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.
Friday, December 30, 2011
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.
Wednesday, December 14, 2011
Frankfort doesn't want you to know
Kentucky finance cabinet officials continue to sit on a devastating report on the accumulation of state debt nearly three full months after the report was supposed to have been prepared.
An official at the Cabinet said current plans are to release the report on December 23 or 24.
Please ask your representatives to demand the immediate release of the current Comprehensive Annual Financial Report.
An official at the Cabinet said current plans are to release the report on December 23 or 24.
Please ask your representatives to demand the immediate release of the current Comprehensive Annual Financial Report.
Monday, December 12, 2011
Is PNC taking your money to Pennsylvania?
Government officials in Latvia and Sweden are blaming Twitter for a weekend run on two Swedish banks in Latvia after "tweets" claimed Swedish officials were about to close the banks and leave depositors empty handed.
Twitter is not to blame; government bank deposit insurance is.
Think about it. If a rumor spread in Kentucky that Pennsylvania-based PNC Bank would shut its branches here and take all its depositors' money back to Pennsylvania, how would a lot of people react? You know it would get ugly.
The point is that government deposit insurance has made banking consumers all over the world dumber than they should be and subject to freaking out when presented with rumors like this.
The flip side of a false sense of security is a susceptibility to unwarranted panic. In addition to protecting taxpayers from huge amounts of moral hazard, ending government deposit insurance would force bank customers to educate themselves about the health of their bank.
At a time in which the world is growing keenly aware of the devastation caused by banking crises, that would be a good thing.
Twitter is not to blame; government bank deposit insurance is.
Think about it. If a rumor spread in Kentucky that Pennsylvania-based PNC Bank would shut its branches here and take all its depositors' money back to Pennsylvania, how would a lot of people react? You know it would get ugly.
The point is that government deposit insurance has made banking consumers all over the world dumber than they should be and subject to freaking out when presented with rumors like this.
The flip side of a false sense of security is a susceptibility to unwarranted panic. In addition to protecting taxpayers from huge amounts of moral hazard, ending government deposit insurance would force bank customers to educate themselves about the health of their bank.
At a time in which the world is growing keenly aware of the devastation caused by banking crises, that would be a good thing.
Can we interrupt inauguration to ask about this?
Kentucky's Finance and Administration Cabinet should have a report out any day now showing clearly that the state went $1 billion deeper into debt in the last fiscal year.
The report is supposed to post to this web site. In fact, according to KRS 48.800(3) it should have been posted by September 30.
The report is supposed to post to this web site. In fact, according to KRS 48.800(3) it should have been posted by September 30.
Sunday, December 11, 2011
Food freedom gets a boost in Kentucky
Kentucky state Sen. John Schickel pre-filed Senate Bill 47 to help clear up any confusion government officials may have about the right of farmers to sell -- and Kentuckians to drink -- unpasteurized milk.
This action was made necessary by an ill-conceived raid last May on a private food club by the Louisville Health Department.
This action was made necessary by an ill-conceived raid last May on a private food club by the Louisville Health Department.
Friday, December 09, 2011
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:
The correct answer is "yes."
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."
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