Wed February 19, 2014
Kentucky Juvenile Justice Department Feeling Strains of State's Pension Issues
Kentucky’s pension woes are putting a strain on the Department of Juvenile Justice.
Commissioner Hasan Davis told lawmakers on the House Budget Review Subcommittee on Justice and the Judiciary this week that the Department of Juvenile Justice is struggling.
Years of employee attrition, program reductions and budget fluctuations have strained the agency.
Now, under Gov. Steve Beshear’s budget proposal, the department will have to contribute millions toward paying down the state’s unfunded employee pension liability, known in accountant-speak as “actuarially required contribution,” or ARC. The Governor’s plan also cut’s Davis’ budget by 5 percent.
“After we take our cut, he also allocated dollars for each agency to take care of the ARC for their employees," Davis says. "And that brings us back up close to what our original budget was, but it’s dollars we can’t access except for to take care of that.”
Davis says that further cuts will mean more layoffs and less programs.