Tweaks could revive proposed deal on pensions

FRANKFORT, Ky. (AP) — House Democrats offered a proposal Monday that would soften cuts to roads and bridges in a complicated proposal to shore up pension plans for government retirees.

Gov. Steve Beshear had pitched the idea of making several changes to the tax code to generate about $110 million a year in funding for the pension system.

His proposal would eliminate a personal income tax credit for Kentuckians, which would generate some $65 million a year. To offset that revenue increase, the proposal called for lawmakers to roll back the gas tax by 2 cents per gallon, cutting revenue by $61 million a year that would go the Road Fund.

That was particularly objectionable to many rural Democrats who are continuously pressing for new and improved highways and bridges.

House Speaker Greg Stumbo said the latest proposal offered by House Democrats would roll back the gas tax by a penny rather than 2 cents per gallon. The Senate hasn't yet responded to that proposal.

"Obviously everybody tried hard," Stumbo told reporters late Monday night. "I don't know if we're going to get a pension bill passed or not."

___