Last Updated: August 11. 2010 1:00AM
Federal aid bill saves 4,700 teachers' jobs in Michigan
State gets $698M for education, Medicaid

Nathan Hurst / Detroit News Washington Bureau
Washington -- Michigan school districts will see an infusion of
federal funds to save 4,700 teachers' jobs in time for classes next
month after the U.S. House on Tuesday approved $26 billion that also
covers Medicaid payments to states.

The vote, 247-161, during a rare session that brought representatives
back to the Capitol during their August recess means the state will
get $698 million: $380 million for the Medicaid fund and $318 million
to pay teachers, according to estimates provided by the independent
Center on Budget and Policy Priorities.

To gain enough votes to pass the bill, Democrats had to schedule a cut
in food assistance funds for 2014, which could reduce by an average of
$50 the monthly benefits for a family of three. That provision would
offset $12 billion of the bill's cost, but some Democrats have vowed
to rescind those cuts before they take effect.


Gov. Jennifer Granholm, who warned of cuts in mental health services
and payments to doctors if the measure didn't pass, said Congress
"passed legislation that will keep Michigan teachers educating our
children and ensure that our citizens have access to health care
services."

Tiffany Brown, Granholm's spokeswoman, said the state should start
receiving the money within 30 to 45 days. About 4,700 teacher jobs
were in jeopardy despite roughly 17,000 teachers agreeing to take
early retirement. Some districts still had to cut jobs beyond the
retirements to balance budgets.

Without the Medicaid money, Michigan faced a $560 million gap in
benefits payments. With it, the state still has to find another $180
million in revenue or cuts.

President Barack Obama signed the bill within hours of the House's
vote at the White House, where earlier Tuesday he was joined by
teachers in a Rose Garden ceremony.

"We can't stand by and do nothing while pink slips are given to the
men and women who educate our children or keep our communities safe,"
Obama said.

The vote was largely along party lines. Democratic leaders argued the
bill would provide much-needed aid to states and would prevent
ballooning class sizes and severe cuts in health care for the poor.
Republicans countered the bill was wasteful and constituted a
"bailout" for the states.

The Senate narrowly passed the measure Thursday, after the House had
begun its summer break, necessitating the special session.

All 15 of Michigan's House members returned to the nation's capital
for the vote, including Rep. Carolyn Cheeks Kilpatrick, D-Detroit, who
was defeated in the primary last week by Hansen Clarke, and retiring
Rep. Pete Hoekstra, R-Holland, who lost out on the GOP gubernatorial
nomination. Kilpatrick voted yes on the bill, while Hoekstra voted no.

"Further increasing taxes on employers to pay for bailouts in the
public sector is not helping to create jobs and grow the economy,"
Hoekstra said in a statement. "Government needs to step on the brakes
and stop creating new mandates that require additional taxpayer
dollars to pay for them."

In supporting the bill, Rep. John Dingell, D-Dearborn, said its
Medicaid funding would create or save 158,000 firefighter and rescue
jobs nationally.

Rep. Sander Levin, D-Royal Oak, said the bill is "fully funded" by the
closure of a tax loophole for multinational corporations.

"It is closing a tax loophole used by some ... to ship jobs overseas,"
the chairman of the House Ways and Means Committee said in floor
debate.

Levin and his committee helped craft the corporate tax change, hoping
it will discourage American companies from shifting employment out of
the United States.

Rep. Dave Camp, R-Midland, the committee's ranking Republican member,
argued the bill "will do nothing to reduce the unemployment rate in
this country," and expressed concern state governments haven't cut
spending enough during the recession.

The House also Tuesday passed a $600 million measure to boost security
on the U.S.-Mexico border by hiring more enforcement officers and
making greater use of unmanned surveillance drones. That bill still
has to go back to the Senate.

[email protected] (202) 662-8738 The Associated Press contributed.



>From The Detroit News:
http://www.detnews.com/article/20100811/METRO/8110372/Federal-aid-bill-saves-4-700-teachers--jobs-in-Michigan#ixzz0wIYwLLrQ
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