Schools OK Arbitration of Health Pay Dispute

Orange Unified School District trustees have agreed to go into arbitration over $2 million in premiums paid to the teachers health benefits trust.

Last week, school board trustees voted 6 to 1 to try to recover the money and said the teachers trust overcharged them for benefits. Teacher representatives said no overpayment was made.

Arbitration, a legal process in which both sides agree to hire a private judge and abide by his or her decision, could be initiated within weeks, Assistant Supt. Malcolm Seheult said.

The board also decided to pay a consultant about $2,000 to gather precise figures on how much the district might have overpaid in premiums.

“There have been a lot of questions and accusations made and this will clarify those,” said Supt. Robert L. French of the actions at the March 28 meeting.

Some board members said they did not want to waste money pursuing a relatively small amount of money when the district has more expensive problems to worry about.

But school board President Martin Jacobson said that the cash-strapped district needs every dollar it can get.

David Reger, president of the teachers union, blasted the board members for continuing to press the issue.

“There is no criminal activity here,” Reger said. “Why does everything you put your fingers on turn into turmoil?”