Even though this financial crisis directly threatens the security of retired teachers and government employees, it also poses grave risks for all Kentucky taxpayers. Here’s how:
- The bigger the problem becomes, the more tax money will be needed to fix it. That means taxpayers could feel the squeeze – whether by being asked to pay more or by seeing fewer of their tax dollars being spent for schools and other areas of need.
- Our children will inherit the burden. Kentucky is a poor state, so getting our financial house in order is critical if we want to build a brighter future for our children and grandchildren.
- This huge pension liability will mean higher interest rates on the bonds Kentucky sells to build roads, schools and other important projects that serve the public. That means we’ll have to spend more on those projects.
- Many public projects will be put on hold as we fight to reduce this deficit over the long term.
- The pension squeeze makes it harder to attract new businesses and jobs, as prospects see a state in financial crisis.
- We will lose talent. Teachers and other public servants may look for careers elsewhere as Kentucky struggles to meet its obligations.