More lessons for KY from Jersey

As part of my Web surfing routine, I stumbled across a New York Times editorial today on New Jersey's budget woes -- probably not a subject of great interest in our region normally. (Click here to read the full editorial.) It adds ammunition to an earlier posting in this blog by Ray Cooklis, my fellow editorial board member, about Kentucky's fiscal problems. That includes a woefully underfunded pension system that promised benefits that aren't sustainable.

Substitute the word "Kentucky" for "New Jersey" in the Times editorial, and you have an eerie similarity to not only the pension mess but the huge budget shortfall Kentucky Gov. Steve Beshear is facing.

The paragraph I found most pertinent:

New Jersey’s problems are magnified by a long history of irresponsible borrowing and spending. In a self-destructive gimmick, the state seriously underfunded its pension plan and used the money to pay for current spending programs.

Beshear's pension reform plan takes steps toward solving the problem. A House committee has approved the measure, but it doesn't appear to go far enough. (The changes don't cover legislators either. Hmm.)

The state budget is an even bigger, immediate problem. Beshear inherited both a weaker economy and mismanagement by the outgoing Fletcher administration that included overuse of one-time funds to fund ongoing operations. Meanwhile, as Fletcher sought re-election, it seemed like if you wanted something paved anywhere in Kentucky last fall, the guv was happy to show up with a check and a photographer. And here we are today.