ORTA launches legal fund to challenge the governor's removal of Wade Steen from the STRS Board

From Dean Dennis

May 17, 2023

Gongwer - A Capitol Square Publication

Group Launches Legal Defense Fund Amid STRS Appointment Dust-Up

As Gov. Mike DeWine's newest appointee to the State Teachers Retirement System board preps for his first meeting this week, money is being raised to potentially challenge his appointment.

The Ohio Retirement for Teachers Association announced it has launched a formal legal fund with an eye to challenge Gov. DeWine's recent removal of Wade Steen from the board.

The governor earlier this month swapped out Mr. Steen, who was first appointed in 2016, for G. Brent Bishop, arguing that doing so fell within the governor's statutory authority. (See Gongwer Ohio Report, May 8, 2023)

But the change kicked up a legal clash, with Mr. Steen and the association both contending only a court can remove a gubernatorial appointee from that board under that relevant Revised Code section.

To that end, ORTA announced the debut of its "pension defense fund," which it says will be used to "develop resources for legal and professional help in fighting for Ohio teachers."

"ORTA's Executive Council has determined that the first actions from the fund will be to use fund monies to help Wade Steen," the group's announcement reads. "The monies will go towards the legal expenses he might incur in challenging his improper removal by the Governor."

Key lawmakers on the pension front, meanwhile, are staying out of the fight for now, although they continue to receive earfuls from concerned members of the system.

Sen. Kirk Schuring (R-Canton), who chairs the Ohio Retirement Study Council, said when asked he defers to the governor's reading of the statute.

And Rep. Bob Young (R-North Canton), chair of the House Pensions Committee, said Tuesday he had yet to delve into the conflict in detail.

The full STRS board is expected to meet Thursday for a regular meeting – its first since Mr. Bishop's appointment.

At that meeting, members are expected to be briefed by consultant McLagan about the board's controversial performance-based incentive policy.

A draft presentation showed the firm found the program is "generally aligned with competitive market practices," but recommended a handful of tweaks. (Board Meeting Materials)

STRS leaders last week defended the bonus structure as sound strategy in response to questions from the Retirement Study Council. The program is being eyed for a $2.6 million or 30.6% increase in the system's proposed Fiscal Year 2024 budget. (See Gongwer Ohio Report, May 11, 2023)

Watchdogs Note: Donate here https://www.orta.org/defense-fund