The state has reached a tentative $14 million dollar settlement with Indiana‘s largest teachers union over a securities complaint in which 27 school districts were defrauded out of money.

Secretary of State Connie Lawson announced the settlement with the Indiana State Teachers Association, which was agreed upon after a settlement conference with a federal magistrate last month.  The settlement amount is almost half the 27 (m) million dollars Lawson says was lost by school districts in what she and State Securities Commissioner Chris Naylor called a “Ponzi scheme” involving health plans sold by the ISTA.

Naylor sued the ISTA and it‘s parent, the National Education Association, in December 2009 over the health trusts.  The program, which Naylor says was heavily marketed by the union to teachers and schools, allowed school districts to build surpluses which would be held in reserves and invested by ISTA.  Instead, the state‘s lawsuit says the union mixed the money in with it‘s long-term disability fund and perhaps other money.  The disability fund subsequently lost money, and Naylor says the union tried to recoup the funds by making “risky investments” with much of the remaining money.

Naylor says ISTA representatives also gave false assurances to school districts, in some cases providing bogus financial statements, saying the money invested in the health trust was safe.

The NEA was also sued because, prior to the lawsuit‘s filing, the national union bailed out the ISTA due to the state union‘s financial problems.  Naylor says it also became clear that the NEA had some oversight over the labor representatives that promoted the health plans.  The NEA asked to be absolved from the suit, but a federal judge repeatedly refused.

While Lawson says the state was, and is, prepared to go to trial in October, settling now for half the amount the schools lost will get them money more quickly than they would have seen during a long court fight.  She says it is also better than an offer made  prior to the state‘s lawsuit by the health trustee appointed by the NEA – he offered school districts as little as 20-cents on the dollar to quell possible claims against the ISTA.

The 27 school corporations affected were not named – Lawson said their names could not be made public until after the settlement is final.  That will happen once all of them agree to the terms hammered out by the state and the union.

Scientists and engineers are using radar to determine the safety of a sand dune at the Indiana Dunes National Lakeshore that collapsed onto a 6-year-old Illinois boy, burying him under 11 feet of sand last month.  EPA spokesman Francisco Arcaute (AHR‘-koot-ay) says the  gear they‘re using at Mount Baldy is usually used to do underground searches at hazardous waste sites.  But he says they definitely do not think anything hazardous is there under the dune.  Arcute would not speculate on what caused the sand pocket to swallow Nathan Woessner (WAYS-ner), but they hope to gather some solid scientific information that could lead them to find the cause.  I-U Northwest geosciences professor Erin Argyilan (AHR-guh-lin) says what the EPA and National Park Service team is doing is the right way to investigate the Mount Baldy issue.  Arcute says the team will remain at the dunes for at least one more day, but may need more equipment and more time to conduct the investigation.

The Salem School Board voted unanimously to approve a recommendation to move forward with an application for a Federal Emergency Management Agency grant that could fund $5 million of a system-wide project to add Safe Rooms to Bradie M. Shrum Elementary, Salem Middle and High Schools.

The Safe Rooms would be constructed as part of a national grant cycle aimed at providing funds for engineering and architectural services relating to the design and construction of a FEMA-approved facility.  The rooms will be heavily fortified concrete and steel that will withstand high winds.

The grants were made available following the events of Hurricane Katrina, in order to assist communities in building facilities which could conceivably act as emergency shelters in the event of natural disasters and other emergencies.

If the grants are approved, 25 percent of the project or approximately $1,860,794 would be spent in local funds.

After a presentation by Larry Timperman of Michell, Timperman and Ritz, Board President Steve Motsinger asked the board if they were ready after 18 months of talks about the project to approve an application.

“It looks as if we’re getting a $7 million expansion project with most of that paid for,” Motsinger said. “It looks like a no-brainer.”

Timperman estimated the construction cost would be $215 per square foot.

Board member Jason Pepmeier asked Dr. Kim Thurston where the local matching funds would come from.

Thurston said a bond issue would be generated.

Superintendent Dr. Lynn Reed noted that there was a window of opportunity for the grant and if the school was going to use the project to not only provide safe spaces for students, staff and visitors to the schools, they had better act.

The project will include an addition at all three schools with the one at Bradie Shrum planned for 9,025 total square feet. The net safe room size would be 7,965 and would hold approximately 1,585 students, teacher and members of the public.

The actual space of the development is planned to be used a as a multipurpose room with four additional classrooms.

The Salem Middle School project would provide for the construction of a 4,070 square foot multi-purpose room with men’s and women’s locker room and a kitchen area. The total safe room would be 5,252 square feet and would hold up to 1,025.

The project at the Salem High School is part of a larger project that would be completed in phases.

The first phase would be to construct, through the grant, a new band and choir room. An additional phase not to be paid for through the grant, would include the possible construction of an auditorium.

The Safe Room would be approximately 8,540 square foot and hold approximately 1,470 students, staff and residents.

A representative of River Hills Economic Development District said the grants would be split up into three separate ones to be submitted to the State of Indiana, and then submitted to FEMA.

“Because of the size of each project there is a limit of $2 million per project,” she said. “We will submit these individually. All could be granted or just one. This is going to be an extremely competitive grant among other agencies in the US.”

Mark Abbott made a motion to approve with Jason Pepmeier seconding the motion. The board passed the approval unanimously.

Timperman said if the grant was awarded in the next few months, bids for the project could be advertised for bid next spring.

Central Indiana health and safety leaders say they need not just federal funding for emergency preparedness, but more consistent funding.

Hospital representatives and state and local public safety officials testified at a congressional field hearing in Carmel, home to House Emergency Preparedness Subcommittee Chair Susan Brooks. Indiana hospitals and police and fire agencies coordinate their emergency response operations and drills through a public-private partnership dubbed the MESH Coalition.

MESH C-E-O Chad Priest says the group is grateful for the federal support it‘s received. But he says it‘s difficult to make long-range plans when the money local agencies receive from Washington keeps fluctuating, and at times disappearing entirely.

Brooks was joined for the hearing by Second District Representative Jackie Walorski and Senator Joe Donnelly. All praised Indiana agencies for their readiness. Brooks notes that although drills and planning often focus on terrorist threats, Indiana has shown the same preparation and coordination comes into play in other kinds of disasters, from the gas explosion which leveled part of Indy‘s Richmond Hill subdivision earlier this year to the Henryville tornado last year.

A La Porte man who had been missing since Saturday was found dead in a ditch along Interstate 94 Tuesday afternoon.  Indiana State Police say a mowing crew was clearing the grassy area on I-94 about one mile west of the Portage exit when the body of 50-year-old Ricky Kimble was found.  Kimble had been reported missing on Monday and hadn‘t been seen since Saturday.  It‘s not known how Kimble died.  An autopsy is pending at South Bend Memorial Hospital.  Police are still investigating as to what may have caused Kimble‘s death. Anyone who may have seen Kimble walking on I-80/94 from late Saturday until early Tuesday is asked to call the La Porte County Sheriff‘s Office.

A Pekin woman who was taken into custody by the Washington County Sheriff’s Department and charged with reckless homicide and possession of a controlled substance has been released on bond.

Brooke Bunch, 31, Pekin, was arrested August 5 and booked into the Washington County Detention Center. Later in the day, she bonded out and was released from custody.

Bunch was charged with one count of Reckless Homicide, a Class C Felony and one county of Possession of a Controlled Substance, a Class D Felony.

The sheriff’s department is continuing to investigate the April 8 death of Johhny Ferrill, 67, Sellersburg.

The fatal accident occurred on State Road 60 East between Motsinger Road and Sullivan Lane.

Ferrill was traveling west and was operating a 2004 Harley Davidson.

Bunch was traveling East and operating a 2004 Jeep Cherokee.

WSLM received reports from a motorist who was following Bunch on April 8, noting she was driving “erratically” and weaving all over the road. The caller had also reported this to the Sheriff’s Department.

Bunch left the road, driving into a ditch and then ramping up the hill back onto State Road 60, coming into the path of the motorcycle.

Ferrill was ejected from the bike and thrown into a field to the east of the roadway.

He was pronounced dead at the scene.

Athletic passes for Salem High and Salem Middle Schools will go on sale in the athletic office at the high school on Tuesday, August 6 between the hours of 8:30 a.m. and 3:00 p.m.  Passes will also be sold at the first home varsity event for each sport.  Cost of passes are:

H.S. 10 Event Pass – $30.00 – excludes tournaments

M.S. 10 Event Pass – $20.00 – excludes tournaments

Family Pass – $150.00 – four members of the immediate family, $25.00 for each additional member, admission for all h.s. and m.s. events excluding tournaments, non-transferable

The Indiana State Fair means food, usually deep fried food that isn‘t healthy.  Does that mean you should avoid it altogether?  Not if you are smart, says one bariatric doctor.

Many dieticians suggest eating a meal before going to the fair or any other place where you might be tempted by fatty, sugary or salty foods. But Dr. Lori Hurst with St. Vincent Bariatric Center of

Excellence says that‘s often an unreasonable choice, and says its okay to go to the fair hungry, “but not starving.  It‘s better to do that than to eat a meal before you go, and then eating again at the fair – essentially two large meals back to back.”

Hurst says if you are smart, you can indulge a little at the fair without overdoing it.  “We tend to go crazy when there are a lot of options,” said Hurst.  “But we should ask ourselves ‘what do I really want to spend my calories on?‘ Then, let the other stuff go until next year‘s fair.”

One good thing about having fatty food at the fair is there is plenty of space to walk it off.  Hurst says you should take advantage of it, “or plan an activity to do after you get home to move around and help offset your eating for that day.”

Some of more than 50,000 pounds of recalled beef is in Indiana stores.

A Kansas beef-packing company has recalled the beef that may be contaminated with E. coli. National Beef Packing Company recalled the beef that was produced on July 18th.

The beef was shipped with an establishment number of “EST.208A” inside the USDA mark of inspection. IGA stores and Cash Saver stores are on the list included in the recall. Indiana has at least 60 IGA stores and three Cash Saver stores.

THE USDA Food Safety and Inspection Service (FSIS) announced the recall this week, but no illnesses have been reported.

The USDA says the problem was discovered through monitoring. E. coli is a potentially deadly bacterium that can cause bloody diarrhea, dehydration, and in severe cases, kidney failure. Very young people, seniors and people with weak immune systems are most susceptible to the illness.

For more information on the recall, call 866-761-9472 or visit NationalBeef.com.