The KY Center of Economic Policy’s Executive Director Jason Bailey had this to say about the pension crisis: “A lot of the low-hanging fruit, as far as the benefits themselves, is already gone,” Bailey said, referencing past pension reform efforts in 2008 and 2013. “So it’s not really a pension problem anymore. It’s more of a revenue problem. These liabilities are liabilities from the past where we underfunded those plans, and we need to find the revenue to pay them down over time while also affording the other things we need.” http://mycn2.com
The previous administration under Governor Beshear has already tried cutting benefits, shifting to 401K’s and other cost cutting measures. They have not worked, because the problem is “cash inflow” not “cost”. Every entrepreneur knows that ‘cash is king’.
Why is the Governor and the current House and Senate leadership not even willing to consider new consumption-based revenue streams that they always claim they want to support? Why do they want to tax our gas and food; cut pension benefits for teachers, police, fire, EMS and state workers, but not even consider expanded gambling, medical marijuana or other consumption-based revenue streams? It does not raise taxes on income, or essential commodities, and provides revenue to pay for the unfunded liability.
Even if the revenue projections from those sources is only 10% correct, any amount of additional dollar revenue is still more than “zero”, which is what we are getting from it now.