Budget Director Questions State Employee Benefits

By: Associated Press
By: Associated Press
Says retiree benefits are too expensive and should be denied to new hires.

The Michigan Capitol is shown at twilight Thursday, Sept. 24, 2009, in Lansing, Mich. Lawmakers continue work on budget bills that deal with a $2.8 billion shortfall before an Oct. 1 deadline. (AP Photo/Al Goldis)

State budget director John Nixon says health coverage for retired state workers is an expensive benefit that needs to change.
Speaking Monday to the Business Leaders for Michigan summit, Nixon says he thinks the benefit should no longer be extended to new employees like him.
The former Utah budget director began working in Michigan in early January.
Nixon says 13 percent of the state payroll goes to pay for retirees' current health costs, and that's not counting what it will cost in the future
Michigan has about 55,000 retired state workers and about 50,000 current workers.
Nixon says his remarks were his personal opinion, not necessarily the stance of his boss, Gov. Rick Snyder.


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Anonymous on Feb 1, 2011 at 11:44 AM
    They are doing something our past administration did not attempt. They are looking for solutions even in the places that was considered off-limits. In one month, snyder has done more for the state economy than Granholm did in eight years. He may upset everyone in the state, but he will make it so people will either want to live here and pay for services or make them leave the state like the ones who were paying the bill.
  • by Charlotte Location: Charlotte on Feb 1, 2011 at 08:47 AM
    The New Gov and his Boys in Lansing are looking at Employee benefits. Lets look at prisoner health care. Look at the prisoners that are getting airlifted to U of M. All the ER room visits for hurt fingers not broke but jammed. Medications that they get and dont take and just keep getting more refills. But they dont want to mess with them because they have rights. Why is prisoner writing paper not two sided. You would save paper and money right there. The list goes on and on if the Gov needs help give him my e-mail and we can have coffee and talk about it.
  • by State Worker on Feb 1, 2011 at 08:17 AM
    I'm trying to figure out what the 3% of my pay they are taking out is for. Thought is was for retiree health care trust...
  • by retired, too Location: florida on Feb 1, 2011 at 08:14 AM
    What is this new budget directors current salary? Maybe with his salary amount, our current retirees could afford to buy their own health care, but unfortunately their salaries were low for most if not all of their years of service. The health benefit in retirement makes that retirement possible. Those of us working during those low salary years supported the health benefits for those who came before us. Today their does not seem to be that connection.
  • by Edwin Location: Lenawee County on Feb 1, 2011 at 05:20 AM
    Why would future retirees need health insurance from their former employer when Obamacare is going to provide access for all Americans to fantastic health care.
  • by retired Location: lansing on Jan 31, 2011 at 10:58 PM
    Health care costs were supposed to go DOWN under Obama's new health care law. Why worry about the cost of something that is supposed to be reduced in the future?
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