The North Lawrence school system is one of 15 school corporations that have joined the state of Indiana in a federal lawsuit against the Internal Revenue Service, the U.S. Department of the Treasury and the U.S. Department of Health and Human Services.
At issue is the federal Affordable Care Act, also known as Obamacare.
The State of Indiana serves as the lead plaintiff in the lawsuit, according to a press release from Bose McKinney & Evans LLP, the law firm representing the schools. Gregory Z. Zoeller, Indiana attorney general, represents the state.
Gary Conner, NL superintendent, said none of the school's money is being used in the lawsuit.
"We're not required to provide any financial support," he said.
According to the law firm, “All Indiana public school corporations provide comprehensive health insurance coverage to most of their employees. However, the practical reality is that most Indiana public school corporations do not have the financial resources to provide affordable, minimum value coverage to all employees who work in excess of 30 hours of service per week.”
The NL schools recently cut hours for aides and other employees so they do not work 30 or more hours per week. In making the cuts, Gary Conner, superintendent, said the school system does not have the money to offer health insurance to those workers.
Conner said the staff members -- about 310 in all -- are not the only ones affected.
"More importantly, our kids are being negatively impacted," he said. "It reduces the time they (staff members) have to spend with our kids."
He said the fees and other costs associated with ACA have increased the school system's health insurance premium by about 3 to 4 percent. And some 390 employees take the NL insurance package.
In addition, the lawsuit notes, the ACA provides for penalties for employers who do not comply.
“In some cases, these potential penalties would result in catastrophic financial consequences for Indiana public school corporations," the news release reads. "To avoid this result, most Indiana public school corporations have been compelled to reduce the hours of certain non-benefit eligible employees, including instructional aides, bus drivers, cafeteria workers, substitute teachers and other part-time employees. These reductions impose hardships upon the impacted employees. Moreover, the schools believe that these reductions will have a long-term detrimental impact on the quality of education provided to children in the state of Indiana, particularly students with learning disabilities.”
The lawsuit challenges IRS regulations implementing ACA. It also challenges the authority of the federal government to impose the employer mandate upon the state and Indiana public school corporations.
Other school corporations in the lawsuit are:
-- Metropolitan School District of Martinsville.
-- Perry Central Community Schools in Leopold.
-- Benton Community School Corp. in Fowler.
-- Community School Corp. of Eastern Hancock County in Charlottesville.
-- John Glenn School Corp. in Walkerton.
-- Monroe-Gregg School District in Monrovia.
-- Mooresville Consolidated School Corp.
-- Northwestern Consolidated School District of Shelby County in Fairland.
-- Shelbyville Central Schools.
-- Southwest Parke Community School Corp. in Montezuma.
-- Vincennes Community School Corp.
-- Madison Consolidated Schools.
-- South Henry School Corp. in Straughn.
-- Southwestern Jefferson County Consolidated School Corp., Hanover.