Floyd County Schools Facing Fiscal Challenges
The Floyd County school system faces yet another fiscal challenge, following an assessment by the Kentucky Department of Insurance, which affixed a more than $1 million bill on the school district.
In January, the Kentucky School Board Insurance Trust (KSBIT) sent out a memo to its partners stating that the group had incurred significant deficits to its worker’s compensation self-insurance pool and the liability self-insurance pool. The deficits are expected to be $50 million to $60 million.
According to KSBIT officials, despite taking action to reduce the deficits, such as cutting operating expenses, attempting to rebuild market share, shift to a managed care model and increasing premiums sharply, deficits have continued to grow with escalating claims costs and departing districts.
Floyd County finds itself with the seventh-highest bill on the list, with a staggering total liability estimate of $1,055, 904.