Kentucky House Republicans have unveiled their plan to bring stability to the state’s pension systems. However, the chamber’s Democratic leader is not impressed with the proposal.
The four-year phased in approach works within Governor Bevin’s budget proposal and doesn’t call for any borrowing. The proposal seeks to use federal dollars, captured through the state payroll system, to boost support for the teachers and state workers retirement systems. The measure does not impact the pool of money set aside in Governor Bevin’s budget proposal to address Kentucky’s pensions.
House Minority Floor Leader Jeff Hoover says the idea is to use federal dollars to add to what’s already included in the governor’s plan.
“Rather than making a lump sum payment, you actually put that in the payroll and then you pick up matching money from other agencies in federal dollars that are not general fund dollars,” said Hoover.
The measure does not impact the pool of money set aside in Governor Bevin’s budget proposal to address Kentucky’s pensions.
Democratic House Speaker Greg Stumbo gave a less than enthusiastic reaction to the plan.
“What they really do is put the problem off for another day," Stumbo said. "I think that while the governor’s in the mood to fix it, we should all get behind some plan to get that started and get that done."
Jim Carrol, with the Kentucky Government Retirees group, is receptive to the concept.
“We like the fact that they acknowledge that merely paying the full ARC is not enough and they’re putting in additional money and it’s badly needed," Carrol said. "It’s a very positive first step."
Hoover says ?Senate republicans were very receptive to the proposal. He says final decisions on the matter won’t come until the last days of the session. ?
