One thing is almost certain -- no matter how many issues come before the General Assembly when it meets in Frankfort next month, the budget and unfunded liability of state pension systems are sure to generate the majority of attention.
That was the conclusion Friday from both State Rep. Mike Denham and State Sen. Steve West during a Maysville-Mason County Area Chamber of Commerce luncheon.
The legislators were on hand to give a brief preview of the upcoming legislative session and to answer questions from those on hand for the luncheon.
In opening, Denham said he considers the area fortunate.
"I am really high on the Buffalo Trace Area," Denham said. "We have a lot going on here. It really bodes well for the community."
He cited several projects in the area, either recently completed or in progress including the Meldahl Dam hydro plant and fishing pier, industrial expansion and $125 million in road projects such as the Maple Leaf Road redesign, widening of Kentucky 9 AA Highway and the opening of the Millersburg-Paris section of U.S. 68 which he called "critical to the area."
As the national economy has improved, pulling out of recession, so has the state and area economy, Denham said.
"We are getting where we want to be," he said, while admitting there are still challenges to be met.
West agreed that pensions and budget will be big issues for legislators but also included the Affordable Care Act and Kentucky's health care exchange.
"The two things I think are going to suck all the air out of the room are pensions and ACA," West said.
On Wednesday, news reports indicated the ailing Kentucky Teachers’ Retirement System has a $24.4 billion unfunded liability for 2015, up from $21.5 billion in 2014.
That same report claimed for the Kentucky Retirement Systems, the state short-changed state employees’ pensions for more than a decade, creating an $11 billion shortfall and a 17 percent funding level.
By some reports, the County Employees Retirement System has an unfunded liability of $4.2 billion.
Both legislators agreed to a call for a full and open audit of the retirement systems.
Denham called the situation "A comedy of errors. We're going to have to dig our way out of it."
West said "we are going to have to beg, borrow and steal to put money into the system."
During the Republican Caucus Leadership meeting in Maysville last week, West said legislators visited East Kentucky Power Cooperative's Spurlock Station in Mason County. He said upcoming environmental regulations will likely have an negative effect on the area and the state because they are coal-fired plants.
West, as did Denham, said the more funding should go to ensure the safety of Kentucky State Police and to increase pay for troopers which is way below that of surrounding states.
"We need to do everything we can to properly pay them and properly protect them," West said.
Another concern West expressed is a shortfall in road funding. Because Kentucky's gas tax is tied to the per gallon price of gasoline, falling prices have meant less revenue for funding road projects. And while current projects and those in the six-year plan should not be affected, he predicted the fund "is going to be tight, really tight."
Local business owner Patti North raised a question on the number of regulations and taxes imposed on small business owners and how those taxes and regulations often seem like a punishment for being successful.
Denham and West were in agreement that only through tax reform can small businesses expect to gain any relief. But they also agreed there is little will in Frankfort to impose reforms to what they called an antiquated system.
Other topics touched on by West and Denham included:
-- Legislation involving small distilleries and breweries which are expected to be on the calendar.
-- Local government 911 funding which is currently tied to landline phone service. There may be some move to redirect it to cell phone bills.
-- Minimum wage.
-- Broad band service.
-- Overloaded court dockets.
-- Agriculture funding.
Denham also spoke on the drug issue and how it is a constantly changing scene.
"We can't stay ahead of the game," he said, recounting how once legislation is enacted to attack one drug problem, another drug is introduced. After dealing with methamphetamine, the problem because pill mills; after dealing with those, heroin was front and center. Flakka, a synthetic drug is the most recent problem the state faces.
Finally, both legislators said they are not sure what kind of atmosphere they will find in Frankfort with the General Assembly convenes with a new governor, Republican Matt Biven in office. They did agree they have a good working relationship and expect that to continue.
The Ledger Independent is online at: http://www.maysville-online.com