In my absence my favorite group of rogue bureaucrats, the Kentucky Retirement Systems, has been busy.
In August of 2009 a member of the Kentucky Retirement System (KRS) board of trustees Christopher Tobe criticized a bad land deal in the press based on Finance Cabinet Audit that KRS first tried to cover up then denied existing.
Also in August 2009 Tobe the only investment professional on the board was removed from the investment committee.
In September of 2009 Tobe wrote to the Security and Exchange Commmission.
In October 2009 the KRS Investment Committee hires start up hedge fund Arrowhawk. Arrowhawk pays a $2 million placement agent fee to Glen Sergeon
In January 2010 The KRS Internal Auditors without the knowledge of the audit committee completed an investigation and found $13 million in placement agent fees. They forget to disclose this information to full board in February.
In March of 2010 the Kentucky General Assembly passes a bill requiring the KRS investment committee to have investment experts Christopher Tobe is placed back on the investment committee in April.
In May 2010, The Investment Committee chair Vince Lang and Audit chair Lou Reynolds are informed of the placement agents but decide to keep it secret from the rest of the committee and decline to tell the full board at the meeting.
On August 4, 2010 the KRS discloses for the first time the $13 million in placement agent fees buried in a stack of over 50 pages to members of the investment committee.
More information about the goings on at KRS can be found here:
Audit examines role of middlemen in state pension investment deals
KRS to reopen middle man investigation
State auditor opens broad review of pension agency
SEC's Placement Agent Probe Continues
And a tip of the hat to Jacob Payne at PageOneKentucky for picking up the ball I dropped and kept running with it.
Lincoln Bedroom, Your Tax Dollars & Retirement
KRS Placement Agent Living The High Life
Tuesday, December 28, 2010
Number 57
Just for fun can anyone identify the KA wearing number 57 and sitting on the cannon?
Here's a hint the picture is from 1973.
Here's a hint the picture is from 1973.
Streamlined Sales and Use Tax Agreement
In response to my last post I got this a couple of comments on Facebook from Representative Bill Farmer.
“ I looked at that about 4 years ago and found out that as part on a multistate agreement that KY joined we gave away the right to have variable rates, even for things that could never be shipped out of state such as club memberships or food prepared in a restaurant “
And
“it is part of the streamline sales tax compact - I have never seen the actual compact - all I saw was the legislation which was "sold" as a way to improve collection of sales taxes whereby information would be shared amongst the states so that all states could increase collections - the pact seems to have all kinds of failings because there are all kinds of area that have local taxing authority and that is not working at all”
I would like to say now that Bill Farmer is one of a very few Kentucky legislators that has attempted to do anything about the current mess we find ourselves in.
In light of Bill’s comment I tracked down the agreement he was talking about, the Streamlined Sales and Use Tax Agreement.
From the website FAQ:
“This Agreement is the result of the cooperative effort of 44 states, the District of Columbia, local governments and the business community to simplify sales and use tax collection and administration by retailers and states. The Agreement minimizes costs and administrative burdens on retailers that collect sales tax, particularly retailers operating in multiple states. It encourages "remote sellers" selling over the Internet and by mail order to collect tax on sales to customers living in the Streamlined states. It levels the playing field so that local "brick-and-mortar" stores and remote sellers operate under the same rules. This Agreement ensures that all retailers can conduct their business in a fair, competitive environment.”
So the Agreement is a business-friendly sales tax system that encourages sellers to collect taxes in 23 states. Twelve hundred retailers collect sales tax in Streamlined states under a voluntary system.
“Now that these states have made tax collection simple and easy for retailers, Congress can adopt legislation that applies to the products and services sold by remote sellers. “ Remember that is only 23 states are actually participating in the agreeement.
Here’s my take on this Agreement:
First, anything you join you can unjoin. I don’t see where we are getting a lot out of this. I would really like to see the numbers from the Revenue Cabinet on how many dollars this generates.
Second, do you really want the Federal government to control of sales tax in Kentucky? Do you really want on off the two main funding sources to come from Washington DC? (Sarcastic Mode Now) I’m sure it will come with absolutely no strings, that was always my experience when I worked for state government. (End Sarcastic Mode)
Three, just as this group encourages retailers to collect the tax, I encourage my male beagle not to piss on the deck. I’m pretty sure the result is the same.
“ I looked at that about 4 years ago and found out that as part on a multistate agreement that KY joined we gave away the right to have variable rates, even for things that could never be shipped out of state such as club memberships or food prepared in a restaurant “
And
“it is part of the streamline sales tax compact - I have never seen the actual compact - all I saw was the legislation which was "sold" as a way to improve collection of sales taxes whereby information would be shared amongst the states so that all states could increase collections - the pact seems to have all kinds of failings because there are all kinds of area that have local taxing authority and that is not working at all”
I would like to say now that Bill Farmer is one of a very few Kentucky legislators that has attempted to do anything about the current mess we find ourselves in.
In light of Bill’s comment I tracked down the agreement he was talking about, the Streamlined Sales and Use Tax Agreement.
From the website FAQ:
“This Agreement is the result of the cooperative effort of 44 states, the District of Columbia, local governments and the business community to simplify sales and use tax collection and administration by retailers and states. The Agreement minimizes costs and administrative burdens on retailers that collect sales tax, particularly retailers operating in multiple states. It encourages "remote sellers" selling over the Internet and by mail order to collect tax on sales to customers living in the Streamlined states. It levels the playing field so that local "brick-and-mortar" stores and remote sellers operate under the same rules. This Agreement ensures that all retailers can conduct their business in a fair, competitive environment.”
So the Agreement is a business-friendly sales tax system that encourages sellers to collect taxes in 23 states. Twelve hundred retailers collect sales tax in Streamlined states under a voluntary system.
“Now that these states have made tax collection simple and easy for retailers, Congress can adopt legislation that applies to the products and services sold by remote sellers. “ Remember that is only 23 states are actually participating in the agreeement.
Here’s my take on this Agreement:
First, anything you join you can unjoin. I don’t see where we are getting a lot out of this. I would really like to see the numbers from the Revenue Cabinet on how many dollars this generates.
Second, do you really want the Federal government to control of sales tax in Kentucky? Do you really want on off the two main funding sources to come from Washington DC? (Sarcastic Mode Now) I’m sure it will come with absolutely no strings, that was always my experience when I worked for state government. (End Sarcastic Mode)
Three, just as this group encourages retailers to collect the tax, I encourage my male beagle not to piss on the deck. I’m pretty sure the result is the same.
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