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Governor Granholm says 17,000 took teacher retirement deal

By Rick Pluta, Michigan Public Radio Network

http://stream.publicbroadcasting.net/production/mp3/wkar/local-wkar-909657.mp3

LANSING, MI –

Governor Granholm's office says about 17,000 teachers and other school employees have accepted the state's retirement offer. That's the official count Friday from the state pension office. As Michigan Public Radio's Rick Pluta reports, the governor and the Legislature adopted the plan to save school districts money during a tough economy.

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The governor called for the plan to get veteran school employees to retire, and replace with younger teachers, administrators and support staff at lower salaries with less-generous benefits. The savings will vary from district to district depending on how many employees retired and how many are replaced. But the governor's office says statewide, districts are expected to save more than a half- billion dollars. But the savings will be less than expected.

That's because the plan anticipated a lot more school employees taking the deal - upwards of 35,000. School officials say many districts will still have to lay off staff and cut back on programs to keep their local budgets balanced. At the same time, they are trying to fend off efforts to dip into a surplus in the School Aid Fund to help the state deal with its budget crisis.

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