Schools, Politics, and Common Sense

Bringing Jobs To Michigan

2009-11-02T09:18:00.023-05:00

MiSN Homeland Security Market Leadership Conference information:

The Michigan Security Network (MiSN, www.michigansecuritynetwork.com), a non-profit organization, announced a Joint Venture between MiSN, Wayne State University (WSU) and the Kauffman Foundation. In support of its mission to accelerate homeland security technology development, investment and jobs in Michigan, the joint venture will provide training, "FREE", for aspiring entrepreneurs as well as mature businesses interested in this growing market.

The training will be offered through WSU’s TechTown in the form of FastTrac™ programs designed with homeland security content provided by Michigan Security Network. FastTrac is a practical, hands-on business development program designed to help entrepreneurs hone their skills needed to create, manage and grow a successful business. FastTrac is a globally renowned program created by the Kansas City-based Marion Ewing Kauffman Foundation, a TechTown partner organization and America’s leading expert on entrepreneurship education, research and growth.

Event Name: MiSN Homeland Security Market Leadership Conference

Date: Wednesday, November 4, 2009

Time: 8:00 a.m. Registration and Continental Breakfast

8:30 a.m. to 6:00 p.m. Conference

Location: Hyatt Regency - Dearborn, MI

Where to ask

question: (248) 353-0735

Cost: $199 -- Includes continental breakfast and lunch

By attending the MiSN conference, business executives will:

1.) Learn about the Homeland Security Market and business opportunities in Biodefense, Cybersecurity & Bordersecurity

2.) Meet with decision makers from key federal agencies, and exhibitors of value added solutions

3.) Curbside consulting - 15 minute consult with TechTown advisor. Learn about the FastTrac™ Entrepreneurial programs, and register for one of our 4 programs onsite.

The Michigan Security Network (MiSN) Market Leadership Conference will be held on November 4, 2009, at the Hyatt Regency Hotel in Dearborn, Michigan. Attendees will be able to listen to experts in the fields of security and defense, meet leaders and decision makers from major corporations, federal agencies, and Universities, and listen to presentations on the opportunities available in cyber security, biodefense, and border security.

MiSN Market Leadership Conference Speakers include:

(JUST ADDED) - Dave Thomas, Associate Director for Intelligent Ground Systems at TARDEC
(JUST ADDED) - Jim Jaeger, Director, Cyber Defense & Forensics, General Dynamics Advanced Information Systems (GD-AIS)
(JUST ADDED) - Rick Harris, Acting Deputy Director U.S. CERT DHS
(JUST ADDED) - Rene Kelly, MiSN Joint Venture with Wayne State University (WSU) and the Kauffman Foundation for FastTrac programs

Michael J. Bouchard, Oakland County Sheriff

Bruce B. Davidson, Director of the Office of SAFETY Act Implementation, Science and Technology Directorate, Department of Homeland Security
Dr. Farnam Jahanian, Founder and Chairman of the Board, Arbor Networks, Inc.
Parney Albright, President and Vice Chairman, Civitas Group llc
Randal Charlton, Executive Director, TechTown, Entrepreneur in Residence and Special Assistant to the President for Economic Development, Wayne State University
Scott R. Dratch, Director of Strategic Cyber Initiative, General Dynamics—Advanced Information Systems
Ken Theis, Chief Information Officer, State of Michigan, Director for the Michigan Department of Information Technology
Captain Larry K. Atteberry, Manager - Protective Services, BioDefense Operations, Emergent BioSolutions
Peter Tchoryk, Jr. Chief Executive Officer, of Michigan Aerospace Corporation
Dennis Grimaud, Chairman and Chief Executive Officer of DIATHERIX Laboratories, Inc.
Jian Han, M.D., Ph.D., Laboratory Director of DIATHERIX Laboratories, Inc.
Dr. Carole Bolin, Director - Diagnostic Center for Population & Animal Health at MSU

MiSN SPONSORS:

Platinum Sponsors

* DTE Energy

* General Dynamics Land Systems (GDLS)

Gold Sponsors

* BCU

* VisitDetroit.com

* Engineering Society of Detroit

* Howard & Howard

* Precisionwerx

* PVS Chemicals, Inc.

* Strobl & Sharp

* University of Michigan

* Wayne State University

Silver Sponsors

* Dewpoint

* Patriot Services

* University of Detroit Mercy

* Walsh College

* Warner Norcross & Judd

MiSN Market Leadership Conference Investment:

Attendees: $199 — includes continental breakfast and lunch.

Exhibitors: $350 — 8ft Table Top Display

MiSN Market Leadership Conference Sponsorship opportunities are still available:

For more information, please contact Leslie Smith at 248-353-0735, ext. 152 or lsmith@esd.org

Please use the following link to review and register to attend the MiSN Homeland Security Market Leadership Conference:
- http://www.michigansecuritynetwork.com/conferences.html

- For more details phone: 248-353-0735

Thank you for your interest, support and consideration. Please contact me if you have any questions or if I may be of further assistance. We look forward to meeting you at the conference.

Lori Soifer - Best Choice for Birmingham School Board

2009-10-30T10:26:00.010-04:00

In times of crisis, experience counts. Lori’s experience as an expert in the development of policies and programs which promote innovative and cost effective learning strategies is vital to our school board. Her commitment to achievement for all students is critical as we embrace the broader fiscal challenges confronting public education in Michigan, and how those challenges impact Birmingham. Lori has made the hard choices that board members from other districts have avoided (like privatizing transportation and custodial services). Those decisions have saved tens of millions of dollars that now remain in the classroom where they belong, all while maintaing a balanced budget.

There is no person better qualified to help us meet the task ahead. Lori's commitment to academic excellence ensures that Birmingham's students will continue to lead the state.

If you would like to learn more, visit Lori Soifer's site here. I trust that you'll see an unmatched commitment as a volunteer to not only our schools, but to the broader community that reaches far beyond our classrooms.

20j Districts Violated By Governor, More Pain Added

2009-10-22T20:12:00.006-04:00

The first blow was the $165 per student cut in state aid, it was tempered by understanding the cut was to be applied equally to all districts. Then the Governor made a conscious choice to unjustly punish the districts covered by the corrective 20j stipulation embedded in Proposal A. That took an average cut of $165 per student and amped it up an average cut of $242 in those 20j districts. Now to compound that exercise of monumentally poor judgement, those 20j district have been impaled by the addition of a new $127 per student cut. The average cut to 20j districts: $533.42 per student, for non-20j districts the cut is is $292. The data is shown below:

State Aid 20j Impact 2009-10 Updated

So what did the 20j districts do to deserve a punishment of nearly TWICE that imposed on all other districts? Some, like Livonia, East Lansing, and Northville are looking at cuts of over $600 per student. I think that the Governor has eviscerated the legislative intent of Proposal A, that should make some lawyers happy (remember Durant?).

Governor Granholm Honored as National Education Policy Leader of the Year

2009-10-22T10:24:00.010-04:00

Is this a cruel joke? The press release is here: Governor Granholm Honored as National Education Policy Leader of the Year. Why the National Association of State Boards of Education did this, at this time, is at the least bitterly ironic. I would suggest they contact members of the boards of education that just had their budgets deliberately targeted and slashed by this Governor if she is really a leader worth celebrating. Yes, she adopted more rigorous standards for high school graduation, but she just made it much harder for teachers in 40 districts to help their students reach those standards, while breaking the promise at the heart of Proposal A's funding legislation.

It seems to me there is no reason why the NASBE can't change course. They certainly have not highlighted the choice on their web site (I can't find anything). Contact the Executive Director, Brenda Welburn via email here: brendaw@nasbe.org, you can also contact her at 703-684-4000 or fax at 703-836-2313. While you're at it, make sure to let Governor Granholm know how you feel about the unfair manner she has treated the 214,323 students impacted by the 20j veto (link to Governor comment page is here).

Proposal A and a Broken 20j Promise

2009-10-20T13:26:00.003-04:00

Last night the Governor broke the Promise of 20j; a promise that Proposal A would lift the floor of School funding, not drag down the top.

The right thing to do is treat every district fairly, what the Governor did was single out 40 districts that operated under the 20j provision. That provision was a CORRECTION to a FORMULA ERROR embedded in Proposal A. For these 40 districts, the Governor has made a bad situation dramatically worse, while providing NO PRACTICAL HELP for the other 511 public districts and 233 public academies.

Specifically, there are 214,323 students in the forty 20j districts, the Governor has taken an average of $241/student away from these kids (ON TOP OF THE $165/student cut) while maintaining the net $165/cut per child over the rest of the state. She didn’t even attempt to mitigate the $165 cut with the 20j funds, she just singled out these districts for extra pain.

The impact on these students reflects the math problem that 20j corrected. While Birmingham is harmed, other districts that spend just sightly above the foundation allowance are devastated by this move. The current data is below (data pulled from the October 2009 State Aid Report):
State Aid 20j Impact 2009-10

There is NOTHING fair, equitable, or just about this politically motivated attack by the Governor.

An Now for Something Completely Different

2009-10-16T21:27:00.008-04:00

I've been working with a very talented team of people for the last six months putting together a new non-profit initiative call the Michigan Security Network. This effort, initiated by CEO Leslie Touma, is designed to bring new jobs to Michigan that focus on opportunities in the Cyber Security, Bio-Defense, and Boarder Defense areas of the Homeland Defense Network. We’ve created a partnership of Universities and corporations that links schools like Wayne State University, U of M, Michigan State, and Lawrence Tech, with firms like General Dynamics, DTE, Roush and Dow to support virtual incubators for promising research applications and spin out opportunities from existing corporations.

Additional support is provided by the Kauffman Foundation and Wayne State through "FastTrac Training" to facilitate technology startups. The objective of this work is to retain and recruit new jobs for Michigan's technologically advanced work force. The inaugural event is November 4th; a conference at the Hyatt Regency Dearborn featuring Bruce Davidson the Director of Department of Homeland Security, Reandal Charlton, the executive director of TechTown, Parney Albright President and Vice Chairman of Civitas Group, Dr. Farnam Jahanian Chairman/Founder of Arbor Networks, Ken Theis, Chief Information Officer for the State of Michigan, Oakland County Sheriff Mike Bouchard, and others. This kickoff event will help show case the massive amount of talent and energy Michigan can bring to bear in this $113 billion a year industry.

The conference (register here) also represents a small step towards a new future for Michigan's students. The skills required for the innovative work in this industry aline with the goals of Birmingham's 21st Century Learning objectives.

The Cliff

2009-10-16T12:58:00.005-04:00

A new report from the Nelson A. Rockefeller Institute of Government highlights the funding cliff we’ve been hearing about. The Politics K-12 blog summarizes this report in an article: Stimulus Funding Cliff Is a Reality The Rockefeller report (full report can be found here, caution opens a .pdf file) reveals how difficult the challenge for our state is, and will be, in the future. Individual state statistics highlight Michigan’s plight. We are consistently leading the decline or are number 1 or 2 in states that have lost income, tax revenues, and jobs.

The data shows the depth and breath of the impact of this recession, and Michigan is far from alone. In the total measure of declining economic activity, Michigan leads the list having fallen 23.7 points from January 2007 compared to the US average of a 3.4 point decline (page 13).

An interesting anomaly is the increase in sales tax collections from 6/08 to 6/09; that component jumped 12.1% as personal income tax and corporate income tax fell 23.5% and 38.2% respectively (page 16).

Another chart shows Michigan’s change in Per-Capita tax revenue from the most recent 4 quarter peak to the 4 quarter total ending 6/09 (page 20). Here Michigan went from a peak of per capita tax revenue of $2,618 to $2,434, a drop of only 7.0% This suggests a “slow bleed” as opposed to the dramatic fall that a state like New York is experiencing. However, when coupled with the decline in economic activity the fall off is likely to accelerate behind unemployment growth. Not factored in is the continued fall in property tax revenues, a major source of school funding in Michigan. Taken together, it may be bad now but the worst is yet to come. In the ironically named Highlights section, the report shows "total state tax collections declined by $63 billion or 8.2 percent from the previous year. That loss is also a record, and is roughly twice the amount states gained during the year in fiscal relief from the federal stimulus package."

So, now more that ever we need leadership from Lansing in the form of structural change and reform. That cannot happen in isolation. The Governor has the power to pull all parties together and produce a collective vision for reform. This is were the charge must come from, but this is where the leadership is lacking.

An Apology To the MEA

2009-10-15T16:28:00.007-04:00

I'm sorry. That's to the MEA. Apparently some feel that I've attacked them which is not my intent. I consider the MEA to be an integral part of fashioning a solution to the mess we face in funding schools today. Schools stand to lose nearly 10 years of funding increases over the next 24 months, this fact is only debated as to how much larger the shortfall will become. There is no single solution to the problem, there is no single bad actor. Whether it's a combination of tax changes (e.g., why has the beer and wine tax stayed the same since the ice age), adjustments to total compensation (which can include benefits), or an overhaul of the whole system, we need all players at the table soon. So again MEA, I'm sorry. I'm just looking for help from you, the Legislature, the Governor, and the thousands of other players involved in this undertaking. I may be alone in this but I don't think we have any time to waste.

School Funding Cuts

2009-10-15T11:10:00.008-04:00

Tax revenues for Michigan schools are not coming back; schools will see deeper midyear cuts on top of the $165/student cut already announced. Next year will be much worse as schools stand to lose over $500/student. It is time for the MEA to come to the table just as the UAW did and readjust their reality. Teachers are not the bad guys here but nearly 90% of operating budgets are dedicated to salaries and benefits. Existing contracts and agreements were crafted in a dramatically different economic climate. Very small changes to compensation and benefit agreements shared over thousands of public teacher and administrator contracts will have a dramatic impact on local operating budgets that can help alleviate the impact of Michigan's recession. Now is the time to push our state legislators to force the MEA to the table and solicit suggestions from them. For the 800 pound gorilla of the UAW to move it took a 1,000 pound gorilla of bankruptcy. Michigan's recession is the 1,000 pound gorilla and the MEA must wake up to its existence.

The union talks about "family," every family I know (including mine) has seen wage and benefit cuts, some as much as 20% to 30% as a response to the recession. If we are indeed family, how is the MEA helping? How is a 1% to 4% adjustment equivalent to "slashing" pay (quoting from AFT Union leader David Hecker) when the tax paying parents of students have endured much worse? Why is a proposed plan to save on health care costs equivalent to a declaration of war? The traditional MEA response of throwing the youngest teachers off the bus will not work; it will only make things worse.

I love my teachers, and I want to keep them employed at schools with reasonable class sizes -- to achieve this we need the MEA's help. Every parent of every child should contact their elected representative and demand hearings involving the MEA, get them to the table before it's too late. Urge the MEA to allow local units to open existing contracts for structural adjustments. Find the legislative will power to adjust revenue streams. A real family responses to a crisis with hope crafted from shared sacrifice, not with a cry of WAR!

Where's the MEA?

2009-09-30T13:33:00.019-04:00

As GM, Ford, and Chrysler melted down their unions recognized the crisis and engaged in the unpleasant task of dealing with economic reality. To save their industry, and their own member’s jobs, union leaders renegotiated salaries, benefits, and work rules. Members then voted to approve these changes. None of this was easy or particularly pleasant, but it was necessary. Marking this effort was the realistic engagement by UAW leadership; precisely the type of realistic engagement missing from the MEA.

So where is the MEA? Apparently in denial of the facts driving Michigan’s economic depression. Tax revenues are dramatically and permanently down, unemployment has jumped to over 15%, the highest in the nation. We continue to hemorrhage jobs. Any turn around will be a long time in arriving. Recognizing this, Oakland County has frozen salaries and cut pay to deal with declining revenues. This creates STRUCTURAL CHANGE that will save jobs, preserve services, and balance the budget in the face of long term revenue loss. To quote Deputy County Executive Bob Daddow “the county won't recover to 2009 financial levels until the year 2020 or 2025.” That’s from the most economically affluent county in the State!

Eighty-five to ninety percent (85% -- 90%) of a typical school operating budget is consumed by salaries and benefits; there is NO OTHER line item which exerts a bigger push on budgets. Michigan’s education budget exceeds $13 billion annually, it is the single largest budget item. While not 90%, a majority of that budget is dedicated to salaries and benefits. Very small changes to existing contracts (perhaps as little as 1%), adjustments to steps and lanes, and minor changes to benefit programs could reap hundreds of millions in cost savings. Small structural change would stabilize operating budgets for years.

Is the MEA living in an alternate reality which exempts them from this financial crisis? Unbridled support of the MEA’s money pot, MESSA, seems to support that notion. The advertised claim is that MESSA has saved Michigan money. Here is the inconvenient truth: MESSA is the single most EXPENSIVE health care option forced on Michigan schools, a fact supported by the Hay (see chart from report here). The MEA’s claim is akin to saying Governor Granholm is “saving” taxpayer money by buying a Bentley instead of a Rolls Royce to chauffeur her to and from work. The claim may be “true” but the statement, in context, is absurd.

The MEA needs to take a page from the UAW and support their local units in opening contracts for job saving adjustments. The MEA can accept that revenues are permanently down and will not rebound for years. The MEA can act to save member jobs and preserve programs for school children. Of course, the MEA can opt to demand a larger share of an ever shrinking pie. My hope is that the MEA chooses the path of economic reality as the UAW did; if they do, we will all be better off in the long run.

Funding Michigan Schools 2009 and Beyond

2009-09-28T10:18:00.010-04:00

I’ve been very quite over the last few months. With the continued drum beat of bad economic data filtering in there was only one, ONE, proposal that targeted cost savings for Michigan school districts -- Andy Dillion’s idea for a comprehensive reform of the health benefit for Michigan’s teachers. I applaud Representative Dillion on his proposal and subsequent plan. The essence of the plan is supportable, achievable, the savings are measurable, and substantial. I don’t feel this program should be managed by the state (any INSURANCE company can run such a plan - and that would disqualify MESSA because it is NOT an insurance company); there is clear evidence to support the savings realized from standardized programs and expanded participant pools. It’s a good start and deserves to move forward in the face of self interested and deceitful lobbying from MESSA.

What legislators, MESSA, and voters cannot hide from is the massive funding shortfall Michigan is facing over the course of the next few years. Any response must be

structural and long term. The picture is clearly presented by the House Fiscal Agency (direct link here -- THIS OPENS A PDF FILE):

(All $’s in Millions)

FY 2009-2010

FY 2010-2011

Revenue

$12,156.6

$12,476.3

Baseline Expenditures

$13,163.6

$13,143.2

Balance

-$1,007.0

-$666.9

Federal Stimulus Dollars

$805.1

$0.0

Balance Shortfall

-$201.9

-$666.9

It’s time for school boards to grow a spine and start doing the right thing, not the easy thing. In Birmingham we carefully considered, and then thoughtfully implemented, the contracting of custodial and transportation functions. That has saved our district nearly $8 million over two years! If other districts followed our lead the savings would preserve hundreds of teacher jobs and vital programing. Since 2002 Birmingham has pair over $22 million from our operating budget. More work lies ahead of us and we need legislative help from Lansing to achieve lasting structural changes (health insurance costs, pension costs) -- but if we all accept the truth that our economy has fundamentally changed, we can act in unison to right this ship without compromising the core mission of Michigan Schools.

Public Employee Relations Act KILLS JOBS!

2009-06-25T10:26:00.005-04:00

Contact your state representative and urge them to eliminate job killing provisions inserted into House Bill 4788 (HB 4788). The bill would mandate that the privatization of support staff would be subject to collective bargaining. Whoever (Rep. Bert Johnson and Tim Melton) slipped this garbage into this legislation should be subject to mandatory drug screening. That may seem harsh but consider this, in Birmingham we contracted our transportation and custodial services. This was not an easy decision, but we SAVED over $3.5 MILLION annually by doing this. Where did that money go? It went to KEEP TEACHERS EMPLOYED. Out of all the school districts in Oakland county we are the only one that did not announce massive teacher layoffs for the coming school year. This is why districts contract non-classroom services, to save money for programs and teachers. Why in the world would these two legislators insert job killing language in the face of the worst economic crisis Michigan has ever faced? As I speculated, maybe a test is in order.

Contact your representative and urge them to eliminate the changes to PERA from HB 4788, or ask them to remove the "tie bar" to the other education bills. The "tie bar" is a tactic to gain approval of multiple bills together. This bill has been tie barred to House Bills 4787 and 4789.

An Even Harsher Reality

2009-06-17T12:09:00.011-04:00

The following is an edited letter to my state legislative representatives:

School boards across the state requested a change to the sinking fund legislation to support technology and infrastructure needs. In exchange we got a sharp finger in the eye and rhetoric about taxes. These are not partisan issues, they are issues of survival. State aid will cut $370 per student at the very end of our school year. Stimulus dollars are supposed to fill the gap but many districts will have to borrow to get reimbursement. Next year is worse with a $590 per student shortfall, and not enough stimulus dollars to fill the gap. In 2010/11 the prospects are gruesome with projected shortfalls of nearly $1,000 per student and NO stimulus offset. For Birmingham, that wipes out ALL foundation allowance increases since 1994.

Voter approved sinking funds could offset some of this disaster while limited to an amount equal to the depreciation proxy of their physical asset base. But stronger state wide action is needed to save public education.

Birmingham has cut over $22 million from our budget over the last 7 years. We took the controversial (but correct) step of contracting our transportation and custodial providers. We trimmed administrative costs. We consolidated buildings years ago. We’re happy to share our insights.

Justifiably or not the House, the Senate, and the Governor are all perceived as contributing to a culture of "no" when presented with alternatives to the status quo.

For my State Representatives, here’s some ideas:
1. Get a statewide healthcare plan for teachers AND public employees. Set us on equal footing with the union monopoly and take advantage of scale.
2. Adopt the changes in sinking fund language, voters are grownups and they can decide.
3. Reform the pension funds -- under traditional accounting the state of Michigan would be functionally bankrupt when allocating the need to fund the actuarially accrued liabilities of the system (a shortfall of over $30 BILLION for teachers alone).
4. Mandate minimum district sizes - nothing under 4,000 students.
5. Mandate publicly disclosed negotiating positions for collective bargaining of public unions; this is my money I deserve to know how it is being bargained.
6. Mandate MESSA refund its cash holdings to districts and teachers - that is quick way to get $350 MILLION back to schools.

The savings are out there, but political will is required. Call your legislators and demand action today, tomorrow is too late.

Harsh Realities: School Funding

2009-05-20T11:36:00.006-04:00

From Oakland Schools and Judith Allen, the Director of Government and Community Services: the estimated short fall in the school aid fund for the current year (2008-09) will be $420 to $450 million (or about $258 to $277 per student). Next year (2009-10) things get worse with a shortfall of $800 million to $1 billion (or about $492 to $615 per student). To put that in perspective, over the next TWO YEARS school aid funding will be short between $750 to $892 per student measured against the baseline of projected 2008-2009 funding. That range equates to approximately 8 years of foundation allowance increases.

Typical of Lansing the funding gap will reportedly be filled with the $1.3 billion State Fiscal Stabilization funds (ARRA - a/k/a American Recovery and Reinvestment Act) while very little or no consideration is given to necessary reorganizations required of systemic costs and revenues. What Judith’s memo highlights is the need for districts to “apply” through MEGS (Michigan Electronic Grants System) for the ARRA State Fiscal Stabilization dollars” to get the funding. So while the state funds will not be there to fund the current foundation allowance, districts will have to apply to the grant making bureaucracy to request money to just make up the difference -- any bets on how that process get manipulated?

What happens when the “stimulus money” is gone? School budgets will be faced with massive funding gaps; remember nearly 90% of school funding goes to salary and benefit costs so much of that funding gap will negatively affect staffing. Think of it this way, if funding vaporizes after the “stimulus money” trick, school aid allowances will revert to a level equal to a ZERO percent (0.00%) increase since 2001-02. Dramatic cuts will be required in the 2010-11 school years.

Compounding matters is a loss in special education funding that will happen at the local ISD level. Projections show that funds available will fall by 12% in 2010 and by a total of nearly 20% by 2011.

For Birmingham that equates to a funding gap equal to $6.1 to $7.3 million, and up to $8 million or more with the ISD PA 18 cuts. Any school district can do the same basic analysis, take the expected per student shortfall of $750 to $892 per student, and multiply by projected enrollment in the year 2010-2011. It’s an ugly picture but it is the reality all districts must plan for going forward.

21st Century Skills -- From an Unexpected Source

2009-04-29T08:28:00.008-04:00

Educators and politicians have been touting twenty-first century skills since the late twentieth century. On occasion the descriptions resonate with the audience, at other times they fall flat and leave listeners confused. I encountered an example of how these skills can intersect in a wonderful video.

The producers of the video have a simple mission: spread world understanding and peace through music. On the surface it can be dismissed as a “very nice thing to do” without a passing thought. On a deeper level it opens the door to multiple avenues of learning for students. Watch the video and think about these things:

Where are the performers located geographically?
What are the political situations in those locations?
What are the economic and social conditions?
What do these people have in common?
What do you think about the mission behind the message?
How will the internet facilitate the communication of the organization’s goals?
What tools were used to create this collaboration?
Would the “cause” have been as interesting if it were presented in simple written form?

It is the last questions, in my mind, that highlight the reason behind incorporation of “21st Century” skills into curriculum. Reason and understanding cannot come without mastery of fundamental skills learned by all students (reading, writing, arithmetic, etc.), but the conveyance of what is learned and created with these skills is the focus. The “new” skills and tools enhance the message; they also enhance the process of learning and understanding.

"Stand by Me" performed by musicians around the world from SKAT on Vimeo.

Birmingham Schools - Science Olympiad

2009-04-21T12:21:00.002-04:00

Among the many great things that happen outside of the classroom in the Birmingham School district is support for and participation in the Science Olympiad. To capture how much fun the students had, and how much they learned, I've posted a short video of this years event. When you click on the video it should play in HD, if not, choose that option in the lower right and make sure to keep it wide screen so it will fit.

The teachers, administrators, support staff and parents that attended this years event on a beautiful Saturday morning clearly had a great time.

The Fleecing of Michigan’s Teachers and Public Employees

2009-04-20T20:09:00.002-04:00

The MEA, through it’s subsidiary the Michigan Education Special Services Association (MESSA), is diverting over $367 million in badly needed funds from classrooms. It does this through its practice of reselling Blue Cross Blue Shield insurance products under it’s own banner. The Hay Group Report shows that on average MESSA is the most expensive program of all other choices. It's simple math, Blue Cross makes a markup, then MESSA makes it mark up and the cost goes up.

MESSA's balance sheet (show below) quantifies the true cost of this manipulation. As of the most recent audit (full 2008 report here) MESSA has earned and holds over $365 million; it would be $394 million if MESSA was not forced to disclose $28 million in pension liabilities for MESSA staff. MESSA claims a portion of the reserves are for rate stabilization. This is a marketing claim because MESSA is not required to hold reserves. The truth is that Blue Cross Blue Shield is required to hold these reserves because they are the actual insurance provider, not MESSA.

From MESSA’s own 2007 financial statement (page 11 of MESSA financial statement), the reserves belong to “our members and their school districts.” REALLY? OK, I want MESSA to return our share of these “reserves” back to my district -- or failing that, return it to my employees because it is part of their negotiated compensation. Of course I will not hold my breath, MESSA will not even comply with state law which requires disclosure of experiential data (Public Act 106), the law is over a year old and MESSA has not complied (MESSA has no excuse for this, their systems are fully capable of producing this data).

About that $28 million in MESSA pension liabilities: a part of this is attributable to a nonconforming, and underfunded pension plan. Why is it nonconforming? The main reason is to cover extra pension contributions for executives earning over $225,000 per year. Is this really in the best interest of the public employees “covered” by this organization? These are employees that are at significant risk because of massive funding shortfalls at the state level. We ALL need to aggressively cut costs to save the jobs of the people that matter the most -- the teachers in the classrooms.

MESSA is redundant organization (Blue Cross Blue Shield already provides the same administrative functions) that marks up its product (which is buys from Blue Cross Blue Shield), and withholds the rebates it earns through the good health of its members (rebates given by Blue Cross Blue Shield to reflect cost savings) so it can fatten its executive ranks and manipulate its own political objectives (by deciding when and where to change the rate it charges for its Blue Cross Blue Shield insurance). The MEA is selling its members short, it should live up to its own words and recognize that these funds belong to “our members and their school districts.”

MESSA 2008 Balance Sheet MESSA 2008 Balance Sheet R1Lawrence From MESSA's 2008 financial statement (page 4 or document, page 2 of statement) is the true magnitude of how much money MESSA holds on it's balance sheet. This money belongs to it's members (teachers, public service employees, and school districts that contribute their payroll to MESSA under collective bargaining agreements). It's time to send the money back to the members.

Did You Know

2009-03-31T21:52:00.004-04:00

A refined presentation of a brilliant idea from Karl Fisch from his web site The Fischbowl. It's a compelling remix of an inspired presentation which attempts to present just how much our world is changing, how quickly we are adapting, and how far we have to go. The quiet question is what should, could, or need we do to embrace the future; not only as Americans but as a world community.

As the presentation is designed to provoke conversations I'd like to start a thread: a data point in the video reveals that the average learner will have 10 to 14 jobs by the time they are 38. How can teachers, locked into a system that does not promote professional flexibility, relate to or comprehensively prepare today's learners for this reality? Is there a way to provide more professional flexibility for teachers today? What would have to change to allow for such a departure from the norm?

Detroit City Council -- No Common Sense

2009-03-11T16:50:00.006-04:00

I've lived in this area for most of my life and for decades I've worked for, waited for, wished for, and even prayed for the impending "revival" of Detroit. As a commercial loan officer for what was the National Bank of Detroit I participated in many initiatives which targeted redevelopment of the city. I saw many good people achieve nominal, but typically small, levels of success toward that goal. I was always struck by the hope and vision of these well meaning and resourceful individuals. A common thread tying these personalities together was a wish for the emergence of transformative political leadership. I shared that wish, I remain disappointed.

The Detroit City Council's rejection of a regionally cooperative renovation of Cobo Arena is a potentially crippling setback for a city and a region that cannot stand anymore set backs. I hope the Mayor's veto of this ill advised rejection stands, and I hope that we all continue the work of moving forward, because the price of falling backward is unimaginable.

One vision of a backward path for Detroit can be seen below - It is a small pre-production film which paints a sometimes sad, yet accurate and eye opening tale of our town. A person in the film talking about the People Mover informs us that when it was built there "were hopes of going farther, but they were never realized...." So, where do we go from here?

Detroit Wildlife from florent tillon on Vimeo.

Financial Crisis Explained

2009-03-07T10:47:00.002-05:00

A short video painting a very simple, yet accurate, picture of the complexities of the current financial crisis. The total video runs just over 11 minutes.

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Irresponsible Rumors

2009-03-06T13:42:00.005-05:00

Now, before I attempt to squash the rumor du jour in Birmingham, let me reiterate the disclaimer on these pages:

This is a personal blog. None of the opinions expressed here should be construed to represent the opinions of other board members, the Birmingham Public Schools, or any other group with which I am affiliated.

With that handled let's cut to the chase. I have never heard any person affiliated with the Schools even raise the possibility of privatizing the para-professionals. This rumor is a fabrication.

20j Again Into the Breach

2009-02-26T01:11:00.001-05:00

The annual attack on 20j funds represent either ignorance, arrogance, or willful misrepresentation. Section 20j “funds” represent nothing more than the correction of a language flaw embedded in the original Proposal A legislation (imagine that, a mistake in legislation) that surfaced in the 1999-2000 school year.

The correction (added as section 20j) ensures that hold harmless districts (like Birmingham), get at least the same MINIMUM increase in the foundation allowance as all other districts. The original language created an unintended penalty that negatively affected the 40 districts covered by 20j. The idea of “minimum” is key because many non-20j districts receive TWICE the minimum foundation increase. The 20j adjustment was designed to protect the integrity of Proposal A - a letter from Michael J. Bouchard (now Oakland County Sheriff), who was floor leader of the Michigan Senate reminds legislators of this fact.

To review some myths and facts:

MYTH: 20j is welfare to “rich” districts.

FACT: As discussed above, 20j ensures all districts get only the same minimum increase as all other districts; many non-20j districts get twice the minimum.

MYTH: 20j funds are why “rich” districts are “rich.”

FACT: The major funding differential between hold harmless districts and other districts is 100% attributable to LOCAL property taxes that have been in effect since Proposal A was passed. For Birmingham that difference is represented by $3,188 per student (an amount that has been constant since 1994 -- the amount has not increased and is fixed by Proposal A). Since 1999 total 20j adjustments for Birmingham aggregate $122.23 per student (less than $1 million).

MYTH: Taking 20j away from “rich” districts will solve the funding problems of other districts.

FACT: Collectively, 20j represents about $32 per student (1,620,531 K12 Students in Michigan).

Rather than punishing 20j districts, we should all work together to address our biggest costs: healthcare and pension costs. Current pension costs are nearly $1,000 per student per year. If fully funded the burden would approach $24,744 per student (or an additional $853/student per year for 29 years).

Attacking 20j just “re-breaks” the Proposal A model. The Governor and the Legislature keep running away from the real problems at the expense of every citizen and child in the State of Michigan.

Early Retirement Proposal Gets Reality Check

2009-02-25T11:42:00.006-05:00

The recent MEA proposal to encourage teachers to retire early has been analyzed by the House Fiscal Agency. The report's conclusion shows the net ANNUAL cost to be between $501.7 million and $657.9 million - these costs are driven by the need to fund the added pension benefits AND amortize the unfunded accrued actuarial liabilities (UAAL).

The only flaw in the report is the understatement of the true cost given the impact of the reported $9.2 BILLION pension fund investment loss. The pension report "hides" this data by utilizing a "smoothing" analysis to mitigate market fluctuations - the fact is that the market has deteriorated since the pension audit and the "smoothing" is only hiding the magnitude of the actual problem. You can get the report here (caution, this will open the .pdf file).

Michigan Teachers' Pension Fund Lost $9.2 Billion in 2008

2009-02-02T09:11:00.005-05:00

MPSERS (Michigan Public School Employees' Retirement System) details a $9.2 BILLION loss in asset value on page 19 of the Comprehensive Annual Financial Report (image below), it is in the second line of the third paragraph.
MPSERS - Michigan Teachers' Pension Fund Lost $9.2 Billion in 2008

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The contribution rate schools will be forced to pay will be expanding significantly to pay for this loss, and to pay for the actuarial deficit the program has accumulated. That deficit, using the old asset value, exceeds $30 billion. Add the current loss to the amount and we approach a $40 billion deficit. Even amortized over 20 years that adds nearly $2 billion in year in extra payments - that equals an added cost (and additional funding requirement) of $1,234/student. Together with the current per student pension contribution of $981 and you have a cost of $2,215 per student or 30% of the $7,316/student foundation allowance. That's simply not sustainable.

The deceptive "funded ratio" is seen on page 18 of the document:

MPSERS - Teacher's Pension Audit Hiding the Real Facts

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The page which details the use of old asset values. The current report simply ignores the current loss of $9.2 billion. How is this different that what Bernard Madoff did to his clients? He hid behind the guise of GAAP compliance for years. Get the full report here, the detail is in the footnotes and related disclosures.
MPSERS - Michigan Teachers Pension Fund Deceptive on its Financial Performance

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MEA Retirement Plan Sure to Kill Michigan Schools

2009-01-29T15:05:00.005-05:00

The MEA’s proposed early retirement plan (which boosts the pension payouts for eligible teachers by an average of $500 per month) is such a monumentally bad idea it defies reasonable logic. The MEA must be using magical hedge fund math, or attempting to replicate a Bernard Madoff ponzi scheme. Here are some “inconvenient truths” about the condition of the Teacher’s Pension Plan (a/k/a Michigan Public School Employees Retirement System):

The plan (MPSERS) admits having an actuarial deficit of $30 Billion,
The plan LOST $9.2 Billion in asset value for the year ending September 2008,
State mandated pension contributions are consuming a higher percentage of school budgets than ever before (the projected contribution is expected to increase to 17.5% per salary dollar, then escalate to over 30% in the following five years). These are numbers from the Citizens Research Council.

The pension is in such bad shape that the current audit report is using asset valuations that are nearly 2 years old to calculate its health (the funded ratio). So while the pension claims to be 88.7% funded the number is more likely closer to 70% or less (taking into account the $9.2 Billion loss noted above). It’s possible that the actuarial deficit is approaching $45 billion. That deficit ($45 Billion) will come out of local school budgets; that kills local budgets even if it’s amortized over twenty years. The MEA proposal not only adds to the current burden ($981/student), it accelerates the need for contribution increases significantly (just amortizing the accrued unfunded liabilities of the system over 20 years will add $1,234/student per year ). That would consume 30% of the current foundation allowance. See a review of the issue here.

If the MEA is serious about helping local budgets here’s an idea; refund some of the nearly $350 million in overcharges levied to schools by MESSA (the health care administrator owned by the MEA). That money is sitting in MESSA accounts and rightfully belongs to Michigan tax payers; it also represents the projected shortfall in next years school aid funding.

(All $’s in Millions)	FY 2009-2010	FY 2010-2011
Revenue	$12,156.6	$12,476.3
Baseline Expenditures	$13,163.6	$13,143.2
Balance	-$1,007.0	-$666.9
Federal Stimulus Dollars	$805.1	$0.0
Balance Shortfall	-$201.9	-$666.9