By CHAD MCCOY
50th District State Representative
Monday, April 1, 2019 — When the Speaker’s gavel fell shortly before midnight on Thursday, March 28, the General Assembly adjourned the 2019 Regular Session sine die. Odd-year sessions are considered “short” because at 30 legislative days they are half the length of even-year sessions. However, there was no shortage of issues as we passed 194 bills and resolutions into law. Anything passed on the final day of session would be subject to a veto by the Governor without an opportunity to override.
We were able to reach an agreement with the Senate on relief legislation for quasi-governmental agencies and regional universities struggling to make the employer contribution in the Kentucky Employee Retirement System (KERS). Those costs have risen dramatically and were temporarily locked in at 49 percent by the 2018 General Assembly. Without this bill pension costs will increase to 84 percent of payroll as of July 1. The 118 agencies covered by HB 358 employ an estimated 9,000 Kentuckians. They include regional universities and quasi-governmental agencies, including local health departments, mental health centers, rape crisis agencies and spousal abuse shelters. According to the Cabinet for Health and Family Services, health departments that serve 42 counties – more than a third of our state – would have to close within a year if they are forced to pay the higher contribution rate. Regional universities also shared that they would be forced to increase tuition or cut programs. Under the provisions of the bill, these agencies would have the opportunity to opt out of the Kentucky Employee Retirement System (KERS).
Agencies that opt out will be required to pay a set amount to do so, money that would provide an influx of cash directly to the retirement fund. The contribution rate for employers who choose to remain in the KERS would be frozen for FY 2020 and an annual increase of 1.5 percent would be put into place.
It is important to note that the pension provisions passed with HB 358 did not alter, change, or in any way affect teacher’s pensions or teacher’s retirement benefits.
The General Assembly is committed to coming up with worthwhile solutions that will address every aspect of our state’s pension crisis. However, the issue that was most pressing in this short 30 day session was the need to provide relief to our quasi-governmental agencies and state universities. Although there is still more work to be done to improve our state pensions systems across the board, I am proud to have voted for a measure that would help organizations that provide valuable services across the state.
The General Assembly also exercised its legislative independence in the final hours of session by overriding the Governor’s line-item veto of House Bill 268, a measure that adjusted the state budget to make much-needed maintenance repairs at our state parks, among other things.
Governor Bevin vetoed a provision that clarifies the intent of the General Assembly regarding funding language for Area Development Districts, which we overwhelmingly overrode and made law.
The bill also ensures that transition readiness standards for students are maintained, and requires KDE to do a listening tour to seek input directly from teachers and other stakeholders about new graduation requirements for the next two years.
The day before we reconvened, the Governor and economic development officials delivered evidence that the pro-jobs policies enacted by the legislature are paying off for our commonwealth. A new steel plate manufacturing mill in Meade County will mean an immediate investment of $1.35 billion in planning and construction costs, with a long term impact of 400 new full-time jobs paying an average of $72,000. This is a huge economic development achievement for not only that community, but the entire region.
With the 2019 Regular Session behind us, members of the House have already begun looking towards next year’s session when we will consider the budget, road plan and more legislation that makes our state an attractive place to create jobs, raise a family and build a future.
Before closing, I would like to take an opportunity to thank the Nelson County Gazette for publishing these columns and to you for taking the time to read them. I hope to provide a review of the bills we passed this session over the next few weeks.
In the meantime, I can be reached here at home anytime, or through the toll-free message line in Frankfort at 1-800-372-7181. If you would like more information, or to e-mail me, please visit the legislature’s website at www.legislature.ky.gov.
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