Gov. Matt Bevin, speaking Friday afternoon to a gathering of Lexington business leaders, touted his work during the recently ended legislative session -- which included money to expand the Lexington Convention Center and address pension shortfalls -- while dismissing any risk to businesses from his decision to join a lawsuit against the federal government over transgender bathroom use in public schools.
“We passed the most financially responsible budget frankly probably in the lifetimes of many of us in this room,” Bevin declared before a crowded gathering at Commerce Lexington’s Public Policy Luncheon series.
The Republican governor, elected less that six months ago, touched on a variety of topics, including recent announcements of funding for maintenance at state parks and scholarships for high school seniors.
Bevin also said he “carried the torch” for Lexington to help secure funding for the planned $250 million expansion of the convention center.
“There are two things that must happen for us to be the best version [of Kentucky] that we can be: We’ve got to invest in education and we’ve got to invest in infrastructure,” he said.
Bevin spoke at length on a signature topic: pension reform. He said his administration would continue to pursue full funding of the state’s obligations on pensions and promised increased transparency. But he also warned it was a problem that would take decades to correct.
“We just put in $1.2 billion in the state pension. ... We’re also going to look at what we can do to invest this money more wisely,” he said.
He promised audits and increased transparency in how pensions are administered in the state, taking a swipe at Thomas Elliot, who he has ordered removed as chair of the Kentucky Retirement Systems board, even going so far as to threaten arrest.
“We are going to have transparency, the likes of which we don’t have. And that is going to come,” Bevin said. “I replaced our chair, who was head of the KRS board, on the investment board, and he continues to show up to meetings and try to be seated. I’ve never seen anything quite like it.”
He said audit of all pensions are ongoing and would be made public.
“We are auditing every one of these pension plans. The public will be aware of everything that’s discovered in those audits. Every bit of it will be made available to you,” he promised.
But the governor also warned the road to pension solvency would not be smooth or short.
“It’s going to take 20 to 30 years. We’ve stopped digging, and that’s the key,” Bevin said. “But in order for us to get back to the top of the hole, it’s going to take 20 to 30 years. It’ll take a generation. It may go quicker than that, if we can get our economic house in order.”
Bevin also addressed his decision to add Kentucky to the near-dozen states suing the federal government over guidance on the use of bathrooms and locker rooms by transgender students in public schools.
The governor, who swept into the office following a high-profile engagement in the culture war skirmish over same-sex marriage and religious rights, insisted that he has not heard from anyone in the state who disagrees with his stance on the transgender bathroom issue.
“I’ve spoken with many, many people -- individuals , businesspeople, etcetera. I don’t know of one person who thinks it’s a good idea for the president of the United States or someone in Washington to dictate bathroom and locker policy in the state of Kentucky -- not one,” he said.
In late May, Bevin added Kentucky to a number of states suing the federal government on the issue. The Obama administration recently told school districts across the nation to allow transgender students to use the bathroom that matches their gender identity or risk federal funding under the 1972 Title IX legislation that outlawed discrimination based on sex. That directive came after state’s including North Carolina passed laws that seek to force students to use bathrooms that match their biological gender.
“The reality is, it’s ridiculous, it is not the role of the federal government. This is in no way shape or form to preclude anybody from having access. Where have people been going to the bathroom? They’ve been using the bathroom just fine,” Bevin said, eliciting a wave of laughter from many in the audience.
Bevin insisted Kentucky businesses would not face reprecussions seen elsewhere, which have included boycotts and major corporations pulling investments.
“There’s been zero [fallout for businesses in Kentucky] and there won’t be any over this thing,” he said.