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House Co-Sponsorship Memoranda
House of Representatives
Session of 2023 - 2024
Regular Session
MEMORANDUM
| Posted: | December 4, 2023 09:23 AM |
|---|---|
| From: | Representative Napoleon J. Nelson |
| To: | All House members |
| Subject: | Providing Pension Relief to Schools and Local Taxpayers |
| Property taxpayers in our state need relief. At the same time, our schools face a constitutional funding shortfall. It is on us, as state legislators, to find a way to help both property taxpayers and school districts alike. The Public School Employee’s Retirement System (PSERS) is facing a $40 billion pension shortfall. Just 20 years ago, the pension system was fully funded. Then, Act 40 of 2003 kicked off a nearly 15-year period where state contributions (and district contributions directed by the legislature) to the pension system were inadequately low, resulting in a significant deficit. Now, our school districts must tap local property taxes, wage taxes, and business taxes to the tune of $1.7 billion each year just to amend for our prior decisions. This is not fair funding nor is it the most efficient method of closing our pension liability. The time has come to reckon with this legislature’s inadequate and unfair approach to funding public education and the ramifications that our decisions have had on taxpayers and educators. That is why I plan to introduce legislation that would make significant progress in reducing the local tax burden of funding public education by placing the full responsibility to address our unfunded educator’s pension system on the shoulders of the legislature and the state General Fund. In doing this, we will provide relief to schools and property taxpayers throughout our state. Please join me in co-sponsoring this important legislation to lift $1.7 billion of expense burdens off the shoulders of our local property taxpayers. Your consideration is greatly appreciated. |