From the INSIDE OUT e-mail files...
We begin by reprinting some e-mails we have received from interested readers. Remember, if you have anything to share, or information to pass along, send us an e-mail. The information will remain confidential, so there is no fear of retaliation.
“Hey Inside out. Like our neighbors, we are WORRIED about PENSIONS for township employees. The information presented by the treasurer at the Mar. 15th Board of trustees meeting was eye opening. I think our police officers do a good job. But why they are getting involved in a political recall is strange. Yes it is their right, but it certainly don’t make it right.”
M.S., Shelby Township homeowner
“I am a lifetime union member. Worked my entire life in the real world - or what I call the private sector. I am tired of hearing how public unions keep wanting, and taking, more. Where I worked we had to accept less, or lose work. That's the way it is in the real world. I hope our trustees don’t cave to the whims of these people and give them whatever they want. They want everything their way, and if they can’t get it the legal way they will try to grab it anyway they can, including forcing a recall. And as for the Nightingales and their conduct -- don't get me started. It’s time people start standing up to these bullies.”
N.B., Shelby Township
“This recall needs to stop. The people need to do what we can to let these jerks know we won’t sit by and accept their political games. My friends have been talking about boycotting the Nightingales. Maybe this is the only way we residents will get our message out loud and clear.”
L.S., 38-year Shelby Township taxpayer
“The recall cranks just came to my house. I told them no way and to go away. They were surprised and didn’t know what to say. I encourage other residents to do the same and not play their political game.”
D.H., Shelby resident
Thanks for writing. As to the boycott suggestion, people are free to do whatever they want. However, if you do organize one may we suggest changing the name from “boycott” to something like “do not patronize.” It may be easier to convince residents not to patronize a particular company rather than engage in a more confrontational boycott.
Shelby Township’s financial picture is serious right now. This is why we need people in elected office with a business sense of how to keep our township on the right track, without having to cut vital services or raise taxes to support operations. Supervisor Stathakis and the Board have done their job — and for this they are being demonized by a few vocal antagonists.The issue of public employee union benefits is huge, not just in Shelby Township but across Michigan and throughout the country. Back when times were good, hardly anyone noticed the pension and health care benefits public employees receive. However, now that times are tough, everyone is taking note. What we are learning is that public employee pensions are larger than we thought, and the financial impact of lifetime health care for retirees and their families places an unsustainable burden on all taxpayers.
Studies show that public employee union benefits are much more lucrative than they are in the private sector. Further, although unions brag about solidarity, studies also show that private sector union members are also angry about how public employee unions keep raking it in, while private sector union members, who are taxpayers, are earning less, are paying more for their health care and are being forced to accept cuts in pension benefits. Michigan Governor Rick Snyder has discussed “shared sacrifice” as essential to getting our state back on the right course. Unfortunately, while private sector workers are willing to sacrifice for the common good, many public employee unions don’t appear willing to give up anything. In fact, they seem more eager to fight, including launching recalls to get rid of elected officials who dare talk about reform.
The legacy costs of public pensions and health benefits (funded by our tax dollars) have been a sore point for quite some time. Even though taxpayers are picking up the tab, the unions resent making this information public knowledge. Union leaders object when talk emerges of exposing the lifetime pensions and health care benefits union retirees receive. Despite union protests, an overwhelming majority of taxpayers believe this information MUST be made public. Taxpayers deserve to know what our money is being used for, how much employees are receiving when they retire, and what this means to our township’s overall financial strength and viability.
Shelby Township Treasurer Paul Viar has been a consistent voice for taxpayers since he was first elected. At the Tuesday, March 15th Board of Trustees meeting, Treasurer Viar raised the subject of township employee retiree benefits and their impact on taxpayers. Judging from the buzz across the township after his statement, there is a strong feeling of resentment that the police union, with their golden taxpayer-funded pensions and health care, is trying to remove our township officials.
We are reprinting Treasurer Viar’s remarks for those who may not have heard them.
_____________________________________
Remarks by Treasurer Paul Viar at the March 15, 2011 Shelby Township Board of Trustees Meeting
As everyone knows, the current recall is about a township zoning issue.
Should we believe that some members of the police union are circulating petitions about a township zoning case, when only 11 out of the 70 officers live in and pay taxes in the township?
It’s hard for people to reconcile that these union members are truly upset about a rezoning issue. People are wondering if there is another issue – perhaps one closer to the union’s pocketbook - that has them upset. It may interest residents to know:
Shelby Township taxpayers are on the hook for $5 million dollars to fund lifetime health care benefits for retirees at the 41-A District Court.
Taxpayers are also on the hook for a $30 million shortfall in Shelby’s police and fire pension fund.
Further, taxpayers are also on the hook for approximately $60 million in post-employment health care costs for retiring township general employees.
This means that Shelby taxpayers are responsible for an alarming $95 million dollars in unfunded pension and health care obligations.
I have warned many times in the past how this township needs to cut spending and change the way we do business. I was often ignored. My point was that if we refused to make changes voluntarily, the day would come when we would be forced to make changes.
Could we assume that some members of the police union are walking door-to-door soliciting signatures to kick people out of office because they did not get a pay increase the past two years that this current Board has been in office?
To give some history:
• In 2005 the police union asked for, and the township gave them, a 3 percent wage increase.
• In 2006, the union was given a 2.75 percent increase in pay.
• In 2007, the union received a 2.5 percent increase in pay.
• And in 2008, the union again received 2.50 percent pay increase.
However, times have changed. In 2009, the first year this new Board was in office, the union requested a 3% pay increase and got no increase. Then, in 2010, the union asked for a 2.25% wage increase and again got no increase.
In addition, from 2005 to 2008, retroactive pay received by union command officers resulted in an additional taxpayer payout of $725,338.95.
As we know, public safety officers are covered by Act 312 arbitration. This Act prohibits strikes and empowers the union to seek binding arbitration for contract disputes.
Upon settlement of the last contract, there were nine issues in dispute, which the union took to binding arbitration. Due to economic conditions in Shelby Township and Michigan, the arbitrator ruled in favor of taxpayers, and against the union, on all nine of those issues.
The Command Officers union then sued the arbitrator for siding with taxpayers. That suit was upheld in favor of Shelby taxpayers by the Macomb County Circuit Court. The union then appealed that decision, and the case is now before the Michigan Court of Appeals.
Since wages are one of the disputes in the current police union contract, I will refer to the Annual Final Compensation worksheet for one of the most recent police command officers who retired in 2010.
To compute a retirees’ pension, you take the highest three years of earnings in the final ten years of employment. Upon reviewing this one retiree’s Annual Final Compensation sheet, we see that:
• In 2007, this officer earned $140,952.97
• In 2008 this same officer earned $131,767.60
• In 2009, he earned almost $139,324.58
This command officer’s total compensation for those three years was $412,059.15.
Now here is the important point: Using these years for pension calculation, as he did, means that this one union member, who retired at age 52, will receive $85,522 in pension, per year, every year, for the rest of his life. This one retiree will get almost $86,000 of your tax money for his pension, per year, for the rest of his life. And if he dies, the survivor will get 60% of that amount for the rest of their life.
Another issue in dispute for the union involves health care. The annual cost of retiree health care for each command officer — paid by taxpayers — is $16,647.58 per retiree.
If you add these annual pension and health care costs together, you get a final taxpayer obligation — to just one retiree — of more than $102,000 per year, every year, for life.
Some may say you’re talking about command officers, and they receive higher salaries, higher benefits and larger pensions. However, in the history of Shelby Township’s police department, only three officers have retired as patrolmen. Two of those were disability retirements.
If anyone doubts this data, or tries to say the information given is untrue, you can see it for yourself at my office. This is also available by filing a Freedom of Information Request with the Township Clerk’s office. Since taxpayers are paying these golden benefits, we have a right to know the facts.
_____________________________________
Surprisingly, some people and interest groups in Shelby Township do not want residents to know what our tax dollars are being used for. Some employees feel entitled to keep their salaries and benefits (paid for by taxpayers) a secret. They have a good thing and don’t want it spoiled by inquisitive taxpayers.
However, since we are stockholders in this township, we have a right to know what OUR employees are earning (working or in retirement). The unions want to keep this financial information away from us. Could this be a big reason why some elements of the police union are supporting the Nightingale recall of township officials? Are they trying to silence those who want to inform taxpayers?
Is this editorial cartoon funny? You bet it is! More than that, however, this cartoon puts the recall stupidity into context - so people can see what is going on. It is said that a picture is worth a thousand words. If so, then this cartoon is worth a million!
The graphic clearly depicts two roads for our township: a paved, modern road to the future, or a bumpy and crumbling path to the past. A tow truck is seen tearing the township hall off its foundation so it can drag it (and us) back to the days when unions got their way, there was little accountability through competitive bids for services, township spending was out of control, there were plans to spend $50 million dollars on new bonds (without a public vote) for oversized township buildings, and all taxpayers were facing the real risk of higher taxes. Just imagine where Shelby would be today if, given our financial progress, we were saddled with trying to pay the bills on a $50 million campus!
Those who want to drag Shelby Township back to the way things used to be certainly have their preferred travel destination — but is it yours?
Don’t be fooled or tricked into signing their recall petition. Keep in mind who is really behind it and what their actual motivations may be. If they succeed, we fear this group’s message to this Board, and all future Boards would be: “Remember Stathakis - we did it to him and we will do it to you. Don’t touch our contract!”
If so, that will be disastrous for Shelby Township taxpayers!
Until next time...
No comments:
Post a Comment