LEXINGTON, Ky. (AP) — A published report says the Kentucky School Board Insurance Trust paid millions in royalties to the Kentucky School Boards Association over several years before announcing last month that it would disband due to financial woes.
School districts around the state are now trying to come up with some $60 million to pay off the trust's deficit.
For decades, the Kentucky School Boards Association administered the trust and profits were used to subsidize programs offered to districts.
The Lexington Herald-Leader (http://bit.ly/13bgTXc) reports the insurance trust has paid nearly $7.5 million to KSBA in royalties and management fees since 1997.
KSBA began decreasing royalty payments in 2005 when the insurance trust began to lose money, but the financial deficit kept rising along with the cost of medical care.
Information from: Lexington Herald-Leader, http://www.kentucky.com