Court ruling could mean NJ budget scramble

National News

Gov. Chris Christie is warning that if the state Supreme Court rules the way it usually does on a long-running school funding case, it could doom other state services. The build-up about the immediate consequences gives the chapter of the court case known as Abbott v. Burke even more significance than many of the 20 other decisions in the case dating back to the 1980s.

The question now before the court is whether the state's cuts in aid to schools for the current academic year were so deep that New Jersey didn't live up to its constitutional requirement of providing a "thorough and efficient education" to all students.It's not clear when it might be decided.

But lawyers for the state and for children in the poorest school districts filed legal papers last week laying out their sides. Oral arguments are scheduled for April 20. Over the long history of the case, the state Supreme Court has consistently ruled that New Jersey should provide more money to the state's poorest school districts.

The rulings have led to free preschools for 3- and 4-year-olds in those cities. Those programs are often cited as national models and given credit for improving test scores of grade-school students. The infusion of money has also brought replacements and repairs for many of their decrepit school buildings, extra help for teaching key areas such as reading.

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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.

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