Mayors Call for Action to Stem City Pension Crisis

By Associated Press | 

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 pension obligations account for 15 percent of its general fund, which has risen nine percent since in the last seven years.

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

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