On August 15, 2005, Stephenson County Judge Gunnarsson ruled that
Freeport District No. 145 improperly spent $130,000.00 of tort immunity
tax dollars for employees' salaries. This decision, the first of
its kind in Illinois, is instructive for districts who wish to
implement a risk care management plan.
I. Legal Authority for Risk Management Plans
A. 745 ILCS 10/9-107
B. Amendments to Tort Immunity Act
II. Problems with Freeport's Plan
III. Keys to a Defensible Risk Management Plan
A. Adopt a detailed Risk Management Plan
1. Describe Risk Care Management
responsibilities of each District employee
2. Identify percentage of each School District employee's time spent on
risk management
B. Establish Risk Management Procedures
1. Describe “Chain of Command” for
addressing risk management concerns
2. Detail appropriate responses to common risks
3. Differentiate “Risk Management” from “Due Diligence”
C. Conduct Periodic Employee Risk Management Surveys
D. Establish Conservative Risk Management Salary Percentages
E. Monitor Pending and Future Litigation