Michigan Gov. signs tax relief for teachers

Michigan Gov. Gretchen Whitmer has signed legislation to permanently eliminate the 3% health care contribution for public school teachers, allowing educators to keep more of their earnings. House Bill 5803, introduced by Rep. Matt Koleszar, also reduces the payroll contribution rate for school districts to the Michigan Public School Employee Retirement System (MPSERS) by 5.75%, freeing up funds for classroom investments. The legislation will return approximately $600m to schools, providing districts with more predictable funding. “This is a direct investment in classrooms across the state,” said Tina Kerr of the Michigan Association of Superintendents and Administrators. Supporters, including Koleszar, view the law as fiscally responsible, allowing schools to focus on their unique needs. However, Republicans argue the move jeopardizes pension liabilities, with Rep. Luke Meerman calling it a “raid” on the teacher retirement system. Despite this opposition, school leaders praised the law for easing financial burdens and boosting teacher pay.