RFArea Newsletter June 2015

Highlights of May District Meeting

 By Laura Zlogar

On May 13, 2015, Marylin Plansky and I attended the District I spring meeting at Rice Lake.  (Even though we belong to District III, its meeting in Sparta is further away so we chose the closer locale.)  The meeting was both informative and helpful.  Here are some highlights:

WRS:  Michael Williamson, State of Wisconsin Investment Board (SWIB) Executive Director, presented an overview of the Wisconsin Retirement System and projections regarding its future.  First, he explained what distinguishes WRS and SWIB from other systems.  The WRS plan design has led to a 99.9% funded program.  Wisconsin employees contribute to it consistently, as do the state and local governments (unlike other states and municipalities—such as Illinois and New Jersey, where their pension systems are failing).  80% of the money in WRS is return on investments.  SWIB is a long-term investor whose goal is to beat benchmarks over the long term.  It has met its goal and kept the system strong through diversification.  The Core Fund is a more conservative fund that avoids the very highs and the very lows; the Variable Fund is more of a roller coaster, earning more at times, but also losing more at other times (i.e., 40% loss in 2009).  Twenty-year returns on both have been consistent:  8.6% for the Core and 8.8% for the Variable.

	2014	3-year	5-year	10-year
Core Fund	5.7%	10.9%	9.3%	6.7%
Core Benchmarks	5.7%	10.4%	8.8%	6.4%
Variable Fund	7.3%	17.4%	12.7%	7.1%
Variable Benchmarks	7.5%	17.1%	12.3%	7.0%

Williamson reported that reducing costs, negotiating lower fees, and investing in low-cost assets combined with the performance of investment strategies have added $1.4 billion to WRS over the past 5 years.  The past, however, doesn’t predict the future.  He listed some issues that may affect WRS, including oil prices, the U.S. growth rate, interest rates, a Euro crisis (e.g., Greece’s economic problems, the U.K.’s possible exit from the Eurozone), and unforeseen issues that may arise to affect world markets.  He also warned that fewer people contributing to WRS (due to the current increases in retirements, people leaving the system, positions not being filled or being eliminated, public schools being privatized and retirees living longer) would also have an effect.

Rural Schools and the Need for Funding Reform:  WREA Executive Director Dave Bennett moderator, Jerry Fiene, Executive Director of the Wisconsin Rural School Alliance, and Robert Soldner, DPI School Financial Services Director provided an excellent discussion on the challenges facing rural school districts in Wisconsin.  More than 65% of Wisconsin districts are rural, and they are experiencing declining enrollments and increasing poverty (half of rural schools have 50% poverty rates).  Revenue limits passed in the past several budgets are creating a crisis in that there have been no allowable inflationary increases, rather cuts of 0% increases, and districts have cut to the bone. 

One area of increasing expense is transportation due to the sparsity (the number of students per square mile).  Rural schools are spending from $200-$1000 per student for transportation.  Yet support for public education, from 2008-2014, has been reduced by $1038 per student.

Charter schools, primarily located in southeastern Wisconsin, takes money away from every school district in the state.  Each district is charged 1.5%, which is sent to the charters.  In our area, charters have cost districts the following annually:  River Falls $247,900; Hudson $410,091; Prescott $120,679; Spring Valley $76,834; Ellsworth $153,884; New Richmond $341,954. 

All on the panel agreed that formulae for school funding must be rewritten.  Citizens cannot depend on referenda to support schools.  The legislature needs to listen to school superintendents, parents, and others, but proposed legislation and policies are not responsive to students’ needs.

Strengthening WREA’s Grassroots Legislative Network—Joe Baye of WREA’s Legislative Committee provided attendees with an extensive guide for creating a more effective connection between WREA members and their legislators (ask me if you want a copy).  The upshot of Joe’s talk and the guide is, first, we have to know our legislators, contact them often on pending legislation and issues, and be an effective advocate for the issues that matter to us.  Second, we need to pay our dues to support WREA in its advocacy of our causes—pensions and public education.  Third, we need to connect with parents, students, administrators, school board members, and others regarding our issues.  Third, we need to communicate—letters to the editor, Facebook, person-to-person—to let others know where we stand in relation to important issues.  As a unit, perhaps we need to discuss ways we can create a more effective network in our communities.

Editorial:  Headed for Zero                                           

By Bernie Brohaugh, President                  

Governor Walker’s cut of $127 million to public education has been nixed by the Joint Finance Committee, though his cut of $300 million to the university system has not.  The Republicans in our legislature are mindful, of course, that far more voters have children and grandchildren in K-12 than in institutions of higher learning.  Like most of us, I am alarmed by any and all cuts to education, but as a retiree from the university system, I am especially alarmed by the current threat to starve to death our state universities and colleges in Wisconsin—and in every other state in the U.S. save Wyoming and North Dakota where funding since 1980 has actually increased a tiny  bit.

Three years ago, a newsletter from the American Council on Education reported that if budget cuts were to continue at the rate they were at then, all state university systems—save those in Wyoming and North Dakota--would be bankrupt by 2059.  The end for most of them would actually come much earlier: for example, Iowa in 2029, Minnesota in 2037, and Wisconsin in 2040. Colorado, where funding has dropped 69% since 1980, could hit bottom as early as 2019.  

One hopes that this prediction is simply a “worst scenario” intended to scare people into cleaning house in state legislatures.  In fact, since 2012, funding in most states has improved—slightly.  According to the Center on Budget and Policy Priorities, (Michael Mitchell, Vincent Palacios, and Michael Leachman, “States Are Still Funding Higher Education Below Pre-Recession Levels,” 1 May 2014),  “Most states have begun . . . to restore some of the cuts they made to higher education funding after the recession hit. Eight states, though, are still cutting, and in almost all states--including those that have boosted their support--higher education funding remains well below pre-recession levels.” 

Still, state funded higher education is definitely not out of danger. Political conservatives now make no secret of their desire to put an end to all public education as soon as possible.  Any colleges and universities that somehow escape privatization may very likely be vulnerable to perverse maneuvering by bigoted supervisory bodies like the University Board of Governors in North Carolina.    A real problem began there when the Board of Governors became 100% Republican.  The funding cut they endorsed was nominal, only $400,000.  But their highhanded tactics in the North Carolina system are a gruesome harbinger of what may happen elsewhere as campuses fall victim to the fascist tactics of conservatives.  

Lou Dubose in The Washington Spectator (“An Art Pope Putsch at the University of North Carolina,” May 2015) reveals the sinister maneuvers of this group.  First, they fired Tom Ross, the system’s president, who is described by the board itself as “popular,” “a wonderful president,’“ a man with an ”impeccable resume” and a “fantastic work ethic,” a man with “perfect integrity.”  Why was he fired?   Because, as a Democrat, he does not share the board’s view of what the university’s mission should be:  “the legislators and members of the Board of Governors came out and said they don’t see any intrinsic value in learning that is not tied to the capitalist system” (Dubose).  President Ross, who doesn’t agree, is regarded as an agent of “extreme and sometimes radical progressivism.”

So he is gone, or soon will be.  So, too, are three university academic centers:  the Institute for Civic Engagement and Social Change (because the director is liberal), the Center for Poverty, Work and Opportunity (because the director dared to oppose racist conditions in the state), and the Center for Biodiversity (apparently because it was thought unnecessary).   The North Carolina system has long been regarded as one of the finest public institutions in the country, its flagship at Chapel Hill being consistently rated as one of the top ten public universities.  But how long will its reputation last under the control of its present Board of Governors?           

Whenever Republicans control legislatures in other states, similar skullduggery by petty tyrants can be expected.  If we should happen to see the complete demise of public colleges and universities—indeed, of all public education, we will almost certainly see, also, the end of the freedom to think for oneself, the freedom to choose what one thinks is best, the freedom to become what one wishes. 

 

Potluck and Baseball on June 17^th at 5:00, Hoffman Park

The River Falls chapter of Wisconsin Retired Educators is having its annual potluck picnic at the Hoffman Park shelter on June 17 at 5:00 p.m., and we’d like to invite all retired educators to attend.  Bring a dish to pass and plan on moving on to the Flying Fish ball game at 7:30 p.m. at the new stadium on the other end of the park.

Please mark your calendars and join us.  We have missed many members at our meetings this year, and this will be a great opportunity for us to see one another, catch up with each other, share information and concerns about issues that matter to all of us, and start the summer with a bang.  We look forward to seeing every RFArea REA member!

2015 RFArea REA Scholarships Awarded 

The Scholarship Committee met in April, reviewed the applications from this year’s scholarship applicants, and awarded two deserving high school graduates the 2015 RFArea Retired Educators’ Association academic scholarship.  Chapter President Bernie Brohaugh attended the ceremonies at River Falls High School and Ellsworth High School to present the awards.  Brittany Hass of River Falls and Kali Kurrelmeyer of Ellsworth each received a $500 scholarship from our unit to be applied towards their academic expenses.  Congratulations to them both.  And thank you Naomi Brandt, Marylin Plansky, Larry Harred, Bernie Brohaugh, and Tony Pedriana for your work on the committee.

 
RFArea REA Minutes—April 1, 2015

Submitted by Larry Harred, Secretary 

The meeting was called to order by Marylin Plansky at 11:05.
The secretary’s report from the February meeting was approved. 
The current treasurer’s report was approved and will be filed for audit. 
Legislative chair’s report: Local and state wide elections will be held on Tuesday April 7. 
Beware of phone scams seeming to be from the IRS. A longer version of the report is on the Blog. 
Membership chair’s report: The June meeting will be an early evening (5 PM) potluck at Hoffman Park, followed by a River Falls Fighting Fish baseball game. Ruth Wood requested suggestions for next year’s programs. 
Educational issues chair: Evelyn Klein reported on the latest reports on the extreme budgets cuts proposed in the current budget proposal by Scott Walker. 
The WRS seminar had 87 attendees and was judged very useful. We will follow up with potential members. 

OLD BUSINESS
Amendments to the chapter’s constitution and bylaws (Jane Harred, Gene Kreibich) were passed unanimously. The only revisions of the proposal are in Bylaw IV. Section 2’s phrasing was changed from “fall district meeting” to annual district meeting.” Section 4 of Bylaw IV was omitted. The Board will discuss possible options to honor deceased members. 

NEW BUSINESS
The bake sale was quite successful. Please forward other options for fund-raising to the board!
Titles for the reading group and possible dates should be forwarded to Ruth Wood. 
Our May meeting is at 11 AM on Wednesday May 20. The topic will be the uses and problems of information technology. 
The District #1 meeting will be held on May 13 in Rice Lake, WI. Please tell Marylin Plansky or Laura Zlogar if you wish to attend. 

The meeting was adjourned by acclamation at 11:35 AM. 

 

Why Membership Is Important

By Laura Zlogar

Membership at WREA and RFArea REA is declining—and this should worry us all.  While we might feel pretty good when ETF tells us that the retirement fund is more than 99% funded, is meeting its quarterly earnings expectations, and is the envy of pension funds across the country, we cannot be complacent that things will always be thus.

As we have seen in recent months, some members of the Wisconsin legislature never rest in their pursuit to privatize or dismantle any department or function of the government.  Teachers’ unions, tenure, the DNR, and state parks have all been targeted and undermined by current political forces in Madison.

The only direct voice we have to defend our pensions and public education is WREA.  Dave Bennett and his associates are in the halls of the legislature, speaking to elected officials and to government agencies in our behalf.  Such representation—being our voice, defending our interests, keeping us informed—isn’t free.  It costs money, which is why we pay $50 each year for our state dues.  Local dues of $10 help pay for the newsletter, supplies, scholarships, and other local needs.

Numbers matter.  An organization backed by thousands is a force to be reckoned with.  Elected officials know that a large contingent of voters in the state are paying close attention to their actions when they create policies and take votes affecting state pensions, seniors, public education, health, and other matters important to our group.

Despite our best efforts this year (sending out hundreds of postcards late last summer, telephoning prospective members, holding a reception in the fall), we managed to recruit only a few new local members.  While we are very happy to see new faces, the demographics are catching up to us as we lose many of our longtime members and others fall away.

Membership is the responsibility of all of us.  We need more active members on a month-to-month basis, but we also need to recruit new membership by informing them just how important WREA is not only for us individually but as retired educators who care deeply about the quality of life for WRS retirees and about public education in Wisconsin.  An organization is more than its board members.  If RFArea REA is going to grow and thrive, we really need everyone to contact new retirees—teachers, support staff, administrators--and even those who have been retired for a while. 

Send postcards, letters, or emails.  Call retired friends on the phone.  Invite them for coffee.  Chat with them wherever you encounter them.  Invite them to join WREA and our local group.  And become more active yourself.  RFArea REA will only be as vital an organization as its members.

If our meetings were held on Thursdays at 11:00 next year, would you be more likely to attend? Let Laura Z. know.  Contact her at laura.w.zlogar@gmail.com soon before next year's calendar is set.  We would like to see as many members as possible.

Privatizing Milwaukee Public Schools Endangers WRS

By Jane Harred

A May 18, 2015 press release from the Wisconsin Coalition for Retirement Security warns that privatizing the Milwaukee Public Schools, as proposed in the current state budget, would be disastrous for the Wisconsin Retirement System and its annuitants.

The press release notes, ”WRS participants in MPS contribute about $36.75 million to the WRS each year, or about 2% of the entire system.” If MPS are turned into private voucher schools, those schools’ employees would no longer be part of WRS.

Thus, the Coalition predicts that “if today's Milwaukee school employees are no longer part of the WRS, it will cause an unfunded liability of at least $210 million over the next 30 years. This money would have to be made up through increased taxes, or will be borne by the employees who dedicated their careers to public service.”  In other words, if the state is unwilling to raise taxes to fund those unfunded liabilities, retirees’ pensions would have to be cut—or eliminated.

Fallout from the budget in addition to privatizing MPS will also weaken WRS.  Because the proposed budget cuts $250 million from the UW system, that system will see massive layoffs and will be prevented from hiring new employees, resulting in fewer WRS participants. 

The expansion of private voucher schools in the state will also mean a reduction in the number of employees in public schools, resulting in still fewer WRS participants.  The smaller the number of participants in WRS, the lower the contributions and, thus, the less money WRS has to meet its obligations to annuitants.

The Coalition quotes Rob Hansen, Vice President of the Greenfield School District, which has about 400 WRS members: "Taxpayers could end up on the hook in the long run,” he said, and added, "The dirty secret is that those costs will be transferred to the rest of the state.”  Bottom line:  “It's not just Milwaukee's problem.”

Editorial:  Wisconsin’s Economic Strength

By Glenn Potts 

We have great diversity in the basis for economic prosperity in the United States. Some locations have valuable natural resources or natural transportation systems or deep and easy to access ports for trade. Some locations have rich, deep soil with good weather.  Wisconsin has its people. 

I have been proud of our state and the keen understanding of the importance of education.  Wisconsin does not have great natural resources as the base for our economy, but we have had a well-educated population, hardworking people, and a great University System.  These are our roots of prosperity. Business does not locate here to pay lower taxes; they locate here for the educated hard-working people and the strong University System.  

 A well-educated population, a strong work ethic, and a first class University System have made Wisconsin a great place to live and do business. It is our key economic resource.  But we are losing this key strength. 

For some reason, the understanding of this strength has been lost.  We are acting as if economic prosperity come from the top down, not from the bottom up.  We have made deep cuts in our state’s contribution to the University System in a mistaken attempt to encourage job creation.  In fact, we are cutting the basis for job creation in Wisconsin. 

I hope we come to our senses and change this mistaken belief. The people of Wisconsin need to elect individuals who will reverse this disturbing trend and return us to a sustainable path to prosperity. Investment in our education system (K-16) is Wisconsin’s only sound economic development policy. 

Republicans’ Budget Provision Allows Individuals to Teach School without Having Graduated from One

by Jane Harred

A provision added to the proposed Wisconsin state budget by Republican lawmaker Mary Czaja and passed by the Republican-controlled Joint Finance Committee would essentially eliminate teacher licensing standards in Wisconsin.

The provision would allow Wisconsin’s Department of Public Instruction to license anyone with a bachelor’s degree in any subject to teach 6^th- to 12th-grade English, math, social studies, or science.  It would also allow the DPI to license anyone with “relevant experience” to teach non-core academic subjects in those grades.  These people could include those who have not earned a high school diploma.  In all cases, no teacher training would be required for someone to earn the license.

In an interview, Czaja admitted that her provision would likely make it easier for someone to become a teacher in Wisconsin than in any other state.  She added that her provision was intended to provide more flexibility in school districts’ hiring of teachers but was unable to provide any examples of districts that had asked for such flexibility.

In a reaction to the budget provision, State Superintendent Tony Evers noted that it would make Wisconsin’s teacher expectations lower than those in states with the lowest achievement levels in the country.  According to the DPI, while the state of Georgia allows individuals without bachelors’ degrees to teach technical and career education, no other state allows individuals who have not earned bachelors’ degrees to be licensed as teachers.   The DPI press release can be found at http://tinyurl.com/qhz46wn.

If the provision is approved, only Wisconsin will allow high-school dropouts to be licensed as teachers.

Scott Walker, himself a college dropout, has so far refused to say whether he supports this provision

The Muses Ruminate                              

By Evelyn D. Klein

When the head seeks space and direction,          

            color and texture,

                        draw –

let the eye feast.

Move from the foothills of conception.

Climb the mountain of myth.

                        Do it in the daily refrain.                                       

When the heart fills to the rim,

            inhale deeply,

                        sing – 

            stress the rhythm.

Traverse the landscape of living.

Wander the canyons of conception.

                        Do it in the play between light and darkness.

When the soul draws you in,

            linger a while,                                             

                        write –

            release the captive spirit.

Row the river of legend.

Walk through the valley of tradition.

                        Do it in the nightly crossing.

When the mind spurns the body,

            tap the floor,

                        dance –

            unwind the language of body and soul.

Emerge out of the woods of chaos

onto the meadow of new design.

Do this for the sake of the unexplained – and the Divine.

--------------------------------------

Remembering Bill Barker 

and Marilyn Motl

                                                                         

William Barker, age 86, passed away on March 31, 2015.  Along with his wife Marguerite, Bill was an active member of RFArea REA for many years as an associate member.  Bill spent most of his career as the parts manager at Moody’s car dealership.  He was a photographer and a traveler.  He is survived by his wife, a son, and a daughter.

Marilyn Motl, age 85, passed away May 15, 2015.  A longtime elementary teacher and librarian, Marilyn suffered in recent years from dementia and lymphoma.  She last resided at the Lutheran Home in River Falls.  She was a member of RFArea REA for many years.  She is survived by her husband Bernie, two daughters, and grandchildren.

10 Reasons to Belong to WREA

1. WREA is the #1 lobbyist in fighting to protect our pensions; it was the lead plaintiff in the successful Supreme Court case that challenged the 1987 raid on the WRS trust fund.
2. WREA offers member benefits that enhance our retirement.  See the complete list at https://www.wrea.net/benefits/index.asp.
3. WREA’s has no other agenda except to serve the interests of its members.
4. WREA represents ALL retired educator groups—teachers, administrators, universities, CESA, school support personnel, and others involved in education.
5. WREA works with other public school groups to actively support public education.
6. WREA financially supports innovative public school programs and outstanding teachers each year.
7. WREA spends 92% of its revenue on in-state membership services, a claim that no other retired educator association can make.
8. WREA is non-partisan and independent, do not endorse candidates, and do not make political contributions, which gives WREA credibility in the legislature.
9. WREA is the only retired educators association whose members can claim more than $10 million worth of community service hours statewide as part of its focus on giving back to the community.
10. WREA is not a union and does not belong to any national organization that influences its agenda.