The Interim Joint Appropriations and Revenue Committee received an update on the state’s bonding indebtedness last month in a report. The report, compiled by Kristi Culpepper with the Legislative Research Commission, highlighted Kentucky’s high levels of debt per capita and dept as a percent of revenues. It also discussed the recent downgrade in Kentucky’s bond rating by both Fitch and Moody’s. Most of this is due to Kentucky’s $28 billion in unfunded liability to Kentucky’s public employee pension system.
This downgrade will ultimately impact the state’s ability to borrow money moving forward.