The State of Michigan will soon refund public school employees more than $550 million for paycheck deductions ruled unconstitutional by the Michigan Supreme Court.
Saline Area Schools Assistant Superintendent for Human Resources Curt Ellis said the district learned Tuesday that the state plans to deposit the money it owes to Saline employees when the state makes its regular aid payment Jan. 22.
“We’re going to make every effort to get the money out to the employees as soon as we can,” Ellis said.
However, he said, there may be complexities.
Trustee Dennis Valenti, who serves on the board finance committee, elaborated.
“There are a host of issues around getting the money out to the people who are owed. Some of those people have left the district. And we may not have the current address for all of those people,” Valenti said. “So be patient. Our staff is on top of it.”
Saline Area Schools employees getting the refunds will be taxed, Ellis said.
In 2010 the state passed a law that reduced the pay for teachers and other school employees by three percent to fund retiree and health care benefits. Those deductions, made until a replacement law was enacted in 2012, must be refunded, with interest.