Board Struggles with Workers' Comp Debt Issue

Board Struggles with Workers' Comp Debt Issue

Today’s WeaTHER SPORTS SEE INSIDE Partly cloudy. Highs 83 to 88. Elite baseball Festival of Arts Lows in the lower 60s. ...... 2 coach has local and Authors set ties ........ 6 for July ...... 5 Vol. 110 • No. 120 THURSDAY, JUNE 20, 2013 50 cents daily | $1 Saturday Board struggles with workers’ comp debt issue Mark Bell hire an administrator and continue to man- Contributing Writer KSBIT estimate around $500,000 age the plan themselves, the debt to Harlan County might only be as high as $461,000 In the midst of all the expected fiscal chal- and potential claims remains an issue for tion because of the way contracts with with a best estimate of $364,000, but the lenges facing Harlan County Schools in the the funds, as well as recovering additional KSBIT were worded, allowing for claims liability would remain unknown as costs coming year, there’s also an old debt that premium payments that were apparently that applied to years covered by the trust to could rise based on claims that could still could wind up costing the district nearly half inadequate when originally issued. still be liable even though the district is no be filed in the future. Even the most cur- a million dollars. The KSBIT Board of Trustees met in longer a member. rent estimates are subject to change, trust This was one of several items the board May and considered two options — hiring “Back then they had ‘lifetime awards’ (in officials say. of education discussed during the regular an administrator to manage the claims or the workers’ compensation system),” Turner Turner said current discussion led him to monthly meeting Monday evening. entering into a transaction with a reinsurer said. That option was eliminated during the believe the state would look to issue bonds Several months ago, the Kentucky School that would effectively dissolve the trust. administration of Gov. Paul Patton when the to pay the debt and then dissolve the trust, Boards Insurance Trust (KSBIT) informed The trustees contacted school boards state’s entire workers’ compensation system but that was speculation at this point. its members that deficits existed in both its across the state earlier this month request- was revamped. “Well, we’re definitely going to have to pay workers’ compensation and liability pools. ing their input on the decision, though “Basically, they are asking school boards it,” said Chairman Gary Farmer. “You can’t KSBIT also told school leaders the local the KSBIT board will make the final deci- if they want to take the risk and stay in it or get rid of it.” districts would be responsible for the costs sion subject to approval by the Kentucky sell it and be out of it,” said Superintendent Using the financing options available to of settling the accounts that applied to them. Department of Insurance. Mike Howard. school districts, the first assessment payment Despite the fact the county school district However they decide, Board Attorney If the trust opts for the reinsurance plan, could be deferred until the 2014-15 fiscal year. has not been a member of KSBIT for at Johnnie Turner noted the local district will it is estimated the district would have to pay least 16 years, the cost of covering existing be responsible for the cost of their por- $458,000. Alternately, if the trust chooses to See BOARD | 3 Moore addresses Adventure Tourism funding of $10,000 Nola Sizemore Staff writer The Evarts Tourist and Convention Commission is depending on a $10,000 promise from Harlan County Fiscal Court to help with the quest of becoming the state’s first “Trail Town” city. The city previously submitted paperwork for $10,000 in coal severance funds earmarked especially for Adventure Tourism. In the request, the city asked for funds to purchase four Nola Sizemore | Daily Enterprise sheds with concrete pads, Magistrate Bill Moore reas- eight standing park grills, sures members of the Evarts Nola Sizemore | Daily Enterprise 14 picnic tables, three Tourist and Convention At approximately 10:50 a.m. Wednesday, a 1995 Ford Ranger truck being driven by 78-year-old James Wilson, of Grays Knob, traveled bicycle racks and four gar- Commission he requested through a plate-glass window at the McDonald’s Restaurant in Harlan. bage cans, along with reim- $10,000 in coal severance bursement for Adventure funds be earmarked for adven- Tourism advertisements. ture tourism in Evarts. He said The items requested the paperwork was ‘laid on the Truck crashes through McDonald’s window totaled $12,796.73. The desk of Harlan County Judge- tourist commission will pay Executive Joe Grieshop.’ Nola Sizemore eat,” Wilson said. “I pulled in front I knew something had happened. the difference between the city, asking him to attend Staff writer of the restaurant and as I did I We all immediately jumped up and expenses and the promised the meeting on Monday heard this loud pop. That was when moved away from the window. It funds. to answer questions A 1995 Ford Ranger truck, the front brake caliber broke on my really scared us. Someone from A formal request was being driven by 78-year-old James truck and I lost control. I’m just McDonald’s called the police and sent to Magistrate Bill Moore, who represents the See TOURISM | 3 Wilson, of Grays Knob, traveled so thankful no one was going in or we all went outside and saw that it through a plate glass window at the coming out of the restaurant when was a truck that had come through McDonald’s Restaurant in Harlan this happened.” the window. Mr. Wilson told us the at approximately 10:50 a.m. on Fred Lundy, 58 of Sunshine, was brakes went out on his truck and he Wednesday. Burglary report leads Harlan City Police Officer George sitting inside the restaurant at the just couldn’t stop it.” Young said Wilson reported to him time of the wreck. McDonald’s management chose that as he was pulling in to park his “Me and my buddies were sit- not to comment regarding the to foot chase, arrest vehicle, he heard a loud “pop” and ting near the window having our wreck. lost control of his vehicle, which morning coffee when all at once Goshen’s Wrecker Service, of Staff report traveled into a plate glass window we heard a blast go off behind us,” Harlan, removed the truck from at McDonald’s. said Lundy. “I thought a bomb had the window. Loyall police Chief Mike Lunsford “I was coming to McDonald’s gone off. I could see the glass com- No injuries were reported at the responded to a burglary complaint to get my grandkids something to ing through the glass behind me. time of the incident. Wednesday afternoon leading to the arrest of a former Middlesboro man on numerous felony and misdemeanor charges. City school board awards bids Robby Joe Johnson, 30, was arrest- ed and lodged in the Harlan County Detention Center on a host of indict- Nola Sizemore on positions which included: ret- ment warrants from Bell County and on Johnson Staff writer roactive number of contract days for an instructor II position at See ARREST | 8 Several bids for supplies and Sunshine Pre-School from 124 days services were awarded to local to 132 days and the elementary merchants during a recent spe- school principal’s total number of Judge issues sentences cial called meeting of the Harlan contract days be extended from Independent Board of Education. 220 days to 230 days for the 2013- Superintendent David Johnson 2014 school year. to 4 for roles in hate crime recommended bids for paint and While approving the consent lumber be awarded to Southern agenda, Johnson asked that his LONDON (AP) — Four people from Eastern Kentucky Wholesale Do It Center, hardware, cellphone he has used while work- have been sentenced to federal prison for their roles in the plumbing and electrical supplies be ing as superintendent be declared kidnapping and attack of a gay man. awarded to Kentucky Mine Supply surplus property for disposal. He U.S. District Judge Gregory Van Tatenhove on and grounds and maintenance sup- said with his retirement he had “all Wednesday ordered 38-year-old David Jason Jenkins to plies from Croushorn Equipment. Nola Sizemore | Daily Enterprise his contact phone numbers in the prison for 30 years, and his cousin, 22-year-old Anthony The board approved the superin- Retiring Harlan Independent School phone and would like to keep it.” Ray Jenkins, locked up for 17 years. A federal jury in tendent’s recommendation. District Superintendent David Johnson The board approved the request London found the two men guilty in 2012 of kidnap- Other bids awarded included: asked board members to declare his cell- and sold the surplus property, cell- ping 30-year-old Kevin Pennington. The jury acquitted property, liability and fleet cover- phone he has used while working as super- phone, to Johnson for the origi- both men of federal hate crime charges. intendent surplus property for disposal. age insurance to the lowest bidder nal cost of the phone which was Van Tatenhove also sentenced 20-year-old Mable Liberty Mutual with an amend- He said with his retirement he had ‘all his contact phone numbers in the phone and $199.99. Ashley Jenkins to 100 months in prison and 20-year-old ment adding student insurance would like to keep it.’ The board sold the Other board actions included Alexis LeeAnn Jenkins to eight years in prison. The two catastrophe to the policy, laundry phone to Johnson for $199.99.

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