Ohio lawmakers are set to remove the majority of educators from the State Teachers Retirement System board under the proposed final budget. The decision follows concerns about an alleged corruption scheme threatening the fund. The nearly 600 amendments to the 5,500-page operating budget bill include changes to the STRS board.
A provision will change the board’s composition from seven elected teachers to three elected educators as seats are phased out over several years. Currently, the governor, Speaker of the House, Senate President, treasurer, and director of the Department of Education and Workforce appoint board members. In the revised structure, the treasurer would get two appointees, the legislative leaders would have three combined, the chancellor of the Department of Higher Education would get one, and the governor and DEW would receive one appointment each.
State Representative Adam Bird proposed this provision.
Board composition changes raise concerns
He stated, “The state legislature established these pension systems and has an ongoing responsibility to ensure the long-term health of the fund for retired and active teachers.
The ongoing turmoil has clarified the need for the General Assembly to rebalance the Board composition.”
A whistleblower memo given to Governor Mike DeWine in May revealed an alleged public corruption scandal within STRS. Attorney General Dave Yost filed a lawsuit to remove former member Wade Steen and current Chair Rudy Fichtenbaum from the board, accusing them of engaging in a contract-steering scheme with investment startup QED Technologies. Steen and Fichtenbaum have denied any wrongdoing and accused Yost and DeWine of engaging in a political scheme to prevent educators from advocating for more transparency and changes to STRS investment strategies.
Educators argue that reducing elected board members’ roles is anti-democratic. Retired educator Mary Binegar stated, “Whether we like the board members or not, we do have the opportunity to vote for them. I think it’s important for educators to have that sense that there are other educators watching out for them.”
The legislation is now heading to each chamber for a vote, with a budget deadline at the end of June.
