2007 House Bill 4512 (Balance budget with reduced state employee pension fund contribution )

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Public Act 16 of 2007

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Introduced by Rep. Lee Gonzales (D) on March 22, 2007, to allow a one-time “interest only” contribution to the state employee pension fund. The fund exists to offset the projected liability created by promising state government employees hired before 1997 a defined level of annual post-retirement pension benefits in the years ahead. An “interest only” pension contribution would be $83.7 million less than the true actuarially sound amount under generally accepted accounting principles. The bill is part of Gov. Granholm’s plan to close a gap between desired spending and expected revenues in Fiscal Year 2006-2007 (and this element has also been adopted in a Senate Republican plan to close the gap.) See also House Bill 4530.
- Referred to the House Appropriations Committee on March 22, 2007.
  - Reported in the House on March 27, 2007, without amendment and with the recommendation that the bill pass.
Passed in the House (80 to 28) on April 17, 2007. [Vote Details and Comments]
Received in the Senate on April 19, 2007.
- Referred to the Senate Appropriations Committee on April 19, 2007.
  - Reported in the Senate on May 15, 2007, with the recommendation that the bill pass.
Passed in the Senate (37 to 0) on May 22, 2007, to allow a one-time “interest only” contribution to the state employee pension fund. The fund exists to offset the projected liability created by promising state government employees hired before 1997 a defined level of annual post-retirement pension benefits in the years ahead. An “interest only” pension contribution would be $83.7 million less than the true actuarially sound amount under generally accepted accounting principles. The bill is part of Gov. Granholm’s plan to close a gap between desired spending and expected revenues in Fiscal Year 2006-2007 (and this element has also been adopted in a Senate Republican plan to close the gap.) See also House Bill 4530. [Vote Details and Comments]
Signed by Gov. Jennifer Granholm on June 6, 2007.

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1) Is this how budgets are balanced? [by searchforthetruth on August 16, 2007]
Yes, this is how budgets are balanced by spineless politicians. Yes, it will increase the unfunded liability. As of 12/31/05, the Michigan Employees Retirement System was 76% funded (almost $1.6 billion underfunded).

http://www.mersofmich.com/formfiles/Consolidated%20Report%202005.pdf

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2) her problems [by Anonymous Citizen on June 12, 2007]
to all the liberals who say that the current financial woes are NOT JENNIES PROBLEM, i say that she WANTED those problems, she fought for them TWICE.

she spent millions to get elected TWO TIMES to get possession of those problems, with the promise that not only would she take possession of them, but that she would SOLVE THEM, and bring our state back to prosperity.

it's taken her five years to even move a finger to attempt to solve any of them, and those "solutions" that she has come up with so far are totally unacceptable.

it's been five years and she STILL hasn't taken POSSESSION of the problems, she still treats them as someone else's problems.

she is the governor, and the governor before her WAS HER.

she needs to quit whining and cut unnecessary programs, not prisons and law enforcement.

she needs to quit spending on those who do not contribute, and PAY THOSE WHO DO.

maybe the attitude of 'IF YOU DON'T LIKE IT HERE, LEAVE.' should extend to welfare recipients and criminals instead of working taxpayers.
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3) the liberal way. [by Anonymous Citizen on June 12, 2007]
1. release prisoners. this keeps the public busy trying to defend themselves against those threats to their safety, far too busy to pay attention to what the government is up to.

2. fire police officers. this keeps the public EVEN BUSIER trying to defend themselves against those threats to their safety that you released.

3. fix your financial problems by not paying your bills. this shows great responsibility and great accumen. it also shows that you are capable of putting your problems off till the public forgets about them.

these three moves show why jennie should not have been elected.

the fact that the legislature not only condones these acts, but gives her the tools to accomplish them shows that they should not have been elected either.
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