Local officials in metro areas call for public pension reform, local sales-tax option

February 12, 2013 | | Comments 1

By Jack Brammer

FRANKFORT — Lexington Mayor Jim Gray and Louisville Mayor Greg Fischer joined several other local government officials Tuesday to tout legislative approval of public pension reforms and a local-option sales tax.

In a news conference in the Capitol Rotunda, Gray said the financial problem with public employee pensions is the primary concern of a group called The Metropolitan Alliance for Growth. It is made up of mayors and county judges from the state’s largest metro areas who lobby the state legislature.

In Lexington, Gray said, skyrocketing pension obligations are squeezing out other priorities.

He said public pension costs have escalated from 7 percent of Lexington’s General Fund budget in 2000 to 22 percent in 2012.

The Senate already in this year’s legislative session has approved and sent to the House a pension reform bill, but questions have arisen about its costs.

Fischer spoke about a proposed constitutional amendment to allow a local-option sales tax. He said 37 states have such a tax.

The plan would allow citizens of local governments to vote on whether to increase the state’s 6 percent sales tax by as much as 1 percentage point for specific projects decided upon by the voters. The money would stay in a dedicated fund.

Fischer said the discussion about the proposal called LIFT (Local Investments for Transformation) is now in “the educational stage.”

He said it could be approved this year or by next year’s General Assembly and placed on the ballot for voters to consider in November 2014.

Gray said the tax option could benefit a variety of projects, ranging from Rupp Arena to new fire houses.

He also said details of the proposal – like specifically what cities could use it – are being worked out.

The proposal has been endorsed by the Kentucky League of Cities and Kentucky Association of Counties.

Besides Gray and Fischer, other members of the Metro Alliance are Boone County Judge-Executive Gary W. Moore, Campbell County Judge-Executive Steve Pendery, Kenton County Judge-Executive Steve Arlinghaus, Hardin County Judge-Executive Harry L. Berry, Warren County Judge-Executive Mike Buchanon and Daviess County Judge/Executive Al Mattingly.

Filed Under: Jim GrayKY General AssemblyLexington Government

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  1. Good Memory says:

    Did I read that the Ky. League of Cities was for this proposalDid they have a 100 thousand convention at a local strip club to vote on this.They are such an trusting group!!