February 28, 2013

W. Kentucky School Districts Seek Counsel on $60 Million Deficit

After the announcement by the Kentucky School Board Insurance Trust, which had been the provider of low-cost insurance for over twenty years for coverage like property insurance and workers' compensation, announced it was disbanding, school districts across Kentucky have scrambled to deal with the $60 million deficit owed by the Trust.

Some western Kentucky school districts are now seeking legal advice on whether or not they are required to help pay off the $60 million.

The West Kentucky Education Cooperative and the Green River Regional Educational Cooperative have agreed to pay half each of the $7,000 it'll cost to have an attorney review the contract between the Trust and the districts.

In January the Kentucky School Board Insurance Trust announced it was shutting down, resulting in the responsibility being passed to the state districts. Or at least that's the assumption at this time.

Bowling Green attorney Michael Owsley will be investigating whether or not that is the case and if these school districts are liable for part of the $60 million owed.

No comments:

Post a Comment