Education Cuts Hinge on Pension Reforms

As Gov. Rick Scott signed a merit pay bill to reward effective teachers, senators expressed concern over a proposal for next year's education budget, which currently includes a $1 billion cut.

At the heart of the concern was a $678 million reduction in spending derived from a contribution from teachers toward their pensions. Currently, Florida teachers are not required to contribute to their own retirement plans. The level of the contribution was in dispute among members of the Senate Education Pre-K through 12 Appropriations Committee.

The proposal suggested a 3 percent contribution level, which alarmed some senators.

"At some point that was predicated on 5 percent. That's something that I under no circumstances intend to support," said Sen. Paula Dockery, R-Lakeland.

Gov. Scott has suggested a 5 percent contribution for all 655,000 members of the Florida Retirement System, but a bill in the Senate currently includes provisions for a 2 percent contribution for most employees and a 4 percent contribution for senior level employees.

"That was never, ever in the plans of the Florida Senate. It never has been, it never will be," said Sen. Jeremy Ring, D-Margate, who is leading the move to reform the state's pension system.

Ring was irked the 3 percent number was thrown out prematurely, and said that a more in-depth explanation of contribution levels and reductions in the cost of living adjustments, or COLA -- which are not included in Ring's pension bill -- would be forthcoming when the full Senate Budget Committee meets next week.

"Iassure everyone there will be a much greater explanation of this next week. I will assure you it has been thoroughly worked through," Ring said.

Ring said the COLA reductions which, along with the other pension reforms, would apply to workers retiring after July 1, would be the main source of savings. His pension bill as currently constructed only has about $200 million worth of savings.