A possible settlement of a lawsuit brought by part-time community college faculty may cost the state $12 million at a time when every dollar is precious.

The Senate budget released this week includes $7 million to settle a lawsuit claiming the state owes retirement benefits to about 3,000 part-time teachers. Under the Senate proposal, the State Board for Community and Technical Colleges would take an additional $5 million hit in its existing budget to help pay the claim.

Attorneys for the state and the faculty say no formal settlement has been reached. But they say the Legislature must act before any settlement can be presented in court.

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