TORT $$$$

Response 1
Our legal advice has been to go ahead and ascribe some portions of certain
administrative and staff salaries to Tort. However, a couple of years ago,
as we constructed our RM Plan, we conducted time studies of our staff, first
composing "Tort job descriptions" based upon allowable activities under the
statute, and then ascertaining how much time was spent on these activities.
Response 2
Even as I write, I am sure you know what my philosophy will be--stay
conservative. Don't forget the Freeport or Quincy mess.
Response 3
I assume you are not under "Tax Caps", but if you are, you really don't need
to worry about the tort thing anymore.
Response 4
For what it's worth, we are still going to deduct some salaries and I plan
on revising and tightening up a risk management plan to satisfy the auditors
and give us some protection in case we get some citizen challenge. I really
believe those of us in a small district do have to spend a legitimate amount
of time trying to control different risks.
Response 5
We have decreased some of our reliance on Tort, but we still levy a pretty
hefty sum. I do not talk much about the developments in the tort area, on
purpose-no use in giving some person fuel for their anti-school system fire.
Our attorney tells us that some of what we do is not too strong in light of
those same events you referenced, but we do some of it until a problem
arises. We are continuing to decrease our reliance on Tort, but slowly and
gradually. We will remove time spent supervising the passing periods and
lunch/recess in 2009-10 since our legal counsel convinced us that can be
construed as nothing extraordinary to lessen our exposure to risk.

Response 6
We have backed off on ours. We currently pay a small percentage of
administrators' salaries and a small percentage of custodial salaries with
Tort. We pay for everything dealing with the district nurse with Tort. We
pay insurance premiums and legal fees with Tort. I am sorry to say that I
don't have any great data for you other than this is what my gut tells me to
do and our lawyer's advice was to back it down as well.
Response 7
What I have been able to glean from various discussions with attorneys,
other superintendents and people from ISBE, you should rely on several
components as you determine tort expenditures of any type. One, you should
be in discussion with your annual auditor who really needs to agree with
your designation for a tort expenditure. Also, your school district
attorney or his/her firm's expert in that type of law should be contacted
for advice. Third, try contacting the Illinois Association of School
Business Officials (IASBO). I would think they should be able to help you.
Response 8
A lot of it boils down to what your auditor will allow. Mine says "services
only-not equipment or salaries" So I use it for attorney fees, School Reach
emergency phone system, Snow/ice removal, insurance, etc.
Response 9
We use tort money to pay salaries, but the limitation is the risk management
duty cannot be part of the "regular job responsibilities." As the
attorneys have a tendency to make a little money in determining what intent
is I am sure we will get guidance down the road. Meanwhile, I am using TORT
money to assist in salaries, with permission of the attorney and auditor. I
was once told get the attorney and auditor to agree and you can do
anything!!!
Response 10
Contact Peter Flynn, Supt. @ Freeport. That is where the first lawsuit
happened. You do need to have an attorney review the plan, as well as your
auditor. If your plan specifies an appropriate % of time for staff, under
the recommended guidelines (contact IASB as well) you can use a % for
salaries. Slattery, the one who is suing, seems to be looking for tort fund
balances of over $500,000. Another person to talk to is the new supt. at
Quincy. They were heavily involved in this mess.
Response 11
This is pretty much straight from Brian Braun (personally): The Tort law
was set up to pay for judgments and insurance. Anything else is creative
interpretation. This is from me: we superintendents have been on a roll
for many years in milking that fund. Some of us have been caught (as you
noted). Others are waiting to get caught. Others will never be caught.
Kind of like going over the speed limit. What you feel you can swing in
that levy is a combination of your local politics, your auditor, your
attorney, and your board. It will be different for everybody. I wouldn't
dream of putting risk management in my levy. I did in my previous district.
I don't think there is an answer that fits all.
Response 12
I don't believe the legislature ever intended that the tort fund be used to
pay for salaries, i.e., salaries for a recess monitor. Not all
superintendents agree with my position.
Response 13
Are you under tax caps there? We are here and I am going completely away
from TORT because we have more flexibility with the different funds because
of the law change a couple of years ago. We also have a Risk Management and
our auditor has worked very well with us on this issue.
Response 14
Our tort levy is .2777. We do pay portions of some salaries which is
allowable. People that had trouble were really abusing the tort fund.
Response 15
Are you under Tax Caps? We are, and we are not levying in Tort because the
overall levy is what matters. In addition, changes in the law allow you to
levy the statutory max in other funds as long as your overall rate doesn't
exceed to the capped amount. Plus, you avoid the hassles with Tort.

Response 16
Be careful as to the amount of Tort money you accumulate. It is my
understanding that some attorneys are looking at tort..and if a great deal
has been accumulated over the years.they will "represent the community"
(and themselves) and will force an abatement to "return" extra tort money
back to the public...you will lose money and look bad. If you levy an
amount that you can spend each year as have a cushion left to cover
emergency situations, you'll be fine...be sure you've talked with your
attorney and auditors to be sure you are spending in the proper areas.
Response 17
I know exactly what you are going through. This topic has been discussed
more than once by the superintendents in Iroquois County. Some of my
colleagues, for whom I have a great deal of respect, are not using Tort
money for any salaries. We have been using Tort money for years, and have a
well-written Risk Management Plan, reviewed/approved by our auditor. I have
taken a moderate approach, using most of the opportunities that our Risk
Management Plan allows, but not all. In my opinion, now that the state has
created a separate fund for monitoring the Tort money, it will soon by
restricting how you can use it. In the meantime, I intend to take advantage
of it while leaving myself a little cushion in case my auditor was overly
generous. I suppose that this is one of those issues where we each have to
find a position that fits our individual comfort level.
Response 18
We are in a tax cap district which I feel makes all the difference in the
world. Two years ago we eliminated levying for tort and increased our Ed
Fund levy to the same level we had been capturing for tort and paid tort
expenditures from Ed. However, if you are not under tax caps and have a
solid risk management plan I would say levy what you need. My final advice
though would be to consult your auditor and attorney before making a final
decision.
Response 19
Our attorney warned us to stay away from using tort funds for salary.