Mich. SC won't hear appeal on pay deduction plan

Jessica M. Karmasek Dec. 15, 2011, 3:44pm



LANSING, Mich. (Legal Newsline) - The Michigan Supreme Court on Wednesday said it would not hear Gov. Rick Snyder's appeal on a controversial state employee pay deduction plan.

The Court did not provide a reason for turning down Snyder's appeal.

According to the Detroit Free Press, the state Court of Appeals and Ingham County Circuit Court previously ruled that the plan requiring state employees and teachers to put 3 percent of their earnings toward retiree health care is unconstitutional.

The 3 percent salary tax was levied in November 2010.

So far, the State has collected more than $90 million from nearly 50,000 employees, the newspaper reported.

State Rep. Maureen L. Stapleton, a Democrat from Detroit, said the state high court's ruling finally puts the issue to rest.

Stapleton is one of a handful of lawmakers who have been calling on the governor to refund the tax money for weeks.

"This afternoon's unanimous ruling by the Michigan Supreme Court to deny leave to appeal in the case to eliminate the 3 percent salary tax on state employees means thousands of Michigan families will receive their income tax refund within the next pay cycle," she said in a statement Wednesday.

"The action by the Supreme Court ruling ends the debate and will bring holiday cheer to thousands of homes and immediately generate economic stimulus for small businesses throughout all 83 counties."

A state official told the Free Press that the money, held in escrow, will be refunded to state employees in their pay checks, and most likely not before Christmas.

From Legal Newsline: Reach Jessica Karmasek by email at jessica@legalnewsline.com.

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