The Indiana State Teachers Association (ISTA) is the statewide teacher’s union in Indiana. It is affiliated with the National Education Association (NEA) and works to advance Democratic Party candidates and left-of-center policy priorities in the state. 1
In 2009, ISTA became the first state teacher’s union in the country to request that it be placed under a trusteeship by the NEA after its ISTA Insurance Trust voluntary employee benefit association plan collapsed in what the Indiana Secretary of State referred to as a “Ponzi scheme,” losing roughly $14 million invested in the trust by local school boards across the state. 2 3 4
Controversies
Teacher Opt-Out and Dues Collection
After Indiana enacted a right-to-work law permitting workers required to accept union representation to refrain from paying union fees in 2012, the Indiana State Teachers Association only allowed members to leave the union during a limited summer “opt-out window.” 5 6 7 In 2021, Indiana’s legislature passed another law clarifying that union members have the right to leave at any time during the year. 8
To get around language in the 2021 law that regulated how local unions and school boards would stop collecting dues from members who had opted out, ISTA switched its dues collection model to a centralized direct-deposit model where the state union, and not local unions, collected members’ dues. 9 ISTA also sued to block implementation of the law. 10 In 2023, a federal judge agreed with ISTA that the state’s decision to only apply the opt-out and dues collection limitations to teachers’ unions created a First Amendment viewpoint discrimination violation, and filed a permanent injunction against the law’s enforcement. 11
2009 VEBA Collapse and NEA Trusteeship
In 2009, the Indiana Secretary of State sued the Indiana State Teachers Association in federal court for operating what it referred to as a “Ponzi scheme” after the union’s ISTA Insurance Trust voluntary employee benefit association (VEBA) went bankrupt. 12 The state’s lawsuit claimed that the union was unable to account for $23 million it had raised from dozens of Indiana school boards to create an insurance fund that would pay health insurance claims for school employees using both premiums and investment earnings. 13
The fund had collapsed after an Indiana Department of Insurance investigation uncovered that the trust’s investments had lost 55 percent of their value in 20 months, leaving the fund $67 million short of its liabilities. 14
The union sued its longtime executive director Warren Williams, its primary investment advisor at Morgan Stanley, the fund’s directors, and others over their management of the trust. 15 16 The union reported that these suits eventually resulted in $14 million in settlement payments. 17 Williams, who had been the union’s executive director since 1985, claimed that he had settled with the union for roughly $2 million, which he said had been paid by the union’s insurance company. 18 19 His countersuit against ISTA was settled out of court on undisclosed terms. 20 21
The collapse of the investment trust created a financial crisis for ISTA, which became responsible for paying long-term disability benefits for 650 members who had been receiving benefits from the trust. 22 23
Faced with a reported $45 million to $65 million in potential claims over the next 15 to 20 years, ISTA became the first state National Education Association affiliate to request a trusteeship from NEA. 24 NEA did so, taking control of the state union’s finances and ownership of ISTA’s Indianapolis headquarters building. 25
In 2009, the NEA reported making a $5,463,784 loan to ISTA and in 2010 it made another $7,871,429 loan. 26 27 At the end of 2023, ISTA still owed NEA $4.5 million, accounting for 73% of the NEA’s loans receivable. 28
As part of the financial crisis, the union reported it would lay off at least 40 of its 150 staff. 29
In 2013, ISTA and the NEA agreed to pay $14 million to settle the state’s lawsuit, shortly before the federal civil trial was scheduled to begin. 30 The affected school districts received roughly 50 cents back from every dollar they had invested in the ISTA Investment Trust. 31
Advocacy
In 2011, Indiana’s laws were changed to limit teachers unions’ collective bargaining with school district boards to salaries, wages, and benefits. 32 33 Since then, the Indiana State Teachers Association’s main public policy goal has been to reverse that change in the law and expand the number of allowable topics for collective bargaining, including issues such as class sizes, health and safety conditions, increased paid “prep time” between classes, hiring practices, and other issues. 34 35 36 ISTA also opposes Indiana’s right-to-work law, which went into effect in 2012. 37 38
ISTA has lobbied for more state funding for public education, increased pay for teachers, decreased class sizes, fewer work hours, and other common teachers union priorities. 39 The union also wants teachers to have “more of a say in what they teach and how,” according to media reports. 40
In 2022, the Indiana Legislative Services Agency blocked an estimated 70,000 emails to state legislators that had been sent by a program on ISTA’s website that allowed users to email their legislators a message supporting ISTA’s policy priorities. 41 The agency’s executive director said that an estimated 120,000 emails from the union’s website had triggered spam filters in place since 2012 that limited how many emails could come from a single source. 42
Political Action Committee
ISTA operates the Indiana Political Action Committee for Education, or I-PACE, as its “political action division.” 43
I-PACE reported making $1,078,174 in contributions and expenditures in the 2022 election, and $1,390,948 in the 2020 election. 44 Since 1997, I-PACE has reported making a total of $15,884,394 in contributions and independent expenditures to Indiana election authorities. 45
References
- “Our Kids. Our Schools. Our Future.” Indiana State Teachers Association. Accessed April 22, 2024. https://www.ista-in.org/.
- Russell, John, Taylor Wooten, and Daniel Bradley. “State Sues Teachers’ Union for Securities Fraud.” Indianapolis Business Journal, December 2, 2009. https://www.ibj.com/articles/14878-state-sues-teachers-union-for-securities-fraud.
- “Indiana Union Crisis Forces Layoffs.” Education Week, June 16, 2009. https://www.edweek.org/policy-politics/indiana-union-crisis-forces-layoffs/2009/06.
- Swiatek, Jeff. “Ista Must Pay State $14m by Dec. 13 in Insurance Suit.” The Indianapolis Star, December 4, 2013. https://www.indystar.com/story/money/2013/12/03/ista-must-pay-state-14m-by-dec-13-in-insurance-suit/3860455/.
- Stokes, Kyle. “Is Indiana’s Right to Work Bill an Education Issue?” StateImpact Indiana, January 4, 2012. https://indianapublicmedia.org/stateimpact/2012/01/04/is-indianas-right-to-work-bill-an-education-issue/.
- “Right-to-Work.” Indiana Department of Labor. Accessed April 22, 2024. https://www.in.gov/dol/right-to-work/.
- Menge, Margaret. “Group Says Ista Bypassing New State Law Regarding Union Dues.” The Center Square, September 7, 2021. https://www.thecentersquare.com/indiana/article_77f5dac2-101a-11ec-9dbd-a7af97f30b75.html.
- Menge, Margaret. “Group Says Ista Bypassing New State Law Regarding Union Dues.” The Center Square, September 7, 2021. https://www.thecentersquare.com/indiana/article_77f5dac2-101a-11ec-9dbd-a7af97f30b75.html.
- Menge, Margaret. “Group Says Ista Bypassing New State Law Regarding Union Dues.” The Center Square, September 7, 2021. https://www.thecentersquare.com/indiana/article_77f5dac2-101a-11ec-9dbd-a7af97f30b75.html
- Barker, Sarah Evans. “ANDERSON FEDERATION OF TEACHERS, et al., v. TODD ROKITA, 1:21-Cv-01767-SEB-KMB.” UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION, March 30, 2023. https://ecf.insd.uscourts.gov/cgi-bin/show_public_doc?12021cv1767-70.
- Barker, Sarah Evans. “ANDERSON FEDERATION OF TEACHERS, et al., v. TODD ROKITA, 1:21-Cv-01767-SEB-KMB.” UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION, March 30, 2023. https://ecf.insd.uscourts.gov/cgi-bin/show_public_doc?12021cv1767-70.
- Russell, John, Taylor Wooten, and Daniel Bradley. “State Sues Teachers’ Union for Securities Fraud.” Indianapolis Business Journal, December 2, 2009. https://www.ibj.com/articles/14878-state-sues-teachers-union-for-securities-fraud.
- Russell, John, Taylor Wooten, and Daniel Bradley. “State Sues Teachers’ Union for Securities Fraud.” Indianapolis Business Journal, December 2, 2009. https://www.ibj.com/articles/14878-state-sues-teachers-union-for-securities-fraud.
- Russell, John, Taylor Wooten, and Daniel Bradley. “State Sues Teachers’ Union for Securities Fraud.” Indianapolis Business Journal, December 2, 2009. https://www.ibj.com/articles/14878-state-sues-teachers-union-for-securities-fraud.
- Swiatek, Jeff, and Chris Sikich. “Official: Indiana, Ista Reach $14m Settlement over Ponzi-like Scheme.” The Indianapolis Star, August 14, 2013. https://www.indystar.com/story/money/1/01/01/official-indiana-ista-reach-14m-settlement-over-ponzi-like-scheme/2647751/.
- Russell, John, Taylor Wooten, and Daniel Bradley. “State Sues Teachers’ Union for Securities Fraud.” Indianapolis Business Journal, December 2, 2009. https://www.ibj.com/articles/14878-state-sues-teachers-union-for-securities-fraud.
- Swiatek, Jeff. “Ista Must Pay State $14m by Dec. 13 in Insurance Suit.” The Indianapolis Star, December 4, 2013. https://www.indystar.com/story/money/2013/12/03/ista-must-pay-state-14m-by-dec-13-in-insurance-suit/3860455/.
- Swiatek, Jeff, and Chris Sikich. “Official: Indiana, Ista Reach $14m Settlement over Ponzi-like Scheme.” The Indianapolis Star, August 14, 2013. https://www.indystar.com/story/money/1/01/01/official-indiana-ista-reach-14m-settlement-over-ponzi-like-scheme/2647751/.
- Swiatek, Jeff. “Ista Must Pay State $14m by Dec. 13 in Insurance Suit.” The Indianapolis Star, December 4, 2013. https://www.indystar.com/story/money/2013/12/03/ista-must-pay-state-14m-by-dec-13-in-insurance-suit/3860455/.
- Swiatek, Jeff, and Chris Sikich. “Official: Indiana, Ista Reach $14m Settlement over Ponzi-like Scheme.” The Indianapolis Star, August 14, 2013. https://www.indystar.com/story/money/1/01/01/official-indiana-ista-reach-14m-settlement-over-ponzi-like-scheme/2647751/.
- Swiatek, Jeff. “Ista Must Pay State $14m by Dec. 13 in Insurance Suit.” The Indianapolis Star, December 4, 2013. https://www.indystar.com/story/money/2013/12/03/ista-must-pay-state-14m-by-dec-13-in-insurance-suit/3860455/.
- “Indiana Union Crisis Forces Layoffs.” Education Week, June 16, 2009. https://www.edweek.org/policy-politics/indiana-union-crisis-forces-layoffs/2009/06.
- Swiatek, Jeff. “Ista Must Pay State $14m by Dec. 13 in Insurance Suit.” The Indianapolis Star, December 4, 2013. https://www.indystar.com/story/money/2013/12/03/ista-must-pay-state-14m-by-dec-13-in-insurance-suit/3860455/.
- “Indiana Union Crisis Forces Layoffs.” Education Week, June 16, 2009. https://www.edweek.org/policy-politics/indiana-union-crisis-forces-layoffs/2009/06.
- Swiatek, Jeff. “Ista Must Pay State $14m by Dec. 13 in Insurance Suit.” The Indianapolis Star, December 4, 2013. https://www.indystar.com/story/money/2013/12/03/ista-must-pay-state-14m-by-dec-13-in-insurance-suit/3860455/.
- “FORM LM-2 LABOR ORGANIZATION ANNUAL REPORT – NATIONAL EDUCATION ASN IND.” United States Department of Labor, 2009. https://olmsapps.dol.gov/query/getOrgQryResult.do
- “FORM LM-2 LABOR ORGANIZATION ANNUAL REPORT – NATIONAL EDUCATION ASN IND.” United States Department of Labor, 2010. https://olmsapps.dol.gov/query/getOrgQryResult.do.
- “FORM LM-2 LABOR ORGANIZATION ANNUAL REPORT – NATIONAL EDUCATION ASN IND.” United States Department of Labor, 2023. https://olmsapps.dol.gov/query/getOrgQryResult.do.
- “Indiana Union Crisis Forces Layoffs.” Education Week, June 16, 2009. https://www.edweek.org/policy-politics/indiana-union-crisis-forces-layoffs/2009/06.
- Swiatek, Jeff, and Chris Sikich. “Official: Indiana, Ista Reach $14m Settlement over Ponzi-like Scheme.” The Indianapolis Star, August 14, 2013. https://www.indystar.com/story/money/1/01/01/official-indiana-ista-reach-14m-settlement-over-ponzi-like-scheme/2647751/.
- Callahan, Rick. “State Reaches $14m Deal with Ind. Teachers Union.” Associated Press, August 13, 2013. https://finance.yahoo.com/news/state-reaches-14m-deal-ind-201843839.html.
- Appleton, Aleksandra. “Why Did This Plan to Give Teachers Bonuses Make Their Union Upset?” Chalkbeat, November 10, 2023. https://www.chalkbeat.org/indiana/2023/10/16/23916300/indiana-collective-bargaining-discussion-union-teacher-pay-richmond/.
- “Collective Bargaining.” Indiana Education Employment Relations Board. Accessed April 22, 2024. https://www.in.gov/ieerb/collective-bargaining-and-impasse/collective-bargaining/.
- Smith, Casey. “Indiana Teachers Union Calls Lawmakers to Address Shortages.” Associated Press, November 15, 2021. https://apnews.com/article/coronavirus-pandemic-indiana-state-teachers-association-indiana-teacher-pay-health-f37bc637a6f5c77d91709547c08766fb.
- Robinson, Angelica. “Indiana State Teachers Association Lists Priorities for Upcoming Legislative Session.” WTHR-TV, November 28, 2023. https://www.wthr.com/article/news/education/indiana-state-teachers-association-lists-priorities-for-upcoming-legislative-session-recruiting-retaining-education/531-f06013a5-f59a-4be8-b29c-99e76844c9df.
- “2024 Legislative Priorities.” Indiana State Teachers Association, 2024. https://www.ista-in.org/our-advocacy/legislative-platform.
- Stokes, Kyle. “Is Indiana’s Right to Work Bill an Education Issue?” StateImpact Indiana, January 4, 2012. https://indianapublicmedia.org/stateimpact/2012/01/04/is-indianas-right-to-work-bill-an-education-issue/.
- “Right-to-Work.” Indiana Department of Labor. Accessed April 22, 2024. https://www.in.gov/dol/right-to-work/.
- Robinson, Angelica. “Indiana State Teachers Association Lists Priorities for Upcoming Legislative Session.” WTHR-TV, November 28, 2023. https://www.wthr.com/article/news/education/indiana-state-teachers-association-lists-priorities-for-upcoming-legislative-session-recruiting-retaining-education/531-f06013a5-f59a-4be8-b29c-99e76844c9df.
- Robinson, Angelica. “Indiana State Teachers Association Lists Priorities for Upcoming Legislative Session.” WTHR-TV, November 28, 2023. https://www.wthr.com/article/news/education/indiana-state-teachers-association-lists-priorities-for-upcoming-legislative-session-recruiting-retaining-education/531-f06013a5-f59a-4be8-b29c-99e76844c9df.
- “Filter Blocked 70,000 Emails to Indiana Lawmakers on Bill.” Associated Press, March 12, 2022. https://apnews.com/article/technology-indiana-state-teachers-association-indiana-teaching-education-7daa07e8679f8a825f81b5d0ccf73ef0.
- “Filter Blocked 70,000 Emails to Indiana Lawmakers on Bill.” Associated Press, March 12, 2022. https://apnews.com/article/technology-indiana-state-teachers-association-indiana-teaching-education-7daa07e8679f8a825f81b5d0ccf73ef0.
- Indiana Political Action Committee for Education. Accessed April 22, 2024. https://ipace-in.org/.
- “Committee Information.” Indiana Secretary of State, Election Division. Accessed April 22, 2024. https://campaignfinance.in.gov/PublicSite/SearchPages/CommitteeDetail.aspx?OrgID=118.
- “Committee Information.” Indiana Secretary of State, Election Division. Accessed April 22, 2024. https://campaignfinance.in.gov/PublicSite/SearchPages/CommitteeDetail.aspx?OrgID=118.