How the Kentucky Pension Crisis impacts Taylor Mill!
As many of you know the state of Kentucky is facing a severe pension crisis. Every resident will be affected by how the General Assembly decides to address this issue.
And while the General Assembly has not voted on a final version of Senate Bill 1, two things are certain: The pension crisis is not going away, and on July 1, 2018, cities across the Commonwealth will face the most significant increase in pension contributions we have ever seen.
Recently, Taylor Mill Senator Chris McDaniel introduced Senate Bill 66, which would limit annual contribution increases to the County Employees Retirement Systems (CERS) to 12 percent a year for cities, counties, school districts and others paying into the system.
This is much easier to digest than the 50-60 percent increase set to go into effect on July 1. Phase-in contributions are imperative because the real cost of the pension contribution increase will be paid by the citizens. If cities cannot generate enough revenue to cover these increases taxes will go up, and cities may be forced to cut vital services including police, fire, roads, and sanitation.
Taylor Mill is debt-free and in excellent financial condition. We have been able to offer top-notch services to our residents for many years. However, without the phase-in of contributions, on July 1, 2018, the city faces a 50 percent increase in contributions, which raises our total annual contribution to $476,565.00. In 2019 contributions increase an additional $241,037.00 raising our total annual contribution to $717,602.00.
Earlier this week,
I joined city leaders from around the state in Frankfort to let the General Assembly know they must intervene and consider a phase-in of contributions to ease the financial burden on cities. I want to thank Senator Thayer, Senator McDaniel, Representative Moser and Representative Simpson for the hard work they have done for the residents of Taylor Mill during this challenging legislative session, but our work is not finished.
The State Legislature introduced Senate Bill 1 to address the pension crisis, and we need Senate Bill 66 to pass or a phase-in paragraph amended to Senate Bill 1 to avoid a financial crisis in our cities. The legislative session ends April 13, 2018, and I urge everyone to contact our local legislators. They need to know that failure to pass rate relief for CERS employers will have a real and lasting impact on their constituents.
Here is how you can help - Call Senator Thayer, Senator McDaniel, Representative Moser and Representative Simpson directly at 1-502-564-8100 and ask for your legislator by name; and/or
Leave a message on the Legislative line at 1-800-372-7181; and/or
