Falls Joining 12 Other Districts Pursuing Legal Action Against WEA Trust
District claims it is entitled to a portion of $267,000 in federal money that is being held by WEA Trust.
The Menomonee Falls School District will join forces with 12 other districts pursuing legal action against the Wisconsin Education Association Insurance Trust (WEA Trust) to obtain their share of hundreds of thousands of dollars in federal money that is held in a trust by the organization.
During the 2010-11 school year, WEA secured federal funding from the Early Retiree Insurance Trust. The funds were intended to offset overall health insurance costs for organizations that offered early retirement benefits to employees. The district was in line to receive $267,000 from those funds over the year, but after changing insurance carriers the district received nothing.
“It’s a federal fund that operates much like ‘Cash for Clunkers,” said Director of Human Resources Christiane Standlee. “The funds are there, and they are there until they are spent or exhausted.”
The district previously worked through the WEA Trust to provide health insurance for employees, but the district made the switch to Humana beginning in the 2011-12 school year. The switch in providers is expected to save the district $1.2 million in health care costs.
But after the district left the trust, the WEA claimed the district is no longer eligible to receive the funds, which would have been paid on a pro-rated monthly basis. The district contends it could be entitled to at least a share of those funds. Hartland Lakeside is one of the 12 other districts challenging WEA.
The districts will work with Foley & Lardner out of Milwaukee, which was the only firm willing to take the case on a contingent basis. Although the firm will receive a portion of the reward, it would still be a win for all the districts involved since it is money they wouldn’t have realized if the case is won.
Standlee said she had intended to bring a letter of intent for the board to approve and move forward with the process, but board action will need to wait until the next meeting Nov. 14.
Steve
11:12 pm on Monday, October 24, 2011
Amazing, getting screwed by the unions for $1.2 million just in this district. Thank you Walker.
Lyle Ruble
7:51 am on Tuesday, October 25, 2011
@Steve...Check your math.
Nameless
5:01 am on Tuesday, October 25, 2011
Naughty unions at it again
Michele Divelbiss
7:52 am on Tuesday, October 25, 2011
Just to clarify, the $1.2 million in savings comes from both switching carriers and the teachers portion being increased from 5% to 8% of the premium cost. I would think this is only the beginning of the savings, as the district can make more changes moving forward.
And what we should be upset about is another Federal program that is a waste of our tax dollars. Just like you can eat a hot dog from either end, we get taxed on either end, so getting the money back is good, but not spending the money in the first place would have been better.
Lyle Ruble
8:22 am on Tuesday, October 25, 2011
@Michele Divelbiss...Since the Districts already changed to different carriers and experienced the cost savings, I don't see that the District deserves the funding. The way I understand it, the funds were designed to offset future benefit costs. Just as Governor Walker rejected the high speed rail project and attempted to get the funds anyway, the courts will use the same logic.
Now that the District has "picked the low hanging fruit", how are things going to get better and where will further costs be reduced? It's only going to get better may be a bit of wishful thinking. Essentially this is only the first academic year and no one knows what the future will bring. I think further savings will come at the expense of attracting the best teaching talent, declining facilities, larger class sizes and most of all, a reduced curriculum.
I already know that a number of graduates from the Falls have a harder time when they enter the main campuses of the UW system. They are not as strong as other graduates in the humanities and especially writing requirements. To bring the Falls up to meet the competitive edge with districts like White Fish Bay, Nicolet, Mequon and Shorewood will require attracting the best of the best and that costs money.
Craig
9:40 am on Tuesday, October 25, 2011
Lyle...IN MFSD the savings is over $1 million a year. Every year. IT should have been last year, and the year before, etc.
But WEAC played hardball with us and required us to but insurance from them- at an inflated price. If you are going to play hardball, expect to be beaned by the pitcher.
Series over.
Jay Sykes
10:38 am on Tuesday, October 25, 2011
Is the $1million dollars saved entirely from lowered insurance cost( does not include the increased premium share covered out pay-check by the teachers)? If it is the situation, then it's like the equivalent of the total compensation of 10 teachers!!
Steve
10:53 am on Tuesday, October 25, 2011
1.2 million dollars in savings and Lyle is against this? I always hear put more money into education. Here is 1.2 million dollars to Invest in the precocious children. But it was never about the kids it was about the union. A loss of 1.2 million in one district is a huge blow to the scam that is called public union.
Lyle Ruble
11:58 am on Tuesday, October 25, 2011
@Steve...I don't know where you are getting at that I am against $1.2 MM in savings. Beyond what has been saved by changing to Humana and the higher contribution rate by teachers, where are the future savings going to come from. I am just pointing out to you folks in the Falls that you have probably experienced your biggest savings already. Further cost containment and savings can only come from making changes through funding that will negatively impact your children. If you reduce benefits and salaries too much, then you won't attract the best teachers. If you increase classroom size, then you won't be able to recruit the best teachers. the list goes on and on. You are the ones in charge of your district and you have to determine how much the system can be cut before harming your children. Making mistakes at this point can be very costly.