Teresa Isaac stepped in it worse than Newberry

In sworn testimony, former Lexington Mayor Teresa Isaac contradicted herself on a key element of her story that has allowed her to claim confidently that there was nothing to the federal investigation of inmate abuse allegations at the Fayette County Detention Center.

She told the Lexington Herald Leader in a September 29, 2006 story:

"We're absolutely convinced that the investigation will show there's no violations" and "I've reviewed the same records they've reviewed, there's absolutely nothing in there that would amount to a civil rights violation and I've been a civil rights attorney for 25 years so I think I would know."

Under oath, she said that her confidence came from an internal investigation she requested. The more she talked, though, the more her carefully crafted picture melted into something else altogether.

"I had just completed an internal review and I told (former US Attorney Amul Thapar) that," she said. "We had completed an internal review and found nothing."

Thapar led the federal investigation into the Lexington jail. Isaac said he called her the week before the FBI raid.

In her deposition, Isaac admits that the "internal review" was really just an oral report from two former employees. But this is the best part:

Attorney Bill Jacobs: From the time the FBI took the documents ---
Isaac: Before. Before. We did an internal review before the FBI ever came, before Amul ever called me.

Jacobs: Did you do an internal review between the time Mr. Thapar called you and said he was coming to see you and they took the documents?
Isaac: No. We had completed it already before Mr. Thapar even called me.

Jacobs: You completed it 12 months before?
Isaac: Yes.

In other words, Isaac had no idea what the federal authorities were looking at, and what federal grand jury members saw that led them to indict five people for their actions at the jail. What could possibly account for her public pronouncements of innocence?

Kentucky's failed gas price strategy drags on

Kentucky's first-in-the-nation price-gouging lawsuit against Marathon Oil filed by then-Attorney General Greg Stumbo should go to trial next year, according to AG Communications Director Allison Gardner Martin.

Retail gasoline prices have doubled since Stumbo sued under an old Kentucky law that was repealed in 2007. You may recall the trigger for the original Kentucky lawsuit was a state-of-emergency called by then-Governor Ernie Fletcher in the aftermath of Hurricane Katrina.

As gas prices hang around $4 a gallon, the last thing we need is for other states to follow our big-government approach to lowering gas prices. We might warn the good folks in Michigan, but it looks like they are ready to take a bigger leap than we did.

Road to hell paved with Ohio's intentions

Kentucky Gov. Steve Beshear could take one of two lessons from a Wall Street Journal op-ed over the weekend about how things are going in Ohio. Big-government and higher taxes are running that state's economy into the ground, but those same policies are keeping the politicians who champion them popular with the voting blocs who feed at the trough and keep their guys and gals in office.

"Ohio already has the fifth-heaviest state and local tax burden in the country (up from 30th in 1990) and finds itself stagnating.
...
And that may actually be a plus for Barack Obama. His party is finding that lofty, vague promises of change combined with high-spending, high-tax, welfare state-ish policies are a political winner in the state. How else to explain why Gov. Ted Strickland's approval ratings are in the mid-50s or why Democrats may even win control of the state House for the first time in 14 years?" -- WSJ.com

And if you are wondering if things could get worse for Kentucky, the answer is yes. The same report that shows Ohio with the 5th highest tax burden in the nation ranks Kentucky 20th.

And we may be moving their way on that front in a hurry, given the mood of the legislature to ignore oncoming fiscal disasters, run stealth tax increases through, and slather debt onto our already-tapped out state credit card.

Steve Beshear, color in Obama's blank slate

Some people who are excited about Sen. Barack Obama have developed a tendency to project their pet issues onto his presidential campaign platform though Obama himself has said nothing about them.

Take, for example, Gov. Steve Beshear and the House Democrats who think President Obama will swoop in and cover state and local government employees and retirees on some kind of federal health insurance plan.

Before they get too excited about this idea, they may want to check with their man first.

Their misconception will cost Kentucky taxpayers dearly.

Hillary Clinton pops the question

Politicians of both parties have dragged out Ronald Reagan's quote about being better off than you were four years ago many times and they probably always will as long as the circumstances seem to present an opportunity.

But in the following YouTube video, Sen. Hillary Clinton goes way overboard when she asks if you are better off now than you were forty years ago.

"I've been involved in politics and public life in one way or another for four decades," she said. "And during those years, our country has voted ten times to elect a president. And Democrats won only three of those times. It's true; isn't it hard to believe? And think of the progress we have not made. Think of the problems that have only gotten worse."

How about think 'what planet has this woman been on since 1968?' Seriously, think about how much better off we are than we were the year before Americans landed on the moon. It never occurred to me to really credit Republican presidents for the astounding strides our nation has made during my lifetime, but Hillary brought it up.

The really good news is that you only have to watch the first minute of the following video to see for yourself the above quote.

Jim, are going let her talk about you like this?

Former Lexington Mayor Teresa Isaac may have dumped the Fayette Detention Center prisoner abuse scandal in current Mayor Jim Newberry's lap for him to ignore, but she said in sworn testimony that he didn't always ignore it.

In fact, she said he even brought up the federal investigation in a campaign debate to try to discredit her.

She claimed Newberry said "there's a problem at the jail."

Then Isaac continued her testimony, saying "I think maybe he even said he wanted to turn it over to (Fayette County Sheriff) Kathy Witt."

"I said we believe there are no problems at the jail and they will find nothing," Isaac said.

An autopsy on Frankfort's special session

The obvious point of contention in what remains of the HB 1 debate is Speaker Jody Richards' statement that their handiwork "will prevent the system from going bankrupt" versus President David Williams' assessment that the system remains "unsustainable."

There is a far more interesting point, however, that you aren't likely to see addressed elsewhere right away. At issue is what will really happen next.

Williams says that the funding goals for future years in the new law can be ignored, but that future legislators won't dare to because the people will create an uproar.

I spoke to Rep. Bob Damron and he had an interesting take as well, suggesting that government employees themselves will demand a more realistic defined contribution plan.

"I think if they did a survey the majority of people coming on today would say they want a defined contribution plan," he said. "Most people like the portability."

I like the quality of the conversation coming from these two, but I'm not quite so optimistic.

Killing Kentucky business on the installment plan

Some of the noise coming out of Frankfort today will sound pretty self-congratulatory over their handling of public employee fringe benefits with the passage of HB 1.

Don't buy it.

By the way, if you don't read Pension Tsunami for insight into how governments across the country are dealing with similar problems, today would be a good day to start.

Hey, look what you decided to do!

Lexington has its share of problems now, but what would things be like if you were forced to cough up the money for "Great Ideas" like a "free" zoo, an underground monorail system, or to bring in an NBA team? How about limiting each household to possession of only one car?

These are just a few of the oddball ideas presented by some group called Destination 2040. If you live in Lexington, you should enjoy the show, because you are paying for it.

Never heard of this nonsense, you say? Better wake up, because here it comes!

Lexington payroll snafu is latest screw-up

The ongoing computer problems in the Lexington Fayette County Urban Government have now resulted in the city missing payroll payments to employees.

Give the money back, Mayor Jim Newberry

News coverage and commentary about the current pension discussion in Frankfort has been pretty lousy, but the idea that city newspapers are going to start drumming up little ditties about how much their town is going to "get" or "save" as a result of HB 1 is false, misleading, ridiculous, stupid, irresponsible, asinine, absurd, and just plain wrong.

In today's "breaking news" feature, the Lexington Herald Leader crows without attribution that Lexington is going to "save" $1.4 million in the passage of House Bill 1. Reporter Michelle Ku must get pretty excited when her credit card issuers offer her the ability to skip a payment because she has been "such a good customer." That is exactly what is happening with this current scheme.

And it sounds good for Mayor Jim Newberry's finance commissioner to say they aren't going to immediately just run out and spend the money. Lexington taxpayers should demand Mayor Newberry take a stand for fiscal responsibility by refusing the loan. He would show leadership by encouraging other mayors and county judge executives to do the same. "Pay me now" is always cheaper than "pay me next year."

Nothing going on here, move on (and go broke!)

I appreciate that the mainstream media wants to better serve its readers through the blogosphere, but this (and this and this) is not the way to do it:



In a time of economic difficulty, the pension scam is a story begging to be told well. Sure, most people's eyes glaze over when you start talking about paying billions of dollars or running out of money in some accounts sometime in the next two decades. But people struggling to meet rising costs in their own lives will certainly understand paying way above market rates with their own tax dollars so government employees can have gold-plated fringe benefits for life.

And the real story is that Frankfort has misappropriated the money we have been sending to them for several years, so they are passing a bill this week to suggest that they do less misappropriating and we do more sending through 2025. That is just a "suggestion" because the state constitution forbids passing a law to obligate future General Assemblies, but the failure to cut overspending on benefits will obligate (and overextend) taxpayers for many years to come nonetheless.

There is more here.

A brief discussion on new media

I will be a guest on the Leland Conway radio show (630 AM or wlap.com) at 9:15 this morning discussing coverage of the Fayette County jail.

Don't be late because I don't anticipate being on there long, but the call-in number to talk with Leland afterward is (859)280-2287.

It's another isolated incident at FCDC

A few funny things about the Lexington Herald Leader's report late Tuesday about the exposed drug ring at the Fayette County Detention Center.

First, how can it be a "breaking news" story when the reporters read it on the internet and waited for a press release?

Second, how great is it that the FCDC staff is going to have to discuss the FBI investigation every time something goes wrong at the jail?

The real story is this: an inmate was shooting up in his cell and got caught. The inmate gave up Houlihan as his dealer and Houlihan was then given the opportunity to resign. He took it.

And if you believe Houlihan is the only person dealing drugs in the Lexington jail, you probably believe Don Leach studied really hard for his doctoral degree. I would be suspicious if there are no more arrests in this matter.

Circling wagons, covering tracks in Lexington

Lexington Commissioner of Public Safety Tim Bennett had separate closed-door meetings today with Fayette County Detention Center Director Ron Bishop and the other assistant directors at the Lexington jail.

Bennett's upcoming deposition could be interesting summer reading.

Deny this, Governor Steve Beshear

If Gov. Steve Beshear has no plans to call a special session to pass tax increases after the November elections, he should quickly and publicly make that clear.

That is one hot rumor making the rounds in Frankfort. And rumors sometime take on a life of their own -- especially for someone who already broke his no tax increase promise once (see clip below).

"The first thing we do, let's kill all the bloggers"

Captain Darin Kelly at the Fayette County Detention Center just told me that he won't give me any information about what is going on at the Lexington jail because, he said, "I spoke to Susan Straub at the Mayor's office and she doesn't consider you a legitimate news organization."

This is an interesting shift in public relations strategy for a government in desperate need of a shift in public relations strategy.

Will the last officer at the jail turn off the lights?

4:30 Update: Houlihan has resigned. Taxpayers are off the hook for this one. As I write this, though, none of the five indicted officers, currently vacationing and awaiting trial, have volunteered to give up their salaries.


Capt. Darin Kelly at the Fayette County Detention Center just refused to divulge any information about an arrest at the facility this morning.

Apparently jail employee Daniel Houlihan was arrested today and charged with promoting contraband first degree. Something about giving methadone to an inmate.

Other than the disturbing silence from the jail, the first question in my mind is will he be placed on administrative leave with pay just like the other troublemakers?

Looks like one more successful initiative, maybe

The Bluegrass Institute's government spending transparency initiative seems to have really gotten the attention of Governor Steve Beshear at last.

This was part of a press release sent out by the state Monday night:

"Task Force Chairman and state Finance Secretary Jonathan Miller unveiled a prototype of the full public access Web site that he hopes will be operational by the end of the year. Miller asked task force members to study other states' fully operational Web sites for ideas on the structure of the Kentucky site."

Given Miller's track record, I'm not exactly holding my breath on this one. If we are to ever change Kentucky's status as a corrupt little backwater of a state, though, sticking to our guns on posting all government spending on the internet is critical.

And that means ALL of the spending. No loopholes, no excuses.

Is the noose tightening?

6:34 Update: Susan Straub called just now and said Newberry "was not questioned by the FBI last week and has not been questioned by the FBI."
----------------------------------------------

Lexington Mayor Jim Newberry's communications officer Susan Straub said this evening that she did not know whether Newberry was questioned by FBI officials last week.

A city employee source who asked to remain anonymous, however, said he was. His indifference to the alleged cover-up of prisoner abuse was the subject of posts here and here last week and a Lexington Herald Leader story on Sunday.