Eastern Kentucky University will lay off employees as it seeks to reallocate 10 percent of its budget, outgoing President Doug Whitlock announced this week.
Ten percent cuts? That’s roughly Eastern Kentucky University’s pension payments.
EKU spends nearly $20 million per year to help fund the horribly underfunded pension system it’s a part of. Staffers there are in the 27%-funded KERS and faculty are part of the 54%-funded KTRS.
If they leave those systems – like Kentucky River Mental Health – they may not have to cut any jobs. Like Kentucky River, new accounting standards will force them to place monstrous liabilities on their own books.
KRS will sue over a pull-out but who cares, really? The entire system is shot.