HOPKINSVILLE, Ky. (AP) — Several school districts in western Kentucky have agreed to seek legal advice as they weigh whether to help pay off a $60 million deficit incurred by the Kentucky School Board Insurance Trust.
The Kentucky New Era (http://bit.ly/Y7i2i9 ) reports that the West Kentucky Education Cooperative and the Green River Regional Educational Cooperative agreed to split the $7,000 cost to have Bowling Green attorney Michael Owsley investigate the original contract between the districts and the trust.
"Some people have made some serious mistakes, and it wasn't us," Paducah Independent Schools Superintendent Randy Greene said on Wednesday during a meeting of the West Kentucky Education Cooperative. "This is probably going to be a class-action lawsuit before it's over. It's going to get ugly."
The Kentucky School Board Insurance Trust provided districts with low-cost insurance for more than two decades, covering items such as workers' compensation and property.
The trust announced in January that it would disband due to financial woes, and informed school districts across the state that they would have to pay outstanding insurance claims.
District representatives said they want to know whether the original contract makes them responsible for the deficit.
Information from: Kentucky New Era, http://www.kentuckynewera.com