Kansas faces skeptical state Supreme Court on school funding
Law Promo News
Attorneys for Kansas will try to convince an often skeptical state Supreme Court on Tuesday that the funding increase legislators approved for public schools this year is enough to provide a suitable education for kids statewide.
The high court is hearing arguments about a new law that phases in a $293 million increase in education funding over two years. The justices ruled in March that the $4 billion a year in aid the state then provided to its 286 school districts was inadequate, the latest in a string of decisions favoring four school districts that sued Kansas in 2010.
The state argues that the increase is sizable and that new dollars are targeted toward helping the under-performing students identified as a particular concern in the court's last decision.
But lawyers for the Dodge City, Hutchinson, Wichita and Kansas City, Kansas, school districts argue that lawmakers fell at least $600 million short of adequately funding schools over two years. They also question whether the state can sustain the spending promised by the new law, even with an income tax increase enacted this year.
The court has ruled previously that the state constitution requires legislators to finance a suitable education for every child. In past hearings, justices have aggressively questioned attorneys on both sides but have not been shy about challenging the state's arguments.
The court is expected to rule quickly. Attorneys for the districts want the justices to declare that the new law isn't adequate and order lawmakers to fix it by Sept. 1 — only a few weeks after the start of the new school year.
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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.