Archived Story
Sunday, October 16, 2005
By GRETCHEN LOSI/Staff Writer
A sworn affidavit from California Teachers Association, which represents more than 335,000 teachers, reveals the union is financially strapped and that the $60-a-year assessment levied on its members was needed to "maintain fiscal solvency."
The affidavit shows that as of Sept. 30, the union spent the entire $50 million it raised to fight the governor. It also shows the union is attempting to secure an additional $40 million line of credit in addition to some
$34 million in existing loans. The document states that failure to obtain this loan would result in "great financial harm" for the union.
"It's normal for a group this size to have lines of credit to meet financial needs," Mike Myslinski CTA communications consultant said. "There is no threat of any kind of CTA bankruptcy. The court document is being circulated by the governor's office to
confuse and distort the issues."
However, the document, submitted to the U.S. District Court in San Jose, was signed by CTA's own controller, Carlos Moreno.
The document is part of a recent class-action lawsuit against the union brought on by teachers.
"CTA has already spent on the initiative campaign the equivalent of what the temporary dues increase would bring over three years," Moreno stated in the document. "If CTA is unable to get the line of credit, there is significant risk that an outstanding $20 million line will be called."
If Proposition 75 is passed, public employee union workers -- including teachers -- will be given the right to decide if they want their union dues spent on politics. That could significantly hinder CTA's ability to repay the several million dollars in current debts, according to a California Recovery Team statement.
"The union bosses who control the teachers are like a bunch of teenagers with credits cards," California Recovery Team spokesman Todd Harris stated. "They've simply run all around the state charging up massive debts, massive obligations."
The affidavit further states CTA spent the money on the campaign with the expectation of receiving a certain income stream from the three-year temporary $60 annual dues increase to repay its current and future debts.
Myslinski was unable to say whether CTA would be seeking additional hikes in members' dues to cover the debt. Other CTA officials did not return calls.
A copy of the affidavit in its entirety can be found on the Daily Press Web site at www.highdesert.com.