|By Valarie Honeycutt Spears, Lexington Herald-Leader|
|McClatchy-Tribune Information Services|
The school district will have to pay
The school system has set aside
"It will be a fiscal impact that we hadn't planned on over the next five years," Shelton said. "Of course, we would prefer to be spending this money on students, but we were aware that a decision was pending, so we adequately budgeted to cover the amount that will be due this year."
School districts all over
The expense is coming at a time when many school districts face tight budgets.
Kentucky Education Commissioner
"Some of our school districts are having to be conservative with hiring," Holliday said.
School officials have been aware of the looming hit since
Since then, most districts have budgeted money for that purpose.
KSBIT stopped offering insurance coverage in 2013 after incurring a
The state insurance department has taken over the KSBIT insurance programs and has placed them in rehabilitation to collect money owed by former participants.
An assessment plan has been approved in
Payments that individual districts owe are based on a formula that considers past claims, premiums, and the number of years they've been in the insurance program.
School districts and other education-related entities that were in the workers' compensation fund from 1990 to 2013, and those in the property and liability fund from 2007 to 2013, are subject to the assessment to eliminate the deficit, Sloan said.
Last year, the Herald-Leader reported that, since 1990, all 174 school districts had been members of the insurance trust at one time or another. In 2013, there were 73 members in the workers' compensation section.
The assessment plan offers districts several payment options, ranging from paying in full by
In 2009, the
(c)2014 the Lexington Herald-Leader (Lexington, Ky.)
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