Michigan Supreme Court: Return $554M to school employees

LANSING, Mich. (AP) – The Michigan Supreme Court says the state must return more than $550 million to school employees who had money deducted for retiree health care.

The court ruled 6-0 Wednesday.

School employees had 3 percent of their pay deducted for about two years under a law signed by Gov. Jennifer Granholm, but the law was declared unconstitutional. Snyder in 2012 signed a new law that has survived court challenges.

The Supreme Court says the 2010 law violated the contract clauses of the federal and state constitutions, and the state failed to show it was reasonable and necessary to further a legitimate public purpose.

Gov. Rick Snyder, who’d wanted to keep the money, says he’s “pleased that taxpayers will have resolution.” The money’s in escrow, so the decision won’t affect the budget.

We welcome thoughts and comments from our viewers. We ask that everyone keep their remarks civil and respectful. Postings that contain profanity, racist, or potentially libelous remarks will be deleted. We will delete any commercial postings, as well.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s