Tagged: kentucky state pensions

FRANKFORT — Kentucky's legislative leaders have passed two bills to shore up the state's underfunded pension systems, effectively staving off a special session on the issue.

The new plan would reduce a personal tax credit of $20 to $10, generating about $33 million in revenue that would go to General Fund, but lawmakers would use it for pensions. The plan would also use revenue from technical changes in the state's tax code, as well as money from federal tax changes.

With only one day left in this year's legislative session, Kentucky House leaders are hopeful they have a deal to up shore up the state's underfunded pension system. But there may not be time to get it through the legislature. 

House Democrats' are building support for a proposal that uses technical wrangling of revenue sources to cut some taxes while raising other funds to pay for pension reform. The current proposal would cut the gasoline tax by one cent, resulting in a loss of funds for the state road fund.

The Kentucky Lottery Corporation is moving ahead with a new Keno game and online lottery sales after unanimously approval from its board. 

The board approved the new games with the hopes they would generate $85 million a year by 2023.

State Treasurer Todd Hollenbach spearheaded the effort to expand to Keno and online as a way to help generate more revenue for the state.

He says it will take roughly a year for full implementation of the games.

State leaders are still working to find solutions to the Kentucky's troubled pension system—but he's not promising a deal the time the General Assembly regular session ends next week, Gov. Steve Beshear said on Monday.

Beshear has mediated sessions between House and Senate leadership on reforming the pension systems and how to fund them, after the chambers came to an impasse on the issue.