Lawmakers push back against Washington high court
Legal Events
Washington state's highest court has exercised an unusual amount of power on education funding, and it's prompted some lawmakers to raise constitutional concerns.
Before last year's legislative session, the court ruled that the state wasn't meeting its obligation to amply pay for basic education. In response, the Legislature added about $1 billion in school-related spending, and lawmakers widely agree they'll add more funding in coming years.
Earlier this month, the court went a step further, analyzing specific funding targets while telling lawmakers to come back with a new plan by the end of April.
Those specific demands have irked budget writers in the Legislature.
"They are way out of their lane," said Republican Sen. Michael Baumgartner.
Baumgartner expects lawmakers will continue adding "substantially new resources" to the state education system, but he said the court's position could erode the proper balance of power in Olympia. Baumgartner hopes lawmakers will ignore the court's latest demands, or he fears justices may exercise more power going forward.
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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.