FRANKFORT — The Kentucky Supreme Court has struck down a pension bill, Senate Bill 151, that was passed during the 2018 legislative session.

Senate Bill 151 would have put new teacher hires into a hybrid cash balance plan which would require them to contribute a specified amount to the account and limited the amount of sick days teachers could accrue to put toward their retirement.

The bill was introduced as a sewage bill and passed at the end of March.

According to the Kentucky Supreme Court, the bill was unconstitutional because it did not adhere to the “three readings requirement.”

That requirement states all bills must be read three times before being passed.

In the Kentucky Supreme Court ruling on Thursday, justices said “legislatures violated the Kentucky Constitution by failing to give the bill a reading on three different days in each legislative chamber and by failing to obtain 51 votes in the House of Representatives as required for a bill, which appropriates money or creates a debt.”

Two local superintendents responded to the decision by the court.

In a letter to faculty and staff on Thursday, Fleming County Schools Superintendent Brian Creasman said he is currently reviewing the decision, but he believes there is a more significant issue facing school districts.

“That is the overall budget,” he said. “Economists agree that since 2008, Kentucky students are owed approximately $1 billion when inflation is factored into the equation – making Kentucky the third worst funded education system in the United States. No matter where you fall on the political spectrum, the education budget is a disaster that is looming on the horizon that will impact the overwhelming majority of school districts in Kentucky. If we do not have an equitable and well-funded education budget in Kentucky, and quick, the pension system will collapse, with or without a pension bill, as school districts go bankrupt.”

Creasman said he believes that is important to properly fund education and educators’ pensions.

“K-12 education must be funded at an equitable 2018 level and the faculty and staff need a pension. Somehow we must work to get both of these items addressed so we can focus on preparing students to be college, career, and life ready,” he said. “Our priority is students – if we could only get others in Kentucky to understand this mission.”

Augusta Independent School Superintendent Lisa McCane also responded to the decision.

“I remain hopeful that as Kentuckians we can find a fair and balanced solution to our underfunded pension system that will be done openly and with transparency,” she said.

Other superintendents in the area were unavailable for comment on Thursday.

Gov. Matt Bevin disagreed with the ruling on Thursday.

“Today’s ruling by the Supreme Court is an unprecedented power grab by activist judges,” he said. “By striking down SB 151 based on process, rather than merit, the Kentucky Supreme Court has chosen to take for itself the law-making power that the constitution grants to the legislature. This is very dangerous. In the long-term, this will erode the rule of law that is the foundation of our government, but more immediately, this will destroy the financial condition of Kentucky.”

Bevin went on to say the decision will mean an increase in borrowing from counties, cities and school districts.

“This overreach by the Supreme Court will force our state to deal with further credit downgrades and increased borrowing costs for cities, counties and school districts. This is unacceptable. All options must remain on the table to solve this crisis, because without real structural reform, the pension system is on the fast tract to failure.”

This file photo from March 2018 shows Straub Elementary teachers greeting those arriving for school with signs expressing their feelings toward the handling of their pensions by Kentucky’s Govenor Matt Bevin.
https://maysville-online.com/wp-content/uploads/2018/12/web1_032418-news-pension-1.jpgThis file photo from March 2018 shows Straub Elementary teachers greeting those arriving for school with signs expressing their feelings toward the handling of their pensions by Kentucky’s Govenor Matt Bevin.

Christy Howell-Hoots

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