Lingle: Use hotel tax money for state budget
National News
Faced with a $1.2 billion budget gap, Gov. Linda Lingle on Monday proposed the state take about $100 million in hotel taxes from Hawaii's four counties next year and delay the payment of some personal and corporate income tax refunds.
The governor's supplemental budget for the 2011 fiscal year that begins July 1 does not call for wholesale layoffs or an increase in the number of furlough days state workers are already taking.
It does call for a big increase in the tax that insurance salespersons pay on their commissions and the elimination of dozens of positions in agencies that focus on mosquito control, adult mental health, family health and agricultural statistics.
But her proposal to swipe roughly between $99 million and $111 million in county hotel taxes in each of the next three fiscal years is likely to face opposition from the state's counties, which rely on the tourism-driven assessment.
Honolulu County, where the bulk of the state's tourists visit, would lose almost $45 million in the 2011 fiscal year; Maui would lose nearly $23 million; the Big Island, $18.6 million; and Kauai, $14.5 million. The Legislature must approve the transfer.
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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.