After filing litigation in April to protect the pensions of public employees, Attorney General Andy Beshear called on state lawmakers to boost the pension system in the upcoming session by creating a dedicated source of revenue – expanding gaming.
Beshear
Excerpts from the letter include the following comments:
“The current challenge facing our pension systems is undeniable. The most recent estimates by the Kentucky Retirement System and the Teachers’ Retirement System of the Commonwealth of Kentucky show that both systems face billions of dollars of unfunded liability. I believe it is our responsibility to offer solutions…
The solution is not to cut legally promised benefits, but to create a new and dedicated stream of revenue solely for pensions that does not raise any Kentuckian’s taxes. The answer is simple — expanded gaming including casino, fantasy sports, and sports gaming, as well as preparing for the eventual legalization of online poker.”
Beshear said this approach would then free up other sources of state revenue to fund education, fight the drug epidemic and provide health care.
“As attorney general, I took a stand on public pensions earlier this year after lawmakers turned an 11-page sewer bill into a 291-page pension bill and betrayed our state’s promise to our public servants,” Beshear said. “I ask lawmakers to create a dedicated source of revenue for pensions so we don’t have a pension battle each and every session.”
Beshear’s lawsuit against lawmakers’ 2018 pension bill, Senate Bill 151, is currently before the Supreme Court of Kentucky.
While lawmakers never released a cost analysis of SB 151, Beshear said a similar pension overhaul, Senate Bill 1, which was defeated in the 2018 session, was reported to add $5 billion in costs to Kentucky Retirement Systems over the next 35 years.
“The solution is not to cut legally promised benefits, but to create a new stream of revenue dedicated solely to pensions that does not raise any Kentuckian’s taxes,” Beshear said. “The answer should be simple – expanded gaming including casino, fantasy sports and sports gaming, as well as preparing for the eventual legalization of online poker.”
Estimates suggest Kentuckians spend over $1 billion of their entertainment dollars in casinos at bordering states, he said.
Throughout Beshear’s nearly three years in office, he has called on state and federal authorities to strengthen laws to better serve and protect Kentuckians.
On the pension issue, he sent letters to lawmakers in February and March warning of the perils of SB 151. In July, he called on state lawmakers to protect the health and safety of Kentucky workers.
Federally, Beshear has called on authorities to discharge for-profit college students loans when schools close; to better protect military families against predatory lenders; to close a loophole that allows those who traffic deadly fentanyl analogues to stay one step ahead of law enforcement; and to allow telephone service providers to block more illegal robocalls being made to Kentuckians.
A copy of Beshear’s letter can be found here.
Office of the Attorney General
