Kentucky Attorney General Jack Conway needs to clarify creditor rights in the event of a municipal bankruptcy in the commonwealth, John Kemper, candidate for Auditor of Public Accounts, said.
"With our growing debt, pension obligations and Obamacare on the way, we need to be clear about what happens if we can't pay the bills. Who gets paid first: bondholders or pensioners? Without a law that spells out what we have to do, it's up to the Attorney General to specify who gets paid when there is not enough to go around."
Kemper's political opponents have attacked him for warning about Kentucky's excessive accumulation of debt, but he hopes politics doesn't stop them from acting to protect taxpayers.
"It's a simple request, really," Kemper said. "I'm willing to overlook the fact that no one has done this yet if General Conway just gets on it now."
