LOUISVILLE, KY (WAVE) - Kentucky's credit rating now trails every state in the country except New Jersey and Illinois after the Standard & Poor's Ratings Services lowered the credit rating last week.
The reason they cited for the downgrade? Kentucky's substantially underfunded pension liabilities that are the result of chronic underfunding. That underfunding - now about $14 billion - places long-term pressures on Kentucky's finances and puts limits on our options to invest.
Meaningful progress in reducing this long-term debt must happen this next legislative session and it must start with tax reform. We hope the task force Governor Steve Beshear created to study the problem recommends further solutions before the session begins.
This is not a can that can be kicked down the road any longer.