Remedial Math for Legislators

We need to require remedial math for all members of the Kentucky General Assembly.

From the Herald-Leader:

Speaker Jody Richards said yesterday that he will create a "work group" to study allowing casinos in Kentucky -- a signal that lawmakers are bracing for an extensive debate on the issue in 2008.

So here’s my dilemma.

From a fiscal statement prepared for the 2002 General Assembly. The legalizing of Gambling in Kentucky would produce Net General Fund Revenues of $194.1 million.

From a report prepared by Gabriel Roeder Smith & Company to the Governor’s Blue Ribbon Commission dealing with fully funding the actuarially required contributions:

“To move (and keep) all plans at a 7.75% discount rate (fully funded), the KRS (Kentucky Retirement System) increase would be $315 million and the KTRS (Kentucky Teachers Retirement System) increase would be $213 million, for a total of $528 million.”

Ok, I know that an estimate from 2002 on gambling income and a 2007 estimate on retirement contributions suffer some variation due to time lag. But, I don’t think that gambling is going to suddenly produce another $330 million.

While the legislature spends time in an extensive debate on gambling they will be doing their best to ignore the major problem facing the budget in the upcoming session.

And let’s not forget that after the extensive debate, a change to the Kentucky Constitution can only be done with the support of three-fifths of both legislative chambers and approval of a majority of Kentucky voters.

Let me put this as simply as possible for the math challenged in the legislature.

A $528 million existing shortfall is more important than a possible $194 increase in revenue.