December 7, 2016

Lame Duck “Quick” Update

MPSERS Pension Plus Reform – DOA?
It’s been reported that the reform measures that we explained to you last week in our December 2 eblast will not be decided upon in this lame duck session. Effectively, the conversation is over for this session of the legislature, but we expect the MPSERS system will be a topic of conversation in the new year and the potential for more reform proposals is very likely.

Income Tax Revenue Changes for School Aid Fund
The discussion of changing the income tax distribution between General Fund/General Purpose (GF/GP) and the School Aid Fund (SAF) is still very much alive as of today. We discussed this in our ebalst last week and are monitoring the issue closely. At stake is nearly $430 million annually ($288 per student) in SAF revenue. Even with a “phase-in” of any change, reductions in SAF revenues without replacement funding is a loss overall to school aid.

Electric Choice Reform
Legislation has been offered which will effectively eliminate electric choice programs, including school districts, having negative impact on budgets in the coming years. Although the measure appears to not currently have the votes to pass, this is something to keep on your radar in the coming days of the lame duck session. Here is a link to SB 437 and the analysis.

Stay tuned for more information as it becomes available on the final days of this legislative session!

David and Bob

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