KALAMAZOO, MI (WKZO AM/FM) – Under pressure from labor groups to increase wages, the Kalamazoo Public Schools Board of Trustees will be getting a crash course in education compensation over the next few meetings.
Last night Operations Director Jim English started with pensions. He mainly blames state legislators for mismanagement of the School Retirement Fund.
As of 2021, it was $31 billion in debt. The liability has been shifted to school districts, leaving many struggling to compete with the private sector for help.
The Kalamazoo Public Schools share of that debt is $200 million.
As a result, English says the wage and retirement packages available to new employees aren’t nearly as competitive as the ones they used to offer.
Kalamazoo Public School’s board President Patti Sholler-Barber says that directly affects their ability to recruit and retain employees. She says it comes back to politics and who gets voted into office, they are the officials making these choices.
English says pensions are just one of several employee related costs that they do not control. He plans to talk about healthcare and other expenses at future meetings.
English says the amount they are paying to bail out the School Retirement Fund will change again this weekend. October 1, 2022 is the beginning of the new fiscal year in Lansing.
(reporting by John McNeill)
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