News and Tribune

Floyd County

January 30, 2013

New Albany council members take insurance fight to court

Benedetti, Zurschmiede and Caesar stripped of coverage last year



In a legal opinion originally issued in 2003 then updated in 2005, then-Indiana Attorney General Steve Carter addressed salaries of public officials. 

“The compensation of a city officer may not be reduced or increased in the year fixed, nor may it ever be reduced to less than the salary of the prior year, regardless of timing,” Carter wrote. 

The issue that spawned Carter’s opinion was over whether a local clerk treasurer’s salary could be lowered. For the New Albany case, the lawsuit will likely hinge on the definition of “compensation.”

As of Tuesday, a hearing date for the case hadn’t been scheduled. 

Councilman John Gonder proposed a measure in November that would have given a health insurance option to permanent part-time employees. The measure failed on final reading 7-2.

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