A bill that would offer incentives for early retirement for all state employees and require those that remain to pay three percent of their salary toward their own healthcare ran into trouble on Wednesday when the state House aborted a vote that would have rejected the plan. The Detroit Free Press reports:
An attempt to spur thousands of older state employees into retirement fell apart today, leaving more doubts that lawmakers can wrap up the state budget before the Oct. 1 deadline.
The proposal for sweetened pensions is aimed at saving $60 million and heading off cuts in revenue sharing to cities, which Gov. Jennifer Granholm warned will occur.
But majority House Democrats, warned by labor unions who oppose the measure, failed to line up behind their leader, House Speaker Andy Dillon, D-Redford Township, who led an aborted vote for the bill. Republicans solidly opposed the measure.
As happened several times during the budget battles last year, the House leadership pulled the plug on the vote and withdrew the bill when it became clear that it was not going to pass. The three percent health care payment provision was removed from the bill prior to the vote, but that led Republicans — who generally support the bill — to vote no en masse.
This leaves Speaker Andy Dillon in a difficult position. If the three percent provision stays in, he loses too many Democratic votes; if it is removed, he loses too many Republican votes.
If this plan fails to pass, the alternative is another major cut to local revenue sharing, much of which goes directly to police and fire protection.