Kentucky House Speaker Greg Stumbo says he doesn't expect a tax reform package to be brought up for a vote in the current legislative session.
Stumbo told reporters Tuesday that such a package doesn't have the 60 votes necessary to pass in the House.
A special commission appointed by the governor proposed reforms that could generate about $690 million a year in additional revenue.
Stumbo said one of the proposals made by the commission could surface in days ahead as a method of shoring up Kentucky's weakening pension system for government retirees. That proposal calls for raising the cigarette tax from 60 cents to $1 a pack, which could generate $100 million for the pension system.
A leading Kentucky lawmaker says raising the cigarette tax to $1 a pack would generate about $100 million a year that could be used to shore up the pension system for government retirees.
House Speaker Greg Stumbo told reporters that that's one of several options House lawmakers are considering to bolster the pension system, which has a $33 billion unfunded liability.
The Republican-controlled Senate passed a bill last week that requires the state to make its full contribution to the pension system but doesn't identify a funding source to do that. Stumbo said the Democratic-led House wants a designated funding source.
The Senate bill also would create a 401(k)-like hybrid retirement plan that some House lawmakers want to remove from the legislation.
A bill reforming how the state's special districts are categorized and making them more transparent easily passed the state House this morning, 96-1.
State Rep. Lynn Belcher, a Republican from Crittenden County, was the lone "no" vote.
Many local library boards, sewer districts and fire districts are considered special taxing districts separate from other types of government.
House Bill 1 is a partnership between Auditor Adam Edelen and House Speaker Greg Stumbo. It helps create a central registry of special districts as well as reforms how they file their financial information and sets penalties when they fail to do so.
Kentucky legislative leaders say solutions on how to pay for Kentucky’s underfunded pensions won’t likely be addressed in the 2013 legislative session.
Both House Speaker Greg Stumbo and Senate President Robert Stivers say there will likely be a bill to introduce changes to the pension systems. But they also agree that such a bill is unlikely to deal how to fund the changes.
What they disagree on is when to deal with the funding solutions. Stumbo says pension funding should be dealt with in a special session, hand in hand with tax reform.
“There’ll be a bill, I don’t know whether it will be addressed," Stumbo says. "I think that we need, probably, to address the entire issue and that include the funding mechanism."
But Stivers says lawmakers should pass the changes now and deal with fully funding the pension system starting in 2014, when a new budget must be passed.