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More budget headaches ahead as Louisville's pension bill rises

More budget headaches ahead as Louisville's pension bill rises
MORE MONEY. >> LOUISVILLE’S BUDGET IS LARGE, BUT HAS SIGNIFICANT, SIGNIFICANT DEMANDS ON IT, SO IT WILL BE TOUGH FOR EVERYONE. MARK: ONCE AGAIN, METRO LOUISVILLE AND OTHER CITIES AND COUNTIES ACROSS KENTUCKY WILL SEE THEIR PENSION BILL GO UP. >> PEOPLE ARE GOING TO LIVE LONGER. A RETIREE LIVES LONGER TODAY THAN WE EXPECT THEY WOULD. MARK: THE HEAD OF THE STATE PENSION TOLD LAWMAKERS THE SYSTEM NEEDS MORE MONEY TO INVEST NOW FOR FUTURE PAYMENTS. >> MATH IS A CRUEL THING. YOU’RE GOING TO PAY IN THE LONG RUN IF YOU’RE NOT RIGHT TODAY. MARK: AS MASSIVE PROTESTS HAVE SHOWN, THE STATE IS ALREADY PAYING. >> PART OF THE PROBLEM IN TERMS OF WHERE WE ARE IS THE BOARD HAS MADE ASSUMPTIONS THAT TURNED OUT TO BE TOO GLOWING. MARK: SERVICES LIKE FI PROTECTION COULD BE HIT AS LOCAL GOVERNMENTS SEARCH FOR MORE SAVINGS. >> YOU’RE GOING TO SEE SOME REDUCTION IN SERVICES, CUTS IN SERVICE, WHICH WILL AFFECT PUBLIC SAFETY AS A WHOLE AND THE SAFETY OF OUR MEMBERS. MARK: FORCING ELECTED OFFICIALS TO MAKE TOUGH DECISIONS. >> IF THERE ARE DEMANDS ON THE BUDGET, ESPECIALLY THOSE THAT ARE UNFORESEEN, IT IS TOUGH TO BE ABLE TO MAKE UP THAT REVENUE WHEN THE OPTIONS ARE SO LIMITED, UNLESS YOU’RE GOING TO HAVE A REAL CONVERSATION ABOUT TAX INCREASES. MARK: THERE’S STILL NO WORD YET ON WHEN THE SPECIAL SESSION WILL BE HELD TO TACKLE SOME PENSION ISSUES. SEVERAL LAWMAKERS I’VE TALKED TO SAY THERE ARE SOME DATES BEING THROWN AROUND, BUT NOTHING AGREED ON YET. IN FRANKFORT, MARK VANDERHOFF, WLKY NEW
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More budget headaches ahead as Louisville's pension bill rises
Another budget headache is on the horizon for Louisville as the city's pension bill will go up even more than previously thought.The head of Kentucky's pension systems told state lawmakers Monday that people are living longer, so the system needs more money."People are going to live longer," David Eager said. "A retiree lives longer today than we expect they would."City services are already facing cuts as Louisville's pension bill was set to increase by $10 million per year for five years. That increase will now last an additional year or two."Louisville's budget is large, but has significant, significant demands on it, so it will be tough for everyone," Kentucky League of Cities' Bryanna Carroll said.The change will affect all Kentucky cities and counties. "Cities want to make sure that their community members are safe and that they enjoy their community," Carroll said. "So if there are demands on the budget, especially those that are unforeseen, it is tough."Services like fire protection could be hit as local governments search for savings, forcing officials to make tough decisions. "You're going to see some reduction in services, cuts in service, which will affect public safety as a whole and the safety of our members," Kentucky Professional Firefighters President Chris Bartley."If there are demands on the budget, especially those that are unforeseen, it is tough to be able to make up that revenue when the options are so limited unless you're going to have a real conversation about tax increases," Carroll said.State lawmakers were told the change was made Thursday by the pension system's board of directors.There are no exact estimates for Louisville's share, but the cost to all local governments combined is expected to be approximately $205 million.

Another budget headache is on the horizon for Louisville as the city's pension bill will go up even more than previously thought.

The head of Kentucky's pension systems told state lawmakers Monday that people are living longer, so the system needs more money.

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"People are going to live longer," David Eager said. "A retiree lives longer today than we expect they would."

City services are already facing cuts as Louisville's pension bill was set to increase by $10 million per year for five years. That increase will now last an additional year or two.

"Louisville's budget is large, but has significant, significant demands on it, so it will be tough for everyone," Kentucky League of Cities' Bryanna Carroll said.

The change will affect all Kentucky cities and counties.

"Cities want to make sure that their community members are safe and that they enjoy their community," Carroll said. "So if there are demands on the budget, especially those that are unforeseen, it is tough."

Services like fire protection could be hit as local governments search for savings, forcing officials to make tough decisions.

"You're going to see some reduction in services, cuts in service, which will affect public safety as a whole and the safety of our members," Kentucky Professional Firefighters President Chris Bartley.

"If there are demands on the budget, especially those that are unforeseen, it is tough to be able to make up that revenue when the options are so limited unless you're going to have a real conversation about tax increases," Carroll said.

State lawmakers were told the change was made Thursday by the pension system's board of directors.

There are no exact estimates for Louisville's share, but the cost to all local governments combined is expected to be approximately $205 million.