Michigan's new budget means drastic changes for newly hired teachers.
They will have to contribute more into the pension system and work longer to get maximum health insurance benefits once they retire.
Michigan Education Association President Iris Salters says taking more money from teachers' pockets will discourage them from staying in the profession.
Republicans were able to make the changes part of a budget deal that passed the Legislature early this morning.
Teachers and other school employees now pay about 4 percent of their salary into their future pension. Those hired in July 2008 or later will pay about 2 percent more than their veteran counterparts.
The state estimates the change will save Michigan about 29 million dollars by the 2013-2014 fiscal year.