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Fiscal Stress

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Education, Fiscal Stress

Can Michigan Teachers Afford to Live in the County Where They Work?

By: Buzz Brown

“Can Michigan teachers afford to live in the county where they work?” An interesting question and the answer is yes…and no.

First, some background. Following teacher walk-outs in West Virginia, (soon followed by Oklahoma and Arizona) last spring over low teacher salaries, a National Public Radio (NPR) story aired that asked a similar question, identifying Michigan as having the highest paid teacher salaries in the country. Needless to say, that claim raised a few eyebrows among those involved with teaching, school administration or providing advisory services to Michigan public school districts.

Education, Fiscal Health, Fiscal Stress, K-12, News

Cities & Schools Reach Crisis Point Due to States’ Low Economic Reserves

A recent article in the Wall Street Journal (Many States Are Unprepared for Next Economic Downturn) caught my attention because it highlighted a key factor adding to the fiscal stress of municipalities and schools.  The article suggested that most states are unprepared for an inevitable economic downturn as they lack the necessary fiscal reserves or rainy-day funds to cushion the next financial blow, and, it’s already having a negative trickle-down effect.

Forced to do more with less since the last recession, cities and schools are continually struggling with reduced revenue sharing from their states while scrambling to meet the demands of unfunded mandates, retiree obligations, an aging infrastructure and even increased student testing. Add this to the anticipated silver tsunami caused by public sector retirements in the next decade, we see a myriad of local governments that are already stretched too thin and have reached a crisis point.

One of the most alarming things noted in the WSJ article was that some states appear to have little sense of urgency and limited tools to address these budgetary shortfalls. Forget crisis point—this dilemma will have far-reaching and long-term consequences for the populations served by those who gloss over the unavoidable hard truth and do nothing about it now.

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