Following revelations that the state-controlled Newark, N.J., school district badly mismanaged its business operations, the city is suing the school district. A recent audit by PriceWaterhouseCoopers found that the district, which racked up a $74 million budget shortfall in 1999, failed to maintain invoices or any other supporting documents for at least $25 million in transactions.

The state department of education took over the troubled Newark schools in 1995, but in the four years that state-appointed school superintendent Beverly Hall was in charge, the financial operations were a mess. As Newark mayor Sharpe James put it in his recent State of the City address, "The state told us they were taking over because we couldn't run our schools. Well, I've got news for you. Under state control, it's worse."

The AFT-affiliated Newark Teachers Union (NTU) will likely join the lawsuit, says NTU president Joseph Del Grosso, at least in part because the union wants the full story of what went wrong to be made public. The suit calls for an accounting of the millions in city tax dollars contributed to the school district since the takeover.

Anyone who pays utility bills knows the shock of opening a bill this past winter and finding it astronomically higher than the previous year. If you don't want to spend your time at home shivering or sitting in the dark, there's little to do but grit your teeth and pay the bill.

In California, site of a widely publicized energy crisis this winter, one AFT affiliate that represents college PSRPs worked with the local AFL-CIO Central Labor Council and San Diego Gas & Electric (SDG&E) on a program that pays for half of union members' electric bills--up to $200 a month.

Not surprisingly, dozens of members of the Palomar College Council of Classified Employees have taken advantage of the subsidy, says local president Ernie Carson. "Most people's bills have doubled, or even tripled," compared to last year, he explains.

The money for the program comes from SDG&E. Getting the subsidy involves some modest paperwork and a drive to San Diego, some 25 miles away, but it's worth the effort for those who've done it. Union members first have to fill out an application and have Carson sign it, to prove they are members. Then they make an appointment and take the application, along with their current bill, to the San Diego/Imperial Valley Central Labor Council to get a voucher they can present at the utility office.

For years, Carson explains, his local was not affiliated with the San Diego labor council. But he changed that last spring, and the move has brought impressive benefits in addition to the utility subsidy. Last fall, the union faced a challenge from another employee organization--not affiliated with the AFL-CIO--that was trying to represent part of the existing unit. The Central Labor Council helped the Palomar local through the Street Heat program, turning out dozens of members of other local unions to march with Palomar classified employees in a show of support. The AFT local ended up easily winning the challenge election.

American Federation of Teachers, AFL•CIO - 555 New Jersey Avenue, NW - Washington, DC 20001