KSBIT Bills Hit School Districts for Hundreds of Thousands
Kentucky School districts are starting to receive bills for the failed Kentucky School Boards Insurance Trust, or KSBIT. The insurance trust shut down June 30, 2013, with a $60 million deficit in its worker’s compensation and property and liability pools.
Graves County Schools’ Finance Director Ron Mays says his district has received a $366,568 bill for the worker’s compensation portion of the debt. Mays says the district will pay 25% of the bill upfront, which is about $92,000.
"That’s about the cost of a bus," Mays said. "To keep our fleet at the proper levels, we’re supposed to replace five busses every year. Each of the last two years we’ve purchased three busses each, the year before that we didn’t purchase any. So it’s another hit in a series of hits."
The rest of the bill will be paid in installments over the next few years. Calloway County Superintendent Steve Hoskins said Calloway’s bill for worker’s compensation is $283,000. Hoskins is unsure how the district will pay the bill, whether through bonds or out of contingency funds. Both schools expect to receive bills for KSBIT’s Property and Liability Fund in the coming months.