Kentucky's legislative leaders have passed two bills to shore up the state's underfunded pension systems, effectively staving off a special session on the issue.
The new plan would reduce a personal tax credit of $20 to $10, generating roughly 33 million in revenue that would go to General Fund, but lawmakers would use for pensions. It would also use revenue from technical changes in the state's tax code, as well as money from federal tax changes.
Overall, the plan would generate $96 million in the 2015 fiscal year and $100 million in 2016 fiscal year.
In a news conference with legislative leaders after the bill passed, Governor Steve Beshear said the process will work as a template for other states.
"This is a good solution to a thorny problem. A solution that other states around the country will be looking at as they look at options to solve their own crises," Beshear said.
State leaders are still working to find solutions to the Kentucky's troubled pension system —but he's not promising a deal the time the General Assembly regular session ends next week, Gov. Steve Beshear said on Monday.
Beshear has mediated sessions between House and Senate leadership on reforming the pension systems and how to fund them, after the chambers came to an impasse on the issue.
Those conversations have continued since the General Assembly adjourned last week for the veto period, but Beshear said he can't predict whether legislators will strike a deal before the 2013 session ends.
"One can never predict what will happen in the end, particularly in a legislative session but I feel good about where we are right now," Beshear said.
If lawmakers can't reach a deal, a special session to deal with the issue is likely.