Ralph Long

The Agenda Doesn't Merit the Cost - Even for Two

2009-03-16T13:40:00.004-04:00

After a morning of web research and some mild social engineering, the Hyatt staff is much more helpful than the Kentucky Retirement Systems staff, it looks like only Trustees Randy Overstreet and W. Lewis Reynolds are soaking up the sun in Florida.

If I could have just got a straight answer from the Retirement Systems, it would have saved a great deal of time and a number of phone calls to Florida, but it was still quicker than filing an open records request.

So I guess I owe an apology to those members of the KRS board members and staff who were unable to make the trip this year. I’m sure they will have other opportunities for travel in the future.

I’ll be spending the next few days drafting an open records request for some information like who has attended these things for the last 10 years. There is an art to doing such a request, you need to be careful to just ask for what you want, you have to be careful or you get flooded with a mountain of worthless redacted paper.

Anyway, I hope Overstreet and Reynolds are having fun. Who couldn’t use a little spa time.

Oh, and by the way, one board member wrote me to say they were working and not in Florida, I won't comment on the difference in working and being in Florida, but in their words they: “.....never felt the agenda merited the expense of me traveling to Florida.”

I couldn’t agree more.

Stonewalling at KRS, what are they hiding?

2009-03-16T11:24:00.002-04:00

I just got a call from Jennifer Jones, a member the Kentucky Retirement Systems Legal Staff, regarding my request for a list of who was attending the conference in Florida.

Ms. Jones did the standard Open Records request shuffle, “Send it to us in writing” and we’ll get back to you.

Here is their policy on confidentiality from their web site:

Section 3: Standards of Conduct Regarding Confidentiality

1. Individuals associated with KRS may be granted access to confidential information in the course of an employment, Board or contractual relationship with KRS.

2. This information may include, but is not limited to, individual member information, including but not limited to, Social Security numbers, names, addresses, phone numbers, birth dates, beneficiaries, health insurance information, Personal Identification Numbers (PIN), as well as documents, records, programs, files, scientific or technical information, or other information made available to individuals for purposes of completing their obligations to KRS.

I told Ms. Jones that I was somewhat mystified why the list of names of Trustees attending a conference needed an open records request. The answer was basically we have to have a written open records request of everything.

I told Ms. Jones I was blogging about KRS and the conference, she said, “I’ll tell Mike.” I assume that is Executive Director Mike Burnside. But she didn’t say whether she would have to walk down the hall to tell him or call him in Florida.

Oh, and in reading the policy I guess this does fall under the “but not limited to” category:

KRS Trustees in Florida

2009-03-16T10:02:00.003-04:00

Here is an update on the Kentucky Retirement Systems Trustees that are partying in Florida.

This morning I called the KRS, I identified myself as Ralph Long a retired state employee, and asked a simple question:

“Can you tell me which Trustees and Staff members are attending the Klausner and Kaufman conference in Florida today?”

A very nice lady named Tracey Mulder, a member of the Executive Support Staff, took my question, told me that she thought just the Trustees went to the conference. I pressed her for the names of who was at the conference; she put me on hold and came back a couple of minutes later. Tracey said I would need to file an open records request for that information.

I asked if I could speak to the person that told her that I would have to file an open records request. Tracey replied that they were in a meeting and she would take my number and call me back.

Through the conversation Tracey seemed a bit uncomfortable with being asked where the Trustee’s were at and what they were doing.

This is an example of transparency in State Government, when a taxpayer, retired state employee, member of the Kentucky Retirement Systems can’t get a straight answer about what the people that control the investments of the system are doing.

Of course maybe places like the Taverna Opa need to be kept confidential:

Time to Party In the Sun

2009-03-14T18:08:00.005-04:00

Why I have a picture of belly dancers is at the top of this post will become clear as you read.

Let me start by saying I don’t want you to have any doubt where I’m coming from on this.

I am royally pissed off and this is personal. I’m a state retiree and I’ve written a lot about the Kentucky Retirement Systems. But two items in the Herald Leader recently caught my eye.

First we have the story on how the legislature has backed off requiring the local governments and school boards to meet their obligations.

“Despite a warning that "a day of reckoning is coming," the Senate gave final passage to a bill Thursday that would give local governments more time to make payments into the state's ailing pension system.

House Bill 117 now goes to Gov. Steve Beshear, who is expected to sign it into law.

The Senate voted 29-8 on the measure though Sen. Tom Buford, R-Nicholasville, noted that a Legislative Research Commission analysis showed it would save local governments money in the short term but not in the long term.

The analysis said the bill would save local governments and schools about $40 million next year and $60 million in 2011. But it would cost them $120 million more over the next 20 years to compensate for investment earnings lost, Buford said.”

Then we have the story about how Greg Stumbo and David Williams feel it is necessary to screw future state employees rather than the government meet its’ obligations.

“With only two working days left in the 2009 General Assembly, it's too late to take up the issue in this session. But Senate President David Williams and House Speaker Greg Stumbo said the General Assembly is likely to consider the matter over the next year.

Their comments came during their weekly Friday news conference in the Capitol.

Williams, R-Burkesville, said the Beshear administration and the legislature need "to come to grips with the fact that we have a pension plan that we cannot allow people to continue to enter with the level of benefits that they have now."

"It is out of touch with what is happening with the private sector. It is a pension plan that cannot be sustained as far as new employees."

Asked if he will push for reductions in benefits for new state hires, Williams said, "For new employees, we need to have a different pension plan."

Williams criticized KASE leader Jackson's opposition to a review of the state pension plan.

"Doesn't he understand the economic times we're living in?" asked Williams.

Stumbo, D-Prestonsburg, said the legislature will have to review the pension plan for new hires because of the troubled economy.

He said "the solution that we thought was corrected" in a special legislative session last year is likely to be revisited.

"We need to think about long-term strategies," Stumbo said. "It's going to take a rethinking of the funding mechanism."

Now the legislature has already screwed the existing retirees. If you think setting a flat 1.5% cost of living adjustment is the same as pegging the adjustment to the Consumer Price Index then you can’t do math and probably qualify as a member of the General Assembly.

But these three things are not enough to truly piss me off. What is currently going on in Florida has sent me over the top. I told you we would get back to the belly dancers.

I understand the working majority of the Kentucky Retirement Systems and Executive Director and probably new General Counsel of the Kentucky Retirement Systems are going to a conference in Florida. That would be Chairman of the Board Randy Overstreet, Board Members Susan Horne, Bobby Henson, Patricia Ballenger, and Lew Reynolds, along with Executive Director Mike Burnside and General Counsel Schuyler Olt.

The conference is staged by Robert Klausner.

Here is info on the 2009 conference but you really want to watch the video of the 2008 conference (click the Client Conference link above the agenda), be sure to watch the whole thing, the best part starts at about three minutes into the video, (remember the belly dancers).

I’ve talked about Klausner before and his involvement in some questionable dealings with pension funds.

You have to kind of admire a guy that can triple dip from a pot of money.

First Klausner makes hundreds of thousands of dollars from the KRS, he then makes money off of referral fees on class action (see Forbes) and finally, (and this is the best) he makes more money by charging hundreds of thousands to money managers (the talking heads in the video) to speak at the conference, where else are the speakers going to get access to a potential investors with billions of dollars to invest, like our own KRS Trustees.

So here are some things that Greg Stumbo, David Williams, Jonathan Miller, Steve Beshear, and all of the media should be looking at.

Why are four or five Trustees and perhaps staff, many with spouses and girlfriends, spending 3 and 4 days at the Hyatt on the state dime?

Here are some thoughts.

Most of the content of conferences happens in one or two days and the most efficient way is to fly up in the morning stay one night and fly back the next evening. (Not 3 or 4 days)

Conference content should be shared so at the maximum 1 trustee and 1 staff should attend to maximize benefit.

5 Trustees discussing pension issues together is an open meetings issue.

1 Trustee will have only 2 weeks left on the board after attending the conference which provides little or no value to the system. (Parting Gift) Patty Ballenger

A trustee brought up at the August 2008 board meeting that the New York Times had written negatively about this specific conference over conflict of interest issues and that Forbes had written negatively about Klausner. This same trustee brought up in the February 2009 meeting that the host of the conference was accused of bad legal advice by one of the indicted trustees in San Diego.

And finally this one is for the folks at the Herald Leader;

I really wish you would spend some of the energy you spent on the Lexington Airport Scandal looking at these guys. Call their offices, call their homes, call their cell phones, (you can’t tell me the Governor doesn’t have the cell numbers) just pay attention and follow the money.

And one final picture from Taverna Opa for the ambiance of the conference.

More Light Please

2009-03-08T10:25:00.001-04:00

OK, time for a little light on the cockroaches again.

I’m not going to recite the litany of screw ups that is the Kentucky Retirement Systems (KRS), you can read them if you want in the old posts of this blog.

But now there is an opportunity that a little light may come to the investment committee of the KRS. House Bill 380 has passed out of the House by a vote of 95 to 0 and is now in the Senate. The bill will essentially add a couple of people with investment knowledge to the investment committee. What a concept.

This is a good thing.

More people, more eyes, maybe someone will actually take a look at what is going on.

However, I wonder if this bill will make it out of the Senate.

You see, I understand that Sen. David Williams was involved in getting Louisville political hack Schuyler Olt a $120,000 a year job at KRS.

Since on the last things the management of KRS wants is someone who actually understands investments looking at the investments, I wonder if the payback will be the killing HB 380.

Let’s hope Williams is too busy bashing Jim Bunning to care.

More Circus Acts

2009-01-28T12:46:00.001-05:00

Finishing up the first 100 proposed changes to the way we live we have the following:

Will we get an Elvis Chapel in the basement of the Capitol Annex to go with this law? Oh, this is an EMERGENCY piece of legislation; someone must need to get married fast in Frankfort.

HB 79/LM (BR 278) - J. Higdon
AN ACT relating to the solemnization of marriage and declaring an emergency. Amend KRS 402.050 to allow solemnization of marriages by a member of the General Assembly who has been authorized by the presiding officer of his or her chamber; amend KRS 402.090 to forbid any legislator to solicit, accept, or agree to accept anything of value in exchange for solemnizing a marriage; amend KRS 402.100 to require all marriage certificates to contain a space where the officiating legislator may affirm membership in the General Assembly and list the date he or she was authorized to solemnize marriages; EMERGENCY.

I’m a social liberal and a fiscal conservative. No, the two are not mutually exclusive. But sometimes the cradle to grave hand holding that is often legislated is just a bit much for me. How about looking at the state budget before worrying about an 18 year old being an idiot with a credit card.

HB 83 (BR 388) - J. Glenn
AN ACT relating to college student financial awareness. Create a new section of KRS Chapter 164 to require public postsecondary institutions to provide new undergraduates with information regarding credit cards and debt management and encourage them to conduct informational sessions; encourage nonpublic postsecondary institutions to provide new undergraduates with information regarding credit cards and debt management and to conduct informational sessions; permit institutions to utilize existing debt education materials from nonprofit entities; and require the Council on Postsecondary Education to assist institutions in identifying appropriate materials and curricula.

What a waste of time.

HB 85 (BR 390) - J. Glenn
AN ACT designating burgoo as the state dish. Create a new section of KRS Chapter 2 naming and designating burgoo as the state dish.

Should we warn them not to use a credit card?

HB 86 (BR 391) - J. Glenn
AN ACT relating to sales and use tax holidays and declaring an emergency. Create a new section of KRS Chapter 139 to provide a sales and use tax holiday for the first week in August each year to exempt clothing with a sales price of less than $100 per item, school supplies, and school art supplies; define terms; EMERGENCY; EFFECTIVE May 1, 2009

Ok, this is going to take a minute to read but bear with me. First we have a bill that claims to relate to agroterrorism.

HB 91/LM (BR 345) - M. Denham
AN ACT relating to agroterrorism. Create new sections of KRS Chapter 247 to define "agricultural equipment," "agricultural facility," "agricultural product," and "agroterrorism"; establish damages for committing agroterrorism; amend KRS 500.080 to define "agricultural equipment," "agricultural facility," and agricultural product"; amend KRS 512.010, 513.010, 513.060, and 527.205 to conform; repeal KRS 437.410, 437.415, 437.420, and 437.429.

The bill really deals with paying farmers damages and filling the pockets of lawyers.

“Any person who commits an act of agroterrorism shall be liable for personal injury and for restitution for the value of the agricultural facility, agricultural equipment, or agricultural product damaged or destroyed, as determined by a court of competent jurisdiction, plus interest, attorney's fees, and reasonable court costs.”

According to a Rand Institute National Defense Research Brief, there are six short- to medium-term recommendations for dealing with agroterrorism.

1. Conducting a comprehensive needs analysis to determine appropriate investment requirements for the federal emergency management infrastructure.

2. Increasing the number of state and local personnel with the skills to identify and treat exotic foreign animal diseases.

3. Assessing how to foster more coordinated and standardized links between the U.S. agricultural and intelligence communities.

4. Focusing attention on issues of law enforcement and the use of forensic investigations to determine whether disease outbreaks are deliberate or naturally occurring.

5. Revisiting the effectiveness of the passive (voluntary) disease reporting system, especially in providing more consistency with indemnity payments to compensate farmers for destroyed livestock.

6. Evaluating surveillance, internal quality control, and emergency response at food processing and packing plants to weigh the immediate costs of improving biosecurity against the long-term benefits of instituting those upgrades.

Since the bill doesn’t address anything close to the recommendations the question becomes this:

Is this bill the product of sloppy research or just an attempt by a clueless legislator trying to impress the fools that put him in office? If you are going to try and pass a law to deal with a potential problem at least do some of the homework first.

And finally when is a tax not a tax; when it’s a disbursement fee?

HB 95/LM (BR 178) - B. Montell
AN ACT relating to child support. Amend KRS 205.721 to require the $25.00 disbursement fee for child support to be charged to the noncustodial parent.

Open Georgia

2009-01-27T10:37:00.001-05:00

Here is a tip of the hat to the Pilgrim for this.

The state of Georgia seems to be a least one step ahead of Kentucky when it comes to eTransparency.

Take a look at Open Georgia – Transparency in Government.

I’d like to see even more detail, but this site is a good next step.

Good, Bad and Just Plain Weird

2009-01-27T10:00:00.002-05:00

Moving on through the bills filed in the Kentucky House.

I do notice that the bill does not include taxing services provided by accountants or owners of retirement communities. This must be a clerical error; surely the sponsors didn’t mean to exclude these services.

HB 51 (BR 90) - B. Farmer, D. Floyd
AN ACT relating to taxation. Amend various sections of KRS Chapter 139 to expand the sales and use tax base to include certain services and rental of commercial real estate, repeal certain exemptions, and lower the tax rate; create a new section of KRS Chapter 141 to apply the provisions of that chapter to taxable years beginning before January 1, 2010; amend KRS 141.020, 141.040, and 141.0401 to make the individual income tax, corporation income tax, and the limited liability entity tax effective for taxable years beginning before January 1, 2010; amend KRS 138.358 and 139.260 to conform; repeal KRS 139.485 and 139.486; EFFECTIVE July 1, 2009.

I don’t have a problem giving former military personnel a break. But the only thing this bill accomplishes is to waste tax payer dollars by requiring state agencies to spend time interviewing people they will never hire.

If a person tests well and can do the job, they may get an interview and maybe the job. If the person is totally not qualified, and has no political connections, then it doesn’t matter how many extra points they get or how many times someone has to interview them, they are not going to get the job.

When it comes to state jobs, it’s not what you know, it’s who you know.

HB 61 (BR 227) - M. Cherry
AN ACT relating to honoring military service. Amend KRS 18A.150 to expand the state hiring preference honoring military service; require the adding of five or ten preference points to a military-connected individual's examination score used for state hiring in classified positions; permit the total of an examination score and preference points to exceed 100; require that a register certificate of finalists for a state job identify all finalists entitled to preference points, whether or not an examination is actually a part of the selection method; require that an employing state agency offer an interview to all finalists entitled to preference points unless five or more of the finalists are entitled preference points, in which case, the employing state agency shall offer an interview to no fewer than five.

Could someone explain to me why a black man from Louisville sees a need for these pieces of legislation?

HB 62 (BR 253) - R. Meeks
AN ACT relating to the definition of "American Indian." Amend KRS 446.010 to define "American Indian" to mean a person having origins in any of the original peoples of North and South America and who maintains tribal affiliation or community attachment to the tribe of origin; make conforming amendments

HB 63 (BR 254) - R. Meeks
AN ACT relating to recognition of American Indian tribes. Create a new section of KRS Chapter 171 to allow a group desiring to be formally recognized as an American Indian tribe to submit a petition to the Kentucky Native American Heritage Commission; provide criteria that shall be met to be recognized as an American Indian tribe; authorize the Kentucky Native American Heritage Commission to approve petitions submitted for recognition; provide approved petitions to the Governor and, if the Governor accepts the recommendation, provide for issuance of an executive order recognizing the approved group; require the Kentucky Native American Heritage Commission to promulgate administrative regulations identifying the procedures to be followed in submitting a petition and appealing and decision of the commission.

I’ll go with this one only if the state never pays for any member of this committee to travel outside the borders of the United States. Alright, everyone together now, say "No Junkets at Tax Payer Expense".

HB 64 (BR 255) - R. Meeks
AN ACT relating to economic development. Create a new section of Subchapter 12 of KRS Chapter 154 to establish the International Business Relations Committee as a permanent committee of the Legislative Research Commission; provide that the committee shall address efforts to attract and maintain international businesses in Kentucky and open foreign markets to Kentucky goods and services.

Thank you Dr. Watkins.

HB 68 (BR 189) - D. Watkins
AN ACT relating to a cigarette surtax and declaring an emergency. Amend various sections of KRS Chapter 138 to create an additional cigarette surtax of 70 cents; increase the tax rates for other tobacco products and snuff; impose a floor stock tax as of July 31, 2009; EMERGENCY.

After someone does their time they should be allowed to vote.

HB 70/LM (BR 289) - J. Crenshaw, D. Owens
AN ACT proposing an amendment to Section 145 of the Constitution of Kentucky relating to persons entitled to vote. Propose to amend Section 145 of the Constitution of Kentucky to exclude a convicted felon from the right to vote only until expiration of probation, final discharge from parole, or maximum expiration of sentence; submit to the voters for ratification or rejection.

Given the homophobic nature of the General Assembly this has the chance of a snow ball in hell of passing, but a least the issue is on the table.

HB 72/LM (BR 284) - M. Marzian
AN ACT relating to civil rights. Amend KRS 344.010 to include definitions for "sexual orientation" and "gender identity"; amend KRS 344.020, relating to the purpose of the Kentucky's civil rights chapter, to include a prohibition on discrimination because of sexual orientation and gender identity; amend KRS 344.040, 344.050, 344.060, 344.070, and 344.080, relating to prohibited discrimination in various labor and employment practices, to include sexual orientation and gender identity; amend KRS 344.025, 344.100, 344.110, and 18A.095, relating to the same, to conform; amend KRS 344.120 and 342.140, relating to prohibited discrimination in places of public accommodation and advertisements therefor, to include sexual orientation and gender identity; amend KRS 344.170, 344.180, 344.190, 344.300, and 344.310, relating to the state and local human rights commissions, to include prohibition of discrimination on the basis of sexual orientation and gender identity in the scope of their powers and duties; amend KRS 344.360, 344.680, 344.370, and 344.380, relating to prohibited discrimination in certain housing, real estate, and other financial transactions, to include sexual orientation and gender identity; amend KRS 344.367, relating to prohibited discrimination in certain insurance sales, to include sexual orientation and gender identity; amend KRS 344.400, relating to prohibited discrimination in certain credit transactions, to include sexual orientation and gender identity; and make various technical amendments.

Why Can't They Keep It Simple?

2009-01-26T11:01:00.004-05:00

As of today there have been 177 bills filed in the House. Here are some, between 25 and 50 that have snagged my attention.

I like this one, I would have been a little happier if age and sexual orientation had been included as a basis for prohibiting wage differentials.

HB 33/LM (BR 175) - M. Marzian
AN ACT relating to wage discrimination. Amend KRS 337.423 to prohibit wage discrimination on the basis of sex, race, or national origin by prohibiting wage differentials for employees who perform equivalent jobs; provide exceptions for wage differentials based on seniority or merit systems, systems that measure wages by quantity or quality of production, and factors other than sex, race, or national origin; amend KRS 337.420 to define equivalent jobs as those that are equal under the federal Equal Pay Act, or jobs that are dissimilar but equivalent in skill, effort, responsibility, and working conditions; and amend KRS 337.425 to require promulgation of administrative regulations on or before July 1, 2010 to specify criteria for determining jobs that are dominated by employees of a particular sex, race, or national origin, and acceptable methodology for determining equivalent skill, effort, responsibility, and working conditions; EFFECTIVE July 1, 2011.

The gotcha in this bill is that “nothing in this section may be interpreted to authorize expression by students that are a …..violation of school policies”. But have faith that any budding high school journalist can find the weasel words to skirt this little provision. So let’s hear it for free speech.

HB 43 (BR 63) - B. Yonts
AN ACT relating to high school newspapers. Create a new section of KRS Chapter 160 to provide that public high school student journalists have right to exercise freedom of speech and press in school-sponsored media; direct that student journalists are responsible for determining content of school-sponsored media; provide limitations for content determined by high school students; provide that school boards are immune from civil and criminal liability based on student expression in school-sponsored media; require local board adoption of student freedom of expression policy.

We have all dated that psycho, regardless of gender, that we never, ever, under any circumstance want to be anywhere near again.

HB 48/LM/CI (BR 218) - J. Jenkins
AN ACT relating to dating violence. Amend KRS 403.720 to include dating partners among the class of persons allowed to obtain domestic violence protective orders; amend KRS 431.005 to reference the definition of "unmarried couple" in KRS 403.720.

Let’s not make someone the victim of a crime twice.

HB 49/LM (BR 220) - J. Jenkins
AN ACT relating to employment. Amend KRS 337.415, relating to court-ordered appearances by employees, to define terms; prohibit employers from discharging or retaliating against an employee who is a crime victim when the employee takes leave to attend proceedings associated with the crime; require employee to give employer reasonable notice to take leave when practicable; provide guidelines for use of paid leave time; require employer to maintain confidentiality of records and communications with employee crime victim; create a penalty for failing to maintain confidentiality.

I like the idea of extending voting time. The only question I have is how much is this going to cost and who is going to pay it?

HB 50/LM (BR 187) - D. Owens, L. Clark
AN ACT relating to early voting. Create a new section of KRS Chapter 117 to allow early voting by requiring in-person absentee voting to be conducted for at least 12 working days before the Sunday prior to election day; require this voting to be held in the county clerk's office or other place designated by the county board of elections and approved by the State Board of Elections; amend various sections of KRS Chapter 117 to conform

Why don’t we just make a simple law that says; when you are driving a moving vehicle, any moving vehicle, and on a cell phone the police can pull you over, confiscate the phone and fine you a $100.00.

HB 41/LM (BR 135) - D. Floyd, T. Burch
AN ACT relating to the operation of a motor vehicle. Create a new section of KRS 189 to define terms; prohibit the use of a personal communication device without the use of a hands-free device by the operator of a motor vehicle, and provide limited exceptions; amend KRS 189.990 to provide for period ending January 1, 2010 during which courtesy warnings will be issued for a violation of Section 1 and set a fine of between $20 and $100 for a violation of Section 1 on or after January 1, 2010.

HB 41/LM (BR 135) - D. Floyd, T. Burch
AN ACT relating to the operation of a motor vehicle. Create a new section of KRS 189 to define terms; prohibit the use of a personal communication device without the use of a hands-free device by the operator of a motor vehicle, and provide limited exceptions; amend KRS 189.990 to provide for period ending January 1, 2010 during which courtesy warnings will be issued for a violation of Section 1 and set a fine of between $20 and $100 for a violation of Section 1 on or after January 1, 2010.

Let me simplify this for the dense among you. Gambling – BAD IDEA. Gambling won’t raise the money the proponents promise, and it creates a new set of social problems. This is just what we need, like the lottery, another tax on people that can’t do math. And it’s an EMERGENCY people.

HB 32/LM/CI (BR 73) - T. Burch
AN ACT relating to video lottery terminals, making an appropriation therefor, and declaring an emergency.

I can always count on Stan Lee to come up with a WTF moment for me. OK, no one wants a sex offender near their kids, but why make a big deal out of Halloween? Why not just say stay away from any activity with a minor? Keep it simple, if you are a sex offender stay the hell away from kids.

I bet Stan has something against Wiccans and Halloween.

HB 38/LM/CI (BR 149) - S. Lee, C. Embry Jr.
AN ACT relating to sexual offenders. Amend KRS 17.545 to prohibit a person required to register as a sexual offender, for an offense committed against a victim who was a minor, from residing in specified areas and from participating in any Halloween activity with a minor.

I’ll buy this is valid if they reduce the drinking age for a 17 year old in the military.

HB 39 (BR 134) - D. Floyd
AN ACT relating to motor vehicle operator's licenses. Create a new section of KRS 186.400 to 186.650 to exempt 17-year olds who have enlisted in the military from the requirement to obtain an intermediate license; amend KRS 186.412, 186.450, 186.452, and 186.454 to conform and to clarify that individuals over the age of 18 are exempt from graduated driver's licensing provisions.

And one final question why is the only bill in this post that is an emergency is the gambling bill?

The Circus is Back in Town

2009-01-25T09:51:00.004-05:00

Meandering through the pre-filed legislation before the Kentucky House of Representatives usually provides me more than a few WTF moments and the less frequent, “That sounds like a reasonable idea” moment.

Due to short attention spans I’ve only looked at the first 25 bills filed in the House, I’ll get to the others later.

First the short list, the ideas I like:

No one, well almost no one, buys medical equipment for fun. Exempting durable medical equipment sounds like a reasonable exemption.

HB 3 (BR 437) - S. Riggs
AN ACT relating to durable medical equipment. Amend KRS 139.472 to exempt durable medical equipment from the sales and use tax; EFFECTIVE July, 1, 2009.

As I’ve previously posted the devil is in the detail, anything the shines a little more light in the dark corners of government is a good idea.

HB 13 (BR 75) - J. DeCesare, C. Embry Jr.
AN ACT relating to accounting for the expenditure of state funds. Create new sections of KRS Chapter 42 to require the Finance and Administration Cabinet to create a searchable Web site to provide certain information on the expenditure of state funds; provide that the new sections shall be known as the "Taxpayer Transparency Act of 2009."

Please make them stop, and could we include every law enforcement group that hires professional beggars to annoy the public under the pretense of being a charity.

HB 18 (BR 79) - J. Higdon
AN ACT relating to automated or recorded political telephone messages. Create a new section of KRS Chapter 367 to prohibit use of automated calling equipment or recorded political telephone messages from or by a political party or campaign; make use of such equipment for communicating political messages by a political party or campaign a Class B misdemeanor; provide that each prohibited automated call or recorded political message shall be punishable by a civil penalty of not less than $5,000; provide that an injured person may bring a cause of action for damages up to the amount of actual damages or $1,000 whichever is greater.

Then there are the ideas that are close, but need some work:

Why couldn’t the following bill just say “state-operated institutions and programs?

HB 6 (BR 400) - T. Burch
AN ACT relating to homelessness. Amend KRS 194A.735 to continue the homelessness prevention pilot project to offer discharge planning on a voluntary basis to persons exiting state-operated institutions, foster care programs, and persons serving out sentences in state-operated prisons in Oldham County.

I’ll go with this one if they change it from “appropriation measure or a revenue measure” to any floor amendment or free conference report regardless of subject.

HB 14 (BR 76) - J. DeCesare, S. Lee
AN ACT relating to a legislative time-out prior to voting on a floor amendment or a free conference report related to an appropriation measure or a revenue measure. Create a new section of KRS Chapter 6 to require a legislative time-out period of 24 hours prior to a vote on an appropriation or revenue bill or amendment.

Bills I Don’t Like:

I’ll go with this one if they include members of the legislature before every session, with random follow up screenings during the session.

HB 15 (BR 42) - M. Henley, J. Gooch Jr.
AN ACT relating to substance abuse screening pilot programs for public assistance recipients. Amend KRS 205.200 to create two pilot substance abuse screening programs for recipients of public assistance.

This sounds like a good idea, but this reads like a further institutionalization of the two party system that limits it he involvement of independent voices.

HB 17 (BR 24) - J. Higdon
AN ACT relating to primaries. Amend KRS 116.055 to permit a registered independent to vote in the primary of one party for each primary; amend KRS 118.125 to provide that a primary candidate shall not be a registered independent; amend KRS 117.125 to provide that electronic voting machines be reprogrammed to allow a registered independent to vote for a party's candidates in a primary.

And finally under the redundant, why are they wasting time on this again, classification we have the burning need to change automobile license plates.

Here’s a suggestion, let’s allow anyone to put anything they want on a motor vehicle license plate, as long as the person is willing to pay for the plate. Kentucky can be the Café Press of state license plates.

I'm sure this idea will offend someone, freedom of speech usually does.

HB 24/LM (BR 78) - J. Gooch Jr., H. Collins, M. Cherry, R. Crimm, R. Damron, C. Embry Jr., K. Hall, M. Henley, S. Riggs, S. Santoro, K. Sinnette, T. Thompson
AN ACT relating to motor vehicle license plates. Create a new section of KRS Chapter 186 to establish an In God We Trust license plate as an alternate standard issue license plate; set forth design characteristics and eligibility standards; amend KRS 186.240 to conform; EFFECTIVE January 1, 2010

HB 25/LM (BR 120) - R. Nelson, C. Embry Jr.
AN ACT relating to motor vehicle license plates. Create a new section of KRS Chapter 186 to establish an "In God We Trust" license plate as an alternate standard issue license plate; set forth design characteristics and eligibility standards; amend KRS 186.240 to conform; EFFECTIVE January 1, 2010.

Focus People

2009-01-14T09:42:00.000-05:00

Anyone that has read any of my postings regarding smoking or big tobacco knows that I will be very happy when tobacco companies go out of business.

So take a moment and focus here. Let me give you a metaphor, we need to drain the swamp, but we keep forgetting to drain the swamp because we are fighting off the crocodiles.

Here’s one crocodile. David Williams, out of the blue, is in favor of an unenforceable statewide ban on smoking in public places. As the Herald-Leader points out, that dog don’t hunt.

…..anything our pro-tobacco legislature is likely to pass would be weaker than the ordinances that local governments are enacting. A statewide ban would drain the political energy from local efforts to enact better protections.

And without a ton of money behind it, enforcement would be a joke.

A second crocodile is the continued mantra that we can only pass a small tobacco tax. If the best the legislature can do is a 20 to 30 cent per pack tax on cigarettes, then we should urge our legislators to vote it down. This is a delaying tactic.

What to do?

Focus on draining the swamp. The only acceptable answer is a dollar, or more, tax per pack of cigarettes. Stay after your state legislator; instill a spine in our honorable representatives so they can do the right thing.

Call them, write them, and go visit them.

Don’t settle for half way measures.

Through a Glass Darkly

2009-01-12T09:23:00.002-05:00

Kentucky’s new OpenDoor – Kentucky’s Portal to eTransparency is really more of a look at something in the distance on a foggy morning than a transparent window.

The site give totals, big annual totals, but no detail, and the devil is in the detail.

For example:

In 2007 the Health & Family Services Cabinet, Department for Community Based Services, spent $1,637,352.02 for supplies with a state procurement card. Procurement cards are credit cards used by state agencies.

But what did they spend the money for? If you don’t think this is important look at the guys at the Blue Grass Airport.

Four officials at the Blue Grass Airport have charged a combined $332,000 to their airport credit cards for expenses ranging from Hannah Montana tickets to video games and golf lessons.

The Lexington Herald-Leader reports Sunday the charges were accrued during the last three years. Each of the three men earned annual salaries more than $135,000.

Charges also included tickets to sporting events, a visit to a strip club and other trips across the country. Airport credit cards were also used to by Christmas presents for co-workers, gasoline, dry-cleaning, car washes and meals at various local restaurants.

I’m not saying there is anything wrong with the $1,637,352.02 spent by Community Based Services, but how do you know unless you can see the detail? And yes the detail is on computers at the state and has been for years, it's a component of the state accounting system.

And we need more detail in other areas such as overtime payments at the Kentucky State Fair Board. Why was there a need for the Board to pay $325,515.88 in overtime in 2007? Who got the money?

And a personal favorite of mine, (remember the guys at Blue Grass Airport) out of state travel. Why did the Kentucky Department of Revenue spend over $400,000.00 in both 2007 and 2008 travelling out of state?

Who went where, why did they go, and why was it necessary for taxpayers to pay for the travel.

Next Step:

This site is a good first step, but it doesn’t go nearly far enough. We need a lot more detail. The information is available, a lot already in digital format.

I'm Back

2009-01-11T08:09:00.001-05:00

The Sabbatical is over.

There will be a few slight changes in the direction of this blog.

First, I’m going to quit taking shots at individuals, it’s too easy.

Second, most of the posts will be issue orientated and there won’t be a post every day.

I’ll start tomorrow.

AFK

2008-07-25T08:25:00.000-04:00

I’m on sabbatical.

Judge Maze?

2008-07-09T17:58:00.001-04:00

My best guess on this one is that Jefferson County Attorney and former Lt. Governor Candidate Irv Maze is a lock for the Circuit Court in Jefferson County.

FRANKFORT, Ky. -- The Judicial Nominating Commission, led by Chief Justice John D. Minton Jr., met today at the Jefferson County Judicial Center in Louisville to choose nominees to replace the late Judge Kathleen Voor Montano, who passed away April 21, 2008. The vacant circuit judgeship serves the 30th Judicial Circuit, Division 10, consisting of Jefferson County. Three Louisville attorneys were named as nominees to fill this vacancy: Margaret E. Keane, Irvin G. Maze and Theodore S. (Ted) Shouse.

Scorsone, Stein and Lee

2008-07-09T10:16:00.002-04:00

Scorsone, Stein and Lee – now that would be a strange law firm I can’t see ever happening. But it could be an interesting combination of political ambition for this fall.

Fayette Chief Circuit Judge Sheila Isaac vacated her Seventh Division seat on June 2 to enter the senior judge program. Speculation in Frankfort is rampant that longtime state Sen. Ernesto Scorsone, D-Lexington, will seek an appointment to Isaac's seat……..

House Judiciary Chairwoman Kathy Stein, D-Lexington, said she would be ”very interested“ in running for Scorsone's seat if he is appointed to the bench.

This is a done deal. Scorsone will be appointed by Gov. Steve Beshear and Kathy Stein will run for his seat. The decision for Stein to step into the race for Scorsone’s Senate Seat has already been made and the voting members of the Fayette County Democratic Party will rubber stamp it.

Part of Stein’s motivation for running was probably her shaky hold on the House Judiciary Committee Chairmanship. With a battle shaping up of leadership in the House her hold on the chairmanship was not a done deal. Of course there may also be some promises to Stein from the Governor about the future, who knows?

The interesting questions here are who will run for Stein’s seat in the house and who will oppose her for the senate seat. I would expect the Republicans to make an attempt to take this seat but with a District that has re-elected and openly gay candidate, who was running unopposed, this will pretty much be a Kamikaze mission.

I do look forward to seeing Stein and David Williams sparring in the Senate.

Another rumor surrounding Isaac’s retirement is that Stan Lee will run against Scorsone. Now that would be an interesting race.

Witch Hunting at the University of Kentucky

2008-06-30T13:48:00.008-04:00

Alright, time for another Jon Stewart WTF moment.

The Family Foundation has issued a hit list of six UK faculty members.

”We're trying to highlight where public money is being spent,“ (Martin) Cothran said. ”We're asking should we basically be funding the (political) left through the universities with public money.“

Cothran said ”all of the politicization of the academy is coming from the left.“

Given the the actions of the Family Foundation I'm not even going to comment on how idiotic that statement is.

UK and other universities might have achieved greater diversity in terms of color, gender and nationality, but the political left controls the prevailing campus ideology, and that control amounts to ”partisan political activity,“ Cothran said.

If we are in the process of purging politicization from the University of Kentucky I’d like to add a person to the Foundations list.

Arthur J. Nit z, PT, PhD, ECS, OCS
Professor, Physical Therapy
ajnitz1@uky.edu

Art Nitz is the current Chairman of the Board of the Family Trust Foundation.

By the way, in case you don’t know where the Family Foundation and Dr. Nitz stand on Domestic Partner Benefits here is a page from the Family Foundation website.

Weasel Words and Retirement

2008-06-28T09:02:00.001-04:00

The General Assembly has passed the retirement bill. The bill was loaded with weasel words that allow the legislature to back out of any commitment.

Sen. Tom Buford, R-Nicholasville, was the lone lawmaker to oppose the bill. He warned that the legislation is a mediocre first step that doesn't do enough to keep the retirement system from draining the state government's coffers in the future.

”If our goal is to achieve mediocrity in the pension plan, we have succeeded,“ Buford said.

The net result of the bill was to screw the workers and retirees a little bit while the Legislature doesn’t bite the bullet and do the right thing.

There are three approaches to this problem.

One the approach the legislature took. Reduce benefits to workers and retirees, but not enough that they actually scream. Promise to do better in the future and claim victory.

”Regardless of the speeches about this being an important first step, this is the ball game,“ he (Jody Richards) said. ”This puts us on a sound foundation for several years.“

Richards, once again, exhibits an inability to do math. If a worker is hired this year, after this bill goes into effect, and given the changes just made, the system will still not be on sound financial footing when the worker retires.

A second approach would be the David William's totally shaft the worker proposal.

One of the more controversial proposals not addressed by the legislation is a plan (Senate President David) Williams has backed that would create a so-called defined contribution option, similar to 401(k) plans that let workers manage their own retirement investment accounts.

Here is the bottom line on 401(k) investments from the Kentucky Deferred Compensation Authority, the existing state 401(k) agency.

Investing may involve market risk including the potential loss of principal.

In other words, with Williams plan you have a chance of reaching retirement age and not have a retirement fund.

The third approach would be for the General Assembly to pass comprehensive tax reform and generate enough revenue to meet the obligations to state employees.

But the odds of the General Assembly summoning up the collective backbone to do such a thing is doubtful. These folks couldn’t pass a cigarette tax increase when it was not only the right thing to do but was supported by most of the voters.

Julian Carroll on The Retirement Bill

2008-06-25T08:05:00.001-04:00

The following is a copy of an email sent to me by a friend in Frankfort. My friend received the email from former Governor and Senator Julian Carroll.

Carroll has always been on top of money issues in Frankfort and his analysis of the retirement bill is pretty dead on.

Dear Friend,

I recently reported to you the negotiated House and Senate Leadership Pension Bill, together with charts showing the details of the agreed plan. Governor Beshear had previously charged the Leadership with negotiating such an agreed plan as a condition for calling the Legislature into a Special five-day Session in order to enact into law the proposed plan.

Just as a matter of explanation to some who are not familiar with the process, House Bill 1, the pension bill, was introduced Monday, June 23 on the first day of the Special Session and immediately referred to a House Committee for action. The Committee considered the Bill and reported it back to the House for a first reading.

The Bill received its second reading today and House Bill 1 will be considered for a vote on Wednesday, June 25, on that same day, the bill will be received in the Senate, referred to a Senate Committee, and reported out of Committee to have its first reading as required by the Constitution. The Senate will give the Bill its second reading on Thursday, and call the Bill for final passage on Friday. The Bill will then be enrolled and sent to the Governor, and the Session will adjourn Friday.

The Bill contains an Emergency Clause, which provides for it to become effective on enrollment and signing by the Governor. House Bill 1 will become law upon the signature of the Governor, presumably on Friday June 27, 2008.

I have received numerous questions about the pension bill. I hope that the bullets below will help clarify any questions that you may have.

For existing employees, beginning July 1, current and future KERS, CERS and SPRS retirees will receive a set 1.5 percent Cost Of Living Adjustment (COLA).

For current employees, hazardous KERS, CERS and SPRS retirees, who return to work on or after September 1, 2008 in SPRS in a hazardous duty position in KERS or CERS, will be required to observe a one-month break in employment.

All other KERS, CERS and SPRS retirees who return to work on or after September 1, 2008 in KERS, CERS or SPRS, will be required to observe a three-month break in employment.

Provided the break is observed, the employee can return to work, draw his pension, but will not contribute to the systems or earn a second pension. However in order to further fund the system, the employer will be required to pay contributions to the systems and the health insurance premium of the retiree not to exceed the cost of a single premium.

The Bill will presumably become law on Friday, June 27, 2008 , so the provisions for new hire's after September 1, 2008 as previously reported, will be in affect.

The argument, which has been made for increasing the break in reemployment to three-months is the savings that will be realized both for balancing the new budget starting July 1 and funding the unfunded balance for the retirement system.

I hope this information, along with what I have previously sent, will answer most of your questions.

Please feel free to contact me if I can be of assistance to you.

Julian M. Carroll
State Senator

Send In The Clowns

2008-06-24T11:54:00.003-04:00

I didn't know they were going to hold another special session of General Assembly......

Old Mulkey Meetinghouse to Host Clown Camp for Kids

URL : http://kentucky.gov/Newsroom/parks/mulkeyclowncamp.htm

Date : Friday, June 20, 2008

Issued By : Department of Parks

Summary : Old Mulkey Meetinghouse State Historic Site will host "Clown Camp" on Thursday and Friday, July 17 and 18, 2008. The two-day camp for children age 10 and over will give participants an intensive hands-on learning experience on street performing and clowning as taught by members of "The Clockwork Clown & Co."

Reduction in Retirement Benefits

2008-06-24T09:29:00.009-04:00

I’m not going to take on the entire retirement reform bill at one time. If I did your eyes would glaze over, I know mine do, before we got half way through the legalese.

So let’s just start with the changes to the Cost of Living Adjustment for existing retirees.

The bill quits using the Consumer Price Index to compute the Cost of Living Adjustment and sets the annual raise to 1.5 % per year.

The Legislature has the ability to do away with COLA’s for existing retirees anytime they want “The General Assembly reserves the right to suspend or reduce the benefits conferred in this subsection if in its judgment the welfare of the Commonwealth so demands.”

Here is the zinger"

The Consumer Price Index has never dropped to 1.5% during the last 20 years. Below are the percentages for the last 20 years. The General Assembly will happily screw the state employees by annually reducing their purchasing power.

Below is the CPI for the last 20 years.

1987 3.60%
1988 4.10%
1989 4.80%
1990 5.40%
1991 4.20%
1992 3.00%
1993 3.00%
1994 2.60%
1995 2.80%
1996 3.00%
1997 2.30%
1998 1.60%
1999 2.20%
2000 3.40%

2001 2.80%
2002 1.60%
2003 2.30%
2004 2.70%
2005 3.40%

2006 3.20%
2007 2.80%

Day Late and a Dollar Short

2008-06-24T08:47:00.001-04:00

The saying “better late than never” doesn’t apply here.

I received the following Commonwealth News Center Updates via email on June 23.

Media advisory
URL : http://kentucky.gov/Newsroom/finance/etransparency.htm
Date : Tuesday, June 17, 2008
Issued By : Finance and Administration Cabinet
Summary : The Kentucky eTransparency Task Force to hold its first meeting

Governor Beshear Issues Call for Special Legislative Session to Address Pension Reform
URL : http://kentucky.gov/Newsroom/governor/20080617special.htm
Date : Tuesday, June 17, 2008
Issued By : Governor Steve Beshear's Communications Office
Summary : Governor Steve Beshear today issued the call for a special session of the General Assembly to convene on Monday, June 23, 2008, to act on the state's public pension crisis.

Chief of Staff Jim Cauley Announces Decision to Leave Post in Beshear Administration
URL : http://kentucky.gov/Newsroom/governor/20080618cos.htm
Date : Wednesday, June 18, 2008
Issued By : Governor Steve Beshear's Communications Office
Summary : Governor Steve Beshear today announced the decision of Chief of Staff James Cauley to resign in order to pursue his own political consulting business.

And this one on June 24th:

eTransparency Task Force holds inaugural meeting
URL : http://kentucky.gov/Newsroom/finance/etransparency.htm
Date : Thursday, June 19, 2008
Issued By : Finance and Administration Cabinet
Summary : Gov. Beshear's vision for making public information more available, accessible discussed

Now I know email is not perfect, but a 5 or 6 day lag?

I don’t know if this time lag is intentional or just blazing incompetence but it is another example of how this administration appears to be clueless when dealing with the public appearance of doing the right thing.

I do know that all four of the items were things that I have commented on in this blog.

I Want to Be Governor 101

2008-06-22T08:50:00.003-04:00

OK kids, here’s a lesson in practical politics. Let’s call it I Want to Be Governor 101.

Adam Edelen has recently been appointed by Steve Beshear to be his chief of staff. The Herald-Leader summarizes Edelen’s credentials for the position:

Before his appointment to homeland security, Edelen was a senior executive with both Thomas & King Inc. and Commerce Lexington. He also has served as a board chairman of Kentucky Educational Television, chairman of the 2006 United Way of the Bluegrass Annual Campaign and an aide to Gov. Paul Patton.

In addition to his role at homeland security, Edelen is currently vice chairman of the Urban League of Lexington and a member of the Prichard Committee for Academic Excellence.

"Adam brings a diverse resume of public, political and private experience, along with strong and decisive management skills, all of which will be crucial to the ongoing success of this office and administration," Beshear said.

All of this is true, but they left out his most important skill. Adam Edelen can raise money like no one else in Kentucky politics. Edelen can raise hundreds of thousands of dollars without even trying hard. This is an invaluable asset to any politician.

So Edelen has his public service credentials, the ability to raise money, and the Homeland Security job started him on the way to making connections with all of the county officials.

Remember Homeland Security in Kentucky has nothing to do with Homeland Security it is a pork barrel pass through agency, it’s all about handing out money.

By becoming the Governor’s Chief of Staff, Adam Edelen positions himself so that everyone that wants something from the Governor comes through him. This is a powerful position. The Chief of Staff, if played correctly, will get a lot more ink from the press than the Director of Homeland Security.

Now Edelen has scored a political triple play, money, connections and publicity.

What’s next?

With Steve Beshear, unless he pulls an Ernie Fletcher, basically assured of repeating as Governor there is only one place to Edelen to go; the office of Auditor of Public Accounts. Crit Luallen is term limited out of the Auditor’s Office and there are no other viable candidates on the horizon.

Adam Edelen will have a cake walk in to the Auditor’s Office in 2011, much like Jonathan Miller did in his first term as Treasurer during the middle of the Paul Patton’s administration.

The real fun will begin when both Edelen and Jack Conway both want to be Governor in 2015. Both can raise money and will, in the up-coming years, have the opportunity to make and impression on the public.

Remember a successful campaign to be Governor is not only the tactical game of winning the election; it is the strategic game of positioning to win the election.

Adam Edelen is doing a masterful job of positioning.

Poke The Caged Lion

2008-06-21T08:50:00.002-04:00

As a certain Right-Wing Ground Sloth has pointed out “Mr. Long will, at times, poke the caged lion just to watch him twitch.”

Here’s a poke.

But I hope all the folks that support Bush/McCain will cringe at the truth rather than twitch.

THIS ISN’T GETTYSBURG

2008-06-20T14:11:00.003-04:00

The following is an email written by University of Kentucky Professor of Finance Joe Peek. His words speak much better than mine to this topic.

DISCLAIMER: The views stated herein are those of the author, and do not necessarily reflect the views of members of the UK Board of Trustees or Administration.

CLAIMER: Usually, but not always, when someone says “I told you so,” they do so with some degree of self-satisfaction and a minimal degree of enjoyment. This is one of the usual cases.

ACKNOWLEDGEMENT OF THANKS: I would like to thank the Herald-Leader and the UK Administration for the timing of the front page articles on Wednesday (Todd bonus) and Thursday (Boone-doggle Center). I have been out of the country for the past 3 ½ weeks and am leaving again tomorrow for another week. Thus, these two days of headlines appeared on the only two days during a five-week period in which I was in town to read them. Makes me appreciate just how much I miss this place.

NOTE: Unlike the UK Administration, I try to be responsive to faculty comments and views. In response to numerous requests, I am attempting to be a bit more subtle. However, it is a learning process, since I am severely subtlety-impaired (I am also subtitle impaired, since foreign languages are among my many areas of in-expertise).

FEELINGS

After having a few days to contemplate their decision about the President’s bonus, do you think that any of the members of the Board of Trustees are feeling a bit sheepish? (Please note the lack of bold font in an effort to be more subtle.) Note that many have attributed the awarding of the bonus by the trustees, and the acceptance of most of the bonus by President Todd, to an ID-ten-T error. (Hint: subtlety at work; write it out using numbers.)

THIS ISN’T GETTYSBURG

President Lincoln’s famous reference to “government of the people, by the people, for the people” has been changed at UK to “governance of the administration, by the administration, for the administration.”

Self-serving decisions are the norm at UK, at the expense of faculty, staff, and students. At least in President Todd’s acceptance speech for his bonus, he touted the self-sacrifice shown by the faculty and staff accepting zero percent salary increments in these difficult financial times.

However, such behavior and attitudes are present not only at the top of the UK administration; they are pervasive throughout the administration structure. As an example, I give you my own Gatton College. After six months of repeated efforts to obtain information on the awarding of the January merit increments to Gatton faculty, I have finally received an accounting. In addition, to a set of “compression and inversion” adjustments, 11 adjustments were awarded to “top performers” among the faculty. Of these 11 adjustments, five went to non-administration faculty (that is, 5 out of about 80 such faculty) and six went to faculty that were also college administrators (that is, 6 out of 6). Any wonder why we have such a lack of transparency at UK?

SEE BLUE? SEE BLURRED!

In such dire financial times, surely there must be a better use for the $95,500 bonus accepted by President Todd. Perhaps the funds could have been used for student aid to offset the tuition increase for some students; or to lessen the impact of layoffs; or to fund faculty research efforts.

Alternatively, think of how much beer could be purchased at Pazzo’s next Friday night for faculty. Then, perhaps many of the faculty could have the same blurred vision as our administrators.

GRADE INFLATION

Grade inflation is a well-known problem at universities. However, usually the worst occurrences are associated with student grades. At UK, we are breaking new ground. Here, our Board of Trustees has inflated President Todd’s grade to a near perfect score of 96.8. Unsurprisingly, his lowest score was for the category of “improving communications with students, faculty, staff and trustees.” Apparently, it is still not well understood that communication is bidirectional. Weak communication problems are not solved by sending out more memos, but by actually listening to the stakeholders in the university.

HOUSTON, WE HAVE A PROBLEM

At least one of the three of us (you, me, President Todd) do not have a firm grasp of reality; but I am not sure just who. The UK Administration emphasizes form over substance. Thus, it would seem that accepting most of a $145,000 bonus at a time of soaring tuition, layoffs, and zero raises for faculty and staff would be a public relations disaster. However, we are reminded by the UK publicity staff that President Todd’s salary trailed nine of his peer’s salaries at 19 benchmark universities. Still, this is just the public funds part of his salary, and, I am sure inadvertently, they forgot to provide the ranking of UK faculty salaries relative to those same 19 benchmark universities. So why am I not sure just who is out of touch?

Simply because the reality is that decisions are made over and over by the UK Administration that are not in the interests of university stakeholders, yet the UK Administration is allowed to get away with it, although in some instances they first must weather a brief and ineffective protest (e.g., renovation of the Boone-doggle Center); but perhaps I am being too cynical here.

A REPRESENTATIVE VIEW

The Herald-Leader reports that faculty trustee Ernie Yanarella thinks that there will be “some diffuse irritation among faculty about Todd’s salary and bonus.” He continues, stating that, “The faculty who are cynically minded will be crabby about it.” First, why would UK faculty become cynical? OK, maybe a few. Well, I suggest that all three of us (among the 1,900 UK faculty) who have become cynical and crabby send President Todd an email suggesting that he did not make an intelligent decision when he accepted most of the bonus. The Herald-Leader reports that President Todd appears to receive few complaints about his policies, quoting President Todd as stating, “I don’t think I’ve had an email yet—maybe one or two—about not giving a raise.” And in your letter, you should pledge your entire 2008 faculty raise to a fund intended to make up the shortfall of President Todd’s $150,000 bonus.

A FINAL THOUGHT

While the UK Administration may not appreciate the faculty or entertain their views, at least they do entertain with their statements and actions.

Joe Peek
Professor of FinanceGatton Endowed Chair in International Banking and Financial Economics School of Management