Bevin says he won’t sign bill giving pension relief to cities, schools and libraries

Gov. Matt Bevin told a Kentucky radio station Tuesday that he does not support a bill that would cap annual increases in pension contributions for local governments, school districts and regional universities, among others.

“I would never sign that bill,” Bevin told WKDZ in Cadiz after being asked about Senate Bill 66.

He said the measure is “nothing but a kick down the road” in Kentucky’s struggle to deal with its financially-troubled pension systems.

If the legislature does pass the bill, which looks unlikely at this point, the Republican governor could veto it or let it become law without his signature.

The bill would limit annual pension contribution increases for cities, counties, school districts and others in the County Employees Retirement System to 12 percent a year for 10 years.

Local governments face huge increases — some as high as 70 percent — in how much they must pay later this year for their employees’ pensions.

For example, Fayette County Public Schools will have to pay $5.4 million more in the fiscal year that begins July 1 for its 1,806 classified employees — those who aren’t teachers. If SB 66 is approved, that increase would drop to $1.4 million.

Senate Republican leaders say they won’t pass Senate Bill 66, which is stalled in the Senate budget committee, unless they also can find enough support to pass Senate Bill 1, their controversial plan to overhaul Kentucky’s pension systems.

SB 1 would end traditional pensions for future teachers and cut retired teachers’ cost-of-living allowances, among other cost-saving changes, but is stalled in the Senate State and Local Government Committee. Tuesday marked the 56th day of the 60-day legislative session.

Senate President Robert Stivers, R-Manchester, has said the pension bill and the relief bill are linked.

“There have to be some systemic changes,” said Stivers. “You can’t cap something that continues to grow.”

On the radio, Bevin said there’s still hope for pension reform. “I wouldn’t count it out,” he said.

Asked if he would call lawmakers back into a special session if they don’t pass pension reform before they adjourn for the year on April 13, Bevin said that is an option but noted that a special session costs taxpayers money.

The chairman of the Senate State and Local Government Committee, Sen. Joe Bowen, R-Owensboro, said he is still working on a new version of SB 1. He said it would not look like the original version.

Bowen said he was in business for 40 years. “I can assure you we got more done at quitting time more than any other time of the day,” he said. “There’s still plenty of time to get stuff done up here.”

This story was originally published March 27, 2018 at 3:11 PM with the headline "Bevin says he won’t sign bill giving pension relief to cities, schools and libraries."