 |
Click here and enter your zip
code to get your state legislators' contact information.
 |
NEA RateSmartsm
Credit Card
Save money with one of the lowest rates anywhere.
 |
By now all AEA members should be immersed in whatever their summer plans happen to be. Some are attending graduate school, traveling, reading, relaxing, “workshopping,” or otherwise occupied in summer activities. No matter what you are doing, the world goes on and things continue happening. Here are just a few of them.
The economy still lags
Alabama’s Education Trust Fund (ETF) continues to fall behind all previous expectations. The current fiscal year ending September 30 will likely end with a higher level of proration than first thought. Earlier this year, projections were we would have proration of about nine percent for 2008-2009 fiscal year. At the end of May, the ETF showed a deficit of over 11 percent. Next year continues to look every bit as bad with few signs of major improvement in the state’s economy. Last week unemployment statewide rose almost another full percentage point to 9.8 percent. Officially nearly one of every 10 people living in Alabama today is unemployed. This is not a good sign for a quick recovery of our economy.
PEEHIP and TRS cost
A sinking economy plays havoc with Teachers’ Retirement System (TRS) assets. Investment earnings have borne, very early from the time TRS was created, much of the cost of TRS monthly benefit payments to retired members. When the value of investments goes down, TRS earnings drop. At that point, the state must step in with new dollars to keep the system sound. The need for an increase in state funding will have to go up again in the 2011 budget, or risk letting our overall credit rating for the state drop in the financial markets because of an increase in TRS unfunded liabilities.
In juxtaposition to a falling economy, health care costs continue to rise at both the state and national levels. At this writing, Congressional committees are marking up proposed federal legislation to provide for near universal coverage in the U.S. The effect, if any, on PEEHIP is not yet known. What is known, is that PEEHIP must have an infusion of new dollars for 2011 to support existing benefits, or either coverage and/or benefits must be adjusted to fit available dollars next year.
Payments are expected to increase about 10 percent for the cost of medical care provided to PEEHIP members. More dollars from the state, more out-of-member pocket dollars, or lower benefits are the options facing PEEHIP next year in meeting its increasing costs.
Summer Leadership
More than 500 local association leaders gathered in Mobile to learn how to become more effective in their association leader roles. They also participated in instructional workshops to assist them to be more effective in their classrooms next year. Evaluation forms at the end of the conference reflected extremely high marks for workshops being helpful and worthwhile. If you have some time next summer, three days at this conference would be well worth your time, too.
NEA Convention
Alabama’s 280 delegates are in San Diego, California, along with 9,000-10,000 other delegates from around the nation to conduct association business. President Obama and Secretary of Education Arne Duncan, along with other national political and educational leaders, will address the assembly during its business sessions. NEA’s support for the stimulus money saved thousands of jobs in Alabama for our teachers and ESPs. Don’t make the mistake of thinking the meeting is just a junket for delegates – they work, often from 7:00 a.m. until well into the evening hours. NEA’s impact in Washington on education issues is greater than ever.
Be ready to go next year
Whatever your summer has brought, try and be ready to enter your classroom when school starts this fall with a positive attitude. Things will be a little different with less classroom supply money and textbook funding for your students. Tight budgets will crimp money in local systems like never before, but remember years ago, your teachers and those preceding them, provided students with an education with much less instructional materials than classrooms now have. A positive attitude and good pre-planning will go a long way in helping both you and your students get off to a great start for the 2009-2010 school year. Remember, the sacrifices everyone makes next year helped to save a colleague’s job. Times will get better again when this recession ends. There is light at the end of this tunnel!