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A victory for common sense

Pensions and retiree health care liabilities are major issues facing the state of Michigan, its municipalities and school districts. The funding gaps are severe in some cases. The status quo will not adequately address the challenges ahead.

Change must happen.

Yet that change must happen with full transparency, with time for debate and input from the people most affected by the proposed changes.

After introducing a package of bills in the lame duck session, Republican leadership now has backed off its plan to push them through before the end of the 2015-16 legislative session.

That is the right move. Thank you for listening, legislators.

Listening to the public employees – from teachers to firefighters to police officers – who have been vocal in recent weeks about the proposed changes.

A reduction in health care benefits would be a blow to some retirees. A change in the way school employees’ pensions are funded could put at risk funding for the current system.

Listening to state government experts who say a holistic approach is what’s needed to address $11 billion in unfunded retiree health care costs and $4 billion in unfunded pension debt for local governments statewide.

“We’ve got enough time to address the whole three big buckets of fiscal sustainability (legacy costs, efficiency of services and income),” said Michigan Treasurer Nick Khouri.

“Where you run into problems is when you try to pull one of the three buckets out and try to address that (alone) . You really have to look at the big picture.”

Khouri is right. And the Legislature has time.

The state’s balance of power – Republican Senate, Republican House and Republican governor – is unchanged after November’s election. Those controlling the agenda now control it in the next legislative session, too.

And these issues aren’t going away.

Data from non-partisan experts will be critical. So, too, will be the willingness of all sides to see potential solutions beyond their singular viewpoints. In a time of increased partisanship and acrimonious dialogue, Michigan’s leaders – elected and otherwise – must start anew in 2017 with the intent to work together.

Even when they are at odds, they must work to deliver a sustainable answer to the pension and retiree health care problems that have been allowed to languish for far too long.

There will be sacrifice. There must be compromise. Waiting until the 2017-18 legislative session is a positive step in acknowledging the complexity of the issue and the value of legislators listening to the people they are elected to serve.

— Lansing State Journal

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