House GOP says budget tweak would spur millions for pensions
House Republicans say a tweak in Republican Gov. Matt Bevin’s budget plan would get the federal government to spend an extra $162.2 million on the state’s multi-billion dollar public pension debt.
But the proposal depends on adopting Bevin’s budget cuts. House Democrats, who will have a majority, have said they will reject some of Bevin’s cuts.
Bevin’s budget proposal includes making lump sum payments to the pension systems for teachers and state workers. But instead of just giving the money directly to the retirement systems, House Republicans want to route the money through the state payroll system. That would trigger a match from the federal government, which covers about 30 percent of state worker salaries and 15 percent of teacher salaries.
Democratic House Speaker Greg Stumbo said the plan does not go far enough.