Update April 23rd, 2013
State House Republicans have given up on efforts to punish school districts and other public employers that agreed to labor contracts that delayed the effects of Michigan’s right-to-work law.
The House Republican majority allowed budget bills to move forward without threatened reductions in state payments.
State Representative Joe Haveman (R-Holland) chairs the House Appropriations Committee.
"We decided this was the time to back off and say, 'let’s let it go.' We made our point. That’s as much as we can do right now," he said.
The effort did, however, dissuade some universities and schools from agreeing to the contracts.
"We wanted to limit or really restrict people from going into new contracts to circumvent right-to-work, and when you look at the number of colleges, schools, local jurisdictions, there were so few that did it, we think we accomplished what we needed to," Haveman said.
Haveman says, in some cases, the extended contracts resulted in savings to taxpayers. Contracts in place before the law took effect on March 28th have to be honored.
There’s at least one lawsuit challenging a contract extension.
March 19th, 2013 - State lawmakers move to cut school and university funding over right-to-work debate
Some Michigan universities could lose 15 percent of their state funding over new union contracts. A state budget panel today voted to sanction schools that approve long-term contracts before the state’s new right-to-work law takes effect.
That’s unless the contracts include cost savings of at least 10 percent.
Representative Al Pscholka chairs the subcommittee that passed the university cuts.
“What we are concerned about are these long-term contracts, really meant to kind of circumvent state law, that don’t give any savings to taxpayers, and just pass along more and more expenses to students, taxpayers, and parents.”
Representative Sam Singh is the top Democrat on the panel. He says the schools did not break any laws and should not be punished.
“The management has been negotiating with their employee groups and have actually been getting cost savings for the general public. And we should be allowing them to do that instead of meddling in their affairs.”
Wayne State University and the University of Michigan could each lose tens of millions of dollars in state funding if the cuts are passed.
The state’s right to work law does not take effect until the end of the month.