Politics

Kentucky's legislative leaders have passed two bills to shore up the state's underfunded pension systems, effectively staving off a special session on the issue.

The new plan would reduce a personal tax credit of $20 to $10, generating roughly 33 million in revenue that would go to General Fund, but lawmakers would use for pensions. It would also use revenue from technical changes in the state's tax code, as well as money from federal tax changes.

Overall, the plan would generate $96 million in the 2015 fiscal year and $100 million in 2016 fiscal year.

In a news conference with legislative leaders after the bill passed, Governor Steve Beshear said the process will work as a template for other states.

"This is a good solution to a thorny problem. A solution that other states around the country will be looking at as they look at options to solve their own crises," Beshear said.

A bill requiring prompt pay for health care providers participating in Kentucky's Medicaid managed-care system is heading to the governor's desk—but it could be vetoed.

The bill,  sponsored by House Speaker Greg Stumbo and would move disputes between providers and managed care organizations to the Department of Insurance to be settled.

Many Medicaid managed-care providers providers over late or non-existent payments from the MCOs for the services they did, repeatedly telling lawmakers their problems.

The House passed the legislature in February and the Senate OKed it on Monday.

But the bill isn't favored by the MCOs and the Cabinet for Health and Family services, which currently hears disputes, has concerns too, leading some to believe Gov. Steve Beshear will veto it. And if it is vetoed, Stumbo said he'll make a larger priority in 2014.