2007 House Bill 4530 (Balance budget with reduced school pension fund contribution ) (Senate Roll Call 135)
Passed in the Senate (37 to 0) on May 22, 2007, to allow a one-time revision in the formula used by the school employee pension fund to determine how large an annual state contribution is required to cover part of the liability created by promising school employees a defined level of annual post-retirement pension benefits in the years ahead. One of the elements in actuarial liability projections is the value of equities (stocks) in the pension fund’s portfolio, and the usual practice in determining the required annual contribution is to use a five-year moving average of their value, to account for market fluctuations. The bill would allow a one-year average, which given a strong stock market in the past year, has the effect of reducing the state contribution by $190 million less than the true actuarially sound amount, under generally accepted accounting principles. Also, to allow a one-time only “interest only” pension contribution, which is $93 million less than the true actuarially sound amount. The bill began as 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 as part of a work-in-progress consensus plan to close part of the gap. [History, Amendments & Comments]
The vote was 37 in favor, 0 opposed, and 1 not voting
(Senate Roll Call 135 at Senate Journal 48)
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The following legislators supported 2007 House Bill 4530 (Balance budget with reduced school pension fund contribution ):
The following legislators opposed 2007 House Bill 4530 (Balance budget with reduced school pension fund contribution ):
The following legislators did not vote on 2007 House Bill 4530 (Balance budget with reduced school pension fund contribution ):
| Thomas (D) |
Most Recent Comments
1) Re: 2007 House Bill 4530 (Balance budget with reduced school pension fund contribution ) [by Johnnie on December 15, 2008]So, how's this workin' for ya now that the market is down?
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that a case of 'not paying my bills' but rather let's cut our expenses. You can do it, Anon, by not ordering so many pay-per-view movies, not go out to dinner as often, etc. If I can do it, Lansing should be able to do it, too.
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I'll try balancing my budget by not paying my bills. Hey, it works. Thanks for showing me the way, politicians.
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