, 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.

Text Only
Local News
  • I-75 lane closures Wednesday

    A reminder if you’ll be traveling on I-75 in Laurel County Wednesday — the state Transportation Cabinet (KYTC) plans to restrict northbound and southbound traffic to one lane just north of exit 29.

    July 30, 2014

  • 0729 John Waite for web.jpg John Waite to perform at NIBROC

    Grammy nominated singer John Waite has joined the 2014 NIBROC musical lineup.

    July 29, 2014 1 Photo

  • 0729 gray crash for web.jpg U.S. 25E intersection site of Monday crash

    A woman was transported to Baptist Health Corbin Monday following a crash at the U.S. 25E and KY-233 intersection, according to Kentucky State Police Post 10 Public Information Officer Shane Jacobs.

    July 29, 2014 1 Photo

  • Laurel School nurses to stay

    The Laurel County School System will keep its school nurses for the 2014-2015 school year.

    July 29, 2014

  • POLICE ROUNDUP: Driver leaves scene of wrecks

    A man admitted to police Saturday that he was the driver in two hit and run accidents, according to London City Police Chief Derek House.

    July 29, 2014

  • London Tourism director up for the job

    Chris Robinson knows the challenges that his native town of London faces – and he’s ready to tackle them head on.

    July 29, 2014

  • Traffic signal to go up in Knox

    The U.S. 25E and KY-233 intersection will soon see the addition of a traffic signal, according to Kentucky Department of Transportation District 11 Public Information Officer Les Dixon.

    July 29, 2014

  • TODAY'S HEADLINES — July 29, 2014

    John Waite to perform at NIBROC

    Traffic signal to go up in Knox

    U.S. 25E intersection site of Monday crash

    Laurel School nurses to stay

    July 29, 2014

  • Cannon man indicted for rape

    By John L. Ross
    Staff Writer
    A Cannon man facing first-degree rape and other charges has now been indicted in this case.

    July 28, 2014

  • Knox grand jury indicts accused store burglar

    By John L. Ross
    Staff Writer
    A man facing several charges in connection with the burglary of Cope’s Market was indicted Friday in Knox County Circuit Court.

    July 28, 2014

Front page
Featured Ads
AP Video
Raw: Japanese Soldiers Storm Beach in Exercises Raw: Weapons Fire Hits UN School in Gaza Raw: Rocket Launches Into Space With Cargo Ship Broken Water Main Floods UCLA Two Women Narrowly Avoid Being Hit by Train In Virginia, the Rise of a New Space Coast New Sanctions on Key Sectors of Russian Economy Crayola Announces Family Attraction in Orlando US Ready to Slap New Sanctions on Russia Kerry: Not Worried About Israeli Criticism Boater Rescued From Edge of Kentucky Dam Girl Struck by Plane on Florida Beach Dies Rodents Rampant in Gardens Around Louvre House to Vote on Slimmed-down Bill for Border Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue
Hyperlocal Search
Premier Guide
Find a business

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