Maine Education Association - Mills in Nasty Divorce Battle

Steve Crouse, the chief lobbyist for the Maine Education Association has filed for divorce from Senator Peter Mills. The two have been living together for a number of sessions, marrying in the mid 1990’s. But like most session marriages, they fought over money, and that appears to have been the final straw for Mr. Crouse. Well, that and a break-up note he sent to Senator Mills’ constituents.

In a letter dated February 27, 2008, Crouse and his organization sent a mailing in to the Senator’s district which read in part:

“Senator Mills historically has been a moderate Republican and generally supportive of issues of concern to educators. Peter has not always agreed with the MEA but has been rational, reasonable and approachable. I can clearly say that relationship has vanished. He has gone out of his way on the last year and a half to oppose any and all issues of concern to the MEA and its members.

The latest battle centers on LD 1693, “An Act to Restore Equity to Maine Public Employee Retirement System”. Here’s a hint – whenever you see the word “equity” think millions and millions of dollars.

You really don’t need all the details of the bill – but it is worth a brief explanation. Back in 1993, when the state was once again teetering on the brink of financial disaster, the Legislature tackled the defined benefit pensions for the state. The big change occurred for anyone that had less than 10 years of service in 1993. While the changes were very controversial, it was a bipartisan bill (both chambers were controlled by the democrats) and the resulting savings have been helping to balance the budget ever since. Perhaps the biggest hit for employees -- post 1993 -- is the fact that their pensions are now discounted by 6% per year for early retirement (before age 62). That number was 2.25%. You don’t need to be a math teacher to see the impact of “retiring” at 55. There is more on the issue here.

LD 1693 wants to restore that benefit, and they hope to use “surplus” earnings in the retirement fund to do it. Anyone who has been around Peter Mills long enough knows that he is obsessed with the unfunded liability – which is around 2.9 billion. The state is currently paying hundreds of millions of dollars a year to pay down that liability. Mills has concerns that declaring surpluses with billions in liabilities is a bit disingenuous.

So, the MEA is furious at Senator Mills and Senator Mills is absolutely giddy that the MEA has chosen this issue to challenge him on.

This is going to be a nasty divorce.