Campbell County School Board Resolves Health Insurance MOU Signature Dispute

In Campbell County, Tennessee, a dispute arose over the signing of a memorandum of understanding (MOU) critical for school employees' health insurance coverage. The finance director, Jeff Marlow, initially refused to sign the MOU due to differences in interpretation between his role as finance director and the state's definition of 'fiscal officer'. Benefits Administration in Nashville had redefined the fiscal officer's managerial duties, which Marlow argued did not align with his responsibilities, leading to legal and administrative confusion. The school board meetings in April focused extensively on resolving this issue before the April 15 deadline to prevent disruption of healthcare services for about 750 employees.

The school board proposed an extension and considered appointing a short-term fiscal officer to sign the MOU, seeking to maintain compliance with state requirements while addressing Marlow's concerns. Legal counsel for the county highlighted the lack of clear statutory definitions for the fiscal officer role in the state's Benefits Administration guidelines, citing an opinion from the County Technical Advisory Service (CTAS) supporting the position that Benefits Administration's new interpretation lacked statutory authority. Despite internal disagreements within the school board, it was agreed that no employee's health insurance was at immediate risk, and the state Benefits Administration granted a deadline extension to May 15.

Discussions revealed communication issues between the school board, the county's finance office, and state entities, with emphasis on the importance of transparency and collaboration to resolve the matter. The school board chairman and members acknowledged the need to separate personal disagreements from professional duties to resolve the dispute effectively. The director of schools was tasked with negotiating with Benefits Administration to finalize the MOU language acceptable to all parties, aiming to secure a signature from Marlow or an authorized delegate.

The episode underscores challenges in local government compliance with evolving state-level administrative definitions and highlights the importance of clear role delineations in public sector fiscal management to ensure uninterrupted employee benefits.