Key Takeaways
- Funding reforms and conservative assumptions are a step in the right direction, but progress will take time to undo Kentucky’s poor past funding discipline.
- Negative rating pressure is likely for local governments lacking the ability to make budgetary adjustments for increasing pension costs.
- Other postemployment benefits (OPEB) at the state level are better funded than most state plans; however, risks remain due to the volatility of health care costs.
25 May, 2021