Boone County's tax increase boondoggle

A microcosm of the national struggle for the heart and soul of the Republican party is happening right now in Boone County over a tax increase proposal that will be on the ballot.

The ballot language does seem a little vague:

The creation of a dedicated natural areas and parks fund (Park Fund) for the purposes of the purchase and maintenance of public parks, to improve water quality, to preserve forests and wildlife habitat, as well as to provide active parks and recreation services, in Boone County, Kentucky through an ad valorem (property) tax not to exceed two point two cents ($.022) on each one hundred dollars ($100.00) assessed valuation of all taxable property within the limits of Boone County?

It's not hard to imagine the "need" to raise more revenues for all those things might suddenly materialize.

The battle lines have been drawn.

KRS to me: go screw yourself

The expensive investment gurus at Kentucky Retirement Systems -- the people whose investment mistakes are now the taxpayers' problem -- are used to getting kid glove treatment in the media. That all changed this weekend when the Courier Journal's Stephenie Steitzer gave them a much-deserved butt kicking, that I followed up on here.

The evident incompetence brought up one simple question: how did these people we are trusting with billions of our dollars do in the recent mortgage-backed securities meltdown?

So I asked.

Rather than provide any kind of insight into what they have been doing with themselves -- and our money -- over the last year and a half, though, I got this waste-of-time response (click the image below to read):


3:39 pm UPDATE: Got another email from KRS stating that they would provide me with information but that a report may have to be generated. I'd be very surprised and disappointed if, with all the hulabaloo, no one has stopped to see just how bad our mortgage losses are.

Get Skippy off our money, now

Finance and Administration Cabinet Secretary Jonathan "Skippy" Miller's disastrous foray into higher education finance is rolling Kentucky into another river of red ink.

The 2008 actuarial report you have only read about here is out today and the news is as bad as predicted by your humble correspondent years ago.

Bluegrass Institute readers already knew about the new $35.7 actuarial deficit taxpayers will have to make up for Skippy's ponzi scheme. What's really remarkable, though, is how much worse the news is going to get for us.

From the report are future projected losses for this ridiculous money-loser:

Readers will note that the program runs out of money in 2019, leaving taxpayers with an $81 million bill.

Expect Gov. Beshear and Skippy to start pushing for re-opening KAPT to new contract sales very, very soon. As with all ponzi schemes, bringing in more suckers and kicking the losses down the road is the big-government way to deal with such problems. Sort of like what we did with Social Security, Medicare, and our state public employee benefits system.

Serious gun grabber alert

The Kentucky FOP Lodge 4 endorsements included mostly Democratic candidates, as usual. What's interesting is that while they endorsed Kathy Stein for the 13th Senate district, they went against the Democrat running to replace her in the House, Kelly Flood. Turns out Flood is as far to the left on guns as anyone I've seen running for office in Kentucky.

The FOP endorsed Kimberly Ward in the 75th House district. Flood's positions on guns include licensing citizens who wish to carry handguns and prohibiting citizens from carrying concealed weapons. Not even Kathy Stein, who wants to put serial numbers on individual bullets, holds such extreme positions.

Obviously, Flood's risk to public safety is too much for the FOP to stomach.

What part of bubble didn't they understand?

I'm not expecting Kentucky Retirement Systems to answer my questions any time soon about how much money they have in toxic mortgage securities, but data from their 2007 annual report suggests they were busy buying them at exactly the wrong time.

The chart below shows that the KRS held $845 million in mortgage securities on June 30, 2006 and that by June 30, 2007 that number had nearly doubled to $1.47 billion.

Big Ed bloggers prove wrong point, again

Education writer Diane Ravitch (via Kentucky education blogger Richard Day) takes another in an endless string of shots at free market innovations in education by jumping into the deep end for a financial markets analogy.

It doesn't work.

"I wonder if its advocates in the education arena will stop and reconsider whether they are importing free-market chaos and free-market punishments into the lives of children?"

Trying to make the point that introducing competition into the taxpayer funded education is somehow the same as government's hands-off approach to financial markets (Fannie Mae, Freddie Mac, ACORN, CRA mandates, Rep. Barney Frank, Sen. Chris Dodd, Sen. Barack Obama, etc.) supports the opposite conclusion from the one they intend. And it just makes them look silly.

Free markets didn't fail in the financial markets fiasco. They were hardly even consulted. Had they been, they would have advised against pouring trillions of taxpayer dollars into artificial demand for housing. Sort of like how we keep pouring trillions of dollars into unaccountable, monopolistic government schools.

Colin Powell endorses Barack Obama

Former Secretary of State Colin Powell just endorsed Obama on Meet The Press.

"I would have difficulty with two more conservative appointments to the Supreme Court," Powell said.

No story here.

First day in office

If you were elected president, what would you do on your first day in office? While reasonable people can certainly disagree on what has to happen January 20, 2009, Sen. Barack Obama's priorities are strangely focused on aborting babies:

Where will Beshear put David Boswell?

The latest SurveyUSA poll shows Kentucky's 2nd Congressional district isn't buying the "spread the wealth around" class warfare of Senators Barack Obama and David Boswell.

The latest poll has Sen. Brett Guthrie up by nine points. Boswell is losing despite -- or perhaps because of -- campaign donations from bailout goats Rep. Barney Frank and Rep. Charlie Rangel.

Post-election scrambling in his district looking for a special election replacement for Sen. Guthrie will be nothing compared to the scrambling in Frankfort to give David Boswell a job so he can take advantage of the sweet pension deal lawmakers worked out for themselves in 2005.

Boswell should have to promise that he will not accept a state job until the excessive pension boost in HB 299 from 2005 is repealed.

Feeding at both ends of the trough

Senate Minority Whip Joey Pendleton wasn't expecting much of a race from his Republican opponent Tom Jones, but an emerging pay scandal related to Sen. Pendleton's job at Murray State University could cause him some problems.

Pendleton's contract at MSU specifies that he is not to be paid on days when he is actually working in Frankfort for the legislature.

According to a statement from the Republican Party of Kentucky, Pendleton "appears to have cheated MSU out of $69,784.00."

RPK Chairman Steve Robertson said Pendleton should "reimburse this money to Murray State University and I hope Attorney General Conway will put aside partisan politics and appoint an independent prosecutor to investigate this matter immediately. The taxpayers deserve accountability."

Massachusetts a small-government leader?

A ballot initiative in Massachusetts to repeal the state's income tax is being vigorously ignored by the national media, but recent polls suggest it actually could pass.

Unlike a possible Kentucky bill to replace the income tax, the Massachusetts plan would simply require that state to spend $12 billion less each year than its current $47 billion annual budget allows.

Voters decide on November 4, but the big-government groups are pouring millions of dollars into maintaining the status quo. Even if the effort falls short of passage, its apparent strength in the land of Sen. Ted Kennedy and Sen. John Kerry may inspire others.

State's top lawyer stays mum on net seizure

Interesting that Attorney General Jack Conway has stayed out of Gov. Steve Beshear's effort to seize internet domain names of private companies.

Franklin Circuit Judge Thomas Wingate ruled this afternoon that Beshear's goofy move is okay with him.

Through his spokeswoman, Conway again refused to get involved.

That's a whole lot of "if" there, Mr. Speaker

Who is ready to join me in calling b.s. on House Speaker Jody Richards' victory lap in the 2008 Special Session on pension reform? If you listen to the floor speech below, think of Barney Frank talking about how everything was fine with Fannie Mae.

Debate wrap-up

Redistribution of wealth won the debate.

Barack Obama said "elf," not "wealth"

When Sen. Barack Obama was telling that plumber in the ABC News video going around that he wanted to take money from him and give it to other people so they can succeed too, some interpreted his statement as evidence of his Marxist redistribution philosophy.

The Obama campaign said that just isn't so. What he said was not "spread the wealth around." In fact, what he said was "spread the elf around."

Like this:

Some racist, right-wing hate groups have taken his words out of context. Please click the image below for a full 5:47 video of Barack and the plumber. At the 4:40 mark you will see the camera cut to an actual elf who says he has to use the bathroom:

Is this why Beshear is taking others' internet stuff?

Judge Thomas Wingate's office just called and said his decision on the Beshear seizure of internet domains fiasco will be delayed until tomorrow morning because of a computer glitch.

Does Gov. Beshear need to seize a Mac desktop computer for the Franklin County Circuit Court?

Jail plaintiffs object to attorneys' settlement

Judge Jennifer Coffman this morning ordered plaintiffs attorneys in a class-action lawsuit against the city of Lexington to answer by Thursday objections to a controversial settlement by several jail workers who are part of the class action.

According to court documents, though, it appears none of the jail employees filed the proper paperwork to object specifically to the amount of the attorney's fees they are going to have to pay to the lawyers.

A tale of two tellers

Kentucky's two big newspapers sat out another key education meeting again yesterday. If they are even going to pretend to cover public policy, the Courier Journal and Herald Leader should at least cover the single largest item in the state budget.

When Education Commissioner Jon Draud's Assessment and Accountability Task Force met yesterday, two people were there to cover it. What's amazing is how different their reports were. First there is EKU professor Richard Day:

"If a vote had been taken today it is unclear whether Commissioner Draud's Assessment and Accountability panel would keep writing portfolios in the CATS assessment."

Then consider the report from Bluegrass Institute education analyst Richard Innes:

"Until yesterday, the information provided to the public consistently indicated that findings from this task force would be collected in a report to be provided to the legislature. Well, forget that."

"Now – as announced yesterday at meeting five of the task force – the committee’s findings are going to have to be approved by the State Board of Education. Furthermore, instead of an independent and uncensored report, the task force’s findings will simply be buried in the Kentucky Board of Education’s 2009 legislative request."

While it is no surprise that this task force was set up to provide cover for doing nothing to improve education in Kentucky and provide back-up for the traditional screaming for more money, it is a bit of a shock to see the cover-up performed so publicly. Good thing Dick Innes was there to witness and report on it.

Lawsuit started against Northup opponent lives on

Third parties in Kentucky could get a boost if a lawsuit headed for federal court is successful.

Hint: whether Republican-turned-Libertarian Ed Martin has his votes counted in the November election is an interesting sideshow, but isn't the main issue. Stay tuned...

"Don't know much modern history"

You don't have to wonder why hardly anyone takes Congressional candidate Heather Ryan seriously when you see stuff like this:

Shades of Cynthia McKinney.

Will Beshear spark an Indian attack?

I wonder what Gov. Steve Beshear's approval rating will be if it leads to Kentucky being attacked by Indians.

Beshear's illegal internet domain seizure has irked the Mohawk Council of Kahnawake.
"This is a perfect example of someone who knows nothing about the effects of their actions," said Grand Chief Delisle, "It's not the first time that a government has tried to prevent us from conducting business and it won't be the last. But, rest assured, we will always protect our jurisdiction and the integrity of the Kahnawake Gaming Commission."
Maybe it would help if we could get Beshear to apologize for calling them leeches and child molesters.

A leader for a change

Here is an interesting presidential campaign ad ... from 1976:

Obama Voodoo

Sen. Barack Obama's 90 day foreclosure moratorium proposal today is bad enough. His $3000 tax credit for each new job created is a non-starter of a scheme that aspires to be counterproductive.

But his plan to give federal loans to states and cities (whose pre-existing spending problems are much greater issues than any temporary decline in tax revenues) is really bad. Besides, Kentucky has already tried that. This is not a time for more smoke and mirrors.

Hillary Clinton didn't have anything to do with this

They will have a tough time blaming this on any Republicans. Absentee voters in Albany, New York were mailed ballots last week with the Democratic nominee for President listed as "Barack Osama."

Maybe they can pin it on their blind Governor.

Appearance of impropriety in Fayette jail case

Intense speculation this weekend has Fayette jail employee plaintiffs in the wage and hour class action lawsuit against the city protesting the settlement agreement their attorneys worked out for them under suspicious circumstances.

Think low rent Fen-Phen scandal. That would be the class action lawsuit in which the plaintiffs attorneys ripped off their clients, gorging themselves on the settlement.

This case is different in the number of political connections between the low settlement for the hundreds of present and former employees who were cheated by the city ($530,463 in cash, $345,000 in paid leave time), the attorneys fees paid to lawyers at Miller, Griffin & Marks ($1,144,537), and Mayor Jim Newberry.

Judge Jennifer Coffman ordered the plaintiffs' attorneys at Miller, Griffin & Marks to get testimony from three neutral-party attorneys that the settlement amount was appropriate. Two of the three contributed to Mayor Newberry's most recent campaign. All agreed the settlement amount was not improper.

A hearing is scheduled for Tuesday, October 14 in which individual plaintiffs may express concerns about the settlement agreement. Dissatisfaction among current and former jail employees and the appearance that plaintiffs' attorneys may have short-changed the plaintiffs in deference to Mayor Newberry is further complicated by a four decades-old story from Memorial Coliseum:

The Wes Coffman in the story is not only the same Dr. Wes Coffman who donated $1075 to Mayor Jim Newberry's last election campaign, he is also the husband of Judge Jennifer (Burcham) Coffman, who is also the judge in the class action lawsuit.

Doesn't look good for the plaintiffs in this one:

When the going gets tough...

... tough Americans go to work.

In honor of the can-do, American spirit that will get us through any and all of the struggle that lies ahead, The Bluegrass Institute has rented out The Kentucky Theater in Lexington on the evening of October 29th for a special showing of the inspirational movie "Call of the Entrepreneur."

And you're invited.

For details, you may join "The Call of the Entrepreneur" group on Facebook. If you can't do that, call me at the phone number at the top of this page.

Get ready for our "Inflation Holocaust"

Any bail out supporters want to refute this?

Now is not a good time to be in debt, which has always been a good thing to avoid. But now that our politicians have made all the wrong moves to deepen our crisis of confidence, it is about to be a much worse time to be in debt.

Nevertheless, the fundamentals of the economy have been strong and they remain so. No one ever repealed the business cycle. If we can just get the politicians to back off, the power of the American economy will continue to make its rich and the poor richer. While nincompoops like Jimmy Carter and Barack Obama are stuck on blaming the Bush tax cuts and while nincompoops like George Bush and John McCain are promising to restore stability, the rest of us are working to keep the engine of the American economy roaring so efficiently that we can even afford to keep their sorry rear ends in their nice, warm seats.

We won't get it, but what we really need is some good old laissez faire capitalism around here.

Is federal government ready for economics lesson?

Can't imagine why the mainstream media wouldn't be interested in picking up a national story about trillions of taxpayer dollars being flushed down the toilet by one out-of-control federal bureaucracy, can you?

This one even has a strong local connection.

Now is the perfect time to reconsider the economic policies wrought by our federal government in the name of eliminating poverty, leveling the playing field, and labeling services provided by individuals as "rights" to be mandated by the government.

Even more criminal activity in Fayette Jail

Fayette County Detention Center muckety-mucks Mary Hester and Edye Dabney are trying to keep quiet a little problem they have with male employees sexually abusing women in the system.

Mayor Newberry?

Cut spending and borrowing, Governor

Gov. Steve Beshear had a press conference this morning to sell hard the idea that we need lots of new and higher taxes in Kentucky.

But he isn't telling you everything you need to know.

Read this, too.

Good question for Mayor Jim Newberry

Louiville Metro Corrections has a short list for hiring a new jail director. Fayette County Detention Center's Director Ron Bishop used to be the director in Louisville.

Wonder why Bishop isn't under consideration for his old job, especially since he still lives in Louisville?

That's because Bishop is a hot potato and Louisville isn't interested in playing Lexington's game.

Mayor Jim Newberry hasn't shown much gumption when it comes to dealing with real problems. Could it get any clearer that he needs to do something about the mess at the Lexington jail?

The terrorists don't want you to sell stocks short

With the oh-so-successful ban on short-selling of stocks coming off today, a finance blogger has a suggestion for those who think less government regulation of financial markets will only bring on ruination. He says you might consider converting to Islam.

Fed warns about falling property taxes

Just in time for Gov. Steve Beshear's "we're borrowing our way to prosperity" victory lap, we get the word from the Federal Reserve about what to expect -- and when to expect it -- when it comes to falling property tax revenues.

I know the presidential candidates are determined to "stabilize" real estate prices, but all the fun and games will be disrupted soon enough as our big entitlement programs come calling for money we don't have.

Let me guess: we need casinos and more taxes?

Gov. Steve Beshear has called a press conference for Thursday morning at 9:30, room 110 in the Capitol to discuss the economy.

Starting to hit the pension nail on its head

Financial difficulties can be a good thing when it forces prioritization. In flush times, a satellite dish with every channel in the world might be a lot of fun. When times get tough, it makes sense to figure out which channels you can live without.

The question we are going to have to answer in Kentucky is when our public defined-benefit pension plans become like Australian rules football on ESPN 12. The prospect of massive taxpayer losses have been too easy to overlook until now.

As part of a CNN Money article about how private defined-benefit plans should all be gone soon, there is this detail about why these taxpayer time bombs have hung on longer:

Pretty soon, more people may come to think of paying for public employee benefits that are unavailable in the real world as akin to sitting around watching Australian rules football on ESPN 12.

Anne Northup turns on Mitch McConnell

Don't know how this one is going to end up, but I like to see the fight:

I'm not crazy about the typo in the middle of this ad -- and Anne's timing for getting religion on pork spending leaves a little to be desired -- but it is a conversation Republicans are going to have to have with each other at some point.

Let's sing a happy bailing song!

The Dow Jones Industrial Average is down 1000 points since the Congress rushed through its bailout and pork sandwich and President Bush signed it last week.

And I feel great.

No, I'm not celebrating the national angst -- though it's tempting -- or the $700 billion we flushed into the abyss. I'm just relieved there is general agreement we shouldn't print up another $700 billion to fix all our problems again. And the widespread angst will be hugely profitable once we get back to allowing that sort of thing around here.

Nevertheless, I find it necessary to correct some convenient re-writing of history about Herbert Hoover. He is cast, conveniently enough for those doing the casting, as a hard-hearted Republican free-marketeer who sat by and did nothing as the nation collapsed into the Great Depression.

This simply is not true.

In fact, I found this great quote from Hoover about his efforts to stave off disaster:

"We might have done nothing",Hoover said, "[but] we determined that we would not follow the advice of the bitter-end liquidationists."

I am the type of proud "bitter-end liquidationist" that neither Hoover nor Bush would allow to get in the way of all the inverventionist fun. Our problem now, as then, is excessive credit that has to be wrung out of the system. The sooner our politicians let that happen, the sooner the economy will get back to growing.

California's hints that they will need bailing out are just the tip of the iceberg that represents the states and cities that may keep the next president too occupied on that level to do much damage on a large scale for a while.

That and the inevitable firesale prices on assets all over the world for those of us who didn't wreck ourselves in the party, may make it all worthwhile fairly soon.

Sign o' the times

I'm struck by how unhelpful the mainstream media is in the wake the financial meltdown/bailout/new Great Depression nonsense going on these last few weeks. It almost seems like party pooping to point out that if those of us who are able keep providing services people need and keep our spending to within our means and keep our wits about us when some people with microphones are screaming about the end of the world, we will emerge from any temporary setbacks as stronger people.

I hope you can see and enjoy the humor in this (click below to read):

Still looking for that pony!

The Kentucky Club for Growth adds some details to a post I put up this morning about Kentucky's deteriorating financial situation and particularly the official inaction that stands to make it all worse. (Go here to see the Club's post.)

One bit of good news that I just found out -- that's good news in the optimistic sense of the boy who spent hours digging through a room full of manure hopeful to find the pony that was surely in there somewhere -- is that Kentucky has not issued any of the billion and a half dollars in bonded indebtedness the legislature decided to issue in the budget passed last spring. Given the current state of the municipal bond market, it may be a while before they can sign our children up for any of that debt. So -- good news.

Gotta enjoy it when you can find it.

Setting off dead-tree cannibalism

A weekend discussion about the wisdom of subsidizing newspapers with scarce tax dollars has created a minor firestorm at the Bowling Green Daily News that resulted in me being deemed an unperson (reference "1984" Orwell,George). (See this for the latest from the Daily Nooze.)

More on this from me here.

I've been very interested in the ongoing transformation of the news business. So I found a discussion about how big newspapers may start going out of business soon worth a read -- including a much more civil discussion in the comments section.

Emergency Summit in Frankfort

I'm heading to the Capital Plaza Hotel in Frankfort for a 1 pm emergency summit hosted by the Bluegrass Institute dealing with Gov. Steve Beshear's seizure of internet domains.

See you there! (Click below for details)

Where have we heard this before?

The Lexington Herald Leader and the Louisville Courier Journal were too busy this weekend to print it, but bond rating agency Fitch had this to say about Kentucky:

"The Negative Outlook reflects plans to continue to deplete fund balances and virtually drain the budget reserve trust in the current biennium. Further, Fitch remains concerned about the weakened pension funding levels and the commonwealth's rising debt position as an additional $1.65 billion in debt has been authorized for the biennium."

Wouldn't want Gov. Steve "Sixty percent approval rating" Beshear to face any tough questions about any of this, would we?

Why newspapers are dropping like flies

Some wuss at the Bowling Green Daily News has his talking points down pat when freedom of speech rolls into his wallet.

But when it starts going the other way and he can't back up his arguments, he does this:

If Barney Frank were a Republican...

No, Congressman Yarmuth, it wasn't "deregulation" or "capitalism" that caused the banking mess. I'm not any happier with the Republicans who jumped in to support "the big fix." Both parties are shooting at the innocent bystander -- free market capitalism -- but when Congressional Democrats were presented with evidence, the went Social Security "there is no crisis" on us.

Don't call KY newspaper bailout a bailout

Funny blog post by Bowling Green Daily News General Manager Mark Van Patten about newspapers and bankers followed by an even funnier discussion in the comments section.

Check it out here.

EVEN Funnier Update: I had to change my log-in on the Bowling Green Daily News website to comment because this champion of free speech was deleting my comments and, ultimately, blocked me from making comments. I just posted this:

It will be interesting to see how long it stays up. Some people's principles sure go out the window fast when their paycheck is on the line.

Having a nice credit crunch?

In the mail today came a $30,000, no fee, 0% APR till 2010 credit card offer from Washington Mutual for my 19 year-old college student son.

"I'm from the government blah, blah..."

An ironically-timed press release from the Kentucky Department of Financial Institutions today would be roll-on-the-floor funny if not for the scam perpetuated on us by the Congress utilizing tactics that were identical to those Frankfort is now warning us against.
(Click to read)

Politics at its worst

Speaker Nancy Pelosi is on the House floor taking credit for killing the first bailout bill and talking about how great the revised version is.

And the increase in federal insurance will just help the FDIC go bankrupt faster.

Pelosi also said the bill would begin to shape the financial stability of our country and the economic security of our people."

Really, Nancy? How, exactly, might it do that?

Rep. Ben Chandler repeated his no vote from Monday, as did Rep. Ed Whitfield and Rep. Geoff Davis. Rep. John Yarmuth flipped to the dark side, joining Rep. Hal Rogers and Rep. Ron Lewis.

Sen. Brett Guthrie, what say you?

Barack Youth

You may have heard of the Obama video with adoring, adorable children singing his praises. If you liked that, you will love this:


(via Caleb Brown)

Oh, and here is a response. Sans kool-aid.

McCain-Palin sleeping through healthcare debate

In his debate, Sen. John McCain didn't answer Sen. Barack Obama's criticism about his health-care and tonight, Gov. Sarah Palin didn't either.

Sure wish they would. This link would help.

Cracking down on Obamacide

Secretary of State Trey Grayson will speak to a student pro-life group on the University of Kentucky campus later this month.

The Barack Obama fans are really going to hate that.

A voice against socialism in America

Food for thought from U.S. Sen. Jim DeMint on the the unrestrained growth of government in America:

"Our own government appears to be leading our country into the pit of socialism. We've seen this government socialize our education system and make our schools among the worst in the world. We've seen this government take over most of our healthcare system making private insurance less and less affordable. We've seen this government socialize our energy resources and bring our nation to its knees by cutting the development of our own oil and natural gas supplies. And now we see this Congress yielding its constitutional obligations to a federal bureaucracy giving it the power to control virtually our entire financial system."

And now might be an appropriate time to remind you that our entitlement disasters dwarf this mortgage/banking mess. Social Security, Medicare, Medicaid, and public employee pensions and healthcare benefits need our attention far more than giving the government more control over the financial system.

The only government solution to these problems is less government.

Bailout advances

The U.S. Senate right now is passing the bailout bill. Bunning voted against it. McConnell voted for it.

Seventy four ayes and twenty five nays.

Now it is back to the House where its fate is still very uncertain.

Hope this helps.

How many bailouts are we going to do?

Whether Congress is going to move closer to free market solutions for the financial mess or not, they have played their cards on socialized medicine. Congratulations, you just bought yourself $4.3 billion worth of a big-government healthcare "solution" for some people in Massachusetts. Enjoy!

Like any government program that measures its success by its increasing budgets, this one will be looking for more suckers like you and me.

(Via Club for Growth)

Wednesday LOL: Jack Conway

These are truly triumphant times for people who don't understand economics at all. While most of the politicians in Washington D.C. are content to let Americans think the raging free market caused bankers to lend money to people who were very unlikely to make good on their mortgages, most of the politicians in Frankfort are thrilled to watch Kentuckians rant and rave about evil oil companies raping consumers with high gas prices.

Enter Kentucky Attorney General Jack Conway. Courtesy of PageOne, Conway claims to be studiously poring over pricing data as he readies a fresh round of gas price lawsuits after the major price disruptions in the wake of Hurricane Ike. And then he is still on some wild kick about "reviewing" the 1997 merger between Ashland Oil and Marathon Oil.

If Conway knows anything about the Ashland/Marathon merger, he would know that the FTC already fully vetted it in 1998 and again in 2004. He can't seriously think he knows something that everyone else doesn't know.

"Pay no attention to that man behind the curtain"

It's ironic that just as Finance and Administration Cabinet Secretary Jonathan "Skippy" Miller is trying to take credit for posting government expenditures to the internet, the agency that runs the money-losing KAPT program he championed is sitting on that program's actuarial report.

What's wrong, guys? Something you don't want us to see?

Skippy?

Below is a screen shot taken at 10:48 pm Tuesday night on the KAPT web site showing no 2008 actuarial report. It will be interesting to see how fast this gets updated and how bad the news is.

Let there be spending transparency

The Beshear administration will post a website next Monday morning related to the E-Transparency effort. Glad they have finally gotten this far and they deserve credit for making this happen.

The more transparent government activities are, the better the public is served. Nice job, guys. Now do it right.

This isn't helping

You'd think the campaign staff, or the Senate staff, or the party staff, or some random dude running down the street with his hair on fire could come up with something better than this:

"Senate Republican Leader Mitch McConnell of Kentucky said it was time for all lawmakers to "act like grown-ups, if you will, and get this done for all of the people." He predicted a bill would pass this week, although the House, not the Senate, is the focus of the dispute."

Got this from the AP.

Wonder how that little crack will poll...

Picking up steam: no bailouts for junkies

An interesting comment on a Bluegrass Policy Blog post about drug abusers in Kentucky drawing welfare benefits:

"I have worked in law enforcement and you would be AMAZED at the number of drug users who are in line to get their money every month, whose numerous trips to the ER looking for drugs or trips to jail are paid for by you, whose children are supported by the state (who often have numerous special needs because the mother was on drugs while she was pregnant). While they spend time getting high, in jail,or in government funded rehabs the taxpayers are supporting them, their family members/friends are using the food stamps and SSI checks to do what they like. They sell the benefit cards to others to get money to get the drugs. Cut them off, make them accountable and responsible for themselves...stop enabling the abuse of taxpayer funds and government programs."

You can read the whole post here.

Kentucky candidates vote no on bailout

It says something that everyone with an opponent in the Kentucky House delegation voted against the bank bail out.

Chandler, Davis, Whitfield, and Yarmuth voted against. Rogers and Lewis voted for it.

Sen. Brett Guthrie might need to talk about Lewis' yes vote.

George W. Bush, stabilizer-in-chief

No, Mr. President, it isn't for every American.

President Bush is pushing the bank bailout bill this morning. He said "Every member of Congress and every American should keep in mind that a vote for this bill is a vote to prevent economic damage to you and your community."

That isn't exactly true. If you bought a house in the last few years ignoring all the talk about a real estate bubble and now want to sell, this bailout's for you. If you got an adjustable rate mortgage when rates where at a historic low, this bailout's for you. If you underwrote or sold mortgages to people who shouldn't legitimately have gotten a mortgage, this bailout's for you. If you are a politician who wants to take credit for "doing something," especially if you stood in the way of preventing this nonsense back when we tried to fix it, this bailout's for you.

This bailout isn't for the rest of us, Mr. President. If it were, you guys would just do away with the mark-to-market rules and let us get on with our business. A crisis of confidence in a free economy has a great way of working itself out. Kind of like how a big sale at the mall clears the shelves.

No, Mr. President. The vote, the stability, and the bailout aren't for the rest of us. We just get to pay for them.

Stop nursing care for newspapers

Very soon, Kentuckians across the Commonwealth will become keenly aware of the need to reduce government spending. When that happens, we need to work up support for prohibiting the use of taxpayer funds to print government announcements in newspapers.

Notices of hearings, meetings, auctions, etc. can all be placed on the internet for much less money than we are now spending. And the ferocity with which newspaper publishers defend this largesse is quite telling. It's time for the long, slow, expensive bailout of newspapers in the state to end.

Then we need to stop bailing out junkies, labor unions, and corporate welfare recipients.

Do you know what a muni is?

At least for a while, the federal government may get away with bailing out holders of bad mortgages because it can print money.

The state of Kentucky has no such luck. And the difference may start to matter here pretty soon.

While the municipal bond market meltdown hasn't gotten much attention yet, it will. And then we will have some serious decisions to make.

The Bluegrass Institute weighs in.

Smaller government, transparency, pension reform

Speaking Saturday in Stamping Ground, Sen. Damon Thayer discussed key issues not getting enough attention elsewhere including the "fiscal trainwreck heading down the tracks here in the Commonwealth" in unfunded public employee benefits:

Ten minutes to understanding the meltdown

All is well in Community Organizer Nation

One little-noted detail about the current "financial meltdown" is that the rabble-rousing continues unabated without any community organizers actually having to worry about missing a meal.

Regardless of any of his other sins, Phil Gramm was still right when he said we have become a nation of whiners. How else would you describe a people who have been bellyaching about a recession through eight years of economic growth and now are lobbying for sidewalk expansions to fit the coming soup lines in the Great Depression of 2008?

Joe Klein's debate postmortem for Time includes this: "McCain seemed more prudent and thoughtful than he has since he uttered the most important line of the campaign so far, "the fundamentals of the economy are good.""

The fact is that the fundamentals of the economy are good. Refutations of this hard fact always quickly devolve into bogus statistics about those without health insurance, utter nonsense about the poor getting poorer while the rich get richer, or the latest craze, blaming everyone's problems on laissez-faire capitalism.

We will know the economic fundamentals of the United States are no longer good when community organizers can't find work as community organizers. They certainly have to have an appreciation of these good economic fundamentals on the weekends, when they enjoy the comfort of the homes and the company of their families, as they rest up from a busy week of complaining about how horrible America is.

The mortgage mess is the exact opposite of a failure of the market. Making bad loans and putting them on the books as good loans is a distortion that had to be worked out eventually. This bill (notice the co-sponsors) would have helped a lot, but too few people were listening way back then.

A snag in the Jim Newberry set-up

Judge Jennifer Coffman issued an eight page order yesterday in the Fayette jail employees' class action lawsuit against the city of Lexington. It appears she has some questions about the questionable deal attorneys for both sides worked out.

"The critical question of concern to the Court is not whether the
defendant should settle; rather, in its role of protecting the
interests of the plaintiff-employees, the Court is concerned with
whether it is legitimately in the best interests of the plaintiffs to
settle."

And this:

"The likelihood of fraud or collusion behind the settlement."

In other words, hold on to your hats, Lexington taxpayers. You are going to need them after Mayor Jim Newberry and his lawyer friends get finished cleaning out your wallets.

A preliminary settlement hearing is scheduled for 1pm on September 30 at the Federal Courthouse in Lexington.

"That's not political, it's nooze, baby!"

Since when is it newsworthy that Rep. Ben Chandler is endorsing a fellow Democrat running for Congress?

And don't tell me it is because Chandler is a "conservative" Dem and that the Blue Dog label means something.

Remember this? How about this?

Grover Norquist to the rescue

Americans for Tax Reform is making plans to come to Frankfort to publicly express opposition to Gov. Steve Beshear's internet meddling.

Beshear gets national attention

In a week of disasters in Washington D.C., Gov. Steve Beshear brought some unwanted attention home to Kentucky.

Beshear's plan to seize internet gambling websites has raised the ire of Americans for Tax Reform.

"A ruling issued last week in Kentucky by the Franklin County Circuit Court orders the seizure of over 140 internet gaming websites. The lawsuit, supported by Gov. Beshear, was filed by Justice and Public Safety Cabinet J. Michael Brown. A forfeiture hearing on the matter is scheduled for Sept. 26."
"“This ruling, aside from being unconstitutional, represents an egregious example of government intrusion on free enterprise. The court’s decision unjustifiably hampers the freedom of Kentuckians,” said Grover Norquist, president of Americans for Tax Reform. “This Orwellian attempt by Gov. Beshear to censor the internet sets a dangerous precedent that should deeply concern all Kentuckians, not just the thousands of law abiding adults in Kentucky that enjoy poker.”"

Nice job, Governor.

Why re-electing Mitch McConnell matters

Senate Majority Leader Harry Reid doesn't need any more power.

Jody Richards' golden butt-kicking

House Speaker Jody Richards is trying to get Education Commissioner Jon Draud's job so he can bow out "gracefully" rather than face a challenge from Rep. Greg Stumbo for the Speaker's chair.

This would complete a circle, with both men taking full advantage of Kentucky's rigged public employee pension system for politicians.

Al Gore: "take down" those coal plants

Al Gore has gone off the deep end again, calling for "civil disobedience" and urging young people to "take down" coal plants.

This comes right on the heels of VP candidate Joe Biden saying basically the same thing.

Obama is the real Herbert Hoover

Thanks to the Club for Growth for passing along this video of an interview that lines up both sides of the bailout debate pretty well. About halfway through, the hapless Sen. Chuck Schumer says Sen. Jim Demint sounds like "Herbert Hoover in 1929." If the interviewer knew her history she would have stopped him on that. Hoover was a big-government Republican who rammed through tariffs that choked off trade and massive tax increases that killed growth.

Sounds a lot like our guy Barry.

Kentucky's financial bailout plan emerges

moar funny pictures

Time to speak up

Sen. Mitch McConnell, you may remember, was for the amnesty bill before he heard from us. Now that he is basically on the same side of the welfare-for-pinstripes scheme as Rep. Barney Frank, he should hear from us again.

You'll either love this or hate it

An enterprising new Kentucky website is selling Sarah Palin bumper stickers for the best price available anywhere.

"Now we want to show our support for her and make a lot of liberals mad while we drive to work. We urge you to show your support for Gov Palin by putting the Palin crosshairs on your vehicle."

Check it out here.

Grayson rips Obama/Biden coal plan

Secretary of State Trey Grayson called on Kentucky Democrats Gov. Steve Beshear, Bruce Lunsford, and Sen. David Boswell to take sides for or against the coal industry.

Vice Presidential nominee Joe Biden has chosen his side. He is against it.

Grayson said:

"Recently, the Obama-Biden ticket showed its true colors as it relates to the future of coal in our country. Sen. Biden said at a campaign rally in Ohio that in an Obama-Biden administration there would apparently be 'no coal plants here in America.' This bait and switch is similar to Senator Obama's support of clean coal legislation that Senator Bunning and he co-sponsored in the Senate. Obama eventually voted against the legislation."

"Governor Beshear, Bruce Lunsford, and State Senator David Boswell, who either represent coal producing counties or are running to do so, should renouce these reckless and uninformed beliefs of the Obama-Biden ticket, particularly on the eve of Senator Biden's visit to Kentucky. During these difficult economic times, we should be doing more to spur Kentucky's economy, not trying to extinguish it."

Homework help for Ron Bishop

Authorities are looking into reports that Fayette County Detention Center Director Ron Bishop is waiting for someone named Libby Mills to finish writing his response to a devastating but unreleased management review performed by city auditors.

Lexington taxpayers are still paying for Bishop to drive a city car home to Louisville every day.

Mayor Jim Newberry had no comment.

Yeah, there is another side to this argument

The Lexington Herald Leader has a column this morning about Congressional earmarks in which they couldn't find anyone who is against the redistributive nature of pulling so much money of private hands that politicians get to build their political careers on pulling some of back and deciding who gets it.

Bruce Lunsford had a chance to really score points on Sen. Mitch McConnell, but he punted:

"Lunsford couldn't cite a McConnell-secured earmark for Kentucky with which to quibble."

Republicans give fiscal conservatives precious little to support on this front but the "we can pour out the slop better than they can" approach is certainly not a winner.

The Club for Growth of Kentucky has a very interesting take on this. If tax revenues are high enough to fund bovine flatulence studies and the mating habits of hummingbirds, think how much more productive that money would be in what is left of our private sector.

Give taxpayers a seat at the table

Congress battling over the shape of the $700 billion bailout means some want to add in executive pay restrictions and large-scale mortgage renegotiations for troubled homeowners.

While my opposition to limiting CEO pay is melting as the promise of more federal taxpayer bailouts makes more CEOs de facto government employees, I don't see much sense in propping up the last vestiges of the housing bubble by continuing to compensate those who can't afford their mortgages.

If anyone in Washington D.C. is interested in treating taxpayers as more than ATMs, they would repeal automatic deduction of payroll taxes. Let's go back to having Americans make their own tax payments. Congress should make this a part of the bailout bill.

Wow, that was quick!

More than a month ago, you read here that the Fayette County Detention Center had fired the four indicted and suspended officers in the inmate abuse scandal. There were more details provided here last week.

The Lexington Herald Leader is on the case today, talking to the union president I got the same information from in mid-August.

What's odd is that the four indicted former officers appealing to get their jobs back even merits a news story now. All this amounts to is the defendants trying to keep themselves busy before their November 12 pre-trial conference by acting like they aren't going to prison.

What the Herald Leader should be reporting on is why Cpl. John Vest, who the city has been trying to malign for two years, still has his badge, ID card, uniforms, and keys to the jail but isn't allowed back to work. His slander and civil rights violation lawsuit is getting stronger every day.

Another issue Mayor Jim Newberry ignores

Increased federal enforcement of immigration laws will have an impact on Lexington and other areas of Kentucky sooner or later. Given security concerns about the World Equestrian Games in 2010, it might be sooner.

And it could get ugly.

Tears -- and sand -- in their ears

Just wondering if the Fannie Mae debacle might have some of the "There is no crisis in Social Security" crowd rethinking their not-so-long-ago positions.

Perhaps I'm not the only one:

"But the Fannie fiasco matters for a less-obvious reason. There are other accidents waiting to happen in the social entitlements whose costs also will jeopardize U.S. long-term growth. Social Security and Fannie aren't often spoken of in the same breath – as programs go, we associate Social Security with the swinging-and-60-plus crowd, not the Swinging '60s."

"What Social Security and Fannie have in common is that both have lived important segments of their lives off-budget. Tax increases are likely to pay for Fannie and Freddie. These increases will remind voters that being off-budget doesn't mean a program won't eventually penalize the taxpayer. Burned by Fannie, voters may get ready for entitlement reform."

It's past time to stop the whining against Social Security reform and get on with it.

Funny money at Fayette jail no laughing matter

Sources with information about the City of Lexington's internal auditing say that a damaging report about Don Leach, former Administrative Officer at the Fayette jail, will be released as soon as Monday.

At issue is financial improprieties related to Leach's consulting business and misuse of city property.

Despite rumors to the contrary, the final audit report is not likely to include information about Director Ron Bishop and Edye Dabney.

Other than being indicative of very poor judgement by officials at the jail and the city, this mess appears to be unrelated to the criminal abuse of inmates at the Lexington jail.

David Boswell is running the wrong way

The Republican Party of Kentucky is having a field day with a fundraiser for 2nd district congressional candidate Sen. David Boswell going to Washington D.C. for a fundraiser with California Congressman George Miller.

"David Boswell raised so little money in Kentucky that he’s been forced to turn to Nancy Pelosi’s closest friends to bail him out. There is no doubt where his loyalty would be in Congress,” said Republican Party of Kentucky Chairman Steve Robertson.

Rep. Miller has endorsed Sen. Barack Obama for President and scores 0% on tax issues and 21% on responsible spending. He also rates an F from the National Rifle Association and a 100% from the ACLU.

Thanks Nancy, Ben, and John

The U.S. House of Representatives last night gave the advantage on energy production back to Republicans.

"House Republican Leader John Boehner (R-OH) today put the Democrats in charge of Congress on notice that the House GOP will not stop fighting until a comprehensive energy reform bill is signed into law. Boehner’s speech comes a day after House Democrats rejected a bipartisan plan – authored by Reps. John Peterson (R-PA) and Neil Abercrombie (D-HI) – to take the first critical steps toward lower energy costs. Democrats instead passed yet another sham “no energy” bill, continuing Speaker’s Pelosi’s stated purpose of attempting to give vulnerable Democrats political cover by encouraging them to tell their constituents they will vote for real energy reform without actually doing so."

Now the sham bill goes to the Senate where Sen. Mitch McConnell gets to be the hero by killing it. And even if that doesn't work, it is sure to get a veto from President Bush.

Your vacation is over, boys and girls. Time to get to work. And all that really means now is to get yourselves out of the way so Americans can produce their own energy.

Rep. Ben Chandler and Rep. John Yarmuth, both of Kentucky's Dems, voted for the sham.

Newt's tri-partisan big ideas

Newt Gingrich is putting together an event September 27 to explore ways to fix what ails the country. Could be interesting.


Go here for more.

Crass politicization aside, casinos still dead

Sen. Jack Westwood has decided he now wants a vote on casinos.

Maybe it will get him a few votes or campaign contributions, but it still won't get Gov. Steve Beshear any casinos.

If you want more money, guys, repeal prevailing wage and certificate of need.

New media staying on top of stories that matter

If you have been reading this site for information about the Fayette County Detention Center scandals that you can't get elsewhere, then you may also want to read Page One Kentucky for details about a big financial scandal at the University of Louisville that others have been strangely incurious about.

Hey McCain, tell us about this!

If Sen. Barack Obama were to win this November and bring a Democratic Congress with him to Washington D.C., we know government involvement in healthcare would increase.

A state constitutional amendment ballot initiative in Sen. John McCain's home state of Arizona, however, would limit the expansion of government-run health programs and infringements on individual rights.

Here it is:

Free market reforms to the healthcare industry aren't even on the table, really, because so much of the national conversation is about increasing the role of government. A policy such as this one from Arizona could allow states to get serious about looking at ways to make the system work better instead of just more expensive.

Can we get a running mate for Mitch McConnell?

From Polwatchers:

"McConnell's campaign manager Justin Brasell also countered that McConnell has "voted 29 times against congressional pay raises and ten times since 1996 for minimum wage increases.""

Yikes!

I will say this, though: before you get all wobbly on the Senate Minority Leader, watch the video below of his opponent Bruce Lunsford a couple of times and you will be okay.

Let's stick Obama's campaign in a closet to die

Kentucky reform works when it is evidence-based

Kentucky has gotten some well-deserved, if minor, kudos for responding to reality and doing away with most of its 1994 flirtation with HillaryCare.

"The coverage guarantee is not a new concept. But it has had a troubled history in several states that tried it for people seeking coverage through the insurance market. Some states, such as Kentucky and South Dakota, eventually dropped the guarantee after insurers left. In the few states where guaranteed coverage continues, monthly premiums generally are much higher for younger, healthier people than in nearby states."

Too bad we are not yet ready to take a similar approach to what the real world is telling us about our two decades-old educational reforms.

"Grossly excessive" Steve Beshear pandering

Fortunately, it appears the hurricane winds weren't enough to cause a gasoline supply disruption for Kentucky.

But we got enough hot air from Gov. Steve Beshear to last us for a long time. The way our "price gouging" law is written only encourages him and politicians like him to go around calling gasoline suppliers dirty names.

The standard for violation of the Kentucky "price gouging" statute is too vague for anyone but a trial attorney or a politician trying to boost his approval ratings to appreciate. The bill subjects anyone to prosecution for selling goods and services during a called emergency for a price that is "grossly in excess" of the normal price.

In fact, the law is so vague Beshear and Attorney General Jack Conway might just fine retailers around the state until they pile up the extra $500 million they want to tax you for.

Does anyone need to be reminded who those extra costs will be passed along to?

It would be much cheaper for all of us to simply repeal this awful law.

Kathy Stein: rape is in the eye of the beholder

I thought I had heard it all when Gov. Steve Beshear said that Kentucky gasoline retailers were trying to eat us, but now he says they want to have forcible sexual relations with us first.

My question is: which gas stations is he talking about, and which stations are non-violent? I really want to know.

And as much as I love a good non-apology apology, I have to wonder how many milliseconds it would take for a Republican to be crucified for making similar comments and then apologizing only "if I offended anyone."

And the best part is seeing Rep. Kathy Stein ride in to the rescue.

"Reactions to Beshear’s initial comment varied. State Rep. Kathy Stein, D-Lexington, called Beshear’s analogy of rape “tough, but perhaps appropriate.”"

"“Sometimes situations call for brutally descriptive language,” Stein said in an interview yesterday."

Stein's opponent in this November's Senate race should ask Stein to tone down the rhetoric about sexual crime she now condones. I'd like to hear more about Stein's philosophy of the state's role in price regulation. And perhaps she could suggest a less invasive sexual crime for her ridiculous analogies.

Or maybe she could tell us that if high gas prices are rape, what sexual crime is it when bad public policy causes gasoline supplies to dry up?

Did you 'seethe' this?

Here is a video to get the Panic-crats really upset.

Senator Mitch McConnell spoke in Lexington today, pointing out the wasted opportunities in the Congress these last two years. He mentioned the dozens of meaningless Iraq votes taken since Democrats took control in the 2006 election. He criticized them for "continuing the 2006 election" instead of working toward resolution of problems like unfunded liabilities in Medicare and Social Security.

Don't be surprised if stations run out of gas

Economically literate Kentuckians are really missing the boat if they pass up the opportunity to ridicule Gov. Steve Beshear and Attorney General Jack Conway for jumping on the gasoline price controls express today.

Here is my shot at them.

And then there is the timeless classic from Dr. Walter Williams:

"Economic ignorance, misconceptions and superstition drive us toward totalitarianism because they make us more willing to hand over greater control of our lives to politicians. That results in a diminution of our liberties. Think back to the gasoline price controls during the 1970s."

"The price controls caused shortages. To deal with the shortages, restrictions were imposed on purchases. Then national highway speed limits were enacted. Then there were more calls for smaller and less crashworthy cars. With the recent gasoline supply shocks, we didn't experience the shortages, long lines and closed gas stations seen during the 1970s. Why?"

"Prices were allowed to perform their allocative function -- get people to use less gas and get suppliers to supply more. Economic ignorance is to politicians what idle hands are to the devil. Both provide the workshop for the creation of evil."

The current "gouging law" is the worst kind of price control. If the law merely said $8.01 a gallon is too much, that would be one thing. But the current law merely prohibits setting a price at a level "grossly in excess of the price prior to the declaration and unrelated to any increased cost to the seller." That's no law; that's an open invitation to the government to make up the rules as it goes.

Busted: ABC's Charlie Gibson

If you had a vague feeling watching Charlie Gibson's interview with Sarah Palin that he went much easier on Sen. Barack Obama, you would be right.

Thoughtful critique of Gov. Sarah Palin

Hey, didn't you used to be Pamela Anderson?