LEGISLATIVE UPDATE: March 3, 2008

by State Representative Addia Wuchner

Pensions and Casinos – Budget Forthcoming

Greetings from Frankfort ! -- The House took action on dozens of measures from child safety to strategies to lower drug costs. State retirement and several versions of gaming and casino amendments dominated our days in Frankfort last week. The proposed constitutional amendment on casino gambling was approved in a quickly-assembled committee meeting upon adjournment of the House on Wednesday.

The State employees' pension proposal, House Bill 600, passed the House 96-0 Thursday and rests in the Senate. The bill puts the brakes on the growing $26 billion dollar unfunded liability resulting in a shortfall in the pension system. A ctuaries say the pension fund will go broke by 2022 if we fail to address this issue.

Under HB 600, changes in certain benefits for new hires, current employees, and retirees would generate savings. The most significant changes would affect future state, local government, and classified school employees, who would have to work an additional three years, 30 rather than 27. They would work until at least age 55 before being eligible for full retirement benefits under the state's redefined benefit plan. The cost-of-living raise, or COLA, was reduced and set at 1.5 percent unless it is increased by the General Assembly. State employees would contribute 6 percent of their salary into the retirement fund instead of the current 5 percent. The additional 1 percent will be used to help cover retiree health insurance benefits.

Casino gambling has been debated for months by lawmakers and the public. Yet, much would have to occur for the amendment to become law. First, at least three-fifths of the membership of the House and Senate would have to approve the amendment for it to appear on the ballot. Then voters must approve it in a referendum next November.

Keep in mind, expanded gaming and the casino debate is a high stakes wager. We must consider many contributing factors. Big revenue dollars may be made, but those dollars will come from pockets of Kentuckians and a few tourists that visit the Commonwealth for entertainment and hopes of hitting a jackpot. We must ask ourselves if expanded gaming is in the best interest of Kentucky and her citizens. Some say Northern Kentuckians already have gambling on horses at Turfway and just across the river in Indiana , although we do not benefit from the revenue. Some regions of the State where casinos could operate are among our most economically depressed, already plagued with multiple societal issues like drug addiction and high unemployment. An attorney in Indiana recently sited that while the infrastructure had improved in his town, he was handling more divorces than ever.

I am honored to be a co sponsor of HB 211, which passed the House 96-0 Thursday. HB 211 improves Kentucky 's child sexual abuse laws. Older children are included in the definition of minors protected under state laws governing first-degree sexual abuse. A provision of the bill would make it first-degree sexual abuse for someone over age 21 or in a position of authority or trust to engage in sex acts while communicating with someone under age 16 via a computer or other electronic communication devices.

During the three and one half remaining weeks of this 2008 Regular Session, we must focus on completing the state budget, our Constitutional obligation. We must provide as much funding as possible for education, infrastructure, and other critical needs. There is a rumor that we may be presented with two versions of the budget from which to choose: the barebones version and the version with revenue enhanced by gaming or increased taxation. Be assured, I will keep you posted.

If you would like to share your comments or concerns with me or another legislator about a particular bill under consideration this session, you can call the toll-free Legislative Message Line at 800-372-7181.