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Teacher Union LM-2 Reports Reveal Many High-Paid Union Executives

More of the new federal Labor Organization Annual Reports (Form LM-2) submitted by teacher union affiliates are now available. The reports have long been required of labor unions that represent any private sector workers (fully public sector unions are exempt). NEA and AFT national headquarters, many of AFT’s state federations, plus about ten of NEA’s state affiliates are required to file the report.

The latest come from the AFT-affiliated New York State United Teachers (NYSUT), NEA Rhode Island (NEARI), the Maine Education Association (MEA) and the Pennsylvania State Education Association (PSEA).

* NYSUT took in $80.8 million in dues for itself in the 2004-05 school year. One of its local affiliates, United University Professionals, owed NYSUT $1.8 million, of which almost $910,000 was 90-180 days past due. The United Staff Association of NYU owed NYSUT more than $627,000, all of which was more than 180 days past due. The union claims only 23 of its 457 employees spend more than 2 percent of their time on political activities and lobbying. The union had 511,000 members, but only 374,000 of these are active employees.

Both the outgoing president, Thomas Hobart, and his successor, Richard Iannuzzi, were paid more than $197,000. Six-figure salaries are common in NYSUT.

Other interesting payouts: $126,250 to ACORN for organizing; $10,672 to the Lake George Steamboat Company for transportation services under the heading "special projects;" $5,901 to the long-time union target Sodexho Marriott Services for food; and large amounts to a lot of consultants.

* NEARI took in almost $3 million in dues for itself in the 2004-05 school year. The union claims only two of its 22 employees spent more than 10 percent of their time on political activities and lobbying. The union had 9,769 active professional and support personnel members.

Union president Larry Purtill was paid $102,474, but NEARI’s highest paid employee was its executive director, Robert Walsh, at $131,207.

Other interesting payouts: $58,800 to Working Rhode Island; and $5,216 to "various" for "other miscellaneous expenses."

* MEA took in almost $5.2 million in dues for itself in the 2004-05 school year. The union claims 31 of its 45 employees spent 15 percent or more of their time on political activities and lobbying. The union had 20,058 active professional and support personnel members.

Union president Robert Walker was paid $86,733, less than many UniServ directors in his office, and MEA’s highest paid employee was its executive director, Mark Gray, at $111,432.

Other interesting payouts: $8,554 for landscaping and grounds maintenance; $7,054 to Talent Tree temporary staffing agency; and this note:

"The LM-2 filed for 2004-05 [Ed. note. actually 2003-04] reported a loss involving a former employee. Subsequent to filing that report, during a follow-up investigation by the USDOL-OLMS, it was discovered that the loss was underreported by $9,962.71. The newly-discovered loss involved the same (former) employee writing and cashing 43 checks to ‘Petty Cash,’ each in the amount of $250 or less over the same time period as the originally-reported loss. A claim has been filed with the bonding company, and full recovery is expected."

For background, see "Missing Union Funds a Maine Trend?" in the September 6, 2005 EIA Communiqué.

* PSEA took in almost $47.3 million in dues for itself in the 2004-05 school year. The union claims only 17 of its 295 employees spent more than 10 percent of their time on political activities and lobbying. The union had 144,530 active professional and support personnel members.

Union president James Weaver was paid $181,841, higher than Executive Director Carolyn Dumaresq at $156,669. Probably due to a lump sum payment, David Helfman, the former assistant executive director for program services, received $225,517 before moving on to his new job as executive director of the Maryland State Teachers Association. Many PSEA employees are paid in six figures.

Other interesting payouts: Three payments to Manpower, Inc. in Philadelphia ($126,173, $49,186, and $38,494); two payments ($14,684 and $5,724) to Manpower’s branch in Altoona, another $7,154 to its branch in Milwaukee, plus $28,445 to Office Team, a temp firm headquartered in Chicago, and $6,973 to Dual Temp in Allentown; $5,000 to Pennsylvania ACORN; $30,000 to the Keystone Research Center; $28,800 to Communities for Quality Education (see CQE Update); $13,379 to Sungard Availability Services for "disaster recovery consulting fees;" $56,762 to the Economic Policy Institute (includes $37,500 for the "How Does Teacher Pay Compare" project); and $50,000 to the Rand Corporation for the Value Added Assessment project.

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Written By

Mr. Antonucci is the director of the Education Intelligence Agency and has covered the education beat since 1993. His weekly newsletter, the Communiqué, covers teachers' unions.

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