Wednesday, February 28, 2007
Tuesday, February 27, 2007
Legislature Shirking Duties On Public Pensions
Emperor Nero has earned enduring scorn for not putting out the fire that burned Rome when it was small enough to handle. Kentucky governors and legislators have done similarly in recent years with the public employee pension plans and the growing threat could burn up our state's bank account.
House Bill 418, passed by the House of Representatives unanimously on Monday, addresses the pension shortfall but does so ineffectively. Kentucky's elected officials aren't exactly fiddling like Nero while the crisis bears down on us, but HB 418 will be a short-lived band-aid approach. The end result may well be about the same.
HB 418 would extend for one year the practice of calculating public employee pensions based on the three highest years of an employee's salary. The good this bill does is to hold off, in theory, the expected tidal wave of government retirees whose pensions we will have great difficulty paying. With the "high three" extended, the hope is that those employees of retirement age will keep working and drawing only one paycheck rather than retiring and coming back to work to draw two checks.
We would like to hope that HB 418 will help as it is intended to do, but far more needs to be done. Here is why: Kentucky's pension problem is not just about investments falling short of future liabilities, it involves how our entire public employee system works. We must end the often-abused system of double-dipping if we are to have any hope of averting disaster with our public pensions. When government employes retire, they should be thanked for the years of service and paid promised pension checks. But we must stop bringing them back at anywhere near their last salary. That practice is breaking the bank.
Rather than nibbling at the edges of the pension situation, Kentucky needs to either encourage would-be retirees to go ahead and leave en masse or to stay around a few more years and -- most importantly -- to train their replacements. In either case, the lack of systematic succession training in government offices is hurting our state financially and will get worse as our population of public retirees swells to unprecedented levels. Instead of hiring back recent retirees at or near their last salary in addition to their pension, we should make training of new employees part of their job before they go.
The reason this will help is that we would be replacing our highest-salaried employees with younger new employees at significantly lower cost. The savings could then be applied to the pension plans.
Continued failure to end double-dipping and to institute effective employee succession planning will result in the public pension plans being unable to meet their obligations. The only solution at that point will be massive tax increases.
House Bill 418, passed by the House of Representatives unanimously on Monday, addresses the pension shortfall but does so ineffectively. Kentucky's elected officials aren't exactly fiddling like Nero while the crisis bears down on us, but HB 418 will be a short-lived band-aid approach. The end result may well be about the same.
HB 418 would extend for one year the practice of calculating public employee pensions based on the three highest years of an employee's salary. The good this bill does is to hold off, in theory, the expected tidal wave of government retirees whose pensions we will have great difficulty paying. With the "high three" extended, the hope is that those employees of retirement age will keep working and drawing only one paycheck rather than retiring and coming back to work to draw two checks.
We would like to hope that HB 418 will help as it is intended to do, but far more needs to be done. Here is why: Kentucky's pension problem is not just about investments falling short of future liabilities, it involves how our entire public employee system works. We must end the often-abused system of double-dipping if we are to have any hope of averting disaster with our public pensions. When government employes retire, they should be thanked for the years of service and paid promised pension checks. But we must stop bringing them back at anywhere near their last salary. That practice is breaking the bank.
Rather than nibbling at the edges of the pension situation, Kentucky needs to either encourage would-be retirees to go ahead and leave en masse or to stay around a few more years and -- most importantly -- to train their replacements. In either case, the lack of systematic succession training in government offices is hurting our state financially and will get worse as our population of public retirees swells to unprecedented levels. Instead of hiring back recent retirees at or near their last salary in addition to their pension, we should make training of new employees part of their job before they go.
The reason this will help is that we would be replacing our highest-salaried employees with younger new employees at significantly lower cost. The savings could then be applied to the pension plans.
Continued failure to end double-dipping and to institute effective employee succession planning will result in the public pension plans being unable to meet their obligations. The only solution at that point will be massive tax increases.
Is Ford Motor Pretending To Be Retarded?
As we rush to incentivize Ford Motor Company, Navistar International is rushing the other way.
Kind of reminds me of some good folks in Tacoma, Washington.
It's far from a perfect analogy, but that's the best you are going to get on the fly this morning. I just had to find a way to work that Tacoma story into something. Others will do better, I'm sure.
Kind of reminds me of some good folks in Tacoma, Washington.
It's far from a perfect analogy, but that's the best you are going to get on the fly this morning. I just had to find a way to work that Tacoma story into something. Others will do better, I'm sure.
SB 143: A Good Fiscally Conservative Bill
There sure has been a lot to complain about in this General Assembly session. But SB 143 is the proverbial horse of a different color.
The bill would require accountability in the spending of state tax dollars on local projects. It mandates regular reports during the course of a project and a final report when the work is completed. With every dollar accounted for, it then requires any left over funds to be returned to the state.
It's amazing to think this hasn't been done long before now, but why quibble? I'll take it.
The bill would require accountability in the spending of state tax dollars on local projects. It mandates regular reports during the course of a project and a final report when the work is completed. With every dollar accounted for, it then requires any left over funds to be returned to the state.
It's amazing to think this hasn't been done long before now, but why quibble? I'll take it.
Monday, February 26, 2007
Another Poor Attempt To Keep Kids In School
The House is expected to take up HB 32 today. Let's just call it the "Make School More Like Jail Act of 2007."
The bill would pull the drivers license of anyone under eighteen who drops out of school. I can understand an argument that we don't want teenage dropouts driving around all day, but I really don't want my kids to have to go to school with any additional kids who don't want to be there and might be looking for creative ways to "express" themselves.
Besides, we have been here before and what the law really does is teach drop-outs how to go through the legal system to apply for a hardship exemption.
Drive a truck through this loophole in the statute:
The bill would pull the drivers license of anyone under eighteen who drops out of school. I can understand an argument that we don't want teenage dropouts driving around all day, but I really don't want my kids to have to go to school with any additional kids who don't want to be there and might be looking for creative ways to "express" themselves.
Besides, we have been here before and what the law really does is teach drop-outs how to go through the legal system to apply for a hardship exemption.
Drive a truck through this loophole in the statute:
In order for the student to have his license reinstated, the court shall be satisfied that the license is needed to meet family obligations or family economic considerations which if unsatisfied would create an undue hardship or that the student is the only licensed driver in the household or the student is not considered a dropout or academically deficient pursuant to this section. If the student satisfies the court, the court shall notify the cabinet to reinstate the student's license at no cost. The student, if aggrieved by a decision of the court issued pursuant to this section, may appeal the decision within thirty (30) days to the Circuit Court of appropriate venue. A student who is being schooled at home shall be considered to be enrolled in school.
Fox News In Kentucky For Race Coverage
Fox News' Brit Hume is in Frankfort covering what has been billed as a major announcement by the Anne Northup campaign. A press conference at the Holiday Inn on Wilkinson Blvd at 12:30 will start off a day in which the campaign will travel to Bowling Green and Owensboro to continue discussion on this same announcement.
Fox News was already going to be in the state just working on a story of the race and the Northup campaign suggested it would be worth their while to stick around for today's lunchtime announcement.
Fox News was already going to be in the state just working on a story of the race and the Northup campaign suggested it would be worth their while to stick around for today's lunchtime announcement.
Harper Versus Pork
Just as I am hearing from more serious GOP primary voters who say they will vote for Billy Harper for governor, Mr. Harper seems to be improving his message.
The MSM didn't cover it, but Harper was the only GOP candidate to stand up with Rep. Stan Lee last week and support the HB 30 special needs student school choice bill.
The soft underbelly of the education bureaucracy is its poor return on investment and continued clamoring for more money. Mr. Harper did himself no favors in his early commercials when he linked himself to KERA, but seems to be hitting his stride with this:
Now that he is properly indentifying the problem, it is time to hammer home some of the solutions. One of them is empowering parents with school choice. With Mr. Harper deciding to take a stand like this on real education reform, he may want to take a good look at this bill too.
The MSM didn't cover it, but Harper was the only GOP candidate to stand up with Rep. Stan Lee last week and support the HB 30 special needs student school choice bill.
The soft underbelly of the education bureaucracy is its poor return on investment and continued clamoring for more money. Mr. Harper did himself no favors in his early commercials when he linked himself to KERA, but seems to be hitting his stride with this:
The notion that we need increased taxes and more government spending to transform our schools is not only misguided, but reads right from the outdated playbook of the politicians in Frankfort.
An unfortunate example of this approach is the Covington Independent School District, which spent $13,166 on each student during the 2005-06 school year Ð the second highest rate in Kentucky Ð yet ranked last among the state's 175 school districts for its performance on the annual CATS assessment.
Spending per-pupil in that district has risen 121 percent since 1989, but student achievement has failed to keep pace. The funding is there, but the approach clearly is not working.
In fact, average per pupil spending in Kentucky has risen every year since the KERA reforms, but student performance as measured by a variety of standards is not on the same track.
Now that he is properly indentifying the problem, it is time to hammer home some of the solutions. One of them is empowering parents with school choice. With Mr. Harper deciding to take a stand like this on real education reform, he may want to take a good look at this bill too.
Sunday, February 25, 2007
U.S. Senate 2008 Kentucky Race
Louisville Democrats are putting pressure on Rep. John Yarmuth to take on Sen. Mitch McConnell next year.
That could open up several interesting scenarios, don't you think?
That could open up several interesting scenarios, don't you think?
Health Care And Education, Governor
This morning David Hawpe suggests Governor Fletcher should be "bold" and work up a universal healthcare plan for Kentucky.
Yesterday in Richmond, Governor Fletcher made comments that sounded to me like he may be planning to do something like that in both healthcare and higher education.
I'm still waiting for a call back from the Governor's office to clarify what I thought I heard. Didn't see any mention of it in the MSM. More on this later.
Yesterday in Richmond, Governor Fletcher made comments that sounded to me like he may be planning to do something like that in both healthcare and higher education.
I'm still waiting for a call back from the Governor's office to clarify what I thought I heard. Didn't see any mention of it in the MSM. More on this later.
Who Will Be The Kumbaya Party Of 2007?
After two hotly contested primaries in May, the fall election will largely come down to which party can pull combatant camps back together better. There are other variables, of course, but this is the big one.
Saturday, February 24, 2007
Money, Big Money, And Public Education
The multi-billion dollar lawsuit between education bureaucrats and taxpayers took another nasty turn yesterday with the Council for Better Education -- love that name -- requesting a trial.
The Lexington Herald Leader, in a news story, has this nugget:
And as we waste a million and counting on this lawsuit, two bills in the General Assembly would add tens of millions more to the same rat hole. Kentucky law now requires children to stay in school until age sixteen. HB 221 and HB 279 provide an end-run around the lawsuit by requiring the state to pay school systems to warehouse thousands of teenagers who don't want to be in school.
The great thing about this scheme, from the CBE's perspective, is that if you add in the test scores of the would-be dropouts, they will have a built in excuse to lobby for more money still to combat the lower test scores.
What we need is an incentive for education bureaucrats to think as creatively about educating students as they do about ways to game the system for more tax dollars.
We really, really need to break up the school monopoly and inspire these folks by having them deal with the competition brought on by school choice.
The Lexington Herald Leader, in a news story, has this nugget:
The legislature has spent $487,000 defending the lawsuit while the CBE has spent $391,000 on the case filed in 2003.
And as we waste a million and counting on this lawsuit, two bills in the General Assembly would add tens of millions more to the same rat hole. Kentucky law now requires children to stay in school until age sixteen. HB 221 and HB 279 provide an end-run around the lawsuit by requiring the state to pay school systems to warehouse thousands of teenagers who don't want to be in school.
The great thing about this scheme, from the CBE's perspective, is that if you add in the test scores of the would-be dropouts, they will have a built in excuse to lobby for more money still to combat the lower test scores.
What we need is an incentive for education bureaucrats to think as creatively about educating students as they do about ways to game the system for more tax dollars.
We really, really need to break up the school monopoly and inspire these folks by having them deal with the competition brought on by school choice.
Friday, February 23, 2007
Taped Phone Calls? What Taped Phone Calls?
Just saw this post on another thread:
From what I have heard, many phone calls were made to stop a Louisville fundraiser for Secretary of State Trey Grayson after he mentioned at Fancy Farm the possibility of running for governor himself.
If there are tapes out there, it would obviously make front page news.
Weatherman said...
This all pales in comparison to the spending and other habits of Ernie the Drunken Sailor. And wait until the phone tapes are released on Ernie's efforts to stop Trey Grayson's fundraiser last summer.
From what I have heard, many phone calls were made to stop a Louisville fundraiser for Secretary of State Trey Grayson after he mentioned at Fancy Farm the possibility of running for governor himself.
If there are tapes out there, it would obviously make front page news.
We Don't Need Senior Judge Program
The best justification for making the senior judge program permanent is that it lightens the workload on our judges and helps move cases faster. While that may be true, it comes at a heavy price. The family courts were created for the same purpose and are now a permanent institution.
We have an opportunity to cut loose some double-dippers in state government and we should jump at the chance. Tell your state representative to vote against Welfare for Judges, HB 465.
We have an opportunity to cut loose some double-dippers in state government and we should jump at the chance. Tell your state representative to vote against Welfare for Judges, HB 465.
Would We Resent Illegals Less If They Paid Their Fair Share?
One good reason for scrapping state income taxes and replacing them with consumption taxes is that doing so puts the underground economy back on the books.
The states which currently have no income tax are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Additionally, New Hampshire and Tennessee limit their state income taxes to dividends and interest income only.
We should seriously consider joining them.
The states which currently have no income tax are Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Additionally, New Hampshire and Tennessee limit their state income taxes to dividends and interest income only.
We should seriously consider joining them.
Thursday, February 22, 2007
Northup Goes After Fletcher Defense Fund
In an e-mail statement today, Anne Northup called on Governor Ernie Fletcher to divulge information about his legal defense fund.
Great.
Now, how about giving us some ideas to empower students and their parents in the public education process? What about a plan to help lower the cost of health care? Any ideas about taxes or what to do with the public employee pension crisis?
Just curious.
Great.
Now, how about giving us some ideas to empower students and their parents in the public education process? What about a plan to help lower the cost of health care? Any ideas about taxes or what to do with the public employee pension crisis?
Just curious.
Time For Another Sick Day, Harry
It was great Tuesday when Rep. Harry Moberly called in sick. I'm guessing his physical condition was fine, but he didn't want to show up to see his Secrecy Bill roll over and die.
It's time for another sick day, Harry.
Moberly is bottling up the AMC repeal bills. One man shouldn't have the power to hurt businesses like this.
It's time for another sick day, Harry.
Moberly is bottling up the AMC repeal bills. One man shouldn't have the power to hurt businesses like this.
2007 Dem Update: Capitalism Doesn't Work
The floor debate in the House yesterday on the minimum wage was a little contentious and sprinkled with memorable quotes. The Lexington Herald Leader got several of them, but missed this goody from Rep. Jim Wayne (D-Louisville):
That's pretty rich coming in the middle of a state ravaged still by the War on Poverty, in which a generational cycle of dependency created by a misguided hope to ameliorate the shortcomings of capitalism has held us back for decades.
"Raw capitalism does not work for vulnerable people."
That's pretty rich coming in the middle of a state ravaged still by the War on Poverty, in which a generational cycle of dependency created by a misguided hope to ameliorate the shortcomings of capitalism has held us back for decades.
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