Pensions for Teachers and Public Finances, as Well as the Quality and Cost of our Educational Outcomes ... Something's Gotta Give

Teachers' Union Vows Appeal of Detroit Bankruptcy Ruling has the story:

"American Federation of Teachers President Randi Weingarten said the bankruptcy court ruling that Detroit is eligible for bankruptcy protection is morally and legally troubling, and her union will be part of an appeal.

U.S. Bankruptcy Judge Steven Rhodes’s Tuesday ruling dealt a major blow to unions, which had argued that pension cuts are protected by a provision in Michigan’s constitution. During his 90-minute presentation outlining his ruling, Judge Rhodes said the power of the federal court superseded that state provision.

“Pension rights are contract rights under the Michigan constitution” and contracts are at risk for cuts under federal bankruptcy law,  Judge Rhodes said. The state is one of only seven with constitutional provisions protecting government-worker pensions, according to the Center for Retirement Research at Boston College.

Ms. Weingarten sees it differently. “Pension benefits are deferred wages” that people expected to get and need, she told reporters Wednesday morning at a Christian Science Monitor breakfast in downtown Washington, D.C.

Ms. Weingarten, who estimates her union has up to 4,000 members in Detroit, said she’s concerned about the viability of public-sector employee pensions, joining a chorus of labor leaders who’ve voiced similar worries and decried what they’ve said have been unfair attempts to slash pensions in multiple states.

“Instead of having more retirement security, we have retirement insecurity,” Ms. Weingarten said.  “I think the ruling is very troubling morally, and if I put my lawyers hat on — which I do sometimes — wrong legally, and it will obviously be appealed.” Ms. Weingarten worked as a lawyer for a Wall Street firm during the 1980s.

The labor leader also pointed fingers at the Detroit banking industry, saying banks contributed to the city’s financial mess but were able “to work out what they needed to work out before the bankruptcy.”

Ms. Weingarten also talked about the need to improve public education. The union, affiliates and community partners will conduct a national day of action Dec. 9, she said."

Summing Up

America's "socialist" educational system is in serious financial trouble.

And the quality of our students' performance compared to the rest of the world is deteriorating consistently and continuously.

We have to get this entire situation under control and on track.

Not to do so is to force our future generations into second class citizenship status and a lower relative standard of living in contrast to the top spot our current and prior generations of Americans have long enjoyed.

That's my take.

Thanks. Bob.