TheTimesTribune.com, Corbin, KY

State News

Discussion

February 25, 2013

House considers ways to pay pension costs

The Times-Tribune

CORBIN — By Ronnie Ellis

CNHI News Service

House Democrats are looking at using any growth revenues from the KEES scholarship program and taxing lottery tickets to pay for increased state employee pension costs.

The Republican-controlled Senate has passed a bill to shore up the pension system and stating the legislature’s “intent” to fully fund the annually required contribution to the system — estimated at about $327 million next year — but did not say where the money will come from.

Gov. Steve Beshear and House Speaker Greg Stumbo, D-Prestonsburg, have said they want to see a specified funding source before approving the Senate bill.

But Beshear also told lawmakers during his Feb. 6 State of the Commonwealth he would not agree to fund the pension system at the expense of education funding — which seems in conflict with what Yonts is proposing.

Yonts said Friday his committee will take up the pension bill at a special noon meeting on Tuesday when a committee substitute to the Senate bill will be adopted.

He said that substitute will include an identifiable funding source and he listed some likely proposals: applying the 6 percent sales tax to lottery ticket sales; directing the lottery corporation to expand its game offerings to the public; and using any growth in KEES money and needs based scholarship funds above the 2012 level for the pension contribution.

The funding proposal, Yonts said, will be in a separate revenue bill and will be considered by the House budget committee.

House Democrats plan to caucus Monday to discuss the various proposals.

Yonts said the revenue proposals seem “the most palatable in a non-budget year that would produce the required 60 votes for a revenue package.”

“We’re not taking away from education programs — we’re holding them harmless to the current level,” Yonts said in response to a question about contradicting Beshear’s position on education funds to fund the pension fix.

“I have not talked to the governor, but this is an issue that has been vetted with the (House) leadership and that’s the direction we currently intend to go in,” Yonts said.

Beshear again said he is unwilling to fund the pension system with money needed for education.

“It’s helpful to have continuing dialogue about options for funding state needs, including the pension shortfall, and I appreciate Speaker Stumbo’s efforts to look at many different solutions,” Beshear said in a statement.

He said the state must create a funding source to fund the pension system needs.

“We’ve already cut $1.6 billion from our state budget in the past five years, and I’m not willing to fund the pension program by carving money out of crucial services like education. I’m looking forward to continuing the dialogue,” Beshear said.

Yonts said the revenues being discussed will, “over time,” be enough to fund the annual pension contributions.

Doing that will allow lawmakers to fund the pension system as the Senate bill proposes and still allow the legislature to look at alternatives in the next session which then might allow all the KEES money again to be devoted to scholarships.

Yonts said House Democrats are trying to find a way to avoid “taxing people to fix the pension system.”

He conceded an argument that using KEES funds might be viewed as a tax on those in college or with children in college or that taxing lottery tickets might fall disproportionately on lower income groups.

Those are valid arguments, Yonts said, “but the question is do you want to tax things that may inhibit the growth of business? We don’t want to do that because we’ve got to have business income in this state to make revenue streams otherwise grow so maybe we divert this attachment of the lottery temporarily we hope.”

Yonts said he thinks at least some House Republicans will support the measure.

Text Only
State News
  • Campaign to back health exchange

    The Affordable Health Care Act and — according to Gov. Steve Beshear — a healthier lifestyle for citizens are coming to Kentucky.

    May 16, 2013

  • State’s managed care system drawing complaints

    Kentucky’s change to a managed care system of delivering Medicaid services continues to rile lawmakers even though they’re the ones who demanded cost-savings measures for the health care system for the poor and disabled.

    May 15, 2013

  • Special session over redistricting likely

    Special sessions may be unpopular — legislators understand that well enough to avoid them if at all possible — but two lawsuits over drawing legislative districts may precipitate one soon.

    May 14, 2013

  • Tax reform on Gov. Steve Beshear’s agenda

    In the past five years, Kentucky lawmakers have cut the state budget by $1.6 billion. But if something doesn’t change, they may have just begun to cut services.

    May 8, 2013

  • House race in central Kentucky gets interesting

    The race to fill a state House vacancy in the 56th District special election got a little more crowded and a little more complicated Tuesday.

    May 8, 2013

  • Some lawmakers question selenium regulation

    Some lawmakers believe the Cabinet for Energy and Environment deliberately tried to confuse them about a controversial new regulation governing how much selenium can be discharged into Kentucky streams by mining operations.

    April 25, 2013 1 Story

  • Family relationship ‘not conflict’ in selenium regulation

    The family relationship between legislative staffer David Nicholas and Environmental Protection Commissioner Bruce Scott posed no conflict of interest when Nicholas advised a committee reviewing a controversial environmental regulation pushed by Scott, according to Nicholas’ boss.

    April 25, 2013 1 Story

  • Farmer indicted on felony fraud charges

    Former Republican Agriculture Commissioner Richie Farmer was indicted on four counts of misappropriating public funds and solicitation of property in exchange for influencing agriculture matters by a federal grand jury.

    April 23, 2013

  • Grayson was near area of Boston manhunt

    FRANKFORT With the nation riveted by television accounts of a massive manhunt for suspects in the Boston Marathon bombings, Kentuckian Trey Grayson kept track of events through social media from his home just four miles away.

    April 22, 2013

  • Progress Kentucky members ‘bragged’ about taping

    The story of the surreptitious taping of a Mitch McConnell campaign strategy meeting got even more complicated Thursday when an attorney said his client was “witness to a potential violation” and is cooperating with the U.S. Attorney’s office.

    April 12, 2013