BRADENTON, Fla. - Kentucky Gov. Steve Beshear said yesterday that he would call a special session of the General Assembly to focus on the state's pension liabilities if key lawmakers would first agree on reforms to the system, which now has an unfunded liability of $26 billion.
The state's budget and pension liability were among the reasons why Fitch Ratings and Moody's Investors Service last month placed a negative outlook on some or all of the state's debt. Moody's also revised the outlook to negative on the commonwealth's issuer rating. Analysts for both agencies were concerned about the use of one-time sources of revenues and reserves to support the state budget because of declining revenue collections.