Beshear hopeful for 'quick and successful' special session on pension reform

Gov. Steve BeshearFRANKFORT -- With progress on the passage of pension reform legislation moving quickly during this week's special legislative session, Gov. Steve Beshear (D-Lexington) told a joint session of the state legislature that successful policy making over the next five days could foster hope for cooperation in the divided state government.

"I am optimistic about the future," said Beshear. "A quick and successful special session can signal the beginning of a new era in Frankfort, one where cooperation on critical public policy is the norm and where politics and partisanship are reserved for campaigns."

Today, the draft pension legislation agreed upon by House and Senate leadership prior to the anticipated five-day special session met a successful vote in the House state government committee. It could now find its way to a Senate vote by Thursday.

The progress comes after negotiations on pension reform collapsed in the last days of the regular legislative session. For Beshear, that stumble was one of several during the session on priority legislation. His initiative to significantly raise the state tobacco tax failed to pass muster with the Republican-controlled state Senate while a vaunted constitutional amendment on expanded casino gaming failed to see a vote even on the floor of the Democratic state House.

"Pension reform has been on the agenda for years, but attempts at significant action have stalled time and again over seemingly insurmountable issues that divert attention and sour relations," said Beshear. "It happened again in the recent regular session of the General Assembly. While we did increase the contributions the state will make to these systems over the next two years, once again agreement on significant pension reform broke down in the final hours of the session."

Secretary of State Trey Grayson (R-Richwood), a potential re-election rival for Beshear, said he thought some of this lack of success was due to the Governor not being "effectively engaged" during the regular session.

The special session was called by Beshear specifically to remedy the pension issue. Beshear noted that many of the more divisive components of the pension issue were excluded from the draft legislation under consideration.

"I announced a two-pronged strategy for resolving this pension crisis. The first part of that strategy is to separate and temporarily set aside those few issues creating the most discord and division," said Beshear. "Those issues - like whether to adopt defined contribution and annuity plans and where to put classified school board employees - are important, but they should not stand in the way of quick, decisive action."

A Public Pension Working Group was formed by Beshear to address these elements of reform.

The second part of Beshear's policy strategy is pushing through the remaining elements of pension reform. On Monday night, he accentuated the perceived importance of the legislation.

"Today we have the opportunity - indeed, the obligation - to come together to address a growing financial problem threatening the long-term viability of state and local governments," said Beshear. "We face a financial catastrophe - one that demands significant, immediate action."

Beshear also took time to praise the House and Senate leadership - friend and foe, alike - for their roles in getting pension reform this far, while making assurances to state employees and the public-at-large.

"To Kentucky's teachers, police officers, firefighters, other city and county employees and our state employees, my message is this - I will fight for your well-earned right to a secure, financially sound retirement," said Beshear. "To the taxpayers of this Commonwealth, my message is this - I am determined to place our public pension systems on a sound financial basis so that your hard earned tax dollars can be spent on educating our children, providing health care for our people and creating jobs for Kentuckians."

The special session began in earnest on Monday and will reconvene at 9am on Tuesday. The session is expected to last just five days.