Kansas Supreme Court to take up school funding case
National News
A case that has the potential to increase funding for Kansas schools goes before the state Supreme Court today, the same day that economists, legislative researchers and officials in Gov. Sam Brownback’s administration are expected to announce new, more pessimistic revenue projections.
Four districts that are suing the state have asked justices to lift a stay on a lower court ruling and release state funds to public school districts. A three-judge Shawnee County District Court panel found in June that the state’s newly enacted strategy for financing 286 school districts and cuts to state aid for low-income school districts were unconstitutional.
The Supreme Court approved Kansas Attorney General Derek Schmidt’s request for a stay on the order while he pursued an appeal. The state argues in court filings that “doomsday predictions” about students and the state suffering because of how schools are being funded “have proven to be pure hyperbole.”
Education, from K-12 through the collegiate level, is the state’s largest expenditure, accounting for 62 percent of its budget. Any increase in education spending has the potential to create budget havoc when the Legislature reconvenes in January.
Since the current fiscal year began in July, tax collections have fallen about 4.1 percent short of expectations, at $1.8 billion. The state has struggled to balance its budget since Republican legislators slashed personal income taxes in 2012 and 2013 at Brownback’s urging, in an effort to stimulate the economy.
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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.