Court: Compliance reached in education funding case

National Legal News

Court: Compliance reached in education funding case

lifting its jurisdiction over the case and dropping daily sanctions after the Legislature funneled billions more dollars into public schools.

The court's unanimous order came in response to lawmakers passing a supplemental budget earlier this year that the justices said was the final step needed to reach compliance with a 2012 state Supreme Court ruling that found that K-12 school funding was inadequate. Washington's Constitution states that it is the Legislature's "paramount duty" to fully fund the education system. The resolution of the landmark case in Washington state comes as other states like Arizona, Oklahoma and Kentucky are now responding to calls for more money to be allocated to education.

The state had been in contempt of court since 2014 for lack of progress on that ruling, and daily sanctions of $100,000 — allocated specifically for education spending— had been accruing since August 2015.

"Reversing decades of underfunding has been among the heaviest lifts we've faced in recent years and required difficult and complex decisions, but I'm incredibly proud and grateful for all those who came together on a bipartisan basis to get this job done," Washington Gov. Jay Inslee said in a written statement.

Over the past few years, lawmakers had put significantly more money toward education costs like student transportation and classroom supplies, but the biggest piece they needed to tackle to reach full compliance was figuring out how much the state must provide for teacher salaries. School districts had paid a big chunk of those salaries with local property-tax levies, something the court said had to be remedied.

In November, the court said a plan passed by the Legislature last year — which included a statewide property tax increase earmarked for education — satisfied its earlier ruling, but justices took issue with the fact that the teacher salary component of the plan wasn't fully funded until September 2019. This year, lawmakers expedited that timeframe to Sept. 1, 2018.

Democratic House Majority Leader Pat Sullivan said that the court's order was a relief, though he noted that legislative debates over education funding aren't over. Sullivan said there is more work to be done on areas like special education, as well as recruiting and retaining teachers.

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Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.