Kentucky's shot at a debt ceiling

Kentucky Knows Best has a report out in favor of a constitutional amendment limiting the debt Frankfort politicians can pile on us.

The bill, sponsored by state Rep. Mike Harmon, would limit revenue supported state debt service to 5% of revenues. We are now almost 30% above this so Rep. Harmon's bill would stop the accumulation of bonded debt for several years.

Glad to see Kentucky leading the way on this. Maybe Congress should take notes.

Should the bill, which will be HB 108 in the 2012 General Assembly, gain sufficient support in Frankfort it will appear on the November ballot as follows:

"Are you in favor of amending the Constitution of Kentucky to modernize, update, and consolidate provisions in the Kentucky Constitution related to debt, and to limit the amount of debt that may be authorized by the General Assembly, subject to future changes, to that limit initiated by either the registered voters of Kentucky or by the General Assembly?"

The correct answer is "yes."

Obama Admin lies in Lexington KY

At a Council of State Governments webinar in Lexington on Tuesday, an Obama Administration official lied about a serious problem with the ObamaCare law.

At about 31:40 on the video, Steve Larsen, director of the Center for Consumer Information and Insurance Oversight in the U.S Department of Health and Human Services was asked about citizens in states with federally-run ObamaCare health insurance exchanges not being able to get federal subsidies for the more expensive ObamaCare insurance in 2014.

The law states very clearly that only people in states with state-run exchanges can get the subsidies.

Mr. Larsen's answer did not reflect that fact.

"The ACA (Affordable Care Act) permits the federal exchange to provide tax credits," Larsen said.

The Obama Administration can't just wave a magic wand and change the wording of federal law to cover up this stupid mistake. To change the law, it must go back to Congress for a swift death in the House.

Obama minion files Kentucky bill

President Barack Obama's Kentucky campaign chairman pre-filed a bill yesterday that serves as another reminder that the champions of big government think you are stupid.

House Bill 103 would create three new slush funds inside Kentucky's budget reserve trust fund, or rainy day fund.

You aren't supposed to know that the only way Kentucky can show a positive balance in the rainy day fund is to hide our growing debt.

Professional politicians in both parties in Frankfort have gotten pretty good at that.

What is negative campaigning?

Attacking Newt Gingrich for being a Big Government Republican is not negative campaigning.


Any questions?

Tell Beshear to return ObamaCare bailout

Kentucky is one of six states to have started allowing state employees to drop state health insurance coverage on their children and pick up federally subsidized CHIP through changes implemented in the 2010 federal health reform law.

The Beshear administration claims to have shifted $2 million in health costs onto the federal government already.

Unwinding ObamaCare will be hard enough when we get the opportunity. With the program's tentacles now having extended into the state government workforce, it will be just that much harder.

The silence from Frankfort's Republicans on state action on ObamaCare is deafening.

Governor Beshear should back off this policy and stop all activity that further tangles Kentuckians into ObamaCare.

Try proving sales tax holiday isn't a gimmick

Nearly every year in Kentucky around Christmas, someone in the state legislature files a "back to school state sales tax holiday" bill.

So here comes the 2012 version. In it, certain school supplies and clothing would be exempt from state sales tax for three days at the end of July each year. It's the perfect feel-good legislative proposal. If it passes, the sponsors win. If it doesn't pass, the sponsors win. And voters who aren't paying much attention feel that their Frankfort lawmakers have thrown them a bone.

I'll take this as more than a political stunt if the sponsors amend the bill to immediately cut from the state budget the total amount of sales tax exemptions tallied during each and every sales tax holiday.

"The essence of ObamaCare"

Presidential candidate Michelle Bachmann has criticized both Mitt Romney and Newt Gingrich for supporting the "essence of ObamaCare."

She's right.

Romney's web site says that he would "help control health care costs" and "ensure that individuals with pre-existing conditions who are continuously covered for a specified period may not be denied coverage." But we don't need government to do either of these things. It's in following this flawed line of thinking about government activism in the marketplace that we wind up with things like ObamaCare.

Gingrich's web site says he wants to reinforce "laws which prohibit insurers from cancelling or charging discriminatory rate increases to those who become sick while insured." But we don't need government to step in and force insurers to stop doing something that their contracts allow them to do.

And that is the most important point.

Most people don't read their insurance contracts because they believe that government regulation is there to protect them. You don't have to talk to too many people to figure out this is not the case. You probably don't sit around all day trying to manipulate government regulations to get the most value from your insurance contracts. But your health insurer does. Those companies have to cut every available corner in the interests of self-preservation. And that's because government regulation would otherwise be used against them to curry favor, build power and buy votes. They were forced to start playing the game, but they have become expert at it. They are banking on the likelihood that you are no expert.

The best thing for government to do in health care transactions is to stop creating this adversarial relationship between insurers and their customers and get out of the way. If that policy were our default position, then helping people with temporary or even permanent financial needs relating to health care would be much cheaper for everyone. We would then have more insurance companies and greater consumer choices and all the societal benefits that come along with market competition.

Michelle Bachmann's web site is light on specifics about health care. With Herman Cain out of the race, she is smart to go after Romney and Gingrich on this issue. She should take the next step and show that she understands what must be done beyond repealing ObamaCare.

Make life easier for Kentucky Wildcats

University of Kentucky athletic dirctor Mitch Barnhart could build and maintain sports facilities for our beloved Wildcats for less money if Frankfort politicians would repeal the state's prevailing wage laws.

It's worth noting this weekend that North Carolina has no prevailing wage laws. Coach Calipari, what say you?

Greg Stumbo on drugs

Kentucky House Speaker Greg Stumbo wants to force medical providers to accept health insurance as part of the effort to "fight drugs." This comes as the federal government is doing its level best to destroy health insurance in America and state officials are already making it worse.

The only way out of our health care crisis is to rebuild markets in health care. Forcing providers who have escaped the system to get back in as part of a half-baked scheme to battle prescription drug abuse is the wrong solution at exactly the wrong time.

Price competition is the only thing that will improve the efficiency of health care in America. We don't need fewer cash-only clinics; we need more of them.

Kentucky can kill ObamaCare

A Kentucky Knows Best report indicates the ObamaCare law will collapse quickly under its own weight if states don't set up Health Insurance Exchanges which facilitate hiding the law's costs.

That's because the law clearly states federal subsidies for Exchange-purchased health insurance policies can only be given if the state chooses to run the exchange. Without the subsidies, ObamaCare insurance will be way too expensive.

The Obama Administration is scrambling to change the law illegally through the IRS or the Department of Health and Human Services because they know Congress won't bail the president out of his mess.

Meanwhile, Kentucky's Governor Steve Beshear is trying to figure out a way to change Kentucky law to set up a state-run Exchange without actually having to get a bill through the legislature.

States like Kentucky can kill ObamaCare by refusing to set up an Exchange. Please tell your legislators not to set up a state health insurance exchange.

Want to see bunch of sugared-up lawmakers?

Rep. Rick Nelson probably means well with a new proposal to limit food stamp spending on sugary foods and drinks, but before the legislature kills what would seem to be a common sense bill the main thing this will do is activate Big Food and their lobbyists to sweeten up some legislators' campaign accounts.

12/23/11 edit: The link to Rep. Nelson's bill no longer works because the bill has been removed.

Some Beshear 2% cuts are 98% short

Kentucky Governor Steve Beshear announced yesterday that spending exceeds revenues by $190 million dollars and that he will address the problem with certain 2% cuts that amount to (... wait for it!) $29 million.

Most of the rest will come from the same kind of smoke and mirrors games that have created billions of dollars in off-the-books debt that never seems to make it into the headlines.

Or even the press releases from either side of the aisle in Frankfort.

The biggest problem with a 2% cut to the Economic Development Cabinet (ha!) is that it leaves in place the other 98%. There are others, but this should be the beginning of the discussion, not its end. This is where we need the "leadership" Senate President David Williams has been talking about. It's a terrible shame that we are getting instead his image rehabilitation efforts and, likely, more bipartisan tax increases in January.

This is why a "no tax increase" pledge is important.

What Mitt Romney doesn't get

Republican presidential candidate Mitt Romney explains the difference between his Massachusetts government health coverage plan and President Obama's federal government health coverage plan basically as one of jurisdiction.

“Our plan was a state solution to a state problem," Romney said. "And his was a power grab by the federal government to put in place a one-size-fits-all plan across the nation."

But if we have learned anything since starting Medicare and Medicaid almost half a century ago, it is that expanding the role of government in health care is not a very good solution no matter where you are.

So Mitt wants to repeal ObamaCare on jurisdictional grounds. But if there were any doubt that failure to grasp the problem with too large a role of government remains an issue with him, just wait till you see his plan for Medicare.

He wants to set up a voucher program to compete with the federal program. Of course, the private options will have to play with real dollars and the government option will get to keep using government accounting and an endless supply of tax and borrowed money. Can't be surprised when that doesn't work well for anyone but the polticians who support the government option.

It's like "if you like your insurance, you get to keep it" in reverse. No thanks.

Kentucky goes crazy for Casey Anthony

Kentucky is well on its way to having ten pre-filed bills that would make it even more illegal to neglect your child like Casey Anthony was accused of doing. Senator Ray Jones today joined the parade.

A Bluegrass Fair dunking booth was a big hit this summer in Lexington because it featured a Casey Anthony look-alike who heckled patrons until it was decided that making a joke about a dead child might be in poor taste.

This legislative piling-on is no better.

Did Hal Rogers just endorse term limits?

Congressman Hal Rogers told CN2 that the Americans for Tax Reform Taxpayer Protection Pledge should have a one term time limit on it.

Congressman Hal Rogers does not understand the Taxpayer Protection Pledge.

Left unchecked, government will only grow bigger and stronger. Small government advocates support candidates who realize this is a problem and promise to do something about it. Refusing to give the federal government tax increases is one of those things. We don't put time limits on core principles.

Congressman Hal Rogers made that promise himself when he signed the Taxpayer Protection Pledge.

Now he wants out. This is not what we need from Republicans in Washington D.C. right now.

Repealing ObamaCare isn't enough

President Obama's opponents on health reform should look at a developing controversy in Kentucky for a clue to winning a larger battle about the role of government.

Click here for a Kentucky Knows Best report on efforts by state politicians to limit their constituents' health coverage options even more than current federal law mandates.

Christian Care Medi-Share is obviously not the perfect health coverage plan for everyone. But federal law exempts it from regulation under ObamaCare while Kentucky officials attempt to run the health care cost sharing program out of the Commonwealth.

Few politicians in Kentucky want to be associated with Barack Obama. Even fewer would like to be described as worse than Obama on health care, but that is the current state policy. Please call your representatives and tell them to support more health care choices for Kentuckians.

ObamaCare may or may not be repealed in 2012, but if we can't even get behind the idea that government shouldn't be making health decisions for everyone then we deserve whatever we get.

Thankful for the Tea Party this year

On balance, 2011 has been a challenging year for the Tea Party. We lost some elections. The debt ceiling fiasco drags on with higher debt, no real cuts in spending and a "supercommittee" deal that allows both Republicans and Democrats to yell at each other through the 2012 elections without addressing the main issue.

Government didn't get any smaller in 2011 and next year looks even worse.

Long live the Tea Party.

A lot of us said at the beginning of the movement in 2009 that it took many decades for us get in our current mess. We weren't going to get out of it in a few months. And so, we didn't succeed immediately and beyond our wildest dreams. For this, the opposition is calling still for us to give it up and go away quietly.

Go fish.

Democrats say the state of things is the Republicans' fault. Republicans reply that it is all Obama and the Dems. Tea Partiers point out that it is both sides of the professional politician racket bobbing and weaving and hoping no one catches on to them.

We have caught on to them. If you are part of the Tea Party, thank you for hanging in there. The tough times are far from over, you know that. Keep up the fight.

Same old trap on casino gambling

In much the same way that you can't have open borders and a welfare state, you can't have expanded state govenment revenue streams with enormous social costs in a welfare state.

Casino gambling in Kentucky can't pass the legislature without promising to fund too many pet projects with all the hoped-for revenue. And it can't, in reality, fund all the projects.

Take, for example, Rep. Alecia Webb-Edgington. She gives her laundry list of funding suggestions in the video below and then states she will not vote for casinos if funds are not devoted to those areas.

The people want casinos to help the horse industry have to figure out a way around those who want casinos to make government bigger. In other words, they are still at square one after all these years.

Another $2 billion hole in Kentucky's pocket

Last January, The Washington Post ranked Kentucky's gubernatorial race as the most important one to watch in 2011.

It never materialized in the fall because the best points of attack against Gov. Steve Beshear (tax increases, massive bonded debt and underfunding of the state employee benefits plans) all applied equally to Republican nominee Senate President David Williams.

In fact, an actuarial report out today from the Kentucky Retirement Systems showed the legislature over the last four years cut short their required payments into the pension plans by more than $2 billion.

It's very likely this blog post is the first you are hearing about this latest outrage. If you would like to have access to information like this without waiting to see what the mainstream media filter wants you to know, click here to sign up for Kentucky Knows Best email updates. You only need to provide your email address and then respond to one confirmation email.

The Smurf Employment Act of 2012

Kentucky state Rep. Brent Yonts is pre-filing a bill that would encourage methamphetamine cooks to create jobs throughout the Bluegrass state.

Of course, that's not the way he is selling it.

Funny that politicians "fighting" drugs actually create jobs while doing so but, for once, don't want to talk about it.