KY House Blocks Senate Bond Sale Proposal
Governor Ernie Fletcher says the decision cannot wait,
and threatens to call a special session if it is postponed
until the next session of the General Assembly, the
Louisville Courier-Journal reported.
State Senators say the change is needed to prevent the
state pension fund from taking on an extra $200 million in
debt. The Senate bill passed this week proposes that the
state take on the more than $800 million in pension debt
and help finance the systems by selling bonds over the next
20 years (See
KY Senate OKs Bond Sale to Repay Pension
Debt
). The bonds would be paid in $60 million increments each
year.
According to the Associated Press, the bond sale includes
about $540 million for the Kentucky Retirement System –
which includes state and county public employees, police
and firefighters – and $290 million for the Kentucky
Teachers Retirement System, which handles public school
teachers.
The Senate proposal also would change pension benefits for
future employees, but would have no effect on the benefits
of current retirees and employees. State employees are now
allowed to retire with full benefits after 27 years with no
age limit, but under the new measure, employees would have
to be at least 55 years old and work an extra five years
before they could retire with full benefits.
“I commend the Senate for their thoughtful, hard
work,” Fletcher said in a statement, according to the
Courier-Journal. “Taking action now means saving
millions of taxpayer dollars. My staff and I will be
available all weekend to work with leaders of both chambers
to move this issue forward.”
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