FRANKFORT —
Gov. Steve Beshear held out hope Tuesday that lawmakers can still find a compromise solution to the state’s badly underfunded employee pension funds in the waning days of the 30-day General Assembly.
He all but said he’s prepared to call a special session later this year if no solution is reached in this session.
“The short session isn’t really designed for big, complex issues,” Beshear said. “Nevertheless, both houses have tackled this because they are committed to finding a solution and they are committed to finding a solution.”
Short sessions in odd-numbered years were designed to deal with non-budget issues which come up between the 60-day budget sessions in even numbered years.
As an incentive to voters to approve annual sessions in 2000, the constitutional amendment required any funding or revenue bills to receive a three-fifths vote of each chamber — 60 votes in the 100-member House and 23 in the 38-member Senate.
“We eventually will resolve this (pension) issue,” Beshear said. “Whether it’s resolved in this current session or not I think is still up in the air. But one way or another this year, we’re going to resolve this pension issue.”
If it’s not resolved in the current General Assembly, the only other way to do it this year is through a special session. Only the governor can call such a special and he has enormous control over special sessions because he sets the agenda and lawmakers can only consider that agenda during a special session.
Beshear applauded the work of both chambers thus far. (The Senate passed a reform package based on recommendations of a bi-partisan task force, but the Senate measure provides no funding for the annually required contribution or ARC to the system by the legislature.
(The House re-wrote the Senate bill, taking out a hybrid, cash-balance plan for new employees and replacing it with a defined benefit plan similar to current employees’ and retiree’s benefits. But the House passed a separate bill to fund the ARC through an elaborate system of using lottery growth funds and money from instant racing. The Senate has refused to consider that bill.)
Beshear said Tuesday he sides with the House on devising a payment system for the plan at the same time the reform is passed.
“I’ve always said I feel we should fund whatever solution that we come up with and obviously that is very difficult in a short session where you have some very rigid constitutional requirements about super-majority votes,” Beshear said, again implying a need for a special session.
“So we’re going to keep talking and see where things go,” the governor said.
One as yet untested way to pay for the added costs of the pension reform is through tax reform. Beshear commissioned a study group to recommend changes to the tax code and it made a series of changes which would produce between $650 and $690 million in new revenues each year.
Beshear said he’d still like to see tax reform passed this year — again since it’s not before the legislature with only seven days left in the session, that would have to come in a special session.
“I want us to continue having discussions about tax modernization, tax reform to see what may be possible in terms of modernizing our tax code and bringing it into the 21st century and tying it to a 21st century economy,” he said. “I’m having informal conversations about that with a number of legislators and I’m going to continue to do so.”
Asked directly if that is a likely topic for a special session, Beshear said, “We’ll see.”
The Senate is controlled by Republicans who are generally opposed to tax increases. Senate President Robert Stivers, R-Manchester, and Majority Leader Damon Thayer, R-Georgetown, have both said pension reform can be funded without a tax increase.
On another topic, Beshear said Ashley Judd, the actress considering a challenge to Republican U.S. Sen. Mitch McConnell, called him last week to talk about the possibility of running.
“She called me and we had a good conversation,” Beshear said, adding he thinks Judd is “seriously considering” the race.
“I think she can be an effective and a formidable candidate if she chooses to run,” Beshear said. “There may be other candidates who fall into that category, too.”
He declined to name any other possible candidates.
Ronnie Ellis writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com. Follow CNHI News Service stories on Twitter at www.twitter.com/cnhifrankfort.
Local News
Beshear will call special session if pension issue unresolved
Says Judd 'seriously considering' Senate race
- Local News
-
-
Exit 95 rebuild delayed until 2017
Originally scheduled for 2014, the reconstruction of Exit 95 on Interstate 75 won’t take place until 2017, Madison Judge/Executive Kent Clark told a joint meeting of the Richmond and Berea chambers of commerce Friday.
The state Transportation Cabinet is delaying the project, Clark said, until a decision is made on the proposed highway that would run from Exit 95 to Nicholasville. -
Toyota bornlearning Academy graduates parents
Seven graduates received their certificates Thursday night, but not with the customary rendition of “Pomp and Circumstance.”
It was a celebration of the parents’ six-month journey with the Toyota bornlearning Academy at Berea Community School.
The academy works with parents and caregivers of children from prenatal to 5 years old on ways to turn everyday moments into learning opportunities. -
Caudill Middle School student showcase
Members of the Caudil Middle School Jazz Band entertain the crowd during the school's end of year student showcase Thursday.
-
Man arrested Friday after early morning break-in
Richmond police made an arrest Friday in connection with an early morning break-in at Jack’s Cleaners on West Water Street.
Scott Hobbs, 42, of McKee, was charged with first-degree burglary, according to Richmond Police Chief Larry Brock
At 3:25 a.m., a witness reported seeing a man enter and exit the cleaners through a broken window and drive away, Brock stated in a news release. -
Grand jury indicts inmates in jail assault
Two inmates at the Madison County Detention Center were indicted Wednesday on charges related to the beating of another prisoner.
A Madison grand jury indicted 28-year-old Justin Morgan Howell and 26-year-old Lucas Wayne Shanks on charges of second-degree assault, second-degree escape and second-degree persistent felony offenders. -
The Incredible Child: Support group for parents of special- needs children meets Tuesday at library
Richmond now has a local chapter of The Incredible Child, a support group for families of children with all types of disabilities.
The group will host the family-friendly event “Read to Me” from 6:30 to 7 p.m. Tuesday at the Madison County Public Library in Richmond. -
Pets from the Madison County Animal Shelter
This week's cats are two playful and friendly 16-week-old kittens, according to their previous owner. This week's dog is 4-month-old Sally, a spayed Labrador and Jack Russell mix. She's a super sweet dog, according to her previous owners.
-
Environmental groups seek court review from cabinet order
A coalition of environmental groups has once again asked Franklin Circuit Court to help them in their long-running battle with the Cabinet for Energy and Environment and a coal company which violated provisions of the federal Clean Water Act.
-
Berea couple accused of chaining children into bedroom
A Berea couple was charged Wednesday after they admitted to using chains and ropes to lock four children into a room, according to Berea police.
-
First Christian Church on Main Street.
- More Local News Headlines
-
Exit 95 rebuild delayed until 2017
Conn. Commuter Trains Collide; 60 Go to Hospital
Coffee Run Leads to Hatchet Hitchhiker Arrest
Fmr. IRS Head Insists No Politics in Targeting
CDC: Fecal Bacteria Common in Swimming Pools
$1 Million in Jewels Stolen at Cannes Film Fest
NM Mom Chases Down Child Abductor
Raw: Crash Sends Car Into Fla. Pool
Raw: Obama Sits Down With Elementary Kids
Raw: Bear Falls From Tampa Tree
Ousted IRS Chief: Errors Not Caused by Politics
Terror Suspect Due in Court in Idaho Friday
Raw: Driver Ejected From Truck, Over Bridge
Could Tobacco Be the Next Biofuel?
Wash. State Releases Draft Rules for Legal Pot
Dying Man's Blinks Lead to Murder Conviction
Officials: Texas Tornado Likely Had 200 Mph Wind
Brothers Arrested in NOLA Parade Shooting
Raw: School Bus Crash Injures Five Children
Quick Response Saved Baby on Phila. Train Tracks
One Million Evacuated As Cyclone Hits Bangladesh
