Covering Kentucky

Jan 7, 2013 1:26 PM

Mayors Call For Action To Stem City Pension Crisis

(AP) - The mayors of Kentucky's two largest cities called on state lawmakers to enact reforms that would help curb pension obligations that are crippling annual budgets in Lexington and Louisville.

Lexington Mayor Jim Gray says pension payments have ballooned over the last decade and now account for 20 percent of the city's annual budget. Lexington's obligations were just 6 percent of the budget in 2000.

Gray says stock market losses, people living longer and governments underfunding pension commitments have contributed to the shortfalls. Lexington's pension system is governed by state laws.

Mayor Greg Fischer says Louisville's obligations account for 15 percent of its general fund. Fischer says that figure was just six percent seven years ago.

Lawmakers have pledged to address pension reforms in the upcoming General Assembly.

(Copyright 2013 The Associated Press. All rights reserved.)

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