KY Club for Growth opposes tax hike

Brian Richmond, president of Kentucky Club for Growth, says he is adamantly against raising cigarette and alcohol taxes to fund bloated government in Kentucky, but that if taxes have to go up conservatives should get something in return.

"They should give us, at the very least, a two-year moratorium on prevailing wage," Richmond said.

Kentucky would save $130 million or more a year by repealing prevailing wage policies on public construction projects. Of course, working out a deal like this would involve trusting Gov. Steve Beshear.

If this is pragmatism, we're in big trouble

President Barack Obama made a silly statement Saturday while complaining that nearly two-thirds of the electorate wants off his bailout train.

The Associated Press came to the rescue with their informed take on his comment:

""We can't afford to make perfect the enemy of the absolutely necessary," Obama said in his weekly radio and Internet address, sounding a note of pragmatism that liberal followers rarely heard on the campaign trail."

What?!?

If a trillion dollar bailout that no one really thinks will help the economy is an indication of what we can expect from the Obama Administration, then it sure would be nice if the media watchdogs would at least make him make sense about it.

Obama here rips to shreds a famous Voltaire quote that is most often translated as "the perfect is the enemy of the good." That means, of course, that holding out for perfect solutions sometimes prevents putting to work solutions that may be good enough.

But Obama's questionable "stimulus package" is not absolutely necessary. That's why we are so opposed to it. And the Associated Press weighing in with their opinion that his plan is somehow pragmatic doesn't do much for their credibility either.

Gouging saves lives in Kentucky

National media folks watching Kentucky dig out of the latest ice storm noticed the heroic -- and well-compensated -- efforts of a man Gov. Steve Beshear and Attorney General Jack Conway would burn at the stake for anti-Nanny State heresy.

Beshear and Conway haven't gotten the attention they so richly deserve for barking at the moon about prices when hard-working Kentuckians are trying to survive natural disasters.

If more people took the time to understand freedom rather than running for the quick soundbite, we would have better public policy discussions in Kentucky.

Thanks to Kentuckian in exile Caleb Brown for passing along the latest from Washington D.C.

Bunning economics plan makes more sense

Bailout opponent Sen. Jim Bunning today suggested via a floor amendment improvements to the increasingly unpopular spending bill Pres. Obama wants.

Bunning's plan would allow individuals greater ability to deduct investment losses.

Bunning said:

"Since the peak of the market in the fall of 2007, investors have lost $7.5 trillion in wealth. More than half of this amount is held in taxable accounts."

"If we do not adjust the limit, taxpayers will be unable to deduct real economic losses from their income tax, and this will result in higher effective tax rates."

"Two respected economists have recommended my amendment as a way to stimulate the economy. In an article in the Wall Street Journal titled “Let’s Stimulate Private Risk Taking,” economists from Harvard University and the University of Chicago wrote that my amendment would stimulate risk taking by reducing the downside of new investments and increasing the upside."

Further, Sen. Bunning advised removing significant corporate welfare provisions from the bill:

"My amendment also reduces the cost of this bill by about $2 billion, because I am also striking a remarkable provision that for the first time would allow corporations to use tax credits, even if they have no income. This is nothing more than corporate welfare and Soviet-style industrial policy."

"Never before has this body endorsed a refundable tax credit for corporations. This one costs a staggering $10.9 billion. It’s bad policy, and the money should be spent on broad-based tax individual tax relief that will stimulate our economy."

A hundred million here, a hundred million there

Two witnesses to the Senate Education Committee meeting Thursday came away with different numbers but the same story about the state's massively wasteful CATS school testing program.

Lexington Herald Leader education reporter Ryan Alessi reported:

"Sen. Dan Kelly, R-Spingfield, also said the CATS test has been sucking up too much valuable classroom time as the state spends $17 million per day on public school instruction. With 10 days of preparation, 10 days of testing and 10 days for mentally-spent students and teachers to recover, that's nearly a half-billion dollars lost, he said."

And Bluegrass Institute education analyst Richard Innes got this:

"At one point, Senator Dan Kelly outlined the full costs of CATS public school assessments, including the opportunity costs of instructional days lost to both administer the tests and conduct all the overly focused test preparation that we hear about so often. Kelly’s bottom line cost for CATS -- $700 Million."

Either way, Senate Bill 1 would get rid of the CATS program.

Will 69 million voters fall for this, too?

Just got a junk email from a bank invoking the Obama bailout scam and offering, fittingly, a scam VISA card with the false hope that "if Congress is willing to bail out Corporate America to the tune of a trillion dollars, why not have our sponsor try to help you!"

Interestingly, the reality of this "help" is somewhat less compelling than the hype. If you didn't catch it, a "secured" credit card is no credit card at all. It's a debit card just like the one any bank will give you for no cost when you open an account.

It gets better. The fine print reveals a $99.95 "one time" processing fee. Dig a little more, though, and you find this:

Amazing. So, the punch line on this helpful card is that you send in your money and the bank pretty much just keeps it. For example, say you send in $300 to open an account. The value of the account is immediately $200.05. The next two fees drop you down to $106.05. Then if you are stupid enough to use the card, as soon as you swipe it you start paying 19.5% interest on your own money.

Jim Newberry needs your call

The missing videotape that's part of the latest episode in the Lexington jail scandals has been located, according to a source inside city government, but continues to be hidden by city officials.

Please take a minute to call Mayor Jim Newberry and tell him to have the entire January 27 Budget and Finance Committee meeting posted to the city's web site.

His phone number is 859-425-2255.

10:30 UPDATE: The Mayor's office just called and promised to fix the problem. Thanks very much if you called. Either way, though, hang on to that phone number.

Take it like a man

Congress expands SCHIP, Kentucky loses

Gov. Steve Beshear has made a big deal out of signing up children for government health insurance and the U.S. House of Representatives just helped him waste our money even faster.

From the Cato Institute:

"SCHIP’s great expense stems from the fact that in many cases, it simply enrolls children who were already insured privately. Economists Jonathan Gruber and Kosali Simon estimate that out of every ten children added to the SCHIP rolls, six already had private coverage. Only in government is a program deemed to “work” when it covers four uninsured children for the price of ten."

If Gov. Beshear were really serious about putting Kentucky in position to grow when the economy recovers, he would consider encouraging Kentuckians to get off SCHIP rather than trying to get them on:

"One thing SCHIP does accomplish is to discourage work. SCHIP and similar programs create enormous disincentives to climb the economic ladder. A single mother of two earning minimum wage in New Mexico who increased her earnings by $30,000 would find no change in her net income: She would pay an additional $4,000 in taxes and lose $26,000 in SCHIP and other government benefits, according to data compiled by the Urban Institute for the federal government."

Read more here.

Obama bailout needs a bailout

As American support for President Barack Obama's $900 billion bailout plan drops precipitously, a group of Republicans are fighting back against Obamanomics:

Thanks for standing up against this, Sen. Bunning.

It will be no surprise to see the mainstream media full of news stories about how critical this bailout is. But one thing I didn't expect was to get two emails from the White House press office today inviting me to two different press conference calls about the "American Recovery and Reinvestment Plan." Tomorrow Melody Barnes, Director of the Domestic Policy Council will speak to "Southern reporters" at 1:30 and then at 2:30, Secretary of Transportation Ray LaHood will be on at 2:30 talking to "Midwest Reporters."

What they lack in substance, they probably more than make up for in outreach.

Will KY legislators approve voter initiatives?

Kentucky House Minority Whip David Floyd has filed a bill sure to catch the imagination of active citizens across the state.

House Bill 217 would allow individuals to collect petition signatures to change either state law or the state Constitution via voter approval and without any action by the General Assembly.

Before you start buying clipboards, though, HB 217 first has to pass both the House and the Senate by three-fifths votes this year, go on the 2010 ballot, and recieve a majority vote of the electorate.

I'm not aware of a similar bill in Kentucky in recent years. It will be interesting to see what kind of treatment this gets from our legislators.

Bunning was against bailouts; still is

While many in Congress are figuring out their fiscal principles on government bailouts by sticking their fingers in the air, stalwart Sen. Jim Bunning has been a notable exception. In a press conference today, he described the battle he fights today:

"There is no will to bite the bullet and reduce the spending. They are already talking about another trillion dollars for the banks. If I were a banker in Kentucky, I'd be very concerned that the federal government is going to nationalize the banks and take control of all the banking industry across the country."

Bunning also said he thought the Dow Jones Industrial Average, currently near 8000, would hit 6000 before it hits 9000.

Did Don Leach lose another consulting gig?

The graphic below shows a California-based visitor to this blog who seems to know something about the ongoing federal investigation into criminal activity at the Fayette County Detention Center.

Donald Leach is a former administrator at the Lexington jail who was a subject of a recent city Budget & Finance Committee meeting, documentation of which seems to have disappeared.

(Click image to read it)

This story just keeps getting better.

Bipartisan opposition to corporate welfare

Very interesting article in The Wall Street Journal today about how some states are expanding taxpayer-funded incentive deals for companies despite lacking evidence that the approach is worth the investment.

The article includes this salient passage:

Kentucky shows every indication it will continue to play the sucker's bet that state officials can really pick our economic winners and losers.

If Kentucky called a unilateral cease fire on the corporate incentives battlefield, we would very likely have less of a fiscal problem on our hands. At the very least, state "economic development" officials should have to demonstrate the return on investment for their handiwork. The fact that they don't shout their results from the rooftops speaks volumes, doesn't it?

How about a colorblind natural disaster?

A North Carolina think tank stuck its tongue in its cheek over the weekend and asked why President Barack Obama hates the white people in Kentucky. The question isn't any more ridiculous than the persistent nonsense about former President George W. Bush hating all the black people in Katrina-struck New Orleans, but the following point from John Locke Foundation is worth considering:

"It is the iron law of Katrina: The federal government, marginally competent in the best of times, assumes super-human powers in times of natural disasters. Ergo, any lack of relief is the direct result of a lack of compassion, probably racially motivated, on the part of the occupant of the White House."

Of course, there is no danger of the mainstream media picking up on an "Obama lied while Kentuckians died" screed. They understand he is busy fixing the world's economy.

And speaking of racism, Obama now wants to keep the Yellow Man down. Or something (click to expand):

More Left Coast activism headed our way?

An effort in California to make health insurance premiums more "fair" for women looks like just the kind of bad idea that would attract Gov. Steve Beshear.

Current law allows individual health insurers in both California and Kentucky to charge higher health premiums for women than for men. It's nothing personal; it's just that women tend to cost more to insure than do men.

California wants to level the playing field, which just means men will be charged more for the same coverage.

In much the same way that the effort to force Kentucky car insurance companies to stop charging higher premiums for people who exhibit certain irresponsible behaviors merely penalizes everyone else, activism here is a bad idea.

When insurance companies don't pay claims their policies require them to pay, government intervention is wholly appropriate. But legislating fair premiums isn't going to magically start working now, just because some politicians have good intentions.

Thanks to InsureBlog for the tip on this one.

Some hope for Kentucky public education

In a surprising Friday afternoon move, Kentucky's education bureaucracy gave House Democrats permission to vote for higher math standards in Kentucky schools.

Prichard Committee for Academic Excellence Executive Director Robert Sexton gave the official green light.

"Senator Dan Kelly has introduced Senate Joint Resolution 19," Sexton said, "aimed at revising the state’s mathematics content standards and related assessments based upon National Council of Teachers of Mathematics recommendations. I like this legislation because it starts to move Kentucky toward fewer, clearer, and deeper standards."

Now we need to take similar steps for English and science instruction.

Day five of Newberry videotape scandal

Still no word from the city of Lexington about where they hid the thirty minutes of embarrassing video of Fayette County Detention Center Director Ron Bishop catching flak for just a tiny bit of the problems relating to his mismanagement of the city jail.

Also, there can be no doubt that Lexington's fearless watchdogs in the mainstream media would be all over this if they weren't covering for Newberry.

It's the same story again and again.

Ohio Gov. Strickland: move to Kentucky

Funny quote about proposed education reforms by Ohio Gov. Ted Strickland in yesterday's Cincinnati.com:

"Earlier in the day, Strickland took a hard line on one of the most radical ideas - adding almost a full month to the school year. If new teachers are unhappy with a longer school year in Ohio, or his proposed four-year resident-training requirement, he said they are welcome to work in other states such as Kentucky."

""... If a teacher says, 'I'm going to teach in Kentucky instead of Ohio because the school day or the school year is longer in Ohio,' I would say to them, 'Move to Lexington or Louisville or Hazard," Strickland said."

Must be some pretty good stuff in that Ohio reform proposal, right?

Not so fast, says Bluegrass Institute education analyst Richard Innes:

"What Ohio’s situation really shows is the deplorable lack of decent education research to guide policymakers about what really does work in education. That problem has seen Kentucky chasing expensive education fads since 1990. Sadly, it now it looks like the same lack of data to support intelligent education choices is going to wreck havoc on the north side of the Ohio River."

Get more of Mr. Innes' analysis here.

Wonder how much this job pays?

The image below shows site reader data of this blog captured from a Lexington city government computer.

I think I liked Lexington Mayor Jim Newberry better when he was blocking this site from the view of on-the-clock employees.