Ethics leans towards decisions based upon individual character, and the more subjective understanding of right and wrong by individuals. Merriam-Webster dictionary defines Integrity as the quality of being honest and fair, and Conflict of Interest is defined as a conflict between the private interests and the official responsibilities of a person in a position of trust.
At the last meeting on September 15, 2021, the president of the board of education, Mr. Castricone revisited his request of the health insurance opt-out program within the school district. This time around it was suggested that the opt-out be an “employer match”, meaning that the district would match the amount the spouses employer would pay their employee if they opted-out of that employers insurance. The first time Mr. Castricone proposed the insurance opt-out idea was in the April 2, 2020 board of education meeting. It was explained to the board by then superintendent Bohlke, that this was a negotiated item in the union contract and that the school attorney should be consulted. Now there is a new board and a new opportunity. At first glance, this idea of increasing the amount of money for the opt-out option looks like it could save the district money, however, the work needs to be done to see if this is actually the case, and if it is legal. Mr. Castricone, a school board member, could potentially benefit financially, this is a direct conflict of interest.
Questions to ask
• Is this to be within the Union contracts and not a one-off deal
• How many employees opt-out currently
• How much does the district annually pay for health insurance
• What if one employer offers 5k and another 10k to opt-out, is that not a legal issue
• What would qualify as the proof of employer opt-out plans
• Would there be a cap on the amount that could be matched
• What if a person opts-out and then 2 months later comes back, is the $ returned
• Are our employees on a tiered program for insurance
• If an employee opts-out for 5 years, when they opt back in, what tier will they be on if we offer tiers
• Are the tiers based on years of employment or years on insurance
• Do our employees pay into our insurance program
• What are the surrounding districts opt-out options
• Is there a difference in opt-out price for individual or family plan
• What are the cost reductions in relation to policy count, does insurance go up in costs with fewer policies
• Would Mr. Castricone recuse himself from the vote if it gets that far
• Mr. Heavner mentioned at the September 15, 2021 board meeting that this could save the district tens of thousands of dollars. An actual cost analysis needs to be done and presented to the public.
A request made at a June 2022 board meeting
“I request the Board adopt a code of ethics and operate according to its tenets.
The General Municipal Law requires all school boards to adopt a code of ethics for the guidance of its officers and employees that sets forth the standards of conduct reasonably expected of them. (Gen. Mun. Law § 806).
I further request the superintendent of schools, a chief executive officer of the district, distribute a copy of the code of ethics to every district officer and employee and ensure that the district post a copy of the provisions of the General Municipal Law regarding conflicts of interest in each public building in a place conspicuous to its officers and employees.”
This request does not seem to have been deemed important as it has yet to be presented or implemented.
Mr. Castricone did mention at the meeting that he is not sure if this endeavor is even possible and that he had a call into the district attorney but had not heard back by the time of the meeting. The topic has been tabled and will be revisited at a future meeting.
References
You can read about the meeting in TPFYI here: http://www.tpfyi.com/tufsd.html
You can view the full meeting here: https://core-docs.s3.amazonaws.com/documents/asset/uploaded_file/1566537/2021-09-15_19-04-46.mp4
Conflict of Interest
As noted in the School of Law, 37th Edition
12:6. What is a conflict of interest?
The term conflict of interest describes a situation in which a school board member, district officer, or employee is in a position to benefit financially from a decision he or she may make on behalf of the district through the exercise of official authority or disposing of public funds. Financial interests that are prohibited by law include:
• Interest in a contract with the school district where a school board member, district officer, or employee has the power or may appoint someone who has the power to negotiate, authorize, approve, prepare, make payment, or audit bills or claims under the contract unless otherwise exempted under law (Gen. Mun. Law §§ 801(1), 802).
• Interest by a chief fiscal officer, treasurer, or his or her deputy or employee in a bank or other financial institution that is used by the school district he or she serves (Gen. Mun. Law § 801(2)), unless otherwise permitted under the law (Gen. Mun. Law § 802(1)(a)).
Interest is defined as a direct or indirect financial or material benefit that accrues to the officer or employee as a result of a contract with the school district (Gen. Mun. Law § 800(3)). The General Municipal Law expressly makes the provisions regarding conflicts of interest applicable to school districts (Gen. Mun. Law § 800(4)).
Contract is defined to include any claim, account, or demand against, or agreement, express or implied, as well as the designation of a depository of public funds or a newspaper for use by the school district (Gen. Mun. Law § 800(2)).
12:7. In what instances would a board member, district officer, or employee have an interest that could result in a prohibited conflict of interest?
A school board member, district officer, or employee is deemed to have an interest in a firm, partnership, or association of which he or she is a member or employee; a corporation of which he or she is an officer, director, or employee; or a corporation in which he or she owns or directly or indirectly controls any stock (Gen. Mun. Law § 800(3); Lexjac, LLC v. Bd. of Trustees of the Inc. Vill. of Muttontown, 708 Fed. Appx. 722 (2d Cir. 2017)).
A board member, district officer or employee also is deemed to have an interest in a contract between the district and his or her spouse, minor child, or dependents, except a contract of employment as the law specifically allows a school district officer’s or employee’s spouse, minor child, or dependent to enter into an employment contract with the district (Gen. Mun. Law § 800(3); see also Appeal of Lombardo, 44 Ed Dept Rep 167 (2004); Appeal of Lawson, 42 Ed Dept Rep 210 (2002); Application of Kavitsky, 41 Ed Dept Rep 231 (2001)).
In addition, interests that are not prohibited but which nonetheless may create an appearance of impropriety may be properly restricted by the district’s code of ethics, as long as the restriction is not inconsistent with the other provisions of law (Opn. St. Comp. 88-77; Appeal of Behuniak & Lattimore, 30 Ed Dept Rep 236 (1991)).
12:8. Is a school board member, district officer or employee required to publicly disclose an interest even if it is not a prohibited interest?
Yes. Except as otherwise provided in law, such individuals are required to publicly disclose, in writing, any interest they or their spouse may have, will have, or later acquire in any actual or proposed contract; purchase agreement; lease agreement; or other agreement involving the district, including oral agreements, even if the interest is not a prohibited interest. The disclosure must be made to the school board and immediate supervisor, where applicable. It must also be made part of the official record of the district (Gen. Mun. Law § 803(1), (2); sea also § 802(2); Matter of Ackerberg, 25 Ed Dept Rep 232 (1985); see also 12:6).