Kansas Supreme Court reviews lawmakers' school aid changes
Headline Legal News
Attorneys for Kansas hope to persuade the state Supreme Court that recent changes in the state's education funding system are fair enough to poor districts that the justices can abandon a threat to shut down public schools.
The high court was set to hear arguments Tuesday on whether the technical changes legislators made earlier this year comply with a February order from the justices to improve funding for poor school districts. The changes leave most districts' aid unchanged and don't boost overall education spending.
Lawyers for four school districts suing the state contend legislators' work shouldn't satisfy the Supreme Court because aid to all poor districts didn't increase. But the state's attorneys have submitted more than 950 pages of documents in an attempt to show that lawmakers' solution was in keeping with past court decisions.
"I'm hopeful the Supreme Court's going to take what the Legislature has done and say it's an appropriate answer," Republican Gov. Sam Brownback told reporters ahead of the arguments.
The Dodge City, Hutchinson, Wichita and Kansas City, Kansas, districts sued the state in 2010, arguing that Kansas spends too little on its schools and unfairly distributes the aid it does provide, more than $4 billion a year.
The court concluded in February that lawmakers hadn't done enough to ensure that poor districts keep up with wealthy ones. The justices ordered lawmakers to fix the problems by June 30 or face having schools shut down.
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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.