Posted on 05/12/2016 5:04:34 AM PDT by MichCapCon
The Detroit News reported this week that the U.S. Department of Education allegedly gave Detroit Public Schools $30 million to help it pay required contributions to an employee pension fund, but the school district never sent the money into the state-run system. The $30 million was supposed to cover pension contributions for DPS employees whose pay came from federal grants.
ForTheRecord says: For a clear example of how the rising cost of maintaining a defined benefit pension system is strangling school budgets, one need look no further than the Detroit school district. Employment has been cut in half, from 15,465 full-time employees (FTEs) in 2007-08 to 7,280 in 2014-15. (Enrollment fell an equivalent amount.)
Despite the decline, the district paid 65 percent more per employee for required pension contributions in 2014-15, or $13,527 per full-time employee. In 2007-08, the total cost for half as many employees was $126.5 million, or $8,181 per FTE.
This must be the governors fault as well. First Flint now Detroit. /s
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