Granholm: State worker retirement incentive moving closer to approval

Revenue sharing for Michigan cities may have to be cut further if the state House can’t reach agreement on a new retirement incentive for state employees, Gov. Jennifer Granholm said Tuesday.

Granholm said she believes state lawmakers are moving closer to approving the incentive, a cost-cutting measure similar to an incentive passed for public school employees last spring, Gongwer News reported.

However, both teachers and state workers are unhappy about provisions that require employees to pay 3 percent of their salary toward retiree healthcare costs. However, there is no guarantee the money would be used for that purpose.

Even though some House Democrats are opposed to the proposal, Granholm said she believed agreement could be reached this week.