It Always Tests at 9.5+ pH
Preservative and Chemical Free
Allergen Free
Comes From a Pure, Unpolluted, Organic Source
Is an Excellent Source for Trace Minerals
Is From Whole, Prehisoric Plant Based Origin Material With Ionic Minerals and Constituents
Highly Conductive/Full of Extra Electrons
Is a Full Spectrum Complex
Our Humic and Fulvic Liquid Trace Mineral Complex has Minerals, Amino Acids, Poly Electrolytes, Phytochemicals, Polyphenols, Bioflavonoids and Trace Vitamins included with the Humic and Fulvic Acid. Our Source material is high in these constituents, where other manufacturers use inferior materials.
Try Our Humic and Fulvic Liquid Trace Mineral Complex today. Order Yours Today by Following This Link.