November 18, 2009, Introduced by Rep. McMillin and referred to the Committee on Labor.
A bill to amend 1976 PA 451, entitled
"The revised school code,"
(MCL 380.1 to 380.1852) by adding section 1245; and to repeal acts
and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1245. (1) A school district, public school academy, or
intermediate school district may apply to the superintendent of
public instruction for an order finding that the school district,
public school academy, or intermediate school district has an
emergency financial situation that requires an emergency
restructuring for its employees. The superintendent of public
instruction shall issue that order if the superintendent of public
instruction determines that all of the following apply to the
school district, public school academy, or intermediate school
district:
(a) The average teacher salary in the school district, public
school academy, or intermediate school district is in the top 1/3
among all school districts in the nation.
(b) The annual amount that the school district, public school
academy, or intermediate school district pays on average per
employee for providing health care benefits is greater than the
annual amount the average private sector employer in this state
pays on average per employee for providing health care benefits.
(c) The school district, public school academy, or
intermediate school district has an operating deficit for the
current school fiscal year and does not have a sufficient general
fund balance to transfer to its operating budget to eliminate that
operating deficit.
(2) If the superintendent of public instruction issues an
order for a school district, public school academy, or intermediate
school district under subsection (1), the board of the school
district or intermediate school district or board of directors of
the public school academy may reduce the wages of all of its
employees by an equal percentage amount. The board or board of
directors shall specify the percentage amount by which it is
proposing to reduce wages in its application under subsection (1),
and the superintendent of public instruction shall specify the
authorized amount of the percentage reduction in the order issued
under subsection (1). The specified amount may be the amount
requested in the application or may be another amount determined by
the superintendent of public instruction to be appropriate to
eliminate or reduce the operating deficit.
(3) An application under subsection (1) may cover more than 1
school fiscal year if the board of the school district or
intermediate school district or board of directors of the public
school academy anticipates that the operating deficit and other
conditions specified under subsection (1) will continue for more
than 1 school fiscal year, and an order issued by the
superintendent of public instruction under subsection (1) may cover
more than 1 school fiscal year if the superintendent of public
instruction determines that the operating deficit and other
conditions specified under subsection (1) are likely to continue
for more than 1 school fiscal year.
(4) All of the following are subject to and may be modified by
the actions taken under this section:
(a) Collective bargaining between a school district, public
school academy, or intermediate school district and a bargaining
representative of a unit of its employees.
(b) A collective bargaining agreement in effect in the school
district, public school academy, or intermediate school district.
(c) An individual employment contract between the school
district, public school academy, or intermediate school district
and an employee of the school district, public school academy, or
intermediate school district.
(5) This section is repealed effective December 31, 2011.