Michigan Drowning In Legacy Costs
Just as the automotive industry is tied to huge pension/health care legacy costs, so is the public school system in Michigan:
The retirement system, which provides pension and health care benefits for about 150,000 school retirees, is riddled with loopholes and sloppy policies costing schools tens of millions of dollars each year. Schools now pay $1,015 per student for retirement costs. Those costs are projected to skyrocket in the next decade, raising the specter of hollowed-out schools or cuts in promised benefits to thousands of state retirees.
The automobile industry can “eventually” jettison the costs through the bankruptcy courts but what can the State do?
— Oak Leaf