The Courier-Journal is reporting that Gov. Steve Beshear said this morning that he would consider an additional increase in Kentucky’s tobacco tax to help the state’s budget and reduce smoking rates.
From the article -
In answering a question about Kentuckians’ relative unhealthiness at a breakfast with Louisville business people, Beshear said the state should “continue to look at increasing our cigarette tax.”
“No question it makes a lot of difference,” he said, referring to the tax’s effect on habits. “We have got a lot of teens smoking in this state.”
The comment comes the same day that his budget director released figures showing state general fund revenues down 4 percent in October compared to the same time period last year.
Beshear along with several legislative leaders, including House Speaker Greg Stumbo and Senate President David Williams, have previously said that tax increases likely wouldn’t be part of the budget discussions set to begin in January.
The Courier-Journal ran a column today by state Sen. Damon Thayer, a Georgetown Republican, about the amendment he pre-filed to allow slot machines in counties with live horse racing.
State Sen. Damon Thayer, Georgetown Republican (LRC photo)
In contrast to what is being pushed in the state House, Thayer’s bill is a constitutional amendment that will put the issue to the voters rather than letting legislators determine whether Kentucky’s horse tracks should be allowed to add slot machines to their offerings.
As Thayer notes, whether the state adopts a constitutional amendment or settles the matter legislatively, the issue is not going to be decided soon.
From the column -
Members of the horse industry say that it is too late for a constitutional amendment; that it would take too long for relief to arrive. I say that time-consuming litigation is assured with “slots by statute.”
Thayer also addresses the sweetheart deal that horse track owners would receive under the House’s slots bill, with track owners receiving subsidies from gambling tax revenues as well as the take from the slots themselves as owners.
From the column -
Finally, the question that needs to be answered is: Do you believe that increased purses and improved wagering products and marketing can save tracks, or will it be necessary to permanently subsidize tracks? Track officials reveal themselves when my friend, Turfway’s CEO Bob Elliston, said that my proposal would “help make Kentucky racing more competitive by increasing purses but it doesn’t help reinvigorate racetracks.”
It seems that it’s not about the horse-racing, the “show”; it’s about the companies that own the tracks. They don’t want just a minimal approach to beef up purses — which they had argued previously would bring more fans and help everyone — they want rampant slots to create gambling empires. It will not be long before the horses are marginalized. My amendment would prevent this.
Some may say, too little, too late.
I say that it is never too late to let the people decide.
But while Thayer’s amendment is an improvement over what Stumbo and House Democrats have backed, it still is far from being a proposal palatable to Kentuckians. Communities with live horse racing are still given priority under Thayer’s amendment, and if gambling is expanded in Kentucky, the entire state should have the opportunity to be in the game.
Any thoughts?
Audit: KACO had “self-serving” culture that allowed more than $3 million in questionable expenses
The state auditor’s office found more than $3 million in questionable expenses over a three-year period after sifting through the books at the Kentucky Association of Counties.
The audit released today documents $219,145 in restaurant purchases, each of which topped $1,000, $43,000 on alcohol and $48,426 on Christmas dinners for the KACo board, according to a release from Auditor Crit Luallen’s office.
Auditors provided highlights of expenses along with the complete examination.
Here’s the complete release -
State Auditor Crit Luallen today released a special examination of the Kentucky Association of Counties (KACo), which found a “self-serving” culture that resulted in more than $3 million in excessive or questionable spending over a three-year period.
As KACo’s revenues increased 75 percent from 2003-2008 taking the annual budget to more than $5.7 million, the level of discretionary spending by the organization also increased instead of KACo maximizing benefits to the counties it serves.
This culture flourished as many board members, management and staff spent funds on lavish dinners, alcohol, sports and entertainment tickets, staff birthday meals and extravagant Christmas parties.
The exam found nearly $2 million charged on agency credit cards over a three-year period, with $1.4 million having inadequate or no supporting documentation, an unclear business purpose or was excessive in nature.
The lack of board oversight included weak internal controls, minimal conflicts of interest and ethics policies, and no whistleblower policy.
The exam reviews KACo’s finances from July 1, 2006 through June 30, 2009 and makes 40 findings. Most importantly, the exam details more than 150 recommendations to improve board oversight and management operations at KACo.
“Our examination provides the leadership of KACo the proper tools to continue to strengthen accountability and to fulfill its responsibilities to the counties and the taxpayers,” Luallen said. “I believe the public expects no less. In this current economic downturn, when our counties are struggling, our citizens have no patience for waste and excess from those who hold their trust and handle their tax dollars.” read more…
The state auditor’s office announced today that its examination of the Kentucky Association of Counties is complete, and the audit will be released Thursday.
From the release -
State Auditor Crit Luallen will hold a press conference regarding the release of a special examination of the Kentucky Association of Counties (KACo) at 10 a.m., Thursday, Oct. 29 at the auditor’s office located at 209 St. Clair St., Frankfort, Ky. 40601.
The press conference will be held in the first-floor training room of the office, which is located across the street from the Frankfort Courthouse. Office directions can be viewed at www.auditor.ky.gov.
Luallen announced her office would be auditing KACo and the Kentucky League of Cities following reporting by the Lexington Herald-Leader that uncovered excessive spending practices by top officials at the two organizations.
Helen Mountjoy has resigned her position as secretary of the Kentucky Education and Workforce Development Cabinet effective Nov. 30, citing “a long commute and a desire to spend more time with her family,” Gov. Steve Beshear’s office announced today.
Helen Mountjoy
Mountjoy, an Owensboro resident, was appointed secretary in 2007 and previously worked with the Greater Owensboro Economic Development Corp. She served on the Kentucky Board of Education, and chaired that body from 1998 to 2004.
From the press release -
“Education and workforce development are the issues closest to my heart, and it’s been a privilege to serve as cabinet secretary,” Mountjoy said. “I am looking forward to continuing some of that work, and I’m also looking forward to spending more time with my family in Owensboro.”
Mountjoy noted that because of the importance of education and workforce issues facing Kentucky, she continued in this position a year longer than she had committed to originally. She will continue to be active in promoting these issues in the Commonwealth.
Gov. Beshear said he will immediately begin a search for Mountjoy’s replacement.
Mountjoy will continue to serve on the Transforming Education in Kentucky task force recently created by Beshear.
Richie Farmer, the standout UK basketball star currently serving as Kentucky’s agriculture commissioner, is considering a run for governor in 2011, according to the Associated Press.
Farmer, a Republican, has served two terms as state agriculture commissioner.
From the AP -
University of Kentucky basketball icon Richie Farmer is considering running for governor on the Republican ticket.
Farmer told The Associated Press on Tuesday that he has been in discussions about a possible run and may do some political polling in the near future.
Democratic Gov. Steve Beshear is the only major candidate who has entered the race so far. He has chosen Louisville Mayor Jerry Abramson as his running mate.
House Speaker Greg Stumbo, a Prestonsburg Democrat, released a column today offering a bit more explanation of his recent comments about dipping into school district contingency funds to help balance the state budget.
House Speaker Greg Stumbo, Prestonsburg Democrat (LRC photo)
Stumbo has come under fire for suggesting that school districts dip into their contingency or “rainy day” accounts so the state can reduce what it funnels to local schools.
When Gov. Steve Beshear was in town recently, he was asked for his thoughts about Stumbo’s suggestion, and said “it’s way too early for decisions to be made about how to balance the budget.”
With the start of the legislative session just more than two months away, and the governor’s budget due in late January, that comment begs the question of when the right time to begin coming up with those solutions is.
The Glasgow Daily Times panned Stumbo for his suggestion that school districts use these funds, which are a mix of local and state dollars, to make up for state cuts in funding.
From the Glasgow editorial -
It seems disingenuous for Gov. Steve Beshear to say there are no plans to cut funding to public education when fellow Democrat, and partner in state government, Stumbo is pitching the idea of taking money out of those same district’s coffers. It smacks of Beshear handing the districts the checks from the state only to have Stumbo’s plan mug them of the cash as they leave the bank.
Stumbo explains that the state wouldn’t be raiding these accounts to fund other areas of state government, but would be calling on school districts to begin carrying a larger share of the budget burden, or as he writes, “it may be time for Peter and Paul to help themselves more during these rainiest of days.”
Here’s Stumbo’s complete column -
As Governor Beshear and the General Assembly prepare for the upcoming legislative session, it is becoming increasingly clear that the state’s two-year budget will be the most challenging Kentucky has faced since the Great Depression.
Federal stimulus dollars have helped significantly, but unless Congress provides additional funds, the stimulus dollars will run out by the budget’s second year. Barring an economic miracle, there will be considerable budget gaps and no painless way to fill them.
We must also consider sky-rocketing health insurance and retirement costs, increases in a Medicaid program that already covers a fifth of our population and the growing needs of our schools and universities. Each of these areas must be adequately funded if we hope to move forward as a state.
It was with this in mind that I discussed the possibility of using a portion of surplus funds that are kept by our elementary and secondary schools for unplanned expenses and “rainy days.”
I want to make it clear that I do not believe these funds can be used for any programs or expenses outside of the school’s district. In fact, as Attorney General, I filed litigation to protect education dollars.
The surplus funds are a mixture of local and state dollars prudently set aside by the school districts for future needs and expenses. It would be patently unfair to “rob Peter to pay Paul,” but it may be time for Peter and Paul to help themselves more during these rainiest of days.
I believe all options need to be considered as we begin writing the state’s budget in the next several months. If this is an unprecedented suggestion, it is because we are in unprecedented times.
In our current budget, kindergarten through high school accounts for more than 40 percent of our state tax dollars; when you add postsecondary schools, the figure for education jumps to 58 percent. Critical health and family services and the judicial and justice systems push the total over 90 percent.
Because so much of the state’s budget goes to these areas, they are the ones most affected by cuts that have topped more than $1.5 billion during the last two years. Additional cuts are expected to exceed a billion dollars in the upcoming two-year budget. Federal stimulus dollars have helped us balance our current budget, but these are one-time funds and not a permanent revenue source.
I have no doubt that we will find a way to live within our means, but it will not be easy. My goal is to continue protecting, if not increasing, school funding. Reducing money for education would have negative effects lasting for generations. School surplus funds may or may not be part of that equation, but if they can be a bridge to better days, it is an idea that at least deserves to be discussed.
State Sen. Dan Kelly, a Springfield Republican (LRC photo)
State Sen. Dan Kelly, the Springfield Republican who until recently was majority floor leader, has been appointed judge by Gov. Steve Beshear.
Beshear announced the appointment today after Kelly and two other attorneys were nominated for the slot on Friday.
From the governor’s office -
Gov. Steve Beshear announced today the appointment of State Senator Dan Kelly as a judge in the 11th Judicial Circuit. Sen. Kelly was among three names submitted to Gov. Beshear by the seven-member nominating commission.
“Sen. Kelly has the appropriate temperament and experience for this position,” said Gov. Beshear. “I feel confident he will provide fair, honest and judicious service to the people of the 11th Judicial Circuit.”
Representing the 14th Senate District since 1991, Sen. Kelly has a distinguished career that includes service on the legislative interim committees of Agriculture, Appropriations and Revenue, Education, Elections, Constitutional Amendments and Intergovernmental Affairs Task Force, Elementary and Secondary Education, Horse Farming, Local Government and State Government; the legislative session committees of Agriculture, Appropriations and Revenue and State and Local Government; and the legislative statutory Education Assessment and Accountability Review Subcommittee. In addition, with the present rank of Lt. Colonel, he has been awarded the United States Army Meritorious Service Medal Army Commendation Medal and two National Defense Service Medals. He received his law degree from the University of Louisville.
The appointment sets up a special election for Kelly’s seat in the Republican-controlled Senate. Beshear has made no secret he would like to see control of the chamber return to Democratic hands, particularly given his push for a bill allowing slot machines at race tracks that has found little support among Senate Republican leadership.
Kelly is the second high-profile Republican Beshear has appointed to a state position. Earlier this year, he appointed Sen. Charlie Borders to the Public Service Commission. Borders’ seat was won by Democrat Robin Webb, who had been serving in the state House.
Updated, 1 p.m. CST
Beshear has set the special elections to fill Kelly’s seat in the Senate and Webb’s seat in the House for Dec. 8.
From Beshear’s office -
Gov. Steve Beshear today set the date for two special elections to fill two vacant legislative seats.
The vacancy in the 96th district of the House of Representative is the result of the resignation of Rep. Robin Webb, who resigned having been elected to represent the 18th district of the State Senate. The special election will be held on Tuesday, Dec. 8, 2009 for the district that encompasses Carter and Lewis counties.
The vacancy in the 14th State Senate district is the result of the resignation of Sen. Dan Kelly, whom Gov. Beshear named to a judgeship in the 11th Judicial Circuit. The special election will be held on Tuesday, Dec. 8, 2009 for the district that encompasses Marion, Mercer, Nelson, Taylor, Washington counties.
KRS 118.730 dictates that governor must issue the writ for a special election for a member of the General Assembly, if the vacancy occurs when the legislature is not in session.
In accordance with KRS 118.760, nominations to fill vacancies at special elections are made pursuant to the governing authority of the party in the territory which the election is to be held. Petitions and certificates of nomination may be filed 28 days before the day of election, and if filed with the Secretary of State, shall be immediately certified by the Secretary of State to the proper county clerks per KRS 118.770.
Indiana Gov. Mitch Daniels recently reiterated his commitment to the Interstate 69 project, and pledged that the section between Evansville and Crane will be completed by the time he leaves office in January 2013.
As the Evansville Courier-Press noted in its Sunday editorial, that would he ahead of schedule, and quite an accomplishment.
From the Courier-Press editorial -
Consider that the people of Southwestern Indiana have waited for a modern highway between Evansville and Indianapolis for more than 50 years. They watched as interstate highways were built elsewhere in Indiana.
They listened as officials and opponents told them to be satisfied to take an out-of-the way route through Terre Haute or drive narrow roads heavily traveled by coal trucks.
They watched as opponents kept up the pressure, even as then-Gov. Frank O’Bannon’s administration was planning the highway and as Daniels was creating an innovative plan for funding the first half of the route.
They were told it would take until 2015 to see the first leg completed, but even that might not be possible, considering some rising cost estimates. They were told they might not be around to drive on the highway by the time it is finished.
Well, all of those good citizens of Southwestern Indiana, who have waited patiently all these years, caught a break with Daniels, who is determined to leave office with a significant portion of I-69 in place. Of course, he will have to do the seeming impossible. Samuel Sarvis, the Indiana Department of Transportation’s deputy commissioner for major projects, described it as “a very aggressive goal.”
But, he added with emphasis, it is not a job he would take on if he thought it was unrealistic.
That’s good news for the people of Indiana, and should be motivation for transportation officials in Kentucky, which has little more than a plan for its section of Interstate 69 right now.
Of course, Kentucky took a big step toward figuring out how to fund I-69 this summer when the legislature created the Kentucky Public Transportation Infrastructure Authority. The new authority will have the power to fund “mega” transportation projects and levy tolls to pay for them.
First on the authority’s agenda is the Ohio River bridges project in Louisville, and the state has already laid out the authority members that will be working on the plan to fund and build those bridges.
This renewed commitment by Gov. Daniels to Interstate 69 and the amped-up timeline for completing Indiana’s portion of it should put more pressure on Kentucky to move ahead with its I-69 plans even while working on the Louisville bridges project.
