Republicans, Democrats want voters to decide whether to allow casino gaming in Kentucky

A coalition of Republican and Democratic lawmakers say Kentucky needs to allow casino gaming, and the revenue should go toward the state's ailing pension system.

They appeared Thursday in Frankfort, alongside the heads of chambers of commerce and public employee groups that represent educators and firefighters.

"Last July, I took a little road trip," said Rep. Jerry Miller, R-Louisville. "I visited three casinos - Indiana, Illinois, Ohio. I counted cars. Forty-two percent were from Kentucky."

Miller says Kentucky is losing millions of dollars each year to other states, and is sponsoring House Bill 224, which would allow voters to decide the issue in a referendum this fall.

Previous studies have estimated casino gaming could generate $250 million per year for Kentucky, Miller said.

Under his bill, all the revenue from casino gaming for 20 years would help Kentucky climb out of a massive hole in the state's public employee pension system, which faces $60 billion to $80 billion in unfunded liabilities in the coming decades. The low funding levels have also lowered Kentucky's credit rating, making borrowing more expensive.

The crisis has led Gov. Matt Bevin to propose 6.25 percent budget cuts to nearly every facet of state government, including public safety and education, in order to plow money into the pensions.

"Even the most optimistic, it's going to take us 30 years to pay that off," Miller said. "Well, during that 30 years, I'd rather be using $250 million a year for more schools, more teachers, more infrastructure."

Numerous legislators have proposed casino gaming in some form or another for decades, but the idea has encountered staunch resistance from different corners, for varying reasons. Some oppose gambling on moral grounds; others disagree on who should benefit.

But supporters say the state is facing such a difficult financial condition under the weight of the ailing pension system, many lawmakers may see no other choice but to vote for the current proposal.

Sen. Morgan McGarvey, D-Louisville, plans to introduce a companion bill in the Senate.

"This might actually be the most bipartisan thing we see in Frankfort all session," McGarvey said. "You have Republicans and Democrats from the House and the Senate, you have members of the Louisville Chamber of Commerce, the Northern Kentucky Chamber of Commerce, teachers, retired teachers, firefighters."

Gov. Bevin has said he opposes casino gaming, but under state law, he cannot veto a bill that requires a voter referendum to change Kentucky's constitution.