Indiana’s secretary of state filed a civil complaint last week against the state’s largest teachers’ union, saying the group violated the Indiana Securities Act when it offered a health-care plan for school districts.
Secretary of State Todd Rokita said the Indiana State Teachers Association ran a trust that was to be used for health claims and told school districts that they would earn returns on any reserves. But Mr. Rokita said that money was mixed with other funds, and that the teachers’ association cannot properly account for $23 million intended for schools.
Association spokesman Mark Shoup said members of the legal staff were looking into the complaint while the union tries to sort out the issue with districts.
The National Education Association took over the 50,000-member state teachers union earlier this year after the state insurance department said the ISTA Insurance Trust had a net worth of negative $67 million.
A version of this article appeared in the December 09, 2009 edition of Education Week as Indiana Sues Union Over Health-Care Plan