George H. W. Bush Had It Right - One Time

“It just isn't going to work, and it's very interesting that the man who invented this type of what I call a voodoo economic policy... “
Speech at Carnegie Mellon University, regarded as a reference to Ronald Reagan

George H. W. Bush had it right, at least once, when he said when he referred to supply side economics as” voodoo economic policy.”  Bush later attempted to reverse himself and say he never made the statement about Ronald Reagan’s economic plan. 

His one moment of economic clarity was abandoned to what became Republican dogma.

One of the best pieces on this topic is in today’s Herald Leader.

The trickle-down theory of economics “is dismissed as nonsense by economists of both parties. But, as Sen. Mitch McConnell assured a reporter in July of 2010: it is "the view of virtually every Republican on that subject."

Closer to home, none of the candidates for Governor of Kentucky are willing to do what is needed, or even seriously talk about what is needed,  to solve the financial issues of the Commonwealth.  Maybe they expect the intestinal fortitude to do something to trickle down from the Federal Government.

David Williams - Everything but the Kitchen Sink Tax Plan

Some thoughts on David Williams’ tax plan. 

First in Kentucky Republicans can usually be classed in one of two groups.  There is morals police, the group that likes to bash gays, (anti-gay marriage amendment), be against abortion and for the death penalty (I still have a hard time getting my head around that one), and give tax incentives for the Arc Park in northern Kentucky.

Then there are the money Republicans.  This group wants the poor and sometimes middle class to pay all the taxes, but never tax a business, screw the unions and state employees. Generally speaking they are in favor of a feudal society based on money and power.

So let’s translate the Williams tax plan:

The commission would be instructed to eliminate both personal and corporate income taxes that bring in about $3.8 billion a year to the state treasury and to "make Kentucky the best state in the nation to create and retain jobs."

Translation: I’m sucking up to the TEA party.

 “Its work, Williams said, would have to be "revenue neutral," meaning that any tax increase or new taxes would have to be offset equally by a tax decrease.”

Translation: I’m sucking up to the no new tax group and transferring the burden of the taxes from the rich to the poor.  Revenue Neutral does mean taxes go down, it just means someone different pays the tax.

Williams said the commission's plan would be submitted to the legislature without any changes, "to keep the lobbyists and special interests from diluting the bill."

Translation: God forbid the people or their representatives have a voice in how they are taxed.

He also proposed the immediate suspensions of some taxes to help Kentucky's economy. They include:

■ The sales tax on all construction-related purchases by businesses.

■ All taxes on energy used in manufacturing, processing, production, and transportation and distribution businesses.

■ The tax on hay and feed to provide relief to the horse industry.

■ The state's portion of the car tax.

■ The "barrel tax" on the bourbon industry.

Translation: More profits for the businesses involved.  Do you really see all of the businesses involved passing on the tax savings to the customer?

To reduce what Williams called "the negative impact that large government bureaucracies can have on job creation," his plan calls for a moratorium on new administrative regulations except for emergencies, a sunset provision for all regulations subject to legislative review, and a provision to make sure no new regulation was more stringent than federal regulation unless the legislature approved otherwise.

Translation: I’ll say anything to get elected.  Candidate Williams might make this promise but a as Governor Williams will have “no clear recollection of the statement”.  No Governor is going to willingly give up that much power.

Williams also said he would "lead the fight" against health care changes backed by President Barack Obama by ordering the state government to file litigation against them.

Translation:  A lot of Kentuckians hate the President, I’ll run against him.

Other parts of Williams' plan call for:

■ Protecting Kentucky coal from U.S. Environmental Protection Agency regulations.

Translation: I’ll kiss up to the coal industry.  Williams will have to go a long way to beat Steve Beshear in kissing up to the coal barons.

■ Repealing the state's moratorium on nuclear power.

Translation: I’m too stupid to remember recent history.  He probably wants to build Japanese style power plants on the New Madrid fault.

■ Creating a "Kentucky Jobs" venture capital fund similar to a program in Ohio in which expert venture capitalists invest in businesses that have a good shot at creating jobs.

Translation: We are going to borrow more money so our kids will be deeper in debt and trust “expert venture capitalists”.

■ Setting up a jobs initiative program similar to one in Georgia for workers receiving jobless benefits.

Translation: Williams agrees with President Obama.  Read more here.

■ Promoting agricultural products in the state and opposing federal "overregulation" of Kentucky farms.

Translation: Collective buzz words.  Could someone, maybe the current Agriculture Commissioner, actually where we are overregulated?  

■ Modifying the state's unemployment insurance system by indexing the benefit structure to an average of the surrounding states, or decreasing unemployment insurance benefits.

Translation: Screw the workers.

■ Placing new state workers into a 401(k)-style system to sustain the state's public pension system.

Translation: Screw the state employees.

Teachers' pensions would not change, Williams said.

Translation: I’m not taking on the teacher’s union they are not a bunch of wimps like state employees.

One final question:  If he really wants to do these things why didn’t the President of the Senate spend the last 10 years working on these items?

Silly Season in Frankfort is Coming

Silly season (the 2010 session of the General Assembly) has yet to start in Frankfort but that hasn’t stopped some our legislators from getting the jump on the season.

First up is Senator John Schickel.  The good senator seems to have one agenda item which is to adjourn the senate.  Why else would you “prefile” three resolutions to adjourn the senate?

BR 132 - Senator John Schickel (08/25/11)

A RESOLUTION adjourning the Senate in honor and loving memory of Margaret B. Deters.  Adjourn in loving memory and honor of Margaret B. Deters.

BR 131 - Senator John Schickel (08/25/11)

A RESOLUTION adjourning the Senate in honor and loving memory of Willie Mathis, Jr.
Adjourn in loving memory and honor of Willie Mathis, Jr..

BR 112 - Senator John Schickel (08/25/11)

A RESOLUTION adjourning the Senate in honor and loving memory of Thomas O'Daniel.
Adjourn in loving memory and honor of Thomas O'Daniel.

Next is Ron Crimm.  Sounds like Ron almost lost a transmission speeding down a road somewhere.  So we need to pass a state law to make sure that doesn’t happen again.

BR 122 - Representative Ron Crimm (07/29/11)

AN ACT relating to traffic control devices.
Create a new section of KRS Chapter 189 to require local governments that have installed speed bumps or speed humps on a roadway under its jurisdiction to denote the speed bumps or speed humps using a road sign or paint them so that they are clearly visible to persons traveling the roadway.

Seems like Kentucky legislators keep coming up with new ways to kiss up to the military, here are the latest examples.  Ron must have been heading for the tattoo parlor when he hit that speed bump.

BR 120 - Representative Ron Crimm (07/29/11)

AN ACT relating to qualifications for military service.
Amend KRS 211.760 to require tattoo facilities to conspicuously display a notice in a prominent place easily seen by patrons; set minimum dimensions of notice sign at 11 by 14 inches with 1 inch letters; direct the cabinet to supply the sign to the tattoo facilities; require the notice to warn that any tattoo on the neck, forearm, or lower leg automatically disqualifies the wearer from military service in the United States Armed Forces.

I’m not sure if this is sucking up the military families or just another way tax people but do we really need a “special license plate to siblings of service members whose mothers are eligible for membership in the Gold Star Mothers of America”.  Really, we need a sibling license plate?  Rep. Webb-Edgington thinks so.

BR 135 - Representative Alecia Webb-Edgington (09/06/11)

AN ACT relating to special license plates.
Amend KRS 186.162 to establish a Gold Star Sibling special license plate and set forth required fees; provide Disabled Veterans license plates at no charge to veterans with a 50% or greater service-connected disability; amend KRS 186.166 to provide for perpetual production of the Gold Star Sibling special license plates; amend KRS 186.164 to require the Transportation Cabinet to promulgate regulations outlining documentation required to receive a Gold Star Sibling special license plate; limit eligibility for a Gold Star Sibling special license plate to siblings of service members whose mothers are eligible for membership in the Gold Star Mothers of America; delay effective date until January 1, 2013.

And of course there is the shill, Rep Michael J. Nemes, for Steve Beshear and the casino industry.

BR 189 - Representative Michael J. Nemes (09/07/11)

AN ACT proposing to create a new section of the Constitution of Kentucky and to amend Section 226 of the Constitution of Kentucky relating to gaming.

BR 246 - Representative Michael J. Nemes (09/07/11)

AN ACT relating to the provision for and control of casino gaming and making an appropriation therefor.

And it is not even the middle of September……..

Adam Edelen

Today in the Herald Leader we have a fine example of smoke and mirrors from candidate Adam Edelen.  Edelen is running for state auditor and the article is basically a public relations piece for his campaign. 

Jack Brammer, the reporter for the Herald Leader is better than this, he knows how to ask a hard question but didn’t.  I don’t know why.

Here are the dot points:

1.      More public transparency and saving taxpayers' money.

2.      Launch an online site called "Taxpayer Dashboard" to give Kentuckians information to help them evaluate how well tax dollars are spent.

3.      Urge Kentuckians to get involved as "citizen auditors" with public service announcements.

4.      Push for legislation to require local and state agencies to publish all expenses online.

5.      Hold an annual statewide conference with local and state government financial administrators to urge more transparency and highlight innovations in their jobs.

6.      Update the auditor's Web site by creating a "digital safe house" to ensure the anonymity of whistle-blowers.

7.      Set up a system for prioritizing which audits should be conducted.

Point number one, this is just wishing for sunshine.  Unless you can tell us how you are going to do accomplish transparency and saving money it doesn’t mean anything.

Points two thru six attempt to say how he is going to accomplish transparency.  But let’s look a little closer.

Point number two calls for a "Taxpayer Dashboard".  He said he developed similar "dashboards" for Lexington residents when he was vice president of the Lexington Chamber of Commerce.

Go take a look at the Lexington Chamber of Commerce.  All I see are pages with links.  Not impressive.

Point number three public service announcements, really?  I’ll TIVO right through that.

Point number four, push for legislation.  A good idea every auditor has done it or should have done it.  The legislation he should push would require all of the county officials to use the same accounting system.  They don’t currently.  Some do a good job, but a lot of what goes on in the counties is total crap when it comes to accounting.  By the way how is he going to pay for requiring local and state agencies to publish all expenses online?  Another unfunded mandate?

Point number five, hold an annual statewide conference.  Rubber chicken and political smoozing at state expense, we can all agree we need more of that.

Point number six, ensure the anonymity of whistle-blowers.  Whistle blowers should be protected, but they should not be anonymous.  Revising the web site is going to ensure anonymity, that is not going to happen in this world.  This just shows a fundamental lack of understanding about how things, particularly computers, work.

Point number seven, system for prioritizing audits.  Do nothing different from what the current state auditor is doing.

And finally “Edelen said Luallen "has done a magnificent job in the auditor's office."

"I would just like to institutionalize her policies with a priority list."”

Now I know that no democrat running for office can speak ill of St. Crit, but I have personally heard Edelen say (before he was running for office) that he thought that Luallen was a do nothing auditor and that he was disappointed with what she had done with the office.

So let’s add up, former Beshear chief of staff with a smoke and mirrors agenda that says whatever he needs to say to get elected.  I’m not impressed.

Williams gets his first "G"

Conservatives in Kentucky like to talk about the 4 G's; God, Guns, Gays, and Gynecology (abortion), they do this because they have no real solutions to the problems facing the state and these are easy issues to rally the faithful.

From the Herald Leader:

“Republican David Williams, who is challenging Democratic Gov. Steve Beshear in the Nov. 8 election, urged Beshear in a news release Friday "to denounce this attack on prayer at public functions and lead the efforts of state government to defend our citizens' right to voluntarily pray anywhere they choose."”

A few points here:

First, this was an advisory opinion from the Amy Peabody, assistant general counsel of the Department of Education, not from the Attorney General.   The opinion said the Bell County “should” discontinue prayer at football games.  The opinion did not say must discontinue prayer.  There is a world of difference between should and must.

Second, Peabody is right “the effort and expenditure of funds required to defend this practice in litigation will greatly outweigh, and not serve the students of the school district…”  Bottom line here is real simple; do not pick a fight you can’t win, especially when it’s going to cost you an arm and a leg to pay for it.

Third, Williams suggests, "There were two ways to handle this. One was to run up the white flag and surrender to the out-of-state group trying to shut down prayer in Kentucky. (The sensible, cost effective response) The other was for the Beshear administration to step in and offer advice on how the school district could comply with the law without gleefully delivering a stop-order to the good people of Bell County, who are simply trying to exercise their constitutional right to freedom of religion and speech,"

If it’s just a question of how to side step the law, then I would think that David Williams, lawyer and President of the State Senate, could offer that advice all on his own.

Of course there is a third option, Attorney David Williams could offer to represent Bell County, pro bono, in the matter.  But I really don’t see that happening.

Fourth, what kind of idiots does Steve Beshear have working for him?  “Beshear's director of communications, Kerri Richardson, said Williams "should know that the Department of Education is an independent department that does not answer to the governor."”

Independent department my Aunt Fannie, the only quasi-independent departments in the executive branch of state government are the Attorney General, Auditor, Secretary of State, Treasurer, and Agriculture Commissioner.  Here is the truth; the governor controls the budget for this department and all the others.  If you control the money you control the department and if you don’t understand this you should be playing with the big boys in Frankfort.

Finally, this is a desperate attempt by Williams to find an issue and get some free media in a losing campaign.  The next thing he will do, to pander to his base, is find a reason to support guns, bash gays, and come out against abortion.

It's Not The Stock Market!

From the Associated Press:

“Wall Street's volatility has hit state pension funds just as they were beginning to recover from the recession, turning what was merely a troubled forecast into a potentially stormy future for taxpayers who are on the hook for billions in unfunded liabilities for government retirees…….

And Kentucky, which has more than $20 billion in unfunded pension liabilities, has seen the value of its public pension fund decline $1.7 billion - or 15 percent - since July 1, falling to a total value of $9.7 billion.”

Let me repeat this one more time.  The problems facing the Kentucky Retirement Systems are not caused by:

1.       The stock market

2.       A Board of Trustees that does not oversee the KRS

3.       Mismanagement and malfeasance by management.

I must admit that none of these three things have helped the situation.  But the real reason for the unfunded liability lies directly on the shoulders of multiple sessions of the Kentucky General Assembly and multiple complicit Governors.  These politicians have consistently underfunded the retirement systems.

So when politicians like David Williams, (I heard the words come out of his mouth myself),  claim the underfunded pension liability is caused by the stock market they are just trying to get out of taking responsibility for their own actions.

The stock market is not helping, but the cause of the problem is the past actions of the legislature and a number of Governors.    

Flunking Politics 101

If you are running for office you can never have too much money.  So every politician and the people working for him do everything they can to maximize donations.  One way to do this is to convince a group with a special interest that if they don’t elect you then they are going to get screwed.

This is what is going on with the Todd P’Pool campaign and the for profit college group.

This is a great tactic; look as Steve Beshear sucking up to the coal industry.  So P’Pool is trying the same thing with the for profit colleges.  Unfortunately the folks at the Sullivan University System don’t seem to have a grasp on how the game is played.

They don’t seem to grasp the fact that shaking down 150 people at an open meeting is not the way you do this.  So what they have done is make Jack Conway look good.  Conway gets his name and picture in the paper looking like the good guy defending poor students from a predatory business and the P’Pool campaign is doing damage control.

“P'Pool hasn't taken a public stand on whether for-profit colleges need tighter regulation to protect students, said (David) Ray, his campaign manager. But the issue isn't a top priority, he said.

When P'Pool is on the campaign trail, Kentuckians are "not asking him about culinary schools," Ray said.”

Reminds me of a line an old politico once told me:

“You can lead a whore to Vassar, but you can’t make her think.”  It sure looks like a whole group of political whores weren’t thinking