Million dollar retirement benefits [The Porterville Recorder, Calif.]

Feb. 15--Editor's note: This is a first of a two-part series about health benefits given Porterville Unified School District trustees. The first part looks at the issue, The second part at one man's effort to get the practice stopped.

After spending more than $5,000 of his own money to investigate what he calls extravagant spending by the Porterville Unified School District, one Porterville man, John Hardin, said it is time the district stepped up to the responsibility it has to its students by redirecting close to half a million dollars of what he calls misappropriated funds into education and student programs.

In the past, the Porterville Unified School District has dealt with severe state budget cuts creatively -- including offering an early retirement incentive that 54 teachers took advantage of in 2010, shortening the school year, not granting cost-of-living raises and scheduling fewer sporting events in an attempt to save on transportation costs.

But one thing has never been done, Hardin said -- curbing costs associated with the trustee health benefits -- costs he says have totaled more than $2 million, averaging $441,967 a year over the past five years. Salaries and benefits are paid from the district's general fund.

Porterville Unified School District Governing Board members -- Hayley Buettner, David Depaoli, Patricia Contreras, Lillian Durbin, Sharon Gill, Pete Lara and Richard Morris -- currently serving on the board all receive employer-paid health, life, dental and vision benefits. Of those, Morris qualifies for the lifetime benefit.

The district also offers lifetime benefits to retired board members, but only if elected to the board before 1995 and if they have served a minimum of 12 years.

On that list are Geary Austin, Arthur Cardell, Herbert Foerster, David Itzenhauser, Barbara Job, Leslie Lessenger, Betty Lord and George Silva.

"You have student programs, such as athletics, that continue to be on the chopping block. You have teachers buying their class supplies out of their own pocket. You have staff reductions that negatively affect every student in the district," Hardin said. "All these reductions under the guise of a difficult state budget. Yet, the trustees, spouses and family member benefits continue to grow on the backs of our students and the taxpayers. Where else can you get free health, vision, and dental for volunteering five to 10 hours a week? Trustee benefits have to stop. Remember, there is no oversight. These individuals vote themselves these benefits at tax payer expense. I think the running joke in the city is 'If you have a medical issue, run for school board. You will be guaranteed coverage with no underwriting and the taxpayers will pay for it for you."

PUSD trustee Richard Morris said most people on the board had no knowledge of the insurance benefit.

"I know of no board member who ran for office or remained on the board for the perks of insurance. In fact most, including me, had no knowledge of the benefit prior to holding office. Nevertheless, the coverage has been a blessing for me. It has literally saved my life and its presence has inspired me to work diligently for our students. I believe I have," Morris said.

"I don't know the legalities of enacting an ex-post facto policy that would withdraw those remaining retired board members from the plan. All I know is that they each served their community admirably for many years and they each planned their future health care coverage based on a good faith agreement with the school system. I wish we didn't have the expense, but I don't think it is ethical to remove these upright senior citizens from the plan."

And, even though some districts pay board members a salary, it is a tradition among the districts to allow school board members to participate in the district's health insurance plan, he said.

"I'm sure when this was first initiated, health insurance was relatively inexpensive and the benefit was regarded as a stipend," Morris said. "It is no longer such."

California Government Code 53201 prevents the policy of providing health insurance for retired board members from continuing forever, but those former trustees receiving lifetime benefits are grandfathered in.

"I suppose this was rationalized as an effort to create stability in school governance by encouraging longer service by office holders," Morris said. "Years before any of the current board members were in office, members of the Porterville High School and Elementary boards, using the logic of their time, established coverage for trustees, including lifetime benefits for long-serving members."

It was a sentiment expressed by other PUSD board trustees, who also said they saw no reason for pulling the benefits that have been earned.

"I agree with my fellow board members that the former board members who now receive life-time benefits from the Porterville Unified School District served the students and the community with honor and integrity," said PUSD Board Member Trustee Pat Contreras. "The fact that former members receive insurance coverage based on long term service was a commitment made and should be honored."

Trustee Lillian Durbin said those governing board members receiving the life-time benefits served selflessly without remuneration.

"[They've] served our community with dedicated commitment to providing the students with the best possible educational experience," she said. "The Porterville High School and Elementary School board members who voted to provide life-time benefits to members who served for a very long time made an informed decision. I am sure that none of them had any idea what the cost of those benefits would be today."

But, Morris said, the idea that Hardin is trivializing motives and has attempted to belittle a noble public service, is sad. Morris also added that he has actively and continuously supported local schools for more than 35 years as a parent, booster club member, a citizen's advisory committee member and as a trustee.

"During my years on the board I have made scores of trips to the State Capitol. I've had the opportunity to testify before the State Board of Education and the Education Committees of both the Assembly and Senate. I have pressed education's case with countless legislators, staffers and state bureaucrats," Morris said. "I firmly believe my efforts, and those of many of my colleagues have served to bring millions of additional dollars to Porterville to provide high quality educational services to our students and jobs for our community."

The lifetime benefits were discontinued in the 1990s. However, honoring agreements and keeping their word, adds to the fibers of the district's integrity, Durbin said.

"As financial resources become more scarce, every category of expense is scrutinized for possible reduction. I am not aware if it is possible or not to discontinue a benefit that was earned for prior service," Durbin added. "We need to honor our commitment to the former long-term governing board members who remain on our plan."

Part II: John Hardin did not give up in his attempt to uncover what the district was paying to provide health benefits to board members.

Contact Esther Avila at 784-5000, Ext. 1045, or [email protected]. Follow her on Twitter @Avila_recorder.

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