State Budget Director John Chilton warns of “dire consequences” if the public pension reform bill unveiled late last week isn’t passed.
Appearing before the Public Pension Oversight Board in Frankfort on Thursday, Chilton told members the difficulty that lies ahead.
“There are some really tough policy decisions that are going to have to be made, not only in the special session, but in the next budget,” which will be enacted by lawmakers during the 2018 regular session and cover the next two fiscal years.
“It’s going to be brutal,” he said. “There’s been a lot of concern voiced about some components of the pension changes, but there’s a lot yet to come.”
He gave the panel an outline of the proposed changes to the public pension plans, which affect state and local employees, teachers and retirees.
That included some of the data from PFM, the state’s pension consultant, which ranks Kentucky 50th of all the states, in terms of unfunded liability to the eight public pension systems. The amount ranges from $33 billion to $84 billion, depending on whose figures are used.
Rep. Jerry Miller, R-Louisville, agreed with Chilton. “The most important thing right now for Kentucky is to get this bill passed. In whatever form we finally approve, we have to get one that can pass the House and Senate and signed by the Governor.
“That is why I ran for office, that’s part of the Governor’s blueprint for Kentucky that he ran on, and I think it’s the most important thing to every Kentuckian, or it should be.”
“I support the bill as written,” but I recognize it has problems that jeopardize its passage in the House. I’m going to work hard to make sure that we get this bill. It can’t be understated how important it is.”
Chilton said there were three options: reduce spending, increase revenue and reduce the cost of pensions. Increasing revenue has been the option mentioned the least, but Miller indicated it’s important, too.
And where would the Louisville Republican find the new revenue? “Personally, and not speaking for leadership, I’m in favor of putting expanded gaming on the ballot, as a constitutional amendment.”
Miller said he and Sen. Morgan McGarvey, D-Louisville, have been working on a bill. “But I’ve got to see if there’s support in the House to do it. If we can’t get 51 people to vote for it in the House, what’s the point? I won’t file a bill in the House unless we can pass a bill.”
Miller said “even that is, at best, $250 million, much less than the billion a year Director Chilton says we need.”
As for other ideas floated like legalizing marijuana, Miller said, “It’s plausible we could get medical marijuana, but I don’t see recreational. That’s not Kentucky.”
Miller would not comment on whether he thought the pension bill had enough votes to pass the House.
(Photo by Kentucky Today)
By Kentucky Today
