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CABE to intervene on state issues
ORANGE PUBLIC SCHOOLS
Deputy Director/General Counsel, CABE
Senior Staff Attorney, CABE
CABE was recently asked to lend its support to issues where staff recommendations showed a compelling state interest for CABE to intervene and share its voice. The Executive Committee approved our participation in two issues. In the first matter, CABE, along with CAPSS, was asked to participate in the â&#x20AC;&#x2DC;Petition for Declaratory Rulingâ&#x20AC;&#x2122; filed by the Connecticut Education Association (CEA) with the Connecticut State Board of Labor Relations. The second matter concerns a Connecticut Supreme Court case where CABE will support Regional School District 14 as amicus curiae (friend of the court).
This past fall, CEA filed a â&#x20AC;&#x2DC;Petition for a Declaratory Rulingâ&#x20AC;&#x2122; with the Connecticut State Board of Labor Relations concerning the portion of The Affordable Care Act (ACA) that contains a provision for a tax (otherwise known as the â&#x20AC;&#x153;Cadillacâ&#x20AC;? or â&#x20AC;&#x153;Excise Taxâ&#x20AC;?) which will be equal to 40 percent of the excess benefit on any applicable employer-sponsored coverage exceeding a threshold amount of $10,200 for self-only coverage and a threshold amount of $27, 500 for coverage other than self-only coverage. Under Internal Revenue Code (I.R.C.) §49801(c), it is provided that the liability to pay the tax rests with the coverage provider defined as one of the following: (A) the health insurance issuer, (B) the employer if it makes contributions under and HAS or MSA; or (C) the plan administrator.
View from the Capitol Patrice A. McCarthy
Kelly B. Moyher
Cadillac Tax Petition
MARCH 2015
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CEA and its local affiliates believe that any proposals received during ongoing negotiations for successor contracts whose term includes the implementation date of the Excise Tax (2018), which seek to shift the burden of the liability to pay the tax from the coverage provider to the members of the respective local associations would be contrary to federal statute, illegal and unenforceable. A ruling on the permissibility of bargaining concerning the Excise Tax will have a direct impact on Connecticutâ&#x20AC;&#x2122;s boards of education. It will affect board of education budgets in districts where employeesâ&#x20AC;&#x2122; health insurance premiums go beyond the $10,200 and/or $27,500 cost.
Referendum Case In the Region 14 case, Arras v. Regional School District 14, the board of education held a referendum in June 2013
for a $63.8 million high school renovation project, which passed 1269 to 1265. It appears that notice of the referendum may not have been properly placed in the legal notice section of the newspapers, a step that is the responsibility of the town. Notice of the referendum was made available by the board of education by other means of communication. Lawsuits were brought against Region 14 stating that the referendum was not valid, in essence punishing the regional board of education for the municipalityâ&#x20AC;&#x2122;s mistake. A decision was reached in favor of Region 14 but was appealed and after various motions at the appellate level, Region 14â&#x20AC;&#x2122;s motion to have the case transferred to the Connecticut Supreme Court was granted. Although the case is fact specific, the Courtâ&#x20AC;&#x2122;s decision in this case will be the first ruling in the state on the larger issue of the standard that is applied to referendum challenges. The lower courts have all borrowed the standard used in election challenges in municipal candidate elections, that a party challenging the election has the burden of establishing both a substantial violation of an election See CABE page 3
The Policy Corner
See You in Court
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Activity at the Capitol continues to intensify as the public hearing process moves forward. Throughout discussions at CABEâ&#x20AC;&#x2122;s legislative breakfasts across the state, legislators have expressed a real desire for continued communication from their school board members during the legislative process. Debates on many of the most significant issues, particularly the state budget, will continue well past the committee deadlines. Resolution of these issues will probably not occur until shortly before the legislative session adjourns on June 3rd. There are multiple opportunities for board members and superintendents to communicate with their legislators, including providing testimony at public hearings â&#x20AC;&#x201C; in person or written submissions, CABEâ&#x20AC;&#x2122;s Day on the Hill on March 25th, and through emails and phone calls. Legislators are eager to hear from you!
SCHOOLS
Spotlighting best practices Over the years, we have been asked many times for â&#x20AC;&#x153;best practicesâ&#x20AC;? from school boards and superintendents. Thanks to an idea from the New Jersey School Boards Association, we have a thoughtful and beneficial way of providing this information to our members. We have divided possible areas in which boards would find best practices helpful. An email is being sent to CABE member board members and superintendents with a link to a short questionnaire that will enable you to provide us with information showcasing some of your best practices. The best practices you share will be posted on the â&#x20AC;&#x153;Spotlight on Connecticut Practices that Lead and Inspireâ&#x20AC;? section on our website. This online resource will become more robust as we receive your best practices. Please held us spotlight your best practices!
Legal Issues
Book Review
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