Talks Between Seven Counties, Kentucky Lawmakers Come Up Short
A meeting between state lawmakers and representatives of Seven Counties Services yielded little progress regarding the Louisville mental healthnonprofit’s bankruptcy lawsuit.The two camps met earlier this month to strike a deal amid ongoing litigation. Seven Counties filed for bankruptcy this year due to what it claimed were unsustainable contributions it was forced to pay into the pension. The Kentucky Retirement Systems, which oversees Seven Counties’ employee pensions, has appealed a federal ruling that sided with the nonprofit.Rep. Brent Yonts, who co-chairs the state's Pension Oversight Committee, said the talks failed to reach an agreement.“We’re just an ad hoc group that’s trying to focus on the issue," said Yonts, a Greenville Democrat."Their attorney would need to communicate with the attorney for the pension system, and in turn if they wanted to have a meeting with the governor, that communication should be there and all parties should be invited so there attorneys can be there, as well.” Related: Despite Calls for Openness, Struggling Kentucky Retirement Systems Keeps Its Investments SecretKRS estimates that Seven Counties unfunded liability to taxpayers is about $90 million.If the appeals court rules in Seven Counties’ favor, a precedent could be set for similar quasi-governmental agencies, potentially leaving the state holding a $2.4 billion debt in unpaid liabilities should those agencies also jump the sinking ship.