Local State Representative Mark Messmer says he’s pleased to see restitution for Shoals Community Schools from the settlement reached between the State of Indiana and the Indiana State Teachers Association and the National Education Association.
Secretary of State Connie Lawson announced earlier this week that her office finalized a settlement of a federal securities fraud lawsuit for $14 million, which accused ISTA and NEA of defrauding Hoosier schools out of over $27 million. Shoals Community Schools wills receive nearly 94-thousand dollars from the settlement.
In a release Messmer says while he’s pleased to see local schools receive a portion of their money back, he remains deeply troubled that the ISTA and NEA are not completely repaying Shoals Community Schools for the money they deliberately mismanaged. The republican from Jasper represents portions of Daviess, Dubois, Pike and Martin Counties.
The ISTA offered teachers and other school employees a medical plan that allowed school corporations to invest their excess claim balances to offset future health care costs. The Secretary of State’s complaint alleges that the ISTA did not invest the money as promised, but instead used the money to cover significant shortfalls in their long-term disability plan and to invest for ISTA’s own benefit.