Intercepts

A listening post monitoring public education and teachers’ unions.

Another Union Health Trust About to Go “Belly Up”

Written By: Mike Antonucci - Feb• 04•13

Looks like we may have stumbled upon the reason for that “benefits review” by the Clark County Education Association’s health trust. Union representatives were told in a closed-door meeting last week that the trust is losing money and will be “belly up in 60 to 90 days.”

The Las Vegas Review-Journal obtained a spreadsheet distributed during the meeting that outlined the trust’s woes:

The trust has lost more than $3.6 million since the fiscal year began July 1 because the cost of claims exceeds the trust’s revenue, according to the spreadsheet.

But the river of red ink stretches much further back.

The trust has stayed afloat the past two school years by dipping into and depleting what was a $7.23 million cash reserve. The trust would have bled its savings dry if not for a $5 million line of credit taken from the Bank of Nevada on Nov. 15, 2011, according to trust audits obtained from the Clark County School District and other sources. Less than $1 million of that credit remained in June.

The Nevada Journal has been all over this story, and posted the text of the CCEA executive director’s report of January 29. It states that the trust “has maintained operations based on a static revenue stream despite the growing medical claims. This no longer is sustainable.”

Teachers are being asked to pay higher premiums because the trust “has drawn down its reserves to very critical levels and need this increase to become more financially stable.”

When the stories hit, CCEA immediately entered full bunker mode, blaming the school district’s failure to increase contributions and the “ulterior agenda” of third parties. However, the union didn’t deny any of the specifics of the published stories. Instead, it informed members that “we anticipate we will begin a journey of change.”

The “change,” of course, is expected to come from the pockets of teachers and taxpayers. The school district provides almost 80% of the trust’s annual revenue.

Share

You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

One Comment

  1. Otto Phil says:

    Please see links:
    http://www.easternct.edu/visualarts/staff.html

    Think you got it bad, come to Connecticut. Check out just one small academic department at a Public Liberal Arts state university, University of Eastern Connecticut State University.
    This department is extremely dysfunctional and politically corrupt group. The State of CT is planning to break ground on a multi-million dollar building for the Visual Art Department. Taxpayers, students and parents are working 2-3 jobs to pay for education in CT. Small businesses are going bankrupt, corporations are down sizeing and can’t hire needed employees. The members of this group are state workers with salaries of $90,000 to $125,000.000 a year, each teach two classes, come to campus twice a week, have the winter term off and also the summer. In general this liberal arts university acts like a non-profit social activists group that in reality are self-serving and only concerned about their own working conditions. The chairperson of this group receives grants to travel most of the time with her family under the disguise of faculty development. There have been reports during group drinking get togethers, the husband of the chairperson begins to tell the stories about drunk ‘in adventures on the couple’s trips. The public or the school doesn’t receive any benefits from the trips. This group is run by five full time art history faculty and are hiring a sixth full time, while the whole school only has two to three art history majors. The department also touts a digital design major, though all the full time tenured professors are painters and performance artist that were forced to learn the computer to teach, they then hire other adjuncts (32 adjuncts to 9 full time) performing artist (friends) that haven’t any employment or education background in the digital design. The students and the public are paying for lifestyles not professionals. Many CT corporations that are looking to hire digital designer should be aware of this “Frankenstein” den of thieves, stealing taxpayer’s money.
    Again this is just one department. There are four state universities, twelve community colleges plus the University of Connecticut. All run by BOR members appointed by the governor. The schools are run like the CT Department of Motor Vehicles or any other dysfunctional state department. At all of these schools 60% of the students are require to take remedial English and Math course before they are able to take credit courses. All of this on the taxpayer dollar, not just the individual tax dollar but small business and corporate tax dollar.