School & District Management News in Brief

Hawaii Teachers’ Union Shuts Down ‘Mismanaged’ Benefits Subsidiary

By The Associated Press — March 10, 2009 1 min read

The union that represents Hawaii’s public school teachers says a subsidiary corporation that had been “grossly mismanaged” has been shut down.

Member Benefits Corp., which filed for bankruptcy March 2, had managed the Hawaii State Teachers Association’s Voluntary Employees Benefits Association.

The HSTA decided to dissolve the corporation last year after determining the for-profit subsidiary didn’t fit within the union’s mission. The union has told its members the mismanagement was discovered by an outside team of lawyers and accountants brought in as part of the process of closing the corporation.

The HSTA says the problems included unpaid taxes, penalties, and interest.

A version of this article appeared in the March 11, 2009 edition of Education Week

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