A bill that would authorize $3.3 billion in bonding to fund Kentucky’s ailing pension system for teachers has passed the Kentucky House of Representatives.
The Kentucky Teachers' Retirement System only has 53 percent of the money it needs to make future payouts to about 141,000 retired teachers. Democratic House Speaker Greg Stumbo says the risks of borrowing to fund teachers’ retirements are outweighed by not taking action.
“We contracted, we promised, they relied upon that and gave us years of their lives and service to the children of our state," Stumbo said. "We owe them that debt. It’s going to be paid.”
House Republican Leader Rep. Hoover says it's too risky. He compares the measure to using borrowed money to go to a casino.
“It will seem like a good idea in retrospect, but if you lose paying back the debt is going to be a big big problem," Hoover said.
If the $3.3 billion bond authorization is approved by the Senate and signed by the governor, it would be the largest bond issue that Kentucky has ever passed. But the bill faces long odds in the Republican-controlled Senate.
