Governor Steve Beshear's new tax reform commission is supposed to report recommendations by the end of 2012 for action in 2013.
Among his key goals for reform is ensuring "adequate revenue to fund critical state services."
Bear in mind this is coming from a politician who spent more than $3 billion he didn't have in his first term while claiming he was being fiscally responsible. He boasts about recruiting tens of thousands of Kentucky families onto the government health insurance rolls and about doling out special tax treatment in order to "create" jobs.
Governor Beshear's idea of what constitutes a critical state service should tell us that to him, tax reform means tax increases.
Our legislative races this year are going to have to be about protecting us from tax increases and ever-expanding government for when 2013 comes around and Beshear starts touting his blue-ribbon plan for raising revenue.
If your representatives won't hold the line against Beshear on this, you shouldn't support them.
Friday, January 06, 2012
Thursday, January 05, 2012
Beshear: I'll gladly tell you Tuesday, 1/17
A request to the Beshear Administration for the state's current debt ratio just resulted in the following response: the answer will be in the Governor's Executive Budget document on Tuesday, January 17.
The debt ratio is simply the current amount of appropriation supported debt service as a percentage of current revenue. It should be a pretty easy number to track down for the people who keep the books.
My best guess is that the number, whenever it is revealed, will have more than doubled since 2010 in a bipartisan Frankfort orgy of spending and borrowing.
Today is Day Two of Beshearmageddon.
The debt ratio is simply the current amount of appropriation supported debt service as a percentage of current revenue. It should be a pretty easy number to track down for the people who keep the books.
My best guess is that the number, whenever it is revealed, will have more than doubled since 2010 in a bipartisan Frankfort orgy of spending and borrowing.
Today is Day Two of Beshearmageddon.
Wednesday, January 04, 2012
Beshearmageddon
Governor Steve Beshear's spokeswoman has confirmed he will seek spending cuts of 7 to 9 percent this year.
InsiderLouisville.com has the story here.
From the story:
This helps explain, of course, why the state finance people are hiding legally mandated reports.
And it is particularly odd that only two days ago, Speaker Greg Stumbo was on television discussing plans for huge increases in school spending. Was he totally in the dark?
The legislature will want to respond to this by borrowing more money but we can't let them do it.
InsiderLouisville.com has the story here.
From the story:
“Preliminary (cuts) have been requested for next year at 7 to 9 percent,” stated Kerri Richardson, Gov. Steve Beshear’s deputy communications director, in an email response to an Insider Louisville query.Frankfort politicians in both parties had to know this was coming. The excessive spending never stopped during the recession and this is just the tip of the iceberg because principles of budgetary responsibility have been so actively ignored for so long.
This helps explain, of course, why the state finance people are hiding legally mandated reports.
And it is particularly odd that only two days ago, Speaker Greg Stumbo was on television discussing plans for huge increases in school spending. Was he totally in the dark?
The legislature will want to respond to this by borrowing more money but we can't let them do it.
Tuesday, January 03, 2012
Greg Stumbo is $7 billion too late
Monday night on KET, Kentucky House Speaker Greg Stumbo rehashed his old 2010 billion dollar school stimulus idea that gave Senate President David Williams his best talking point in last year's gubernatorial race about stopping Democrats' wild spending.
Stumbo apparently thinks he is still on the gravy train he and Williams rode on the way to larding themselves up with approximately $7 billion in bonded debt and federal stimulus in Beshear's first term.
No one seems to have told Mr. Stumbo that the party is over. Worse, he appears to have the concept of "government money" backwards and sideways.
"Now is a good time to invest," Stumbo said. "My theory is that if the government doesn't invest in itself then why should private citizens have the courage to go forward and make investments.
Monday, January 02, 2012
What Kentucky is doing with ObamaCare
None of the media "legislative preview" stories I've seen so far have mentioned the biggest potential budget-buster facing Frankfort: ObamaCare.
Governor Steve Beshear has been bobbing and weaving for months to avoid getting pinned down on his position regarding the federal takeover of health care. His excuse was that he was waiting for federal guidance on how to proceed, but that guidance came a week before Christmas.
So far, Kentucky is one of only 11 states who haven't even filed enabling legislation to set up a state-run insurance exchange. We've already taken millions of federal dollars for setting up an exchange, which is the hook that traps states into ObamaCare.
Beshear could try to set up a state exchange by executive order. If that is his idea, he shouldn't be allowed to do it quietly. As some other Republicans around the country are folding like cheap suits in the battle to stop ObamaCare, it's hard not to imagine Senate President David Williams doing the same when pressed.
Like last year's Snot Tax, this one is going to be up to us. Are you ready?
Governor Steve Beshear has been bobbing and weaving for months to avoid getting pinned down on his position regarding the federal takeover of health care. His excuse was that he was waiting for federal guidance on how to proceed, but that guidance came a week before Christmas.
So far, Kentucky is one of only 11 states who haven't even filed enabling legislation to set up a state-run insurance exchange. We've already taken millions of federal dollars for setting up an exchange, which is the hook that traps states into ObamaCare.
Beshear could try to set up a state exchange by executive order. If that is his idea, he shouldn't be allowed to do it quietly. As some other Republicans around the country are folding like cheap suits in the battle to stop ObamaCare, it's hard not to imagine Senate President David Williams doing the same when pressed.
Like last year's Snot Tax, this one is going to be up to us. Are you ready?
Friday, December 30, 2011
Kentucky needs a debt ceiling
The biggest news story with the least amount of coverage in Kentucky in 2011 is easily Kentucky's debt problem.
Revenues continue to increase for the state and politicians in both parties continue to claim they need more revenue. But at the heart of the problem is that spending has increased even faster.
And that problem has been hidden by debt and unfunded liabilities. In order to believe that Kentucky's budget finished the last fiscal year in surplus, as the state claims, you have to ignore the money borrowed from the 2012 state Medicaid budget and ignore the unemployment benefits money borrowed from the federal government and ignore the money not paid into the state public employee benefits system and ignore the new billion dollars in bonded debt created in just the last year.
That's a lot of ignoring. And in 2012 we are going to have to get a handle on it.
Revenues continue to increase for the state and politicians in both parties continue to claim they need more revenue. But at the heart of the problem is that spending has increased even faster.
And that problem has been hidden by debt and unfunded liabilities. In order to believe that Kentucky's budget finished the last fiscal year in surplus, as the state claims, you have to ignore the money borrowed from the 2012 state Medicaid budget and ignore the unemployment benefits money borrowed from the federal government and ignore the money not paid into the state public employee benefits system and ignore the new billion dollars in bonded debt created in just the last year.
That's a lot of ignoring. And in 2012 we are going to have to get a handle on it.
Why Steve Beshear thinks he can raise taxes
Governor Steve Beshear didn't say anything about raising taxes before this year's election. In fact, he bragged in nuanced fashion about not raising any "broad-based" taxes in his first term.
He got away with that because his general election opponent played the same nuanced game to, in fact, raise taxes. And they together also played a much more harmful trick on Kentuckians by jointly underfunding and raiding public employee pensions by hundreds of millions of dollars and borrowing to spend billions more.
So the two most powerful politicians in Frankfort see no downside to increasing revenues now. They need the money, as they see it.
This is the kind of bipartisan agreement we are going to have to fight against even harder in 2012. And that is why we need a state debt ceiling and/or to amend the Constitution to give us a real balanced budget requirement.
He got away with that because his general election opponent played the same nuanced game to, in fact, raise taxes. And they together also played a much more harmful trick on Kentuckians by jointly underfunding and raiding public employee pensions by hundreds of millions of dollars and borrowing to spend billions more.
So the two most powerful politicians in Frankfort see no downside to increasing revenues now. They need the money, as they see it.
This is the kind of bipartisan agreement we are going to have to fight against even harder in 2012. And that is why we need a state debt ceiling and/or to amend the Constitution to give us a real balanced budget requirement.
Thursday, December 29, 2011
This isn't transparency, Governor Beshear
Ellen Ballard in the Commonwealth of Kentucky Controller's Office said this morning the state's Comprehensive Annual Financial Report will remain hidden from the public at least until next Wednesday.
The FY 2011 report will show clearly that Kentucky made its budget appear balanced for the most recent year with the issuance of hundreds of millions of dollars in long-term debt.
KRS 48.800(3) states this report must be made available within 90 days of the end of the fiscal year. That was September 30, about five weeks before the November election. We shouldn't have to beg to see this report.
The FY 2011 report will show clearly that Kentucky made its budget appear balanced for the most recent year with the issuance of hundreds of millions of dollars in long-term debt.
KRS 48.800(3) states this report must be made available within 90 days of the end of the fiscal year. That was September 30, about five weeks before the November election. We shouldn't have to beg to see this report.
Wednesday, December 28, 2011
Fletcher versus Stumbo one more time?
Former Governor Ernie Fletcher's Chief of Staff Stan Cave weighed in on Paul Patton's expensive and controversial plan to get state funding for the University of Pikeville.
"Admission of University of Pikeville into the public university system is quid pro quo for eastern Kentucky legislators' vote for expanded gambling," Cave said. "The House Speaker doesn't give a tinker's darn about a recurring $12 million cost to taxpayers."
Via Facebook.
"Admission of University of Pikeville into the public university system is quid pro quo for eastern Kentucky legislators' vote for expanded gambling," Cave said. "The House Speaker doesn't give a tinker's darn about a recurring $12 million cost to taxpayers."
Via Facebook.
Tuesday, December 27, 2011
Phyllis Sparks should be next
State Rep. Alecia Webb-Edgington has resigned as Kentucky's 4th Congressional District GOP chair so she can run in a likely crowded primary for Congress without an apparent conflict of interest.
Good move.
An even better one would be to replace her with Boone County Republican businesswoman and activist Phyllis Sparks. She has been very active in the Tea Party movement and would be a very solid choice to keep growing the party in the northern Kentucky district.
Good move.
An even better one would be to replace her with Boone County Republican businesswoman and activist Phyllis Sparks. She has been very active in the Tea Party movement and would be a very solid choice to keep growing the party in the northern Kentucky district.
Can't grow cotton in Kentucky
I'm told anything that can be made of cotton can also be made of industrial hemp. Kentucky can't grow cotton. Growing hemp doesn't require the water and pesticides necessary to grow cotton.
Federal law prevents us from taking advantage of this competitive advantage.
Kentucky's new Agriculture Commissioner James Comer supports growing industrial hemp and resistance in the legislature is weak and based on ignorance of what industrial hemp is.
Anyone who supports economic growth in Kentucky should support overturning federal restrictions on growing industrial hemp.
Any questions?
Federal law prevents us from taking advantage of this competitive advantage.
Kentucky's new Agriculture Commissioner James Comer supports growing industrial hemp and resistance in the legislature is weak and based on ignorance of what industrial hemp is.
Anyone who supports economic growth in Kentucky should support overturning federal restrictions on growing industrial hemp.
Any questions?
Monday, December 26, 2011
Frankfort's chance to support Christians
The Commonwealth of Kentucky has been battling for years to keep an organization called Christian Care Medi-Share from saving Kentuckians money on their health care expenses.
This currently makes less sense than ever before and must stop now.
A constitutional amendment is necessary to allow cost-sharing programs to function in the state. As Medi-Share states on its web site, an exemption written into the ObamaCare law will keep their program a viable alternative should ObamaCare survive to 2014 and beyond.
Some Frankfort Republican leadership on this would really come in handy now.
This currently makes less sense than ever before and must stop now.
A constitutional amendment is necessary to allow cost-sharing programs to function in the state. As Medi-Share states on its web site, an exemption written into the ObamaCare law will keep their program a viable alternative should ObamaCare survive to 2014 and beyond.
Some Frankfort Republican leadership on this would really come in handy now.
Friday, December 23, 2011
What's $336 million among friends?
Earlier in the week, Kentucky's Consensus Forecasting Group predicted revenues for the fiscal year ending next June 30 will be $9.0 billion. They also predicted a $136.5 million dollar surplus for the same time period.
That's interesting, considering the legislature voted just last spring to spend $9.2 billion.
Frankfort in January is going to be a sight to behold. Merry Christmas!
That's interesting, considering the legislature voted just last spring to spend $9.2 billion.
Frankfort in January is going to be a sight to behold. Merry Christmas!
Wednesday, December 21, 2011
Governor Beshear's Christmas horror story
Governor Beshear's Finance and Administration Cabinet appears intent on making good on their threat to keep the truth about the state's finances hidden until the last business day before Christmas.
The Comprehensive Annual Financial Report will show an increase of $1 billion in appropriation-supported debt in the fiscal year ending June 30. The report was apparently completed prior to September 30 but has been kept quiet since then.
The media is not going to report on this at all but this is exactly why we need a state debt ceiling.
Please spread the word.
The Comprehensive Annual Financial Report will show an increase of $1 billion in appropriation-supported debt in the fiscal year ending June 30. The report was apparently completed prior to September 30 but has been kept quiet since then.
The media is not going to report on this at all but this is exactly why we need a state debt ceiling.
Please spread the word.
Tuesday, December 20, 2011
Let's protect the First Amendment
It's funny that the same big-government types who insist paid media is not speech want political speech to be paid for with tax dollars and think that will make everything just fine.
Exhibit A is Congressman John Yarmuth. He has filed a constitutional amendment to "get the money out of politics." We've never heard that before, have we?
Indeed, we have heard this same line constantly since the Watergate scandal and all the regulations, restrictions and penalties have done nothing to improve the political process. Prior to that, the idea that we needed government to control our political speech was universally understood as anathema to our American freedoms dating back to colonial times.
What we need is less regulation of political speech. Kentucky could lead the way on this by repealing all of our state campaign finance laws. With Yarmuth pushing so hard in the wrong direction, 2012 may be the perfect time to put this front and center.
Exhibit A is Congressman John Yarmuth. He has filed a constitutional amendment to "get the money out of politics." We've never heard that before, have we?
Indeed, we have heard this same line constantly since the Watergate scandal and all the regulations, restrictions and penalties have done nothing to improve the political process. Prior to that, the idea that we needed government to control our political speech was universally understood as anathema to our American freedoms dating back to colonial times.
What we need is less regulation of political speech. Kentucky could lead the way on this by repealing all of our state campaign finance laws. With Yarmuth pushing so hard in the wrong direction, 2012 may be the perfect time to put this front and center.
Beshear still hiding bad news
Kentucky's Gov. Steve Beshear appears likely to get away with hiding the state's Comprehensive Annual Financial Report through the election and up to an expected just-before-Christmas release.
The report will show Frankfort accumulated an additional billion dollars in revenue-supported debt in the fiscal year ending June 30, 2011 despite claims of spending austerity and budget surplus.
Unfortunately, the GOP establishment in Frankfort has a big enough megaphone to draw attention to this but most of them voted for it, so they won't.
Those who vote for the status quo can't be surprised when they keep getting the same old thing.
When they get around to posting the report, you should be able to see it here.
The report will show Frankfort accumulated an additional billion dollars in revenue-supported debt in the fiscal year ending June 30, 2011 despite claims of spending austerity and budget surplus.
Unfortunately, the GOP establishment in Frankfort has a big enough megaphone to draw attention to this but most of them voted for it, so they won't.
Those who vote for the status quo can't be surprised when they keep getting the same old thing.
When they get around to posting the report, you should be able to see it here.
Monday, December 19, 2011
The force is strong with this one
Lewis County Judge Executive Thomas Massie will soon become a household name in Kentucky for the massive amounts of waste he has uncovered and eliminated since his 2010 election. It's no surprise that he is drawing a lot of attention as a possible candidate for Congress in the 4th congressional district in the 2012 open election.
Some NKY political hacks are spreading a rumor that Massie has declined to enter the race, but that is not true. Stay tuned here for updates.
Here he is with his wife and two of their four children along with presidential candidate Ron Paul at a 2010 Louisville fundraiser for Senator Rand Paul. Thomas also hosted a fundraiser at his home very early in Sen. Paul's campaign.
Thomas and his wife Rhonda are both Kentucky natives and MIT graduates. His children attend public school in Lewis County.
Some NKY political hacks are spreading a rumor that Massie has declined to enter the race, but that is not true. Stay tuned here for updates.
Here he is with his wife and two of their four children along with presidential candidate Ron Paul at a 2010 Louisville fundraiser for Senator Rand Paul. Thomas also hosted a fundraiser at his home very early in Sen. Paul's campaign.
Thomas and his wife Rhonda are both Kentucky natives and MIT graduates. His children attend public school in Lewis County.
A policy split in the GOP establishment?
Sen. Damon Thayer has pre-filed a bill to remove the constitutional office of state Treasurer. The Senate has passed this bill before and the GOP nominee in 2007 ran with this as the main plank in her platform.
Here's hoping Sen. Thayer pushes SB 51 past any establishment resistance in the Senate.
Here's hoping Sen. Thayer pushes SB 51 past any establishment resistance in the Senate.
Now two bills to end Kentucky legislator pensions
Kentucky legislative bills addressing the David Williams pension scandal keep coming in. The latest is from House Republican Brent Housman. It will be HB 149. Like Senate Democrat Dennis Parrett's bill, Housman's would shut down the Legislators' Retirement Plan to new participants as of August 1, 2012.
There are currently 5 pre-filed bills addressing this problem. Please, keep them coming.
There are currently 5 pre-filed bills addressing this problem. Please, keep them coming.
Thursday, December 15, 2011
How slowly can we fix KY pension scandal?
For the first time, each caucus in the Kentucky General Assembly has filed a bill to fix the David Williams pension scandal.
In the Senate, Republican Jimmy Higdon pre-filed SB 26 to stop legislators from getting a huge pension boost if they can get appointed to an executive or judicial branch position for as little as three years. Democratic Senator Dennis Parrett previously filed a similar bill, SB 28.
In the House, Republican Rep. Ron Crimm already filed HB 65.
And now, House Democratic Rep. Mike Cherry has re-filed the same bill he filed last year and then ignored in his own committee.
The bills have some similarities and differences, but the one feature that stands out the most is how quickly they each take effect. Interestingly, Sen. Higdon's bill doesn't kick in until the end of 2014. This makes it the slowest one of the bunch. Sen. Parrett's bill actually stops legislators from grabbing the outlandish pension boost on August 1, 2012 and goes so far as to shut down the Legislators Pension Plan to new members on the same date.
Sen. Parrett has the right idea.
In the Senate, Republican Jimmy Higdon pre-filed SB 26 to stop legislators from getting a huge pension boost if they can get appointed to an executive or judicial branch position for as little as three years. Democratic Senator Dennis Parrett previously filed a similar bill, SB 28.
In the House, Republican Rep. Ron Crimm already filed HB 65.
And now, House Democratic Rep. Mike Cherry has re-filed the same bill he filed last year and then ignored in his own committee.
The bills have some similarities and differences, but the one feature that stands out the most is how quickly they each take effect. Interestingly, Sen. Higdon's bill doesn't kick in until the end of 2014. This makes it the slowest one of the bunch. Sen. Parrett's bill actually stops legislators from grabbing the outlandish pension boost on August 1, 2012 and goes so far as to shut down the Legislators Pension Plan to new members on the same date.
Sen. Parrett has the right idea.
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