TheTimesTribune.com, Corbin, KY

Local News

June 14, 2013

Deficit assessment tops $900,000 for Whitley County School District

CORBIN — By John L. Ross / Staff Writer

Whitley County Board of Education members learned Thursday their assessed share of a deficit accumulated by the Kentucky School Boards Insurance Trust (KSBIT) is much higher than originally estimated.

KSBIT, which oversaw a risk pool, low-cost insurance program to cover workman’s compensation, property and liability insurance and other services to its members, accumulated a $28 million deficit, which was announced earlier this year.

Member school districts, including Whitley County Schools, learned they will have to make up the difference.

KSBIT sent an unsigned memo to its members explaining the executive board decision to assess between $50 and $60 million to its member body to make up the deficit.

Deputy Superintendent Paula Trickett explained to board members the original estimate of Whitley County School’s assessment was approximately $700,000.

Board members heard that figure during their regular May meeting.

But on Thursday, Trickett said the school system’s assessment could be as much as $989,616.

She described two options the board could review to fulfill their assessment obligation.

The first option she described as a “novation,” which means a one-time assessment that would end the school system’s obligation to help with KSBIT’s deficit.

That option’s price tag is approximately $983,499. “It’s a significant increase (over the original estimate),” Trickett said.

The second option she described to board members she called a “runoff” payment option.

Under that option, she said that the best estimate would be approximately $775,000 — but that estimate only has a 55 percent confidence level. The high estimate for the runoff option, which Trickett said has an 80 percent confidence level, is $989,616.

The kicker for the runoff option is it leaves the assessment open-ended, according to Trickett.

Superintendent Scott Paul said the runoff would require a third-party administrator that would remain in place until the end of the deficit-reduction plan — which leaves the chance for future assessments.

“It’s a gamble for us,” said Paul, who recommended the runoff option.

KSBIT’s board of trustees is slated for a special meeting via teleconference in Lexington June 24, according to Board member Delmar Mahan.

“(That’s) when they’ll make the final call,” he said.

Mahan motioned to approve going with the runoff option, with a second from Board chair Larry Lambdin. The board was unanimous with its decision.

In other board business:

— Board members unanimously approved the school employee pay rates for the 2013-2014 school year, and it was noted there were no across-the-board raises included for next year. Board vice-chair J.E. Jones motioned to approve the pay rates, with a second from Brenda Hill.

— The Whitley County Board of Education unanimously approved Bollinger, Inc. as the insurance company used to cover student accidents. It was noted the annual premium cost is $65,650, “the same cost as last year.” Jones motioned to approve Bollinger, with a second from Hill.

— Board members reviewed two quotes concerning various insurance required — fleet, property, liability and worker’s compensation. The quotes were from two companies, Liberty Mutual and Wright Specialty Insurance.

Gerald R. Hignite, with Curneal & Hignite Insurance, was on hand at the meeting Thursday to explain the quotes to the board members. One issue discussed by board members was the inclusion of flood coverage in the policy. Hignite explained the insurance definition of a flood is “the excess runoff of surface water.” The other difference mentioned was a $6,000 difference in the quotes prices. Hignite explained to board members that while Wright has been in business for 25 years, they’ve only been in the business of school system insurance for approximately three years. Liberty, according to Hignite, has more experience in that department.

 “(I’d) feel more comfortable with Liberty,” Paul said.

Mahan motioned to approve the lower bid from Liberty, with a second from Board member Malorie Cooper. The board was unanimous with its decision.

— The board unanimously approved completing BG-4 forms to closeout finished school projects. There were five projects which required this final paperwork — the WCHS soccer field, the WCHS environmental and athletic complex, the renovation for the bus garage, the turning lane for Whitley East, and the partial roof replacement at WCMS.

Lambdin motioned to fill out the paperwork, with a second from Jones.

— The board unanimously approved the $220,235 pay application for CMTA Energy Solutions GESC (Guaranteed Energy Savings Contract) as well as heard a status report from Adam Pierce, with CMTA.

“So far we’ve had cooperative weather,” Pierce said. He explained there were several energy projects close to completion, and all summer projects are expected to be done before the new school year kicks off.

Lambdin made the motion, with a second from Mahan.

— The board also held a closed session at the end of the meeting. Lambdin said the session was to discuss personnel matters. The 20-minute session ended, and reconvened into open session. Lambdin said no decisions were made during the closed session.

1
Text Only
Local News
  • swiss officer for web.jpg Swiss officer spends time with Laurel Co. deputies

    Fabien De Lucia is a police officer in a two-and-a-half square-mile city filled with 30,000 people.

    July 24, 2014 1 Photo

  • 0724 Chris Robinson FOR WEB.jpg Robinson new London Tourism director

    The London Tourism and Convention Commission voted Wednesday to hire Chris Robinson as their new director.

    July 24, 2014 1 Photo

  • Restaurant tax problems being corrected

    Fazoli’s is now collecting London’s restaurant tax from its customers after nearly a month of not knowing it existed.

    July 24, 2014

  • 0724 J. M. Hall, Donna Smith, Pat McDonald & Julio Cima FOR WEB.jpg Line-item resolution passed by Knox Court

    Several organizations in Knox County and Barbourville will get the benefit of coal severance tax money over the next two fiscal years thanks to a resolution passed Wednesday by the Knox County Fiscal Court.

    July 24, 2014 1 Photo

  • U.S. 25 work to begin Thursday

    A weeklong road work project for U.S. 25 in Laurel County is scheduled to start Thursday.

    July 24, 2014

  • 0724 TAYLOR THROW for web.tif Airing It Out

    After another strong showing at the Eastern Kentucky University Passing Camp, first-year coach Justin Haddix is pleased with what he is seeing with his Corbin Redhound football players.

    July 24, 2014 1 Photo

  • TODAY'S HEADLINES — July 24, 2014

    Swiss officer spends time with Laurel Co. deputies

    Robinson new London Tourism director

    Restaurant tax problems being corrected

    Line-item resolution passed by Knox Court

    July 24, 2014

  • Couple pleads not guilty to abuse

    A Knox County couple facing charges in connection with second-degree burns on a child’s leg pleaded not guilty Tuesday morning during their preliminary hearings.
    Tyrone L. Person, 22, of Corbin, and Sierra Shepherd, 21, of Flat Lick, appeared before Judge John Chappell in Knox County District Court, according to a court official.

    July 23, 2014

  • Evaluation of Williamsburg Superintendent postponed

    An executive session to discuss and evaluate Williamsburg Independent Schools Superintendent Denny Byrd was slated for Tuesday night’s regular meeting — but an absence of one member postponed those plans.

    July 23, 2014

  • 0723 Capt. Coy Wilson, Harrison Creech & mom Samantha FOR WEB.jpg Heroes For A Day

    This boy likes to touch a truck — or in this case, the Corbin Police Department’s K9 Vehicle that was one of over 20 trucks, cars, boats, a helicopter and other vehicles stationed Tuesday at Corbin’s Rotary Park for the Sixth Annual “Touch A Truck” event.

    July 23, 2014 1 Photo

Front page
Featured Ads
AP Video
Arizona Prison Chief: Execution Wasn't Botched Calif. Police Investigate Peacock Shooting Death Raw: Protesters, Soldiers Clash in West Bank Police: Doctor Who Shot Gunman 'Saved Lives' 'Modern Family' Star on Gay Athletes Coming Out MN Twins Debut Beer Vending Machine DA: Pa. Doctor Fired Back at Hospital Gunman Raw: Iowa Police Dash Cam Shows Wild Chase Obama Seeks Limits on US Company Mergers Abroad Large Family to Share NJ Lottery Winnings U.S. Flights to Israel Resume After Ban Lifted Official: Air Algerie Flight 'probably Crashed' TSA Administrator on Politics and Flight Bans Raw: National Guard Helps Battle WA Wildfires Raw: Ukraine's Donetsk Residents Flee Senators Push to End Hamas Threat in Cease-Fire A Young Victim's Premonition, Hug Before MH17 Raw: Deadly Storm Hits Virginia Campground Death Penalty Expert: 'This is a Turning Point' Raw: MH17 Victim's Bodies Arrive in Netherlands
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Twitter Updates
Follow us on twitter