ISTA: “We Are Going to Put All the Cards On the Table”
The chief lobbyist for the Indiana State Teachers Association says it will go public in the next few days and disclose all the facts regarding investments which led to a $67 million debt in its medical and long term disability insurance fund and an investigation by the Federal Bureau of Investigations and the Indiana Secretary of State’s Office.
Dan Clark told me tonight the only way the organization can mitigate the damages is to “be honest about the facts.”
Clark admits ISTA’s trust fund could be a target of the FBI and SOS investigations, but the authorities could also be investigating the brokerage firm which did the investments as well. The Indiana Department of Insurance noted that ISTA had invested in high risk securities like real estate as opposed to more secure government bonds. Clark says the health care funds managers have stepped down, former ISTA director Warren Williams retired and Robert Frankel, the insurance fund’s director, has resigned.
Clark says ISTA will issue a comprehensive statement outlining the following…
- The transfer of its medical insurance fund to United Health Care.
- The transfer of its long-term disability insurance to another insurance company.
- A thorough review of its investment practices.
- Announce a solution to resolve its $67 million debt which include raising premiums, reducing expenses, liquidating assets.
By transferring the funds to private insurance carriers, Clark says current contracts with Indiana school districts won’t be impacted.
“We need to put all the cards on the table,” Clark said.
Clark will appear on my morning radio show tomorrow at 735. Tune into Newstalk 1430 AM, WXNT or newstalk1430.com.
May 14th, 2009 at 10:03 pm
All this talk of “investments” and the mission of the ISTA is…, what exactly, to benefit whom… exactly?
May 15th, 2009 at 1:20 am
I think Abdul should pack up and go to the Ohio River this weekend to report on the LP (Libertarian) Convention this weekend. It’s at the Clarksville, IN Holiday Inn just across the river from Louisville.
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http://www.lpin.org
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I’ll sponsor a room one night (Fri or Sat) for his fiance if he’ll cover it with no strings attached. I’m not an officer of the LP and I’m on the record in support of both R’s and D’s in the past.
May 15th, 2009 at 6:13 am
Oh great. United Health Care. That will likely be real helpful. :(
May 15th, 2009 at 7:19 am
lol @ varang…I was thinking the exact same thing! What exactly does U.H.C. do right?
May 15th, 2009 at 7:35 am
What’s coming can’t be good when an entity that demonizes political opposition suddenly thumps their chest and declares they must be “honest”. Ironic and sad that taxpayers, always seeking tranparency from public school bureaucracy with little ISTA support, will now watch the clients of ISTA personally experience the obstruction of United Health Care.
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We must all hang together or most assuredly we will all hang separately- Benjamin Franklin
May 15th, 2009 at 8:21 am
Dan Clark can talk birds out of trees. But, neither he nor his captive donors can deliver the goods to kids, parents, or taxpayers.
May 15th, 2009 at 8:21 am
One thing UHC does do right, is (apparently) refrain from illegal activities.
Health insurance companies are like hospitals. Everyone has horror stories about some hospital. When I was taken to Methodist several years ago after some heart issues at work, one of my colleagues screamed at the top of her lungs, as I was being wheeled out of the office: “For God’s sake don’t take him to Methodist–they’ll kill him.”
I got fantastic care.
This is all part and parcel of the nationwide health care debacle. We need a solution–fast. The cost and bureaucracy involving health care chokes our economy. It’s a large hidden cost in everything we do, everything we buy and sell.
Dave: FYI, the mission of ISTA, I’d think would be to serve its members. Who are (mostly) very dedicated, underpaid, overworked teachers. The fact you’d even ask the question demonstrates a huge bias.
May 15th, 2009 at 9:21 am
ISTA, more importantly, gives teachers a voice on issues decided by people (legislators) who have never been in a classroom.
May 15th, 2009 at 9:33 am
Amen Jacob. Amen.
When did we start allowing the demonizing of teachers and their union? It’s disgusting.
May 15th, 2009 at 9:44 am
Amen and GM is better off for having the UAW. Truth telling about teacher unions began with Al Shanker. You may recall his famous quote? Truth telling isn’t demonizing. Most demons are competent at what they do.
May 15th, 2009 at 9:53 am
Demonizing the teacher unions is the “problem with education” du jour.
Smart, but superficial, thinkers seem to be able to only hold one concept in mind at a time when discussing complex issues like education.
May 15th, 2009 at 10:00 am
Teachers don’t build cars, Pascal.
Teachers do heavy lifting on an hourly basis. They always have. I don’t care if they belong to their union or the Church of What’s Happenin Now.
Their affiliations should not be subject to cheap political shots.
And while we’re at it, why doesn’t someone from your camp criticize administrators with equal fervor? I rarely see it, and take it from me: what’s wrong with schools today, could best be fixed by applying the old joke:
Q: What do you call 200 superintendents on the bottom of a lake? A: A good start.
Yeah, there are some good administrators. But not very damned many. Per capita, teachers have ‘em beat by a country mile.
May 15th, 2009 at 10:03 am
Is there any part of a government that is not greedy and self serving?
May 15th, 2009 at 10:04 am
http://advanceindiana.blogspot.com/ for more details as to how ISTA incompetence will bite taxpayers…but not in this current year. And one should deny that we have “educators” when they are mostly poor instructors as evidenced by standardized testing over some number of decades. Whoever thought that unions should have business skills to run insurance plans? Did anyone ever learn what happens to retirement plans run by unions? The reference blog suggests to my mind that the legislators need to prune incompetents out of a lot of things.
May 15th, 2009 at 10:19 am
It should be noted that through ISTA, UHC covers administrators benefits — at least in Washington Township where they are jointly included in the contract agreement.
May 15th, 2009 at 10:48 am
Just a comment from a retired teacher–being old enough to remember the pre “teacher union days” and while I have never like the “union” label it does fit in many respects. I started teaching when the superintendent or township trustee was “god almighty” in that a teacher could be fired because of anything without any cause and for simply being the wrong political party, that is, a R trustee simply fired all the D teachers or those that did not support ($ and otherwise) the trustee. Also, many teachers were fired before reaching the state established level for tenure in order to save money. Teachers had to accept each year whatever pay or benefits or other job related edicts that were put forth. Even lead the only school walk out of teachers in our corporation because the school board would not even talk with teachers–following that day we ended with an 8 page contract that said either party had the right to bring any issue before the other group and it would be considered–much more effective and far more simpler than the contracts of today. In truth, the new arrangement brought better understanding of the whole educational atomsphere in our county by both groups. Now the current issues are simply the organization going into areas it should never have ventured into in the first place as it put every teacher member at risk (PR wise and $ wise) –did not say I was a blind member.
May 15th, 2009 at 10:50 am
“Dan Clark told me tonight the only way the organization can mitigate the damages is to “be honest about the facts.”
Clark admits ISTA’s trust fund could be a target of the FBI and SOS investigations, but the authorities could also be investigating the brokerage firm which did the investments as well. The Indiana Department of Insurance noted that ISTA had invested in high risk securities like real estate as opposed to more secure government bonds.”
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The problem has been identified. Only fools, idiots, and white collar criminals mitigate risk “after” the fact. A regular risk management program with semi-annual reviews would have mitigated risk in real estate long before the bottom fell out.
May 15th, 2009 at 10:58 am
Abdul,
I believe that you will find upon further investigation that Mr. Williams announced his retirement last year, and that Mr. Frankel’s exit was about a month ago, so it doesn’t appear at first glance that the exits of these two people were an attempt by the ISTA Insurance Trust to “solve the problems”, but instead are for the most part, coincidental.
That is, unless the ISTA and the Trust have known about the problems for some time.
May 15th, 2009 at 11:58 am
“Unless” being the key word here.
May 15th, 2009 at 12:37 pm
I’ve loved the vast majority our childrens private and public school teachers. I have no more ill feelings for them on an individual basis than the Indianapolis Colts on a collective one. However, when power is leveraged less than judiciously, whether it be a union with walkout leaving parents and children in a lurch, or a sport owner seizing an opportunity for more than his own share of the pie- many citizens are understandably aroused.
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I’m sure teachers have a zillion examples of unfair bargaining, with IPS as a possible current example. The Colts can claim what they reaped contractually was fair with a “commitment” of 30 years. This doesn’t change the attitude and symbolism the general public has when they perceive being shafted. Similar to Abdul’s point that people often vote based on emotion whether issues substantiate the position or not.
May 15th, 2009 at 2:31 pm
Dear TA: What bias is being expressed by a public school system that’s failing 70% of its customers / students? If my concern about that is bias then so be it. We need immediate course correction; not tomorrow, not in the next twenty minutes- we need it NOW! R-F-NOW! We’re not suffering a mere production error or spoilage rate, we’re losing generations of human beings to the arrogant failure, self service & adult day care of unenlightened socialism. Like most families, we have several dedicated teachers in our brood, who are likewise concerned about the systemic failure of the public school system. If unions, as they claim, know “what they’re doing,” they’ll have no trouble promoting the equal access of competitors in the field of what’s supposed to be education.
May 15th, 2009 at 4:38 pm
Dave: the “spoilage rate” (which is your term, and is horrible.
An overwhelming majority of Indiana school districts are doing a great job and graduating an overwhelming majority of their students. The failures are mostly large urban districts.
It’s a statistical fact: more poor students (of any ethnicity), more failure. I suppose we can ignore that problem. Dick Lugar and his generation of IPS board members ignored it, even perpetuated it.
When we can educate and reach the poorest students, the ones who arrive at school with the mot disadvantages, we will succeed. Not until then.
Until then, public schools, which are constitutionally required to accept anyone who walks through their front door, must prepare for the worst, and triage from day one.
Unfortunately, Education Schools don’t do much to teach triage in that manner. And the administrative licensing programs are even worse.
I have few answers. Don’t pretend to. But I do know this: keep using any chance you get to lump all public schools together, and you’ll turn off more and more people who ought to be listening.
I happen to believe that there are some very smart people who read and post here. Among the posts are some creative answers.
May 15th, 2009 at 4:45 pm
This blog must have a high percentage of union and teacher bashers…….there may be problems here and maybe even something illegal but that will come out soon. The fact is that teachers need protection from crazed administrators who love to play favorites, bash their own employees and hire their friends and families…No one needs to look further than IPS and Eugene White to understand that.
May 15th, 2009 at 5:15 pm
State Board of Accounts ISTA audit report, complete with official response from ISTA
http://www.in.gov/sboa/WebReports/B34237.pdf
May 15th, 2009 at 5:17 pm
Not so much union bashers, I think, but folks who refuse to see past their talking points into reality. … Today, instead of finishing up their end of the year paper, my 9th grade students shared stories of losing their virginity. I suggested they combine those stories, some national statistics and analysis of our text — Romeo and Juliet — but they passed. I call home. Nothing. I have at least 25 (out of 140) who didn’t even begin.
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May 15th, 2009 at 6:13 pm
TA, re-read the spoilage comment & you’ll see what’s meant. Look, criticism of corporate management, unions or the public school system, is hardly bashing. ” Bashing” is subjecting generations of children entrusted to the care of adults, to less than credible or successful results. Those who sign on for the task thereby assert their competence to get the job done. Don’t blame parents, society, etc. if you sign on for the job. Do it or choose something else to succeed at, but don’t punish generations of human beings with flimsy excuses. The children you mention need an education & nothing you’ve said changes that. Corporations, unions & bureaucracies are not immune from failure; which should be a teacher & not an undertaker.
May 15th, 2009 at 7:15 pm
“When we can educate and reach the poorest students, the ones who arrive at school with the most disadvantages, we will succeed. Not until then.”
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“…keep using any chance you get to lump all public schools together, and you’ll turn off more and more people who ought to be listening.”
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1)No Child Left Behind and high goals such as this are contemporary fairy tales. They’re worthy and noble to shoot for, but they require funding we don’t have and doomed because of PARENTING we don’t demand. This is not the fault of the ISTA or teachers. History has a certain % people in every civilization that are disadvantaged- period. Young, old, tall, short, you name it. That doesn’t absolve us of trying to have a decent limited goverment and pitch-in as citizens to help, including MY delayed Big Brotherhood when my eldest starts college in the Fall.
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2)It’s a two-way stereotypical street labeling people union or teacher “haters”- or lovers.
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I still like Jacob’s division of “teacher-centric” tasks he listed in an earlier post.
May 15th, 2009 at 7:31 pm
Why should teachers receive special consideration, Greg? The security of every position I’ve ever held in my life has been up to my ‘crazed’ superior. I keep my job based on my performance. That’s not necessarily the case with teachers, at least in public schools. The union aggressively fights any merit-based policy in public education. Now why would that be?
If you want to say that the state of our public education system should not, in any way, be blamed on the union’s protection of substandard teachers, then debating you on the issue would be futile.
May 15th, 2009 at 9:05 pm
Many interesting presentations and variety of beliefs/philosophies–as to truly being a judge of teachers and of learning ability of students would like to suggest you spend some time in today’s classroom. Don’t just sit in the back of the room, volunteer or sign on to be a subsitute teacher. Review various studies on learning ability, for example, study about reality in ability to learn a variety of concepts–including those on ISTEP and other academic oriented tests. Now I know this is subject to trashing due to fact everyone is an expert on education–been there done that sort of thing. But time to face reality and also understand why many very capable persons no longer are teaching particularly in regular public schools and even more particularly in inner city schools. No amount of dedication is likely to survive the day to day to day realities that face these persons.
Teacher “unions” are not my favorite topic (been there done that –been a member and officer) but also have observed up close the other side and total insecurity of dedicated teachers that could be dismissed for no cause except they were wrong political party or sought to have student think independently. “unions” have served some purposes quite well and yes, have overdone it in other areas–same with the role played by the UAW and others in destroying the auto industry.
May 15th, 2009 at 9:11 pm
You just made the case for getting the government out of the business of educating our youth. The unions have outlived their purpose in virtually every industry.
May 15th, 2009 at 9:36 pm
Diana–
The Indiana State Teacher Retirement Fund (TRF)has nothing to do with ISTA or the ISTA Trust–TRF is a government retirement fund for teachers (similar to the Public Employees Retirement Fund).
May 15th, 2009 at 10:27 pm
Rico—would only question who is going to be in charge of education if not government. A volunteer system of attendance, volunteer system of accountibility, diplomas given by any standard one wants to set; ditch the state sponsored higher education (Ivy Tech, Purdue, IU, ISU, etc.) now all that might take a bit of streching the point. “Unions” have out lived their use—perhaps but just as soon as attorneys ditch the bar associations, doctors ditch the medical societies, and any other advocate organization one may think of. And before stating there is a difference–yes, at some levels but teacher organizations/unions basic point is protection of the entire education system and the focus of cases about protecting this teacher or that policy is not what the ISTA or others are at the basic level nor the reason for their continued existence. Professional organizations all have multiple levels of reason for being and none would meet the test you propose.
May 15th, 2009 at 10:29 pm
Rico—would only question who is going to be in charge of education if not government. A volunteer system of attendance, volunteer system of accountibility, diplomas given by any standard one wants to set; ditch the state sponsored higher education (Ivy Tech, Purdue, IU, ISU, etc.) now all that might take a bit of streching the point. “Unions” have out lived their use—perhaps but just as soon as attorneys ditch the bar associations, doctors ditch the medical societies, and any other advocate organization one may think of. And before stating there is a difference–yes, at some levels but teacher organizations/unions basic point is protection of the entire education system and the focus of cases about protecting this teacher or that policy is not what the organizations are at the basic level nor the reason for their continued existence. Professional organizations all have multiple levels of reason for being and none would meet the test you propose.
May 15th, 2009 at 11:48 pm
Rico, once again you are so wrong. Teachers and teachers’ unions want the nonperforming teachers gone. They make us all look bad and make our jobs harder. There is a very clear cut procedure for firing teachers…tenure no longer even exists in Indiana so you use of that term shows how out of your our with schools in 2009. The problem is lazy or imcompetent administors who are unwilling to follow the procedure to bring about the dismissal. I have seen good administrators do it and it works…
May 16th, 2009 at 6:37 am
“teachers that could be dismissed for no cause except they were wrong political party or sought to have student think independently.” — Jack @ 29
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Hmmm…government schools don’t want their ‘product’ to think independently?!?!
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Who’d a thunk it?
May 16th, 2009 at 9:11 am
This has really been an enlightening conversation. There are some good thoughts here.
Dave, I did re-read it. I’ll stick with my post. You might want to re-read it, too…your stated intent, later on, is not what was posted.
I also read the audit report. It’s mostly the ITRF annual report to stakeholders, with a flimsy SBOA insert. Typical. They piggy-backed someone else’s hard work.
May 16th, 2009 at 10:01 am
Question. Can someone tell me a pension program that has generated/made money in the last 12 months?? Post the websites as proof if you would. Thanks.
May 16th, 2009 at 10:17 am
Where did I use the term ‘tenure’, Greg? If you are a teacher and, in fact, actually wrote that last post, perhaps that explains our problem.
Bill Gates recently wished to donate a very large sum to an education program in California. It was turned down why? It involved teachers being judged on their performance and the union wouldn’t allow it. Millions that could have helped school children refused. That’s just one example of where the union’s priorities are (or aren’t).
May 16th, 2009 at 11:32 am
Truth Squad’s point reminds that some of the same facts that ISTA discovered after the fact may have also impacted the State Pension Plans. No one is talking about THAT but could not those losses be in the BILLIONS? I note that the WSJ of 5/15 quotes Intel’s chairman as stating, “…America’s second rate educational system will lead to the decline and fall of the US as an economic power”. If the US is second rate then Indiana is third rate and IPS is a very bad joke, period.
One wonders if the millions of dollars ISTA uses to purchase politicians can be diverted back to better uses? Why would Mr. Darko fail to comment?
May 16th, 2009 at 11:39 am
IPS received millions from the Gates Foundation and the strings attached and the staff involved resulted in a big failure that wasted 3 years of students lives and teachers careers……as to your allegation regarding nonperforming teachers, they can be dismissed if they have an administrator who is willing and smart enought to follow procedures…….
May 16th, 2009 at 11:50 am
Agree with Greg—teacher’s organizations do not seek to defend teachers that should not be there, but if an administrator will do their job then dismissing incompetent teachers can and is done.
Again, would question the continuing statements about “government schools”–what schools are they referring to—charter schools are government funded and must meet certain requirements, even private (non government) schools have to met established rules or their courses/graduation/etc. will not be recognited by either the state or any major higher education school. Merit pay situations present another concern for educators well beyond those that are overly stated. Particularly as to what yardstick is to be used, can special education teachers qualify, can those teachers with classes of “educationally disadvantaged” receive equal consideration; can a vocational education teacher attain the same status as an “academic” teacher?
May 16th, 2009 at 11:56 am
Greg P – I’d like to see details on Gates Foundation funding of IPS. Do you have a link? Their funding of IPS is almost 100% confirmation to me that IPS leadership – especially under White – is hell bent on producing an uneducated community.
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My research so far indicates that the Gates Foundation is a heavy supporter of racist eugenic programs like those of Margaret Sanger and Planned Parenthood. I’d love to see their level of involvement, and the programs that have resulted from them. The community needs to be fully aware of how their schools are being influenced by organizations who promote the decimation of racially profiled communities.
May 16th, 2009 at 12:56 pm
Selling ISTA memberships by offering cut rate services ought to be a crime. Isn’t it criminal conduct to comingle funds so as to hype dues paying members?
May 18th, 2009 at 4:50 pm
[...] ISTA representatives says they will unveil a plan this week to address concerns involving the insurance fund’s solvency. [...]