►
Description
No description was provided for this meeting.
If this is YOUR meeting, an easy way to fix this is to add a description to your video, wherever mtngs.io found it (probably YouTube).
A
A
A
C
A
A
E
All
right
very
well!
Thank
you,
mr
secretary.
We
appreciate
that
and,
as
the
members
of
this
committee
will
note,
there
was
one
name
that
wasn't
called
today.
Now
it's
senator
buford.
We
would
be
remiss
to
start
this
meeting.
I'm
sure
everyone
in
the
audience
is
well
aware
that
senator
buford
passed
yesterday,
and
he
is
someone
whose
wit
and
intellect
and
ability
to
say
things
to
make
the
rest
of
us
cringe
in
public
settings
will
be
sorely
missed,
but
he
was
a
wonderful
man.
He
was
dedicated
to
his
district.
He
loved
this
job.
E
First
item
of
business
on
the
agenda
today
is
approval
of
the
minutes
from
june
2nd
2021.
Do
I
have
a
motion
so
moved
by
co-chair
petrie
seconded
by
representative
freed
all
those
in
favor
signify
by
saying
aye
opposed
like
sign.
You
guys
have
it.
The
motion
carries
minutes
are
adopted.
Okay,
we're
going
to
rearrange
just
a
little
bit
in
the
agenda
today
to
let
some
folks
get
on
about
things.
We're
actually
going
to
jump
to
item
number
five
pandemic
relief
with
the
state
budget
director
john
hicks
director
come
on
up
please,
sir,
and
proceed.
F
Let
me
I'll
just
open.
Thank
you,
mr
chairman,
and
and
members
of
the
committee
for
having
me
here.
You
asked
for
an
update
on
something.
That's
get
is
really
really
big.
You
know
federal
pandemic
funding
that
has
come
label
it
to
and
through
kentucky
state
government,
all
right
so
these
are
these,
are
these?
Are
funds
that
have
been
awarded
to
the
state
agencies
and
to
the
commonwealth
and
in
some
cases
passed
through
passed
through
to
other
entities,
and
so
in
in
my
great
thank
you.
F
F
Right
so
a
little
retrospective
there
were
seven
federal
acts
that
essentially
appropriated
funds
related
to
covet
19
relief,
recovery
assistance,
federal
pandemic
funds
and
the
information
that
we
have
in
the
materials.
Today,
when
you
compile,
it
is
literally
a
250
row
spreadsheet,
of
the
number
of
the
different
grant
awards
that
were
received
by
the
commonwealth
by
state
government,
which
act
that
came
from
how
much
the
award
was
or
is
estimated
to
be,
and
how
much
has
been
spent
through
late
june.
So
an
update
on
that.
F
So
so
this
is
the
first
time
in
my
career.
I've
been
for
this
committee
to
testify
on
a
250
row
spreadsheet,
but
but
that
just
shows
you
a
little
it's
another
image
of
the
extent
and
breadth
of
the
assistance
that
has
flowed
to
and
through
kentucky
state
government.
So
here
here's
just
a
by
calendar,
the
listing
of
federal
acts
and
their
names.
F
Starting
in
this
you
know
spring
of
2020.
You
know
four
quick
actions
by
the
us
congress,
the
most
notable
of
which,
for
the
first
notable,
was
the
family's
first
coronavirus
response
act
that
867
million-
that's
mostly
all
medicaid.
F
F
one
everybody
knows
by
that
name:
here's
our
kind
of
current
compilation,
you
know
seven
billion
dollars
now
we'll
say
about
4.7
of
that
is
unemployment
insurance
benefits,
so
the
single
biggest
piece
of
that
number
is
is
claims
payments
to
those
who
are
unemployed
and
then
a
couple
of
small
ones
that
came
through
and
had
a
few
things
and
then
then,
late
december,
when
congress
was
also
dealing
with
the
ex
with
their
federal
budget
at
the
time
they
they
passed,
the
corona
coronavirus
response
and
relief,
supplemental
appropriations
act,
so
pretty
significant
amount
of
2.2
billion,
and
then
just
you
know
a
few
months
ago
in
march,
the
american
rescue
plan
act
again,
and
these
are
moving
targets,
particularly
on
the
american
rescue
plan
act.
F
Not
all
the
funds
have
been
officially
awarded
or
noticed
to
all
the
recipient
state
agencies.
Most
of
them
have.
But
there's
still
some,
you
know
that
are
outstanding,
so
in
total,
16.9
billion
dollars
of
about
5
billion
of
which
was
the
unemployment
insurance
benefits.
So
if
you
kind
of
set
that
aside
for
a
million
11
12
billion
dollars
for
the
various
programs,
the
one
thing
that
that
was
similar
to
the
recovery
act
back
in
the
great
recession
was
most
of
these
funds
flowed
through
existing
federal
programs.
F
There.
Then
there
were
some
new
programs.
You
heard
testimony
this
morning
from
our
department
of
education
about
the
elementary
and
secondary
education
emergency
fund
kind
of
a
new
program,
but
they
said
you
could
spend
it
on
the
existing
programs
title.
One
idea,
those
kinds
of
things,
but
but
in
the
main,
most
of
these
funds
are
flowing
through
existing
programs,
which
is
really
an
efficient
way
to
do
this
kind
of
business,
because
we
already
have
structure
processes,
guidelines.
You
know
that
enable
the
agencies
I'll
give
an
example.
F
The
child
care
development
block
grant
a
lot
of
money
going
through
it.
The
low-income
housing,
heating
and
energy
assistance
program
la
heap
a
lot
of
the
programs
that
the
public
health
department
runs
through
the
center
for
disease
control,
those
those
are
through
existing
statutory
programs
so
that,
as
a
matter
of
government,
processing
and
efficiency
has
been,
is
very
helpful
and
was
a
lesson
learned
from
the
the
great
recession
in
american
recovery
act.
F
This
at
euro's
request
was
to
attempt
to
compile
it
by
cabinet
all
those
seven
acts
all
the
awards
that
we
know
of
and
and
with
the
exception
of
the
item
at
the
bottom,
in
in
descending
order
by
amount
of
money,
so
labor
cabinet,
the
bulk
of
that
is
unemployment,
insurance,
the
department
of
education,
a
very
significant
amount
of
funding
that
has
escalated,
particularly
with
the
american
rescue
plan
act,
which
you
all
heard
testimony
in
the
subcommittee
this
morning
about
two
billion
dollars
coming
in
the
american
rescue
plan
act
and
another
900
in
the
this
corona
of
our
supplemental
act
that
was
prior
to
that
health
and
family
services.
F
A
lot
of
funds
flowing
through
our
department
of
public
health
through
our
department
of
community-based
services,
I
mentioned
the
la
heap
program,
there's
also
the
pandemic
ebt
program,
the
child
care
in
the
child
care
area,
the
existing
programs,
the
funds
that
come
through
there
in
total
over
a
billion
dollars
coming
through
to
kentucky
state
government
to
child
care,
recipients
and
and
providers
really
significant.
When
you
add
it
all
up
from
among
three
different
federal
acts,.
F
Medicaid
is
in
there
we're
right
about
851
million
life
to
date
for
that
enhanced
federal
share
in
general
government.
You
know
that
doesn't
tell
you
anything,
that's
where
the
funds
that
are
flowing
through
cities
and
counties
both
through
the
coronavirus
relief
fund
over
320
million
and
and
and
the
department
of
local
government
acts
as
the
this.
As
the
distributor
of
the
recent
american
rescue
plan
act,
300
million
dollars
to
most
of
our
cities,
they
call
them
non-entitlement
units,
not
the
counties
and
not
the
nine
or
ten
largest
cities
in
kentucky.
F
So
so
that's
in
there
as
well.
Our
emergency
management
division
and
military
affairs
is
who
did
early
on
all
of
the
ppe
and
medical
supplies
and
their
distribution
is
in
that
general
government
number
as
well.
F
F
In
most
cases,
at
least
half
of
that
money
is
going
directly
to
students
who
have
certain
needs,
so
not
all
that
is
going
to
the
institutions
to
assist
them
in
in
mitigating
the
cost
of
the
additional
cost
of
responding
to
copen
19,
but
three
different
versions.
Just
like
the
k12
version
as
well
finance
administration,
that's
basically
with
a
typo
on
administration.
F
That's
mostly
the
emergen.
The
emergency
eviction
relief
money
that
flows
through
finance
to
the
kentucky
housing
corporation,
who's
actually
administering
the
program,
and
so
that's
where
a
lot,
a
lot
of
that
is
transportation.
F
252
million
of
that
164
million
in
one
chunk
was
what
we
got
from
the
coronavirus,
recovery,
supplemental
act,
and
that
was
for
highways
and
and
with
with
very
good
usage
back
in
the
recovery
act.
When
we
got
some
some
of
the
some
of
the
federal
funds
there
that
were
to
be
shovel
ready,
really
had
some
other
sections
of
the
prod
of
the
funding
that
you
needed
for
these.
These
longer
term
projects.
F
Here
the
congress
basically
provided
monies
to
states
to
go,
do
the
things
that
they
do
on
a
routine
basis
and
have
designs
for
and
get
get
the
money
out.
So
so
that
so
they
certainly
learned
the
lesson
from
the
great
recession,
justice
and
public
safety.
F
A
lot
of
that
is
the
coronavirus
relief
fund
that
we
all
work
together
in
the
budget
process,
where
we
had
a
capability
to
leverage.
Those
federal
dollars
in
relief
of
state
dollars
so
think
of
corrections,
our
state
police
and
our
juvenile
justice
were
the
primary
agencies
in
which
the
federal
government
us
department
of
treasury
gave
us
an
ability
to
presume
the
expenses
of
payroll
for
many
of
those
agency
staff
to
be
eligible
expenses
and
therefore
we
didn't
have
to
pay
for
them
with
general
or
road
fund.
F
So
so
that's
a
highlight.
In
fact,
it
was
four,
almost
400
million
dollars
in
the
last
two
fiscal
years
that
really
were
baked
in
the
budgets
for
fiscal,
20
and
21
that
you
all
ultimately
enacted
economic
development.
That's
a
single
program
that
came
out
of
the
recent
federal
legislation.
This
is
a
small
business
credit
initiative,
that's
going
to
enable
lenders
to
provide
financing
to
small
businesses
who
are
financially
able
able,
but
maybe
outside
of
the
lending
practices.
F
This
is
a
it's
about:
80,
plus
million
dollars.
It
is
a
multi-year
program,
it's
one
that
was
repeated
from
the
recovery
act.
We
had
something
very
similar
about
12
years
ago,
so
the
economic
development
cabinet
folks
who
are
over
there,
some
of
them
helped
administer
that
program.
So
that's
that's!
Pretty
interesting
one
and
one
that'll
help
small
businesses
across
kentucky
public
protection
cabinet.
F
You
know
what
are
they
doing
with
federal
dollars?
Well,
they
administered
the
bar
and
restaurant
relief
program
that
was
funded
by
the
coroner
virus
relief
program
and
they're.
Also
administering
the
return
to
work
incentive
for
unemployed
kentuckians
in
a
personnel
cabinet.
F
The
commonwealth
administers
the
kentucky
employees,
health
insurance
plan.
That
is
a
you
know.
The
largest
group
in
the
state
includes
state
government,
all
of
the
school
districts
and
and
many
other
entities,
and
we
incurred
a
number
of
hospitalization
costs
associated
with
individuals
who
were
employees
and
their
family
members
who
were
infected
by
code
19
and
had
hospitalization.
F
We
also
had
workers
compensation
payouts
versus
for
similar
things,
both
both
for
those
who
were
disabled
and
and
those
who
died,
education,
workforce
development,
that's
a
handful
of
items
in
tourism.
They
recently
received
from
the
federal
government,
a
2.8
million
dollar
grant
for
tourism
marketing.
The
governor
previously
had
allocated
five
million
dollars
from
the
coronavirus
relief
fund
for
for
something
previous
to
that
similar,
the
2b
determined
billion
dollars.
That
is
the
amount
of
the
american
rescue
plan
act.
F
State
fiscal
recovery
fund
that
you
have
not
yet
appropriated
right
in
the
21
session
you
all
appropriated
about
half
of
the
2.18
billion
dollars
that
kentucky's
slated
to
receive.
So
that's
the
the
tbd
there
and
judicial
legislative
branch
is
as
we
as
we
started.
The
implementation
of
the
coronavirus
relief
fund
state
agencies
were
eligible
to
seek
reimbursement
for
costs
that
were
related
in
response
to
coven
19..
F
Both
the
judicial
legislative
branch
had
some
of
those.
So
that's
that's
just
a
quick
run
through
here
is
a
a
listing
of
the
top
15
by
dollar
figure.
You
know
I've
talked
about
some
of
these.
Let
me
make
a
comment
about
that.
First
item
that
says
2.084
on
june
25th,
when
I
was
finishing
up
working
this
this
document,
the
department
of
education,
u.s
department
of
education
corrected
that
number
down
to
about
2
billion
1
million.
So
so
that's
an
update.
The
department
of
education
this
morning
had
the
correct
number.
F
So
I
want
to
just
point
that
out,
but
that
you
know
the
biggest
number
on
the
page
outside
of
unemployment
insurance
benefits
for
our
schools
and
then
the
second
biggest
number
individually
was.
Was
the
928
out
of
the
coronavirus
recovery?
Supplemental
act,
then
the
medicaid
number
child
care
stabilization,
which
was
a
new
type
of
program
out
of
the
american
rescue
plan,
act,
470
million
dollars,
part
of
that
billion
dollars.
F
Total
I
mentioned,
and
then
then
you'll
see
a
version
of
the
higher
education,
emergency
relief
fund,
the
assistance
of
cities
and
counties.
When
you
see
the
letter
crf
and
sorry
for
all
the
acronyms,
that's
the
coronavirus
relief
fund
and
you
can
see
the
expenditures
there
nearly
finished
with
that,
and
then
the
local
fiscal
recovery
fund,
brand
new
out
of
the
american
rescue
plan
act
that
the
department
of
local
government
will
be
distributing
those
funds
any
day.
F
F
Several
things
I've
already
mentioned
there
and
then
the
federal
highway
surface
transportation
block
grant
so
just
top
15..
You
can
see
on
the
right-hand
side
the
expenditures
where
they're
blank
you
know
they're,
mostly
the
american
rescue
plan
act.
Funds
that
you
know
haven't
haven't
had
a
chance
to
get
started
yet
and
then
one
caveat
did
not
have
the
information
on
spending
up
to
date
from
the
public
post-secondary
institutions,
so
that
is
missing
here
and
and
would
would
because
they
certainly
have
been
spending
those
funds
preceding
the
american
rescue
plan
act.
F
E
F
I'd
say
in
in
the
main:
let
me
talk
about
the
the
existing
programs
in
which
they
put
in
more
money,
so
so
they
will
they
return
to
the
federal
government.
F
So
so,
if
we
didn't
draw
down,
you
know
ten
percent
of
a
hundred
million
dollar
grant,
it
would
never
come
if,
in
a
matter
of
speaking,
it
would
be
retained
by
the
federal
government
and
I'm
not
familiar
with
reallocation
processes
in
the
normal
course
of
events,
when
50
states
get
an
allocation
from
a
federal
program
and
a
state
doesn't
use
all
of
it,
there
are
periods
in
which
they
can
reallocate
it
to
other
states.
So
that's
not
always
the
case
in
every
program,
but
in
this
case
it
would
stay
with.
F
The
federal
government
is
the
answer
because
we
would
not
have
drawn
it
down
with
with
one
couple
of
exceptions:
the
coronavirus
relief
fund.
We
got
all
the
money
up
front:
the
state
fiscal
recovery
fund,
the
2.183
billion
we
got,
we've
got
half
of
that
money
up
front
and
we'll
get
the
other
half
in
about
12
months,
so
those
are
a
little
bit
different
and
if
we
don't
spend
those.
Mr
chairman,
we
give
them
back
specifically
to.
F
Yes,
but
they've
also
got
actually
their
law
doesn't
permit
that
for
those
two
pots
of
money,
the
statute
does
not
allow
that
to
be
reallocated
gotcha.
E
And
then,
secondarily
on
the
money
that
came
down
on
march,
the
27th
for
the
chronovirus
aid
relief,
economic
security
act,
you've
still
got
that's
a
fairly
flexible
fund.
I
believe
you
get
about
400
million
dollars
left.
Do
you
guys
have
anticipated
expenditures
for
that?
Yet,
oh.
F
Yes,
yeah
definitely
so
yeah.
This
is
a
compilation
of
many.
Are
you
talking
about?
The
cares
act,
mr
chairman,.
F
Yes,
I
am
unaware
I'll
say
at
this
point
of
of
any
expectations
to
not
spend
at
all.
F
On
the
cares
act,
yes,
I
believe
all
that
I
I
have
to
look
through
here.
I
I
again
I'm
I
don't
expect
that
we
won't
spend
it.
I
expect
we
will
spend
it
all.
Okay,.
E
Us
know
where
you're
intending
to
put
that
all
right,
representative,
tipton.
C
C
F
H
F
That
would
be,
you
know,
kind
of
already
in
the
mill,
because
they
want
to
spend
the
money
in
a
timely.
F
C
F
Well,
I
know
that
we
had
our
first
stab
at
that
by
using
some
of
the
coronavirus
relief
funds.
I
think,
like
a
40
million
dollar.
G
F
Award
where
the
housing
corporation
really
got
started,
they
you
know
fully
subscribed
in
a
reasonable
period
of
time
and
then
the
large
amounts
of
money
came
in
and
and
that
truly
was
was
unexpected.
But
but
please-
and
so
I
haven't-
had
much
discussion
with
housing
corporations
recently
about
that
representative
tipton.
But
I
know
that
that
first
slug
of
money
gave
them
the
ability
to
to
broadcast
the
information
out
to
community
action
agencies.
F
Other
community
organizations,
landlord
groups,
you
know-
and
so
I
think
it's
built
upon
one
another-
and
I
think
the
media
has
done
a
reasonably
decent
job.
Just
sitting,
reading
the
papers
and
watching
television
and
saying
that
there
are
programs
available.
F
Right,
that's
right,
but
I
will
say
that
we've
got
a
substantial
amount
of
funds
available.
You
know,
and
in
the
last
iteration
you
know
you
know
there
was
a
for.
There
was
an
ability
to
pay
rent
forward
for
a
period
of
time,
not
just
retroactive,
and
so
so.
I
hope
that
people
who
may
have
opportunity
to
listen
to
this
and
are
in
need,
you
know,
will
contact
their
local
community
action
agency
and
other
other
social
service
groups
who
will
know
where
to
point
them
to.
I
Thank
you,
mr
chairman.
Thank
you,
director,
hicks,
I'm
over
here
to
the
left,
the
basic
process
that
the
executive
branch
went
through
to
to
distribute
a
lot
of
these
funds.
I
Was
there
a
fundamental
structure
put
together
for
each
cabinet
in
order
to
submit
information
to
get
approval
for
these
funds
as
they
came
in
and,
and
I
say
that,
as
as
a
recipient
provider
of
some
of
the
funds
it,
it
was
obvious
that
that's
at
times
the
process
was
hurried
a
little
bit
and
maybe
not
completely
thought
through,
and
I
can
imagine
it
was
logistically.
I
It
was
a
struggle
to
to
to
be
able
to
appropriate
all
of
these
dollars
coming
in
all
at
once,
but
did
it
did
it
all
run
through
your
office
or
what
was
the
basic
structure.
F
F
So
you
see
you
didn't
have
to
prove
you
needed
50
million
dollars,
you
you
got
it
by
the
formula
and
then,
secondly,
by
running
it
through
the
existing
programs,
we
already
have
the
structures
in
place
with
some
twists.
You
know
the
provider
relief
fund,
something
very
different
you
know-
is
going
directly
to
providers
from
hhs
at
the
federal
level,
but
in
in
the
main
it
was
definitely
more
work,
but
it
wasn't
un
unexp.
It
wasn't
uninformed
work
right,
the
cabinet
for
health
and
family
services.
F
You
know,
I
think,
of
the
agencies
and
state
government
who
are
also
grant
making
agencies
work
or
pass-through
agencies.
They
have
great
structures,
great
reporting
capabilities,
because
many
of
the
reporting
requirements
on
these
were
similar
to
that
which
they
were
already
used
to
with
some
some
new
differences,
so
so
in
in
that
that's
the
bulk
of
the
fund,
so
that
that
didn't
have
you
know,
let's
say
the
need
for
more
structure.
It
was
already
there
for
the
things
like
the
coronavirus
relief
fund.
F
The
governor,
you
know,
took
the
helm
on
that
asked
our
office
to
play
the
intermediary
with
state
agencies
in
terms
of
the
first
round.
What
I
was
mentioning
about:
reimbursing
state
agencies
for
eligible
expenses
and
then
other
decisions
to
be
made
like
our
emergency
management
and
going
through
public
health
for
all
the
testing
and
tracing
and
expenses
and
long-term
care
facilities
support.
F
So
that
part
was
highly
structured
and
went
through
the
governor's
office
in
terms
of
how
much
and
who
and
for
when,
and
for
what
the
corona,
the
state
fiscal
recovery
fund,
the
2.183
billion
from
the
american
rescue
plan
act.
You
know
you
all
appropriated,
300
million
for
broadband,
250
million
for
water
and
wastewater
575
million
to
repay
the
ui
unemployment,
federal
loan,
37
million
for
some
mitigation
and
and
response
in
congregate
and
vulnerable
settings.
F
I've
indicated
I've
seen
no
indications
of
difficulties
in
responding
to
the
auditor's
office.
When
the
single
audit
came
out,
you
know
the
auditor's
office
needs
to
go
and
audit.
You
know
sample
these
programs
when
the
inspector
generals
of
the
respective
few
federal
departments,
who
are
also
now
heavily
responsible
for
monitoring
the
use
of
these
funds
when
they've
had
when
they
have
looked
at
these
issues.
We
haven't
heard
of
anything
untoward
you
know
in
in
regard
to
a
lot
of
these
grant
programs.
F
So
so
it
was
a
lot
to
come
at
I'll,
say
this.
The
state
employee
staff
that
handle
this,
but
really
well
done
and
in
the
department
of
public
health,
who
not
only
had
to
be
a
lead
on
the
response
in
general
to
the
coven
19
on
behalf
of
the
commonwealth,
was
a
significant
recipient
of
a
lot
of
these
federal
dollars
and
and
in
that
area,
every
one
of
these
big
pots
of
money.
F
They
have
to
submit
a
plan
to
hhs,
to
cdc
on
how
you're
going
to
spend
this
money
and
over
what
timing
and
what
eligible
elements.
So
that
was
one
of
the
areas
where
you
had
to
come
back
with
a
very
specific
set
of
here's.
What
I
plan
to
do
with
with
these
funds
within
their
eligible
categories.
E
H
You
and
director
hicks,
thanks
for
the
presentation,
we've
communicated
well
throughout
the
process
and
we've
shared
some
concerns
with
you
and
you've
always
listened
to
us
on
those
one
of
the
concerns
that
continues
to
be
there.
For
me
and
others,
and-
and
this
is
a
concern
you've
heard
already
from
us-
is
the
potential
that
we
use
some
of
this
money
to
create
or
expand
programs
and
then,
when
the
money
runs
out,
we're
stuck
with
the
question
of
oh
we'd
like
to
continue
it.
H
So
please
always
continue
to
to
earmark
mark,
highlight
use
your
red
pen
and
circle,
those
things
that
we're
doing
that,
but
for
this
money
we
otherwise
may
not
have
been
able
to
do
so
thought.
My
second
thought
is
to
ask
you
to
speculate
some,
which
is
always
hazardous
but
entertaining
at
the
same
time
the
ohio
case.
H
F
No
thank
you
senator
gibbons
and
and
in
our
decision
making
to
the
extent
that
we
had
a
discretion.
F
We
are
assuring
that
we're
not
imposing
recurring
obligations
on
the
commonwealth
by
the
use
of
these
funds
that
every
agency
who's
receiving
these
understands
that
it's
one
time
and
and
and
that
it
will
go
away
so
that
to
your
first
comment.
F
Secondly,
you
know
as
as
related
to
the
american
rescue
plans
act
state
fiscal
recovery
fund-
that
is
the
program
in
which
the
ohio
court
decision
and
issue
is
is
around,
and
one
of
the
one
of
the
ineligible
uses
of
the
that
fund
is
to
basically
supplant
or
replace
revenues
that
were
reduced
because
of
tax
policy
actions.
F
Use
that
as
a
simple
way
of
saying
that
in
essence,
they
were
saying
just
don't
backfill
our
money.
With
with
your
reduction,
it
doesn't
prohibit
any
state
from
reducing
taxes.
There
is
no,
no,
no
nothing
in
the
federal
law
that
says
states
can't
reduce
taxes.
You
just
can't
turn
around
and
use
that
federal
pot
of
money
to
replace
the
portion
of
your
taxes
that
were
reduced
by
that
tax
policy
action,
and-
and
so
I
had
not
seen
thank
you
for
the
reference
I'll
take
a
look
at
that
about
the
vagueness,
but
I'll
call
it.
F
You
could
you
know
as
long
as
you
just
don't
replace
it,
and
I
will
say
that
the
federal
guidance
that
came
out
for
cities
and
counties
and
states,
because
we're
all
in
the
same
situation
in
that
rule
was
pretty
much
tire
benefit,
meaning
the
manner
in
which
you
define
general
revenues,
which
was
the
key.
You
find
general
revenues
as
being
certain
sorts
of
dollars,
and
you
know
and
that
and
then,
if
then,
you
compare
it
over
time.
F
Three
three
particular
periods
in
the
forward,
and-
and
it
was
they
listened
to-
I'm
gonna
just
say
the
federal
government
listen
to
cities
and
counties
and
states
when
they
said
about
how
you
would
fashion
the
guidance
on
this
such
that
it
could
be
monitored
and
complied
with
in
a
reasonably
reasonable
way.
F
So
you
know
so
I
I
never
saw
that
as
a
as
a
threat
or
a
concern,
because
because
I
thought
that
was
pretty
clear
and
and
the
u.s
treasury
even
specifically
came
out
with
an
announcement
before
they
even
came
out
with
the
guidance
that
said,
we're
not
going
to
tell
you
what
to
do
with
your
tax
policy
at
local
and
state
level.
F
You
just
can't
supplant
it
is,
is
kind
of
the
symbol,
the
basic
message-
and
you
know-
and
I
have
no
concerns
moving
forward
on
that
one
in
terms
of
could
could
any
legislative
body
reduce
a
tax
and
and
be
threatened
with
the
loss
of
some
of
these
funds.
The
answer
is
no.
As
long
as
you
didn't
backfill,
it.
I
A
lot
of
the
funding
is
geared
towards
wage
increase
for
employees,
and
you
may
not
have
a
response
to
this
director
hickson
and
it's.
I
just
don't
know
if
this
has
been
part
of
the
discussion,
but
there
is
a
push
in
a
lot
of
areas
to
increase
wages.
The
fear
is
that
when
some
of
these
funds
run
out,
obviously
for
your
organization,
you
want
to
maximize
to
be
able
to
get
as
much
of
the
assistance
as
you
can
and
some
of
it
being
tied
towards
wage
increases.
I
I
So
it's
a
little
concerning
that
that
we've
basically
created
a
false
economy,
a
temporary
false
economy,
that's
going
to
lead
to
wage
increase
and
what's
going
to
happen
when
this
false
economy
goes
away
and
we're
hit
by
a
wave
of
recession-
and
you
may
or
may
not
have
a
comment
to
that.
Sir.
I
just
it's
just
an
observation
that
I've
seen
coming
from
the
recipient
end
of
some
of
these.
These
dollars.
F
I'll
pass
it
on
I'll
pass
that
because
that,
because
it's
not
true
at
the
state
government
level,
you're
talking
about
you,
know
you're
talking
about
providers
of
various
sorts
who
are
ultimate
recipients
who
may
take
advantage
of
the
eligible
use,
for
example,
premium
bonuses
right.
That
was
a
phrase
in
the
american
rescue
plan.
I
F
A
It's
almost
time
to
remove
our
official
or
formal
declaration
of
emergency
when.
F
E
Thank
you
all
right,
very
well,
one
last
thing
director
on
the
those
unexpended
funds
we
talked
about
earlier,
just
the
normal
admonition
from
the
legislative
to
the
executive
branch
is.
We
would
certainly
expect
the
governor
will
be
running
those
through
the
normal
appropriations
process
being,
as
we
are
largely
through
the
emergency
portion
of
this,
and
we
do
appreciate
your
time.
F
E
E
E
D
Thanks
for
having
us
here
today,
we
appreciate
the
opportunity
to
sit
here
and
talk
to
you
a
little
bit
about
inflation
and
how
we
measure
inflation
and
how
the
federal
reserve
attempts
to
control
inflation.
I'm
gonna,
let
katie
take
over
she's
my
she's,
my
macro
economist.
So
this
is
this:
is
her
cup
of
tea,
so
I'll
turn
it
over
to
her.
J
So
we're
I'm
here
to
talk
about
inflation,
the
consumer
price
index,
federal
reserve
and
some
examples
of
previous
history
of
inflationary
and
deflationary
periods.
Before
we
address
kind
of
what's
going
on
currently.
J
J
Inflation
is
a
sustained
increase
in
the
general
price
level
in
an
economy
over
a
period
of
time
that
affects
the
overall
cost
of
living,
and
just
for
my
benefit,
I
like
to
think
about
what
the
variables
affecting
inflation
has
four
main
variables,
where
it's
the
amount
of
dollars
in
the
account
economy,
so
the
actual
physical
amount
of
dollars,
the
velocity
of
money,
which
is
actually
the
speed
of
spending.
So
it's
how
quickly
you
know.
If
I
get
a
dollar,
how
quickly
do
I
turn
around
and
spend
that
dollar?
J
How
quickly
does
that
move
through
the
economy?
So
I'm
going
to
call
it
velocity,
because
speed
of
spending
is
a
little
difficult
and
then
we're
also
going
to
do
the
amount
of
goods
to
purchase
in
the
economy.
So
all
of
these
play
a
role
in
the
economy,
and
I
kind
of
illustrate
that
on
the
equation,
which
is
mv
equals
pg,
but
I
like
to
think
about
it
as
more
of
a
scale.
J
J
So
we
have
a
velocity
that
goes
up,
so
some
variable
in
this
equation
is
going
to
have
to
move
until
they
reach
equilibrium
again,
so
it
could
be
the
price
level.
It
could
be
the
amount
of
goods
available
if
producers
want
to
produce
more
goods
to
satisfy
the
increased
demand
or
it
could
be
the
money
supply,
so
inflation's
really
important
because
it
affects
all
households
in
all
levels
of
the
economy.
So
how
do
we
measure
inflation?
J
J
So
we
collect
all
of
this
data-
that's
representative
of
the
average
american
household,
and
we
call
it
a
a
market
basket.
So
we
weight
the
prices
that
households
spend
more
money
on
heavier
than
what
people
spend
less
money
on.
So
changes
in
the
price
of
bed
are
weight.
Bred
are
weighted
heavier
than
a
change
in
the
price
of
a
movie
ticket.
J
That's
how
we
get
our
cpi
number
and
I
just
like
to
point
out
that
there's
the
cpi,
which
is
what
we
read
in
the
headlines,
and
then
we
have
the
core
cpi,
which
removes
food
and
energy
prices,
because
those
are
viewed
as
volatile
and
some
economists
think
that
it
doesn't.
Let
you
see
the
actual
changes
in
the
price
level.
J
So
how
do
we
control
the
price
level?
It
affects
everyone.
We
have
a
way
to
measure
it
controlling
the
inflation
and
the
price
level
is
the
job
of
the
federal
reserve,
which
is
actually
an
independent
agency.
That's
statutorily
mandated
to
ensure
maximum
employment,
stable
prices
and
moderate
long-term
interest
rates.
A
lot
of
the
times
long-term
interest
rates
are
wrapped
up
in
maximum
employment
and
stable
prices,
so
we
refer
to
it
as
the
dual
mandate
of
the
federal
reserve.
J
So
there
are
three
ways
that
they
can
control
inflation.
They
can
change
the
federal
funds
rate,
which
is
what
we
refer
to
when
we're
talking
about
the
interest
rate
faced
by
the
when
we're
talking
about
the
fed
changing
the
interest
rate,
it's
actually
the
rate
that
the
bank
lends
to
each
other
the
interest
rate
on
the
bank's
lending,
and
then
we
see
lower
interest
rates
from
that.
So
it
is
done
by
increasing
the
money
supply,
but
it
also
lowers
the
velocity
of
money
because
it's
more
expensive
to
get
credit.
J
J
J
J
So
also
during
this
time,
inflation
expectations
actually
began
driving
inflation
as
well.
So
you
have
escalation
clauses
and
business
contracts
to
keep
up
with
the
current
cpi.
You
have
cost
of
living
increases
and
that
kind
of
also
stimulated
inflation.
J
J
Also
banks
didn't
want
to
land
money.
So
even
though
the
fed
was
trying
to
get
the
money
supply
to
increase
through
the
usage
of
the
tools
that
they
have
available,
the
banks
saw
too
much
risk
in
the
economy
and
weren't,
letting
the
money
go
into
the
the
average
economy
where
households
would
be-
and
this
also
began
an
era
of
historically
low
interest
rates
and
low
inflation
and
even
some
deflationary
pressures.
J
So
at
the
bottom
there
I
talk
about
the
increase
in
the
money
supply,
but
we
have
a
decrease
in
velocity,
so
price
kind
of
kind
of
started
modulating
up
and
down,
and
then
now
we
have
the
great
lockdown,
which
is
what
the
imf
has
named
this
current
period
and
I'm
just
presenting
the
equation,
because
there
are
so
many
moving
pieces
happening
right
now.
So
first
we
have
changes
in
the
money
supply.
That's
increased
almost
74
compared
to
pre-pandemic
levels
of
new
money
injected
into
the
economy.
J
We
also
have
been
having
a
lot
of
change
in
the
speed
of
spending
or
the
velocity
of
money.
There
was
a
sharp
drop
in
consumer
confidence.
The
velocity
of
money
dropped
almost
77
percent
at
its
lowest
point,
but
now
we're
also
seeing
that
start
to
recover
and
pick
up
again
as
people
are
getting
out
into
the
economy
and
consumer
confidence
is
increasing.
So
that's
that's
still
modulating
and
still
a
variable
that's
moving,
and
then
we
also
have
changes
in
output.
There
has
been
chip
shortages
supply
chain
issues.
J
I
know
you
guys
have
all
heard
about
everything,
that's
happening
with
used
cars
and
the
car
market
and
shortages
there,
and
so
these
are
just
a
few
key
indices,
and
I
really
just
wanted
to
point
out
the
used
cars
and
trucks
indices
where
it's
jumped
almost
30
percent
in
price,
which
kind
of
likely
has
to
do
with
a
chip,
shortage
and
kind
of
changes
in
the
supply
chain.
J
So
these
are
a
few
of
the
theories
for
the
cause
of
the
current
inflation,
just
some
of
the
main
ones
so,
like
I
talked
about
before,
there's
a
supply
shock,
so
maybe
there's
a
change
in
the
amount
of
goods
available
to
purchase
and
there's
an
increase
in
the
price.
There
could
also
be
misleading
comparisons
when
you're
talking
about
gasoline
most
of
the
country
was
staying
at
home,
so
the
prices
dropped
considerably
and
maybe
now
we're
seeing
them
pick
back
up
to
a
point
that
we
would
have
seen
if
the
pandemic
hadn't
happened.
J
So
this
was
the
most
recent
sectoral
report
and
it's
in
your
packets.
I
know
this
is
a
lot
of
text,
but
the
all-item
cpi,
which
is
the
cpi
most
people
focus
on,
is
at
five
percent,
but
the
core
cpi,
with
removing
food
and
energy,
is
at
3.8.
J
J
Services
are
up
11
and
apparel,
because
people
weren't
buying
a
lot
of
new
clothes
when
they
were
at
home,
and
then
we
also
have
some
more
stable
indices,
such
as
food
electricity,
shelter,
medical
care
in
general,
so
there
there
seems
to
be
a
lot
of
pressure
in
some
areas,
but
we're
not
seeing
a
lot
of
pressure
in
other
areas.
There's
a
pretty
big
difference
going
on.
J
So
the
federal
reserve
had
a
recent
meeting
I'd
like
to
point
out
first
last
year
they
shifted
their
policy
to
two
percent
inflation
over
the
longer
term,
which
means
they're
not
necessarily
concerned,
if
inflation's
higher
than
two
percent
this
year,
they'd
just
like
it
to
average
to
around
two
percent,
they
decided
to
keep
the
federal
funds
interest
rate
at
zero
to
0.25
until
maximum
employment
is
achieved,
and
that
is
an
important
question
of
maximum
employment,
because
we've
had
a
lot
of
retirements.
J
Recently,
we've
had
a
lot
of
people
that
might
stay
permanently
out
of
the
labor
force,
either
because
of
retirement,
or
they
decide
to
take
on
caretaking
duties
at
home
and
there's
also
in
their
report.
They
mentioned
that
they
have
increasing
uncertainty
and
perceived
risk
in
their
economic
projections.
H
Thank
you
for
your
insights
and
your
thoughts.
This
slide
will
work
well
for
my
question
in
an
earlier
slide.
What
is
what
would
also
you
had
mentioned
as
we
as
we
seek
to
compare
where
we
are
today
to
and
that's
my
question:
do
we
compare
to
let's
say
august
of
2020
when
we
were
in
the
midst
of
covid.
D
H
J
They're,
comparing
it
relative
to
2020.
the
the
baseline
projection
that
I
mentioned
in
2019
is
just
economists
kind
of
trying
to
figure
out
if
what
the
drivers
of
inflation
are
so
they're,
comparing
it
to
the
2020
price
levels.
D
Jump,
I
think,
what
the
federal
reserve
and
I'm
not
I'm,
not
putting
words
in
their
mouth,
but
I
think
what
they're
what
they're
signaling
is
is
their
current
thinking
is
that
this
is
transitory
right
for
some
of
the
reasons,
katie
katie
talked
about
supply
shocks,
chip
shortage
right,
it's
a
transitory
effect
right
at
some
point,
that's
going
to
resolve
itself
and
I
think
that's
why.
D
I
think:
that's
why
you
see
there.
I
don't
want
to
call
it
long
term,
because
2022
isn't
really
long
term
right.
I
think
that's
why
you
see
them
returning
to
sort
of
their
baseline
projection
of
of
two
percent
inflation.
They
view
this
as
transitory.
D
D
D
Obviously
they
think
it's
transitory.
In
that
you
know,
there
has
been
a
significant
and
katy
spoke
to
this
significant
increase
in
the
money
supply
right.
There
there's
been
a
lot
of
fiscal
stimulus,
there's
going
to
be
some
upward
pressure
on
on
prices,
naturally,
for.
C
D
Reasons
those
among
them,
but
I
think
what
the
what
the
fed
is
signaling
is
that
that
it
is
transitory
in
that
are.
Are
you
starting.
H
D
H
D
I
I
don't
know
that
I
would
put
it
that
way.
I
will
say
that
in
their
previous
meeting
the
month
before,
I
believe
their
projections
were
three-quarters
of
a
point
lower
than
the
3.4
and
so
obviously
they've
they've
revised
their
current
thinking.
I
do
believe
later
today,
they'll
release
the
minutes
from
that
meeting.
They
met
in
mid-june.
I
think,
and
until
we
see
the
minutes,
we're
not
really
privy
to
to
the
conversation.
The.
E
D
Conversations
that
happened
at
that
meeting,
and
so
those
minutes
may
provide
a
little
more
insight
to
get
at
your
question
of
of
their
current
thought
processes
and
we'll
also
get
another
glimpse
here
very
shortly:
they're
going
to
meet
again
june
july
27th,
I
think
so
we
may
get
an
even
better
glimpse.
Then.
E
Thank
you.
I've
got
a
couple
up
here
and
certainly
you
know
I've
worried
for
a
while
that
this
shift
in
the
federal
funds
rate
going
so
low
removes
the
primary
tool
of
the
fed
to
influence
things
when
we
begin
to
have
unemployment,
inflationary
pressures
and
they
kind
of
surprised
me
with
the
corporate
bond
purchases
and
aggressiveness
in
that
program
there.
But
you
know
so.
If
you
take
back
to
the
fed
board
of
governors
that
I'm
a
little
concerned,
no
senator
carol.
I
Thank
you,
mr
chairman,
what
an
excellent
explanation
of
a
very
complicated
subject,
and
if
you
went
through
that
about
three
or
four
more
times
it
might
sink
in
a
little
bit,
so
so,
with
the
the
influx
of
of
of
cash
into
the
system,
you
said
like
a
75
increase,
so
so
do
these
formulas
and
do
these
elements
to
maintain
the
balance
that
being
I'm
assuming
an
unprecedented
event?
I
J
I
think
balancing
it
out
without
any
extremes
is
the
goal
of
the
federal
reserve
right
now
and
they
they
do
have
some
tools
available
to
them,
like
the
three
that
we
we
mentioned
earlier,
but
the
the
formula
I
showed
is
more
of
like
a
theory
or
like
a
mathematical
way
to
think
about
it.
So.
I
So,
even
even
in
unprecedented
events
like
we've
under
gone
the
last
year,
that's
that
still
stands
true
in
the
way
that
this
will
be
approached.
So
with
all
of
these,
these
major
decisions
that
were
made
there,
it
could
be
done
with
the
level
of
prediction
with
all
the
influx
of
cash
there.
There
are
predictors
on
what's
going
to
happen
as
a
result
of
that
influx
on.
I
Obviously,
the
price
is
going
up
and
then
with
supplies
being
diminished-
and
I
guess
that's
what
they've
struggled
through
is
to
try
to
understand
the
impact
of
all
those
different
elements.
Long
term.
D
Yes,
okay
and
I'd
also
throw
in
keep
in
mind
that
they're
trying
to
do
this
in
real
time
too
right
and
contemporaneous
data
sometimes
is
by
contemporaneous,
I
mean
real
time.
Data
right
is
sometimes
much
harder
to
come
by.
Economists
are
very
good
at
looking
looking
back
right
and
thinking
about
things
from
a
historical
perspective.
D
Forecasting
is
an
art
and
is
a
much
much
different
animal,
but
I
again
I'm
not
putting
words
in
the
fed's
mouth,
but
I
think
it's
I
think
it's
telling
that
they
haven't
changed
their
stance
that
they're
still
they
voted
unanimously
to
to
not
change
policy
right
now,.
J
C
Presentation
as
well
as
if
I
was
doing
a
little
math
here,
I
think
the
first
three
months
of
this
year-
fiscal
stimulus
injected
about
11
trillion
dollars
into
the
economy.
J
That's
actually
based
on
the
what
it's
the
producer
consumer,
the.
D
Pce,
the
personal
consumption,
I'm
sorry
mike's,
sorry,
the
pc,
the
fed,
actually
looks
at
a
slightly
different
measure
of
inflation,
called
the
pce,
the
personal
consumption
expenditure.
The
basket
differs
a
little
bit.
I
don't
have
them.
F
H
C
Thank
you,
mr
chairman,
you
mentioned
someone
mentioned
crystal
ball,
so
prognostications.
The
numbers
that
I
continue
to
review
looks
like
maybe
transitory,
because
it's
not
broad-based
enough
yet
continues
to
grow.
So
we'll
see
what
that
exponential
growth,
where
it
slows
and
comes
back
down
hopefully
soon,
and
hopefully
it
doesn't
continue
to
expand.
C
But
can
you
prognosticate
a
little
with
the
crystal
ball?
If
money
supply
has
increased
through
another
one,
two:
six
trillion
dollar
infusion
at
the
federal
level.
Should
this
committee
and
the
general
assembly
be
overly
concerned
with
another
large
infusion
with
the
money
supply
going
up
or
well
we'll
just
see.
D
I
left
my
crystal
ball
in
my
office,
I'm
not
being
flippant
again.
D
I
there
are
some
very
bright
folks
on
the
federal
reserve
board
and
I
I
tend
you
know
my
professional
opinion
would
be
to
to
listen
to
their
sage
advice
and,
to
the
extent
that
they
are
not
expressing
a
great
deal
of
worry
right
now.
I
I
think
I
think
we
should
listen
to
that.
E
All
right
next
up
talk
a
little
bit
about
pensions,
so
david
eager
come
one
up.
E
B
All
right,
I'm
david
eagle,
I'm
the
executive
director
of
the
kentucky
public
pension
authority
and
I
have
on
zoom,
also
rebecca
atkins
who's,
our
executive
director
office
of
operations
and
aaron
sarat
who's,
our
executive
director
of
benefits.
B
B
As
you
may
recall,
house
bill
8
passed
unanimously
in
the
house
and
unanimously
in
the
senate.
I
think
roughly
125
people
voted.
Nobody
voted
against
it.
I
imagine
most
of
you
in
this
room
voted
for
it.
I
don't
know
case
by
case,
but
I
thank
those
who
did
because
representative
duplessi,
the
sponsor
of
the
bills.
He
he
characterizes
it
in
one
word
fair,
because
each
employer
is
now
going
to
pay
their
own
share
of
the
liability
not
have
somebody
else,
perhaps
subsidize
it
or
be
forced
to
pay
somebody
else's.
B
I
characterize
it.
One
word
impact
it's
going
to
have
a
significant
impact
on
getting
this
retirement
systems.
The
the
k
and
c
in
the
state
police
systems
financially
viable
strong
over
a
long
period
of
time.
There
really
are
there's
three
events
and
I
think
when
we
look
back
in
28
years,
when
these
plans
are
fully
funded,
100
funded
and
that
that
depends
on
continuing
to
fund
what
the
actuary
says
to
fund
that
depends
on
earning
the
the
achieving
the
assumptions
that
are
built
into
it,
the
economic
assumptions
and
the
mortality
assumptions.
B
Number
one
senate
bill
two
passed
in
2013
and
it
did
two
extremely
important
things.
It
established
the
tier
three
which
got
the
state
out
of
the
active
liability
business,
also
reduced
the
normal
cost
from
tier
one's
13
percent.
Tier
three
is
three
percent,
so
we're
gradually
going
to
bring
down
that
normal
cost
rate
which
the
composite
is
10.10
right.
B
Now
it's
going
to
keep
dropping
and
again
if
we
got
to
appear
tier
three,
and
that
was
the
only
participation,
the
normal
cost
rate
would
be
for
the
pension
would
be
just
under
four
percent
and
it
also
required
that
the
actuarial
the
ark
be
paid
in
full.
Instead
of
a
12-year
period
which
we
went
through,
where
we
got
about
40
cents
on
the
dollar,
we're
getting
100
cents
on
a
dollar.
That's
that's
event,
number
one
event
number
two
which
could
be
transitory.
B
I
hope
not,
but
the
our
board
in
2017
reset
the
economic
assumptions,
I'm
not
going
to
go
into
all
the
detail
of
them,
but
and
approved
changes
in
mortality
in
the
2019
period.
The
2017
economic
assumptions
resulted
in
a
bump
in
the
funded
unfunded
status
of
about
five
billion
dollars.
It
raised
the
liability
by
five
billion
dollars
is
really
recognizing
what
it's
going
to
take
to
pay
and
it
raised
the
contribution
rate
for
the
k9
has
from
49
percent
to
83.
B
So
that
said,
here's
what
we
got
to
pay
to
make
it
happen.
It's
and
I
commend
the
legislature
on
biting
that
bullet.
That
was
a
hard
bullet
to
buy,
but
those
three
those
three
events.
I
think
we're
going
to
look
back
and
say
significant.
I
know
I
hear
senate
bill
2
all
the
time.
I
think
we're
going
to
start
hearing
senate
bill
house
bill
8
a
lot,
but
here's
why
eight
was.
B
Here's
why
we
had
we
needed.
Eight
we
saw
employment
in
the
k-9,
has
planned
declining
dramatically
and,
as
you
can
see,
from
over
46
000,
if
I
can
read
the
scale
a
little
over
35
000
every
time,
an
employee,
we
reduce
an
employee
in
the
system.
We
we
lose
that
contribution
if
that
person's,
making
fifty
thousand
dollars
and
they're
no
longer
in
the
system
we're
losing
forty
two
roughly
forty,
two
thousand
dollars
in
contribution,
and
so
what
do
we
have
to
do?
The
the
dollar
amount?
B
That's,
oh,
doesn't
go
down,
it's
it
stays
the
same.
I
mean
the
liability.
Is
there?
So
we
have
to
raise
the
contribution
rate
and
that's
exactly
what
happened.
We
call
it.
The
contribution.
Death
spiral
rate
goes
down.
The
rate
goes
up.
Employers
cut
back
cutting
back
forces,
the
rate
to
go
up
so
the
we
calculated
the
liability
on
june
30th
of
2019,
and
we
said
all
right,
everybody
is
going
to
say,
pay.
B
The
percent
share
that
their
liability
is
of
the
total
and
if
your
liability
is
140
million
and
the
total
is
14
billion,
you're
gonna
pay
one
percent
and
you're
going
to
keep
paying
one
percent
until
it's
paid
off
whether
you
hire
people
fire
people.
What
whatever?
It's
you
you,
the
the
unfunded
liability
is
going
to
be
paid
off.
I'll.
Give
you
an
example
of
what
was
going
on.
You
see
the
line
regional
mental
health
reported
to
us
in
in
2009
they,
they
reported
8
399
employees
to
us
to
about
ninth
about
8
400..
B
B
Okay,
here's
the
highlight
of
through
may
31st
here's
the
highlight
of
performance
and
cash
flow.
Then
I'm
going
to
go
into
a
little
more
detail,
but
starting
at
the
top
performance,
the
all
pension
year-to-date
performance-
that's
lumping
it
all
together
through
may
31st
23.05
resulted
in
another
2.9
billion
dollars
in
assets.
B
So
that's
the
aggregate
number
of
that's
through
may
31st.
If
you
take
it
through
june
30th.
My
best
estimate
we'll
add
another
75
basis
points
so
we'll
be
almost
24.
It's
a
phenomenal
year.
It
also
followed
a
year
where
we're
in
1.15
so
and
then,
then
you
add
value
the
market.
The
market
gave
us
a
tremendous
amount.
We
added
value
to
that.
B
B
We
overweighted
underweighted,
we
picked
managers
we
bought
securities,
do
we
add
value
and
the
answers
107
almost
177
million
dollars,
so
our
investment
committee
and
and
more
more
probably
more
impactful,
our
four-person
investment
department,
the
decisions
they
made
in
the
pension
added
176
million.
B
If
you
go
back
one
year,
three
years,
five
years,
ten
years,
20
or
30
years,
we've
added
at
least
slight
margins
cash
flow,
the
k
plan
and
I'm
focusing
on
on
decay
versus
the
seek
the
cape
k9
has
was
193
million
positive
with
investment
income
it.
It
goes
to
234
so
that
go
back
to
that
49
going
to
the
83
that
has
helped
us
tremendously
in
cash
flow.
The
sea
plan
is
still
phasing
in
there,
they're
still
a
negative
cash
flow.
B
B
I'll
try
to
get
you
to
focus
here
on
there's
a
lot
of
numbers
up.
The
first
column
is
the
market
value
as
of
5.
31.
B
second
is
year-to-date
performance,
and
let
me
just
let
me
just
stay
with
k-9.
Has
that's
the
easiest
they're
all
going
to
be
pretty
much
in
the
ballpark?
The
c
plans
will
be
a
little
better
than
the
k
and
and
the
insurance
would
be
a
little
better
than
the
k9
aspension.
But
here
today
up,
20.4
percent
it'll,
probably
be
21.
B
the
one
year
number,
which
you
go
back
through
june
1
of
last
year,
22
percent
and
so
forth.
If
you
go
out,
the
worst
period
of
time
is
the
last
20
years
and
even
even
the
last
20
years
we
had
good
market
returns.
The
the
market
returns
over
that
20-year
stock
market
returns
was
8.35
after
you
net
out
some
of
the
lower
returning
assets.
We
were
6.4
I'll,
remind
you,
the
assumptions
five
and
a
quarter.
B
B
The
other
thing
is
when
we
break
break
each
of
the
plans
down
about
their
return
versus
their
benchmark,
we're
five
out
of
five
and
in
almost
every
period
there's
one
period
where,
in
the
20-year
period
for
the
state
police
were
10
basis
points
under,
but
every
cumulative
period
the
performance
exceeds
the
benchmark
cash
flow.
I
gave
you
the
highlights.
B
B
We
won't
see
that
kind
of
a
decline
based
on
payroll
issues.
You
know
it's
generally
good
news
in
the
k
plans.
B
B
B
Now
in
the
I
think
it
was
a
ppob
meeting
in
in
march
or
april
we
were
reporting
pretty
good
market
returns
and
representative
tipton
said
to
me:
can
you
speculate
on
the
impact
if
we
stopped
today?
What
was
the?
What
would
happen
with
funded
says,
and
I
said
I
could,
but
it
would
be
speculating
we
had
three
months
to
go.
B
B
B
If,
if
the
24th
assets
are
the
ending
asset
value,
tell
me
what
the
funded
status
is
going
to
be
in
the
contribution
rate,
how
much
impact
is
going
to
have
on
both
of
those
we
did
it
for
k9
has
and
for
cenon
has
pension
only
but
I'll
show
you
what
it
it's
a
it's.
A
nice
bump.
B
So
box
on
the
left,
unfunded
liability,
current
means
if
we
were
continuing
at
the
assumed
earnings
rates
and
others.
What
would
that
kind
of
the
current
plan?
If
you
expectation
a
few
forecast,
13
billion
695,
the
new
projection,
13
billion
433,
it
doesn't
change
much
because
we
change
the.
We
have
to
do
a
five-year
amortization
of
this
big
gain.
We
got
in
the
investments
it
doesn't
hit
on
year,
one
so
it's
going
to
take
five
years
for
that
big
gain
to
work
its
way
through
the
system.
B
What's
happened,
and
I
want
to
explain
something
I
say
this
over
and
over,
and
I
hope
you
don't
get
tired
of
hearing
it,
but
paying
off
this
liability.
We're
now
got
28
years
to
pay
it
off.
It's
like
paying
off
a
20-year
28
28-year
mortgage
and
the
payment
we
make
this
year
goes
almost
entirely
to
principal.
B
I
mean
I'm
sorry
goes
to
interest
very
little
to
principal,
just
like
just
like
a
home
mortgage.
You
start
your
first
year
and
you
make
your
payments
and
you
get.
You
know
you
get
a
200
000
mortgage
at
the
end
of
the
year.
You
still
188
000,
you
go
gee.
We
didn't
make
much
progress
here.
Well,
you
make
a
little
more
of
the
next
year,
a
little
more.
The
next
year
we
bottomed
out
in
in
fiscal
year,
18
19
is
when
the
new
assumptions
took
place.
B
B
It
went
to
13
4,
so
we
gained
50
basis
points.
Then
it
went
to
14
2.
We
gained
80
basis
points.
Now
we're
going
to
be
gaining.
You
know
projected
we're
going
to
be
gaining
about
400
basis
points
between
350
and
400
basis
points,
so
we're
projecting
it's
going
to
be
in
the
18
range
because
of
the
markets.
B
As
you
look
forward,
you
can
see
it
stays
that
we
keep
that
kind
of
premium
until
the
end
so
translating
that
into
and
by
the
way
this
is
june.
24.
I
mentioned
if
you
look
at
june,
30
we're
up
about
a
tenth
of
a
percent.
So
these
these
are
are
pretty
good,
grs
would
say,
plus
or
minus.
B
Two
percent
is
a
pretty
fair
guess
when
they
finally
do
their
final
numbers,
but
and
by
the
way
this
projection
says
we're
going
to
earn
whatever
it
was
23,
let's
say
in
fiscal
21
and
then
we're
going
in
five
and
a
quarter
every
year.
Thereafter,
that's
how
they've
come
up
with
this
number
saying:
we've
got
what
kind
of
a
one-time
benefit.
B
B
So
the
markets
gave
us
a
if
we
can
earn
five
and
a
quarter
here
for,
on
average,
we're
going
to
do
it
every
year.
Some
are
better
and
some
worse,
but
on
average
we're
going
to
be
we're
going
to
be
reducing
the
contribution
in
the
area
58
million
a
year
and
the.
B
B
B
So
they
get
up
in
the
2027
with
a
1.4
billion
less
than
liabilities,
they
move
their
five
year
out,
number
from
55
funded
to
63
funded,
and
that
narrows
a
little
bit
in
the
difference.
But
we
get
to
2049.
We
get
100
if
they
earn
six
and
a
quarter
if
the
payroll
growth
is
two
percent.
If
the
mortality
is
what
we
think
it
is
and
so
forth,
and
then,
finally,
that's
what
happens
to
their
contributions,
their
contributions
five
years
out,
instead
of
683,
we
would
project
to
be
561..
E
All
right,
very
good
dave.
Thank
you
for
your
presentation
today.
First
of
all
from
me,
when
does
the
rate
kyle
remember
we
did
that
rate
collar
with
cers
when
the
cities
came
in
the
other
year
worried
about
their
increase.
When
does
that
rate
collar
end.
C
I
believe
it
was
a
10-year
window
that
began
in
18..
It.
B
C
B
If
you
look
at
the,
if
you
look
at
the
projections,
the
the
even
the
current
is
going
to
peak
at-
and
this
is
pension-
only
peaking
22
at
23,
6
and
then
head
down
to
23.1,
so
we're
we're.
Essentially
there.
E
Gotcha
all
right
representative,
francis.
C
B
B
No,
those
are
millions,
millions,
okay,
I
thought
it's
a
thousand
millions,
okay,
yeah,
confusing
yeah.
Okay.
Thank
you.
When
you're
dealing
with
billions
and
millions.
C
H
Crucially
important,
crucially
important.
As
you
well
know,
there
are
some
that
have
questions
about
the
bill,
the
amount
that
was
assigned
to
them
and
that
process
summarized
for
us
those
conversations
sure
and
what?
What
do
you
recommend
going
forward
to
us
as
policy
makers
as
we
continue
to
have
conversations
with
constituents,
constituent
groups?
That
say
we
still
don't
think
our
numbers
are
right.
B
Yeah
yeah,
I
don't
know
how
they
know
they're
wrong,
but
we
have
a
process
to
try
to
help
them
determine
that.
First
of
all
statute
says
that
the
grs
calculation
is
the
calculation,
whatever
gs
grs
says
is
is
grs
would
also
admit,
and
we
would
too
that
there
may
be
employees
that
they're
being
charged
for
that
are
not
their
last,
where
they
are
not
the
last
employer,
and
we
would
say,
if
that's
the
case,
that's
a
mistake
and
we
will
take
that
person
out
of
the
out
of
the
equation.
B
B
If
they
can
leave
the
system
we've
given
employer
and
and
social
security
number,
so
they
can
go
down
that
list
of
names
and
say
we
don't
think
that
person
was
here
or
we
don't
think
we
should
be
charged
with
that
person.
So
we're
going
with
those
44
we're
going
through
a
process
of
looking
at
our
records
and
their
records.
B
Quite
frankly,
many
of
the
employers
don't
have
good
long
term
employment
information.
That
sounds
funny,
but
that's
the
truth,
but
that's
the
resolve.
We're
going
through
they've,
the
ones
who
can
leave
have
asked
for
the
liability
by
a
person,
and
my
my
comment
is:
what
are
you
going
to
do
with
it?
B
You,
you
can't
determine
you
can't
determine
any
one
person's
liability
unless
you
have
their
entire
career
history,
what
they
made
did
they
buy
service
who's,
the
beneficiary
there's
a
lot
of
information
that
they
would
need
to
replicate
what
grs
can
do
and
they
can't
and
and
they
shouldn't
get
that
information.
That's
private
information
that
belongs
to
the
members,
and
we
are
adamant
about
that.
There's
no
reason:
there's
no
reason
that
we
should
be
giving
employers
who
that
person's
beneficiary,
how
much
money
they
made
when
they're
going
to
retire.
B
I
had
another
passing
thought
here,
but
we
will
adjust
if
we
have
to
and
if
we
can
establish
that
some
of
these
44
members
there
they
they
have,
that
many
of
them
do
have
employee
members
assigned
to
them
that
are
really
our
state
workers
and
they
were
reimbursed
for,
like
eastern
kentucky
university
had
a
lot
of
them.
We
take
take
those
out.
B
There
are
some
issues
with
some
of
them
at
least
one
of
the
mental
health
departments
as
to
whether
these
people
are
theirs
or
not
that
we're
working
through.
But
I
would
encourage
you
strongly,
and
I
know
there
may
be
legislation
not
to
require
us
to
provide
member
individual
member
information.
B
B
If
I
didn't
sound
forceful
enough,
we're
pretty
adamant
about
it,
we're
definitely
opposed
we'll.
Do
we'll
do
remember
we'll
do
social
security
we'll
do
liability
if,
if
they
can't
leave
the
system
but.
H
B
Employers,
no,
I
I
misspoke
if
I
said
that
I
think
the
number
is
54
that
got
it
and
they
are
ones
who
cannot
leave
the
system,
so
they
can't
really
use
that
liability
number
to
the
disadvantage
of
a
member,
the
ones
that
can
leave-
and
I
I
don't
have
my
morning
presentation,
I
think,
there's
about
24
of
them,
the
ones
that
can
leave.
We
said
we'll
give
you
we'll
give
you
remember
social
security.
We
don't
give
you
individual
liability,
I
said,
and
I've
said
what
are
you
going
to
do
with
it
and
the
guy
said?
B
Well,
you
know,
I
know
I'll
know
he's
a
head
of
an
agency
I'll
know
what
my
liability
is
and
I'll
be
able
to
look
at
some
of
my
employees
and
say
that
doesn't
look
right
and
I
said
to
them:
how
do
how
can
you
tell
you
don't
know
where
they've
worked?
You
don't
know
what
they've
made
you
don't
know
what
service
purchase
they
may
want.
You
don't
have
the
information,
that's
required
to
develop,
that
and-
and
it
kind
of
comes
back
to
this,
the
two
primary
issues.
I
think
it's
a
business
purpose.
H
So
give
me
those
numbers
again:
54
receive
the
information.
C
B
Five
of
them
agreed,
we
here's
what
here's
what
they
said.
So
what
would
you
do
with
it
and
they
said
well,
we'd,
add
it
up
and
to
make
sure
that
the
total
of
all
these
people
adds
up
to
what
we're
being
told-
and
I
said
your
cpa
could
do
that
right.
Absolutely,
okay,
we'll
give
it
to
your
cpa
with
a
non
with
a
non-disclosure
agreement,
and
five
of
them
said
that
they
simply
were
summing
the
that's
what
they
were
the
way
to
describe
some
each
individual
make
sure
the
total
was
tied.
B
But
I'm
you
know,
we've
had
a
lot
of
spirited
discussions
with
a
number
of
people.
I'll
tell
you
one
the
thing:
one
thing
that
representative
du
plessis
argued
with
me
or
not
debated
with
me
one
time
and
he's
right
house
bill.
8
took
a
lot
of
the
ability
for
these
people
to
these
people.
B
Employers,
and
I
don't
want
to
say,
they're
all
doing
this
because
they
aren't.
We
have
people,
we
had
meetings
with
joe
dan
beaver
he's
not
his
organization's
not
doing
that,
but
there
are
a
lot
of
them
that
are
cutting
back
and
they're
using
liability
information
to
make
decisions
about
individual
people.
B
So
that's
that
was
the
gist
of
not
wanting
to
give
them
that
information.
B
B
E
B
E
E
And
for
the
members
of
grand
eisenberg
before
he
gets
going,
we've
asked
bo
to
jump
around
just
a
little
bit
here
because
I
figured
we'd
be
growing
long
in
in
the
meeting
at
this
point.
So
oh
go
ahead:
okay,.
G
Yes,
mr
chair,
I'm
just
trying
to
find
my.
G
G
Good
afternoon
my
name
is
bo
barnes
I
serve
in
the
positions
of
deputy
executive
secretary
and
general
counsel
for
the
teachers
retirement
system.
I
was
asked
today
to
cover
and
provide
a
high
level
overview
of
a
couple
of
topics
and
because
of
the
number
of
items
on
the
agenda,
I've
been
asking
to
shorten
this
powerpoint
presentation
and
focus
on
a
couple
of
key
items,
and
those
are
something
called
the
experience
study
and
also
how
the
experience
study
relates
to
the
budget,
and
with
that
I
will
go
ahead
and
proceed.
G
So
the
experience
study
first,
just
real
briefly.
What
an
experienced
study
is
an
experience
study
is
a
standard
exercise
by
actuaries
across
the
nation
to
review
assumptions
that
they
have
projected
for
retirement
systems,
and
I
say
assumptions
they
are
projected
for
retirement
systems,
because
these
assumptions
are
forward-looking
and
no
one
can
predict
the
future
accurately.
Obviously
exactly
obviously
so.
G
G
G
We
started
off
with
a
30-year
amortization
period,
we're
down
to
about
24
years
in
that
amortization
period,
to
pay
off
that
unfunded
liability
and
these
assumptions,
which
include
things
like
investment
returns
and
mortality
and
rates
of
retirement
they're
important
because
they
help
us
identify
funding,
needs
and
funding
sources.
Of
course,
that
is
directly
tied
in
to
the
budget
a
couple
of
things
and
this
this
experience
study
in
particular
this
one.
The
timing
is
different
from
past
experience
studies.
G
Normally
these
experience
studies
are
not
normally
always
in
the
past.
They
are
something
that
they
are
concluded
after
the
close
of
the
fiscal
year
in
which
they
are
begun,
and
then
they
are
presented
to
our
board
of
trustees
at
their
september
board.
Meeting
okay,
but
this
experience
study
is
different
and
there's
a
lot
of
interest
in
this
experience.
Study
and
a
lot
of
people
were
asking
know
whether
these
assumptions
were
going
to
change
and
if
they
were
how
much
and
that's
all
understandable
you
know.
G
Where
are
we
going
with
this
so,
and
we
asked
our
actuaries
to
expedite
the
timeline
for
this
experience
study,
so
we
got
it
completed
three
months
earlier.
Essentially,
you
know
before
this
closes
the
fiscal
year
presented
to
our
board
on
june
21st,
so
we
have
that
presenting
it
at
this
point
of
time.
There
are
certain
things
we
don't
have
that
normally
we
would
have
with
experienced
studies
and,
most
significantly,
we
don't
have
fiscal
year
in
21,
2021
information
data.
G
Okay,
we
don't
have
that
today,
we're
just
even
though
we're
even
a
few
days
into
the
new
fiscal
year.
We
don't
have
those
figures
and
we
don't
even
have
preliminary
figures
at
this
point
now.
That
is
something
as
we
start
getting,
for
example,
investment
manager,
reports
and
everything
else,
employee
reports
and
we
start
begin
analyzing
reviewing
auditing,
reconciling
correcting
errors.
We
start
at
some
point
we'll
start
to
have
some
preliminary
data
on
based
on
this
experience
study
and
that
data
certainly
will
be
provided
as
soon
as
we
have
it.
G
Okay,
and
just
to
give
you
a
little
more
detail
on
the
timeline,
we
are
required
to
submit
our
budget
to
the
budget
office
by
october
15th
and
then
we'll
have
an
annual
actual
evaluation
for
fiscal
year
21,
that
is
to
be
concluded
by
november
15th,
and
once
we
have
that
we
have
the
final
numbers,
the
final
annual
evaluation
for
this
fiscal
year
that
just
ended.
Then
we
will
submit
a
revised
budget
request
to
the
budget
office
sometime
after
november
15th.
G
G
A
couple
of
things.
This
experience
study
for
the
fiscal
year
ending
june
30th
2020
does
not
have
the
current
fiscal
year.
Obviously,
okay,
and
notably
about
the
current
fiscal
year,
we
had
exceptional
investment
returns
for
trs.
G
A
couple
months
ago
I
presented
to
the
public
and
oversight
board
that,
just
for
the
first
nine
months
of
the
the
21
fiscal
year
returns
were
at
23.
Okay,
we
added
four
billion
dollars
just
to
the
pension
fund
in
the
first
nine
months
of
fiscal
year,
21
another
half
billion
dollars
to
the
health
insurance
trust
okay.
So
none
of
that
is
part
of
this
experience
study
something
else
because
I
get
asked
this.
G
G
It
established
a
new
benefit
tier
for
individuals
who
become
members
of
trs
for
the
first
time
on
or
after
january,
1st,
2022,
okay,
and
that
pension
bill
did
a
lot
of
things
it
raised,
for
example,
minimum
retirement
age
to
age
57.
That's
the
earliest
teachers
in
this
new
tier
will
be
able
to
retire,
but
even
more
significantly
than
raising
retirement
age
to
a
minimum
age
of
57.
G
E
G
Okay-
yes,
sir,
yes,
sir,
so
this
is
a
high
level
overview
that
we've
been
asked
to
provide.
So
this
is
high
level,
but
certainly
any
questions
more
than
happy
to
to
take
those.
So
these
are
the
most
significant
changes
to
assumptions
that
impact
the
budget
and
our
budget
request.
We
are
lowering
the
investment
return
assumption
from
seven
and
a
half
percent
for
the
pension
fund
to
7.1
percent.
Okay
and
there's
another
slide.
G
Just
to
give
you
a
little
more
background
on
that,
and
I
will
hurry
mr
chair,
we're
along
the
payroll
for
grumps
payroll
growth,
assumption
from
three
and
a
half
percent
to
2.75
percent
payroll
growth
increases
two
ways:
number
of
teachers,
the
more
teachers
you
have,
the
more
total
payroll
you
have
also
if
teachers
are
getting
increases
in
compensation
that
can
also
increase
payroll
growth,
but
it's
been
lowered
from
three
and
a
half
to
2.75
and
then
also
very
significantly-
and
this
is
very
interesting-
there's
been
a
lot
of
discussion
about
how
maybe
different
segments
of
the
population
are
going
to
have
different
mortality
rates.
G
Okay
and
I'll
just
cut
to
the
chase
for
teachers.
You
know
there's
been
discussion
about
whether
or
not
maybe
they
live
longer,
because
maybe
they're
better
about
going
to
see
the
doctor
taking
their
medications
and
healthy
living
that
sort
of
thing,
so
the
society
of
actuaries,
with
the
assistance
of
a
bank
of
actuaries
they
had
have
been
working
for
years
on
developing
mortality
tables
that
are
specific
just
to
teachers.
G
Okay,
before
this
new
data
set,
was
available
and
became,
the
final
data
set
became
available
in
2019
before
we
had
that
mortality
tables
were
based
on
the
general
population.
But
with
this
new
teacher-specific
mortality
table,
we
did
confirm
what
people
are.
Maybe
thinking
that
teachers
are
living
longer
okay,
so
this
is
sort
of
a
one-off
change
with
this
new
teacher-specific
mortality
table
and
a
change
in
you
know
what
we're
going
to
see
with
budget
requests
and
with
liabilities,
because
you
only
do
this
once
you
have
a
change
from
general
population
to
teacher-specific.
G
G
They
adopted
a
a
generational
approach
to
these
mortality
tables,
in
that
they
are
projecting
that
younger
individuals
are
going
to
have
a
longer
life
span
than
older
individuals,
and
by
that
I
mean,
for
example,
a
60
year
old
might
be
projected
now
to
have
an
81
year
on
average
lifespan
and
then
by
the
25
year
old,
that's
going
to
be
adjusted
up
or
because
the
actuaries
are
assuming
they
may
live
longer,
so
they're,
just
the
25
year
old
to
say
age,
84.,
okay,
so
it's
two
things
that
are
going
on
with
these
new
mortality
tables
for
investments
just
want
to
we're
at
7.1
percent.
G
They
do
a
survey
of
public
plans
and
they
publish
the
results,
and
this
shows
the
assumed
rate
of
returns
for
these
other
public
pension
plans
that
were
in
the
survey
most
37
have
a
7
percent,
assumed
rate
of
investment
return,
the
next
almost
identical
36,
or
between
seven
percent
and
seven
and
a
half
percent
we're
at
7.1
percent.
So
we're
really
with
these
two
combined
groups,
where
everybody
is
we're
kind
of
at
the
lower
end
of
this
and
7.1
it's
a
conservative
projection.
G
You
know,
particularly
given
the
returns
that
trs
has
had
in
the
past.
You
know
if
that
period,
ending
march
31st
2020
that
2021
I
was
talking
about.
You-
know
all
time
periods,
whether
it's
one
year,
five
year,
10
year,
20
or
30
year,
all
those
returns
for
all
those
time
periods
were
above
7.1,
so
we're
being
very
actually
being
very
conservative
with
a
7.1
percent
return
assumption,
there's
a
lot.
G
I
know
on
this
slide
so
I'll,
try
to
explain
it,
so
this
slide
reflects
the
assumption,
changes
that
have
the
biggest
impact
on
total
liabilities.
Okay-
and
these
are
long-term
liabilities,
they
stood
at
35.5
billion
dollars.
As
of
last
june
30th
and
as
a
result
of
these
changes
in
these
assumptions,
for
now,
you
see
an
increase
of
2.95
billion
dollars
in
total
liabilities.
G
These
are
long-term
liabilities,
some
most,
maybe
not
all-
of
these
liabilities
or
another
do
now,
but
none
of
them
may
even
have
to
be
paid
depending
on
what
happens,
what
kind
of
experience
we
have
going
towards
in
the
future?
And-
and
particularly
you
know-
we've
got
four
billion
dollars
in
gains
in
the
pension
just
for
the
first
nine
months
of
the
last
fiscal
year,
that's
obviously
more
than
the
2.95
billion
dollars
in
additional
liabilities
that
we
see
with
this
experience,
study
the
biggest
drivers
in
the
increase
in
liabilities.
G
G
This
is
a
bigger
increase
than
we're
going
to
see
in
future
years,
because
we
did
something
unique.
We
were
able
to
do
something
unique
this
year,
these
newly
developed
teacher-specific
mortality
tables,
a
1.65
billion
dollar
increase
in
liabilities
is
due
to
lowering
that
assumed.
It
says
discount
rate
or
also
assumed
rate
of
return
from
7.5
to
7.1
percent.
Okay
and
that's
the
biggest
one.
That's
the
biggest
increase
in
liabilities
is
due
to
reducing
the
assumed
rate
of
return
from
seven
and
a
half
to
seven
one
percent.
G
Excuse
me
the
third
biggest
driver
of
the
changes
in
liabilities
and
it
actually
doesn't
increase
liabilities.
It
decreased
liabilities,
and
that
is
the
individual
salary
assumptions
for
teachers.
Payroll
growth.
Overall
payroll
growth
is
one
thing
again:
it's
number
of
teachers
that
are
more
or
less
overall
how's,
their
payroll
grow
with
salary
or
compensation
increases,
but
a
component
of
that
is
the
underlying
individual
salaries.
G
So,
when
salaries
are
lower,
assumed
to
be
lower,
liabilities
are
lower
lower
because
retirement
allowances
are
based
in
part
on
salaries,
on
individual
salaries,
so
when
they
lower
payroll
growth
and
they're,
lowering
individual
salary
projections
for
teachers,
lower
salaries
equals
lower
benefit
payouts
on
the
pension
side.
Okay,
so
that's
why,
when
they
lowered
the
assumed
salary
increases
for
teachers,
you
actually
see
a
400
million
dollar
reduction
in
a
total
liability,
so
those
are
the
three
biggest
drivers
and
everything
else
outside
of
they
looked
at
is
really
much
smaller.
G
Health
insurance
trust.
You
kind
of
see
the
same
thing.
We
have
the
same
drivers,
you
know
as
far
as
mortality
and
investment
rate
return
assumption.
G
The
lowered
salary
assumption
does
not
matter
because
health
insurance
benefits
are
not
based
upon
the
salaries
that
teachers
are
earning.
So
pretty
much
we're
seeing.
You
know
the
same
drivers
here
with
the
exception
of
the
lowered
salaries,
the
two
main
drivers
are
the
same
for
health
insurance
and
then,
very
importantly,
I
could
ask
this
question
a
lot.
G
The
assumption
changes
for
health
insurance
do
not
change
anybody's
contributions
to
the
retirement
system,
and
the
reason
is
those
are
all
fixed
contributions.
Teachers
will
continue
to
pay
the
same
three
percent
out
of
pocket
to
health
insurance.
School
districts
will
continue
to
pay
match
that
at
three
percent
retired
teachers
will
say
the
same
amount
as
well.
So
none
of
those
those
don't
change
for
anyone.
G
E
I
could
make
a
quick
correction:
yes,
it
will
change
for
all
the
taxpayers
who
contribute
to
the
general
fund
is
who
it
will
change,
for
it
won't
change
for
these
employees
in
these
school
districts.
That's
who
it'll
change
for
I
just
we
lose
those
folks
in
this
equation.
Well,
I
just
want
to
be
sure
that
we're.
G
Clear
and
mr
sheriff
certainly
on
on
the
pension
side,
you're
absolutely
correct,
but
on
the
medical
insurance,
because
we're
looking
at
fixed
amounts,
you
know
we're
going
to
be
requesting
those
same
fixed
contribution
rates.
From
that
I
got
that
question
from
some
employers
too,
because
they're
aware
that
their
insurance
contribution
rates
of
the
system
were
going
to
go
up.
So
all
good
points
and
again
keeping
this
is
a
very
you
know,
high
level
overview
for
the
budget.
G
We
already
have
the
budget
request
for
the
first
fiscal
year
of
the
next
biennial
budget,
and
that,
of
course,
is
fiscal
year
23,
and
we
know
that
we're
going
to
need
an
additional
629.4
million
dollars
from
the
budget
to
you
know,
continue
to
fund
the
pension
fund
and
actually
say
on
basis
now.
This
is
the
additional
funding
that
we
weren't
getting
for
a
number
of
years,
but
in
fiscal
year
2017
we
started
getting
the
additional
funding
requested
and
we've
gotten
that
for
we're
doing
that
now
for
five
years
in
a
row.
G
That's
something
we're
very
thankful
for
as
a
huge
change
that
we're
now
getting
this
additional
funding.
So
we
can
implement
that
funding
plan
to
pay
off
that
legacy.
Unfunded
liability
over
what
was
30
now
24
years,
so
very
thankful
for
this
additional
funding,
and
we
know
it's
going
to
be
629.4
million
dollar
budget
request
for
2023..
G
Again,
we
don't
have
the
request
for
2024
yet
because
that's
going
to
be
based
on
the
2021
annual
evaluation,
which
is
not
ready,
we
don't
have
preliminary
numbers
even
on
that.
G
Yet,
but
again,
when
those
preliminary
numbers
are
available,
you
know
to
us,
we
will
provide
those
to
everyone
else
and
continue
to
keep
everyone
updated
as
we
refine
those
preliminary
numbers
and
as
we
eventually
you
know
after
we
have
the
vanilla
evaluation,
we'll
have
the
final
numbers
for
2024
and
then
those
will
be
provided
to
everyone,
and
this
annual
evaluation
is
going
to
be
it's
going
to
be
very
significant.
I
just
one
more
slide,
mr
chair
just.
G
Okay,
okay,
just
just
one
more
slide
to
show
the
impact,
the
2020
evaluation
and
you
heard
dave
eager
to
speak
earlier.
You
know
actuaries
use
a
smoothing
of
investment
returns
methodology
to
assess
you
know
where
we
are
about
where
we
are.
You
know
like,
for
example,
20
2009
was
not
a
good
measure
where
the
markets
were
going
to
be.
You
know,
on
average,
over
the
long
term,
just
like
2021
is
not
going
to
be
either
so
they
use
a
five
year.
Smoothing
so
you'll
see
here
the
bottom
right
hand
corner.
G
With
this
five
year,
smoothing
we're
going
to
be
dropping
off
a
negative
one
percent
in
the
five-year
actual
smoothing
for
the
2021
valuation
and
replacing
it
with
this
year,
and
I
don't
know
what
the
final
number
for
this
year
is
going
to
be,
but
again
it
was
a
23
percent
as
of
march
30th
2021..
So
again,
I
don't
want
to
get
ahead
of
this
valuation
because
I
don't
know,
but
it's
it
has
the
potential
to
have
quite
an
impact
on
the
next
budget
request.
Thank
you,
sir.
E
Very
good
okay,
so
that
being
said,
if
anybody
wants
more
details
on
this
experience,
study
this
side
and
the
other
bo
did
a
great
job
at
the
last
ppob
meeting.
I'm
sure
it's
online
check
that
out.
It's
got
a
lot
of
good
information
to
it.
Representative
tipton
thank.
C
You,
mr
chair,
on
the
629.4
million
in
additional
funding.
I
just
want
everybody
to
understand
that
what
we're
talking
about
this
is
the
additional
funding
necessary
to
make
the
actual
the
unfunded
liability
whole
on
an
annual
basis.
Above
and
beyond,
the
statutory
contribution
has
already
been
paying
every
year.
G
C
One
brief
follow-up,
mr
chair
yeah,
on
the
629.4
for
fiscal
year
23.
How
much
of
an
increase
is
that
over
a
current
fiscal
year
contribution,
this
would
be
needed.
G
So
that
that's
going
that's
an
increase
from
the
previous
year
of
about
50
million
dollars.
E
Okay,
I'm
going
to
go
to
center
colonel
next
go
ahead.
I
Thank
you,
mr
chairman,
just
in
in
speaking
of
the
process
with
the
this
study,
I'm
assuming
that,
basically
in
most
areas,
this
study
just
comes
back
with
ranges
based
on
data
that
they've
collected,
and
then
the
board
makes
the
final
decision
as
to
where,
where
it
falls
in
between
that
the
range
that's
provided.
Is
that
correct.
G
No,
that's
a
good
question,
that's
a
very
good
question
but
though
the
the
actuary
under
our
statutes,
they
provide
specific
assumption
numbers
and
then
the
board
has
sort
of
processed
under
the
statute
of
just
ratifying
what
those
assumptions
are
that
are
established
by
the
actual.
G
E
Thank
you,
senator
carolyn
beau,
just
real
quick
to
clarify
for
the
committee
you
talk
about
when
16
drops
off
of
there
has
a
potential
for
a
significant
impact
to
the
budget
request.
So
could
you
just
provide
for
the
committee
significantly
increase
or
decrease.
G
And
and
there's
a
lot
of
things
that
go
in
the
valuation,
you
know
not
just
investment
returns,
but
investment
returns
are
certainly
one
of
the
biggest
drivers.
So
but
potentially
you
know
that
that
you
know,
with
higher
investment
returns,
there's
less
pressure
on
the
budget,
there's
less
pressure
on
the
general
fund
to
provide
those
dollars.
So
whatever
those
dollars
are
with
rolling
off
2016
and
adding
20
21
we're
going
to
see
less
pressure.
G
You
know
from
the
general
fund,
because
we're
gonna
have
more
investment,
return
on
this
rolling
actual
five-year
moving
average
to
help
make
up
for
the
cost
very.
E
Good
with
that
boa
that's
going
to
be
the
end
for
today
for
your
testimony,
I
apologize
for
pushing
you
as
hard
as
we
had
to
understand.
G
E
Am
trying
to
get
us
out
of
here
at
three,
so
we've
got
a
few
more
quick
things
briefly,
you'll
notice
in
your
folder
there
that
there
is
correspondence
from
jenny
bannister
in
the
office
of
the
state
budget
director.
If
you
have
any
questions,
please
make
sure
to
note
those
to
her.
Also
in
here
you
have
a
listing
of
correspondence
received.
I'm
sorry
reports
received
since
june
2021,
that's
cost
associated
with
issuance
of
revenue
bonds,
a
audit.
E
Property
assessment,
audit
from
office
of
property,
evaluation
and
various
things
throughout
here
to
include
everything:
motorcycle
rider,
education
and
others.
So
take
a
look
at
that
list.
If
you're
interested
in
it
get
yourself
a
copy
of
that
and
make
sure
to
study
up
on
it
at
this
time.
Is
there
any
other
business
to
come
before
this
committee.