Louisville, Kentucky city pension promises have finally come to be cashed in on and the overall budget of the city is getting hammered on it. In 2019, the current mayor started warning of the pending spending cuts that would be enacted in order to pay for the pension promises.
Louisville’s pension problems are going to continue even longer, thanks to a change adopted by the state’s pension board that assumes a longer life expectancy for retirees in the system.
The city’s ballooning pension bill was set to grow by 12%, or roughly $10 million, each year through fiscal year 2022-23, when it was then anticipated to plateau.
But now, following the board of Kentucky Retirement System’s adoption Thursday of a new mortality table, those 12-percent annual increases will extend even further.
The pension forecasts are so dire, an even more in depth analysis can be read here. Honestly, it is one of the fastest growing pensions I’ve ever seen.
Now just a under a year later, Louisville’s Mayor has updated the city’s financial situation by announcing in order to pay for the pension payments, other areas such as law enforcement has been cut.
The mayor acknowledged that the city’s financial picture isn’t perfect. The increasing pension debt forced “painful cuts” in last year’s budget, including eliminating nearly 300 jobs, making reductions in public safety, moving Youth Detention Services to state control, as well as closing pools, libraries and a Neighborhood Place.