NEA/CTA BANK OF AMERICA CREDIT CARD UPDATE 

As a result of the unprecedented challenges facing financial institutions in these difficult economic times, NEA and CTA were recently advised by Bank of America (BAC) of the need to modify certain aspects of the NEA/CTA Credit Card Program to ensure the Program remains stable and competitive.   In response, NEA sought and received assurances from BAC that no changes would be made to a) the practices BAC has historically employed to manage account holders’ credit lines or b) the preferential criteria presently used to review and approve NEA/CTA members’ applications for credit. With these assurances in place, NEA MB and BAC worked collaboratively to create the fairest possible scenario for affected NEA/CTA members.  

I’m sure that you have heard reports of other financial institutions that have already implemented significant changes to their credit card and loan programs in response to the economic downturn. The tempered nature of the changes cited in this bulletin assures that the NEA/CTA Programs remain highly competitive and continue to provide true value to NEA and CTA members and their families. The new APRs and fees also continue to compare favorably with rates and fees on similar products in the marketplace. NEA/CTA Credit Card Program Changes  Approximately one quarter of existing NEA/CTA cardholders will be impacted by rate and fee pricing changes that take effect June 1, 2009. BAC will begin notifying these members of the changes in April 2009 by letter and through statement messages and inserts. Members wishing to opt out of these changes will be instructed to call or write Bank of America.  However, any use of a card after opting out will be considered an acceptance of the new terms and conditions.  If you have any questions regarding the information contained in this bulletin, please feel free to contact Member Benefits at 650-552-5200, or Diane Morte, Member Benefits Consultant, at 650-552-5430.

Department Of Education Poised To Distribute First Round Of School Stimulus.

The AP (4/2) reports, “Secretary Arne Duncan released the first $44 billion in economic stimulus money directed to schools Wednesday but said strings will be attached to the next round of aid.” He also “outlined a series of steps that states must take to get the next round of dollars.” Duncan announced the stimulus news at Maryland’s Doswell Brooks Elementary School. He “chose the school because it has significantly boosted achievement despite high numbers of poor and special education children, a challenge that often overwhelms urban schools.”

        “Nationwide, the first batch of stimulus funding includes $11.4 billion targeted largely to help students who live in poverty and those with disabilities,” The Washington Post (4/2, Glod) reports. “That money, doled out based on formulas that consider factors such as the percentages of children from low-income families, is available immediately, federal education officials said.” But “states must apply for a piece of the larger share of the first batch, $32.6 billion.” Of that amount schools, “$26.6 billion must be used to prevent layoffs and improve public schools and colleges.” The Post notes that “federal education officials today sent applications and guidelines to states.”

        According to the Detroit Free Press (4/2, Higgins), “The nation’s top education leader said today he wants ‘absolute transparency’ in the way states and schools spend stimulus money.” In addition, he gave more details “about $5 billion in Race to the Top grants states will be able to apply to receive.” The grants “will go to states that have shown improvement, or shown a willingness to make improvement, in areas such as teacher quality and developing high standards.”

        Reporting on the impact of federal education stimulus funds on schools in California, the Los Angeles Times (4/2, Mehta) reports that California education officials are “worried that the state’s share won’t be enough or come in time to stave off widespread teacher firings and program cuts.” The state expects to receive “more than $4 billion…in the first round of education funding from the stimulus package.” Charles Weis, superintendent of Santa Clara County schools, said “Given the cuts we’ve experienced in education this year, this won’t even get us back to where we were last year.”

        The AP (4/2, Gruver) reports in a story appearing on USA Today’s website on Wyoming’s $26.5 million share of the first phase of stimulus funding, that will go toward “special-education students and students from low-income families and neighborhoods. Once that money is allocated, the department will be allowed to apply for another $26.5 million for those same purposes.” The Wyoming Department of Education expects to receive $144 million.

        “In all, Utah schools are set to grab more than half a billion dollars in education stimulus money over two years,” the Salt Lake Tribune (4/2, Schencker) reports. State “lawmakers decided this past legislative session to use about $298 million in stabilization money to plug education budget holes.” Education Week’s (4/1, Aarons) Politics K-12 blog also covered the story.