What is the 'full price' for Lexington taxpayers?
20120716 firetruck
With pension systems at all levels of government across the nation experiencing difficult times, I believe we can expect to see more conversations like the one in a recent Lexington Herald-Leader editorial:
...it's so hard to find a solution for Lexington's underfunded police and fire pension system. Through multiple mayors and council members, two task forces and endless computations, the facts have remained stubbornly stark, changing only for the worse.
The editorial goes on to paint a bleak picture for the city's police and fire protection pensions pointing out that the unfunded liability is nearly half a billion dollars. After setting the stage, a solution to the problem is suggested: mutual sacrifice for taxpayers, police and firefighters, and legislators.
The paper rightfully points out that:
police officers and fire fighters put their lives on the line each and every day,
that police and fire protection have lobbied for very generous benefits,
a stock market crash has muddied the waters of appropriately funding pensions,
the state legislature needs to step up and help solve this problem
I do believe though, that the Lexington Herald-Leader needs to qualify their final point:
For Lexington taxpayers: You've enjoyed the security of excellent police and fire protection but you haven't paid the full price for it.
When a statement like that is thrown out, it begs the question: what would be the full price? How much more do taxpayers need to fork over before they have fully paid for police and fire protection?
Unemployment in Kentucky is currently at 8.2%, businesses are leaving the state due to an
unfriendly business climate, the nation is in a precarious financial state and Kentucky's families are bracing themselves for huge
tax increases already. On top of this, Lexington citizens may also shoulder the burden of tax increases to resolve the state pension problem and the unknown effects of "Obamacare" loom large. It is difficult to tap a well that is already running dry.
What say you, Lexington Herald-Leader? How much more do Lexington taxpayers need to contribute before they have paid the full price?