Pensions Update

Click here to visit KentuckyPensions.com for more information.

Bringing about a flurry of facts and a storm of misconceptions, Kentucky’s pension crisis has become one of the most dominating news stories in recent months. One thing is for certain: if our state pensions are not addressed in the very near future, we will face huge cuts in state funding. Education, Medicaid, and other government services would likely be affected—a risk our state is not in a position to take.

So how did we get to this point? In the early 2000’s Kentucky’s pensions were in a healthy condition. While there was not one single cause for the pensions’ downhill slide, factors such as faulty assumptions led to underfunding which continued throughout the decade. The lack of proper funding over this amount of time eventually led to the critical state of our pensions today. The General Assembly took steps toward reforming the Kentucky Employees Retirement Systems (KERS) and the County Employee Retirement System (CERS) in 2013, but unfortunately the Kentucky Teachers Retirement System (KTRS) was not included in those measures and the problem continued to grow.

This is not a partisan issue. In 2016 the General Assembly—Republicans and Democrats—made a commitment to address the problem. This started with a dedication of $1.2 billion annually to help with the shortfalls in KERS and KTRS as well as establishing a permanent pension fund. We also hired a third party organization, the PFM Group, to investigate the state of our pension systems.

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In 2016, PFM was hired pursuant to legislation that passed 38-0 in the Senate and 99-1 in the House.

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On Monday, August 28, the PFM Group gave its final presentation to the General Assembly’s Public Pension Oversight Board, offering its recommendations on how to best address the problem. I, along with my colleagues in the General Assembly and Governor Bevin, will consider PFM Group’s recommendations and craft a plan that will be implemented in a special session.

What happens if we keep kicking the can down the road? The only path forward would be to cut funding in other areas of state government. Kindergarten-12 public education, already under the burden of larger class sizes, too few teachers, and a shortage of resources, could face cuts. Higher education would also feel the cuts and make college less affordable. Medicaid, public safety and infrastructure—all services of state government many would agree are mission-critical—would also suffer in this unfortunate scenario.

However, there are ways to avoid that situation. There is a path forward that allows us to balance our legal and moral obligation to our retirees while reforming the broken systems. Our priority is ensuring our retirees have a secure retirement that will provide for them in the years to come without taking away from other priority state programs. Addressing this crisis will not be an easy task, but I will continue to work alongside my colleagues in the General Assembly to ensure we find a solution that provides for our retirees while being responsible stewards for taxpayer dollars. Now that the study from PFM has been completed, discussions on specific policies will begin. If you have questions or concerns about pension reform, please do not hesitate to contact my office directly. If you would like to see the reports for yourself, head to kentuckypensions.com.

If you have any questions or comments about these issues or any other public policy issue, please call me toll-free at 1-800-372-7181 or email me at Whitney.Westerfield@LRC.ky.gov.  You can also review the Legislature’s work online at www.lrc.ky.gov.

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SB120

After seven months of work by Governor Matt Bevin's Criminal Justice Policy Assessment Council, or "CJPAC," SB120 was filed to make changes to the criminal justice system to achieve two goals:

• Improve Public Safety
• Enhance the Administration of Criminal Justice

Below I've included the committee substitute ("SB 120 PSS1" – SB 120 Proposed Senate Substitute 1) which will be considered in committee tomorrow.  The substitute makes additional edits to the bill as it was filed, requested by various stakeholder groups.  I've also included a section-by-section summary of the contents of the committee substitute, and a brief one-page summary of the major policy highlights of the bill.

Criminal Justice Policy Assessment Council

Yesterday, June 21, 2016, the Governor announced the formation of a group dedicated to studying Kentucky's criminal code and recommending legislation for the 2017 General Assembly to consider passing.  Yours truly, as Chair of the Senate Judiciary Committee, holds a seat in this august group.  Ultimately, we should aim to improve public safety, and improve outcomes for victims, for those accused and for the taxpayers footing the bill.   I'm excited about the work ahead!

Below I've included the Governor's press release in its entirety.  At the bottom you can see the "CJPAC" membership.

Gov. Bevin Announces Kentucky-led Council on Criminal Justice Reform

Bipartisan council will undertake a comprehensive review of justice policy for reforms next year

FRANKFORT, Ky. (June 21, 2016) –– With prisons at capacity, overdose deaths on the rise, and families fractured by incarceration, Gov. Matt Bevin today announced plans to seek a smarter, compassionate, evidence-based approach to criminal justice in Kentucky.

“Kentucky has achieved very important milestones in justice and public safety policy in dating violence protections, national model juvenile justice reform and annual efforts to combat the ever changing threat of substance abuse.”

— Sen. Whitney Westerfield

Standing in the Capitol Rotunda with a broad coalition of lawmakers, advocates and policy leaders, Gov. Bevin introduced his newly-formed Criminal Justice Policy Assessment Council. The 23-member panel will seek expert advice & study data-driven evidence over the next six months and recommend reforms in the 2017 General Assembly for a smarter, stronger and fairer system of justice.

“From the very beginning, America has been a land of second chances. Even so, many in our criminal justice system are not given a path forward to become productive members of society after they have served their time,” said Gov. Bevin. “I believe in the importance of supporting basic human dignity. When we hold individuals fully accountable for their actions while treating them with respect in the process, all of society benefits. I am excited today to announce the formation of the Criminal Justice Policy Assessment Council. Their purpose is to carefully study and then suggest actionable policy solutions for improving our criminal justice system.”

Justice and Public Safety Secretary John Tilley will lead the council, and Lt. Gov. Jenean Hampton will serve as Special Advisor to the committee and Liaison to the Governor.

"While we have made great strides, Kentucky can get smarter on crime while remaining tough on criminals,” Secretary Tilley said. "By using data-driven policy and clear evidence, we can cut re-offense rates, improve reentry, increase drug treatment and treat mental illness – all while maintaining, and even bettering public safety.”

Gov. Bevin formed the bipartisan council in response to a growing patchwork of statutes that now comprise much of the state’s penal code. This has resulted in a costly expansion of Kentucky’s criminal justice system with diminishing returns in public safety. 

“However, Kentucky’s criminal code has remained largely untouched for decades, and is sorely in need of updates reflecting public policies that spend scarce taxpayer dollars wisely and improve public safety.”

— Sen. Whitney Westerfield

The Kentucky legislature has enacted important reforms in recent years, including laws that increased substance abuse treatment in prisons, strengthened pretrial release policies, and modified sentences for certain drug offences. 

“Over each of the last few years Kentucky has achieved very important milestones in justice and public safety policy in dating violence protections, national model juvenile justice reform and annual efforts to combat the ever changing threat of substance abuse,” said Sen. Whitney Westerfield, Chairman of the Senate Judiciary Committee. “However, Kentucky’s criminal code has remained largely untouched for decades, and is sorely in need of updates reflecting public policies that spend scarce taxpayer dollars wisely and improve public safety.” 

The need to address the cost of criminal justice is clear. Kentucky spent nearly half a billion dollars on corrections last year, consuming funds incarcerating individuals for non-violent crimes that could otherwise benefit classrooms and job training programs. Meanwhile, inmate populations at prisons and jails remain high, criminal sentences are often inconsistent and Kentucky is leading the nation in the number of children with an incarcerated parent.

“I am hopeful that we will treat this initiative for criminal justice reform as an opportunity to build upon the redemptive philosophy that we achieved with the passage of the felony expungement legislation that Rep. Darryl Owens sponsored for many years,” said Rep. Chris Harris, of Forest Hills. “We cannot continue to try to incarcerate our way out of the problems facing our society, many of which are rooted in addiction to controlled substances and mental health issues. Addressing these pervasive issues is the key to solving the problem of the revolving door of incarceration and allowing these folks to reenter society successfully and become contributing members of their communities.” 

Gov. Bevin said the bipartisan, Kentucky-led council will bring together people from across the Commonwealth – with a wide range of expertise – to look at the many complex issues that present challenges to the criminal justice system. 

“I am encouraged by the diverse community of stakeholders that criminal justice reform has brought to the table,” Labor Cabinet Secretary Derrick Ramsey said. “As both an African-American and the Secretary of the Labor Cabinet, it is deeply personal to me that I help find ways to reduce recidivism and provide workforce re-entry opportunities for the thousands of Kentuckians who deserve a second chance.  While there are no quick fixes to complex problems like this one, I am looking forward to collaborating with my colleagues on this council to identify real solutions needed to address this critically important issue.”

For Russell Coleman, the issues hit home when he confronted them head on as an FBI special agent.

“As someone who has been privileged to serve in our law enforcement community, I was a natural skeptic of reform,” said Coleman, a western Kentucky native, who now practices law at Frost Brown Todd in Louisville. “But when the data and experience of conservative governors in other states indicate that well-crafted reforms actually make our families safer, we can’t afford not to work together in achieving those successes in our commonwealth.”

Members of the Council include:

• Chairman John Tilley, Secretary of the Justice and Public Safety Cabinet
• Sen. Whitney Westerfield, R-Hopkinsville, Chairman of the Senate Judiciary Committee
• Rep. Darryl Owens, D-Louisville, Chairman of the House Judiciary Committee
• Derrick Ramsey, Secretary of the Labor Cabinet
• Sen. John Schickel, R-Union
• Sen. Morgan McGarvey, D-Louisville
• Rep. Denny Butler, R-Louisville
• Rep. Chris Harris, D-Forest Hills
• Dr. Allen Brenzel, Department of Behavioral Health, Cabinet for Health and Family Services
• Judge David A. Tapp, 28th Judicial Circuit Court, Division 1
• Judge-Executive Tommy Turner, LaRue County
• Amy Milliken, Warren County Attorney
• Courtney Baxter, Commonwealth’s Attorney for Oldham, Henry, Trimble counties
• Rick Sanders, Kentucky State Police Commissioner
• Damon Preston, Deputy Public Advocate, Department of Public Advocacy
• Russell Coleman, Spokesman for Kentucky Smart on Crime
• Tom Jensen, Attorney, retired Judge and former Chairman of the Senate Judiciary Committee
• Anthony Smith, Executive Director of Cities United
• Jason Woosley, Grayson County Jailer
• Bob Russell, Retired Senior Minister of Southeast Christian Church
• Bishop William Medley, Diocese of Owensboro
• Dave Adkisson, President and CEO of the Kentucky Chamber of Commerce
• Justice Daniel J. Venters, Supreme Court of Kentucky, 3rd District

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