KyKurmudgeon

Gee, how time gets away from you when your return to work after 2 1/2 weeks of R&R coincides with the opening of an organizational session of the General Assembly, not to mention having to report for two months of jury duty. But hey, jury duty may provide a pleasant respite from watching the perennial clash of political egos that occurs whenever lawmakers convene. Anyway, now that I’m back from the holidays, it’s time to get kurmudgeonly again. So, on to the quickies.

1. It appears the House of Representatives underwent a major transformation while I was away. Democrats apparently picked up about 20 more seats, giving them a majority of 85 votes or so. At least, that’s the total when you add up the number of D votes incumbent Speaker Jody Richards and his challenger, Rep. Greg Stumbo, claim to have on their side going into Tuesday afternoon’s leadership elections. Someone is going to find out a few of their “friends” have been lying to them.

2. OK, back to square one on the little matter of the state pension plans’ $27 billion unfunded liability. Square one is the fact that a major portion of that unfunded liability accrued from, duh, 15 years of underfunding in a succession of budgets passed by the General Assembly. (Square two is the soaring cost of health care, but we’ll leave that for another day.) So, after lawmakers failed to enact pension reforms in the 2008 General Assembly, Gov. Steve Beshear calls them into special session and got a reform bill passed that included getting the state headed in the right direction (albeit with miles and miles to go) on adequate funding of the retirement systems. It was arguably the primary achievement of his first year in office.

Now, in what can only be described as something of a U-turn, Beshear has proposed giving cities, counties and school systems a break on meeting their funding obligations to the pension plans. Sure, cities, counties and school systems are struggling during these economic hard times, just like everyone else. But allowing them to stretch out their contributions over a longer period of time, as Beshear proposes, denies the systems not only a portion of the money they are due now but also the investment return that money would produce in the coming years. Although Beshear’s plan might ease the pain now, it would exacerbate the problem of unfunded liability by taking the same short-sighted, irresponsible approach to funding that caused a big portion of this mess in the first place. Bad idea. Very bad idea.

3. Beshear just doesn’t get the whole “public perception” thing in this Adam Edelen-Bob Babbage deal. What the public sees is a top-ranking administration official who is now the governor’s chief of staff maintaining a partnership with an influential lobbyist for at least a year after joining the administration. And even though Beshear, Edelen, Babbage and all their friends try to rationalize it from now until the cows come home, the public will still see exactly the kind of good-ole-boy croynism Beshear promised to eliminate from state government. That’s a damaging perception for the Beshear administration. And even if the Edelen-Babbage partnership produced no benefits from the state for Babbage, nothing is going to change that perception now. The time for eliminating that perception was prior to Edelen joining the administration. That was when the partnership with Babbage should have been terminated. And Beshear should have made it happen before bringing Edelen on board.

4. It didn’t take long after the elections for the remodeling of Senate offices to resume, albeit on a somewhat more modest scale that originally envisioned. Still, in the present revenue environment, even modest remodeling comes across as extravagance.

5. Count me with Rep. Tim Firkins, D-Louisville, on his proposal for a cut in lawmakers’ pay during this revenue crunch. Sure, it wouldn’t mean much in the grand scheme of a projected $456 million shortfall for this fiscal year. Like the cuts Beshear, Lt. Gov. Daniel Mongiardo and several top administration staffers volunteered to take, cutting legislators’ pay would be strictly symbolic. But there’s a lot to be said for such symbolism when others are feeling real pain from the budget reductions.

1. Gov. Steve Beshear’s signature campaign issue, putting a casino gambling amendment on the ballot in hopes of eventually recapturing the $300 million to $500 million in revenue flowing from Kentucky into other states’ treasuries, went nowhere in this year’s General Assembly session. Facing a $456.1 million revenue shortfall in the current fiscal year (and who knows how much in the next one), he’s proposing a 70-cent increase in the cigarette tax that, if approved, won’t come close to filling that void. So Monday, he created a Commission on Philanthropy to look at ways the state’s charitable foundations can get more bank for the buck in such areas as health early childhood education. The combination of these circumstances has put an image in my mind that I can’t shake. It’s the image of Beshear sitting at street corner with a tin cup in his hand begging for alms to pay for services the state should be providing.

2. Speaking of casino gambling, the fact that a task force Beshear created to study the future of horse racing in Kentucky failed to include any recommendation on expanded gambling in the report it issued Monday is completely mind-boggling to me. How can a panel that supposedly has just a tiny bit of interest in making sure this state’s racetracks stay competitive with their counterparts around the country ignore expanded gambling when purses at tracks in several other states are supplemented with proceeds from that source? How does this panel expect Kentucky tracks to remain competitive without help from expanded gambling? By sitting with its own tin cup on the street corner opposite Beshear?

Heard around the Capitol:

Since Bruce Lunsford already has a residence in Chicago, he should have just tried to buy Barack Obama’s Senate seat. It would have been a lot cheaper for him.

1. Although they don’t mean diddly about filling a $456.1 million hole in the current state budget, thosevoluntary 10 percent pay cuts Gov. Steve Beshear, Lt. Gov. Daniel Mongiardo and senior members of the governor’s staff will take in 2009 make for a nice piece of symbolism. None of these folks, who earn more than $100,000 a year each, will feel the kind of pain others will suffer from another round of cuts in state funding of education and crucial social services. Still, their small gesture was a laudable one. Legislative leaders, who are as responsible as anyone for failing to generate adequate revenue for any of the state’s operations other than their own, should be ashamed if they don’t join in the sacrifice.

2. Who woulda thunk we would see the day when U.S. Sen. Mitch McConnell, Kentucky’s fund-raising king of kings, would have to borrow money to stave off a challenger? But the Politico Web site reported last week that McConnell borrowed a total of $1.8 million in the closing days of his race against Democratic challenger Bruce Lunsford. The multimillionaire Louisville businessman may now be a three-time loser as a candidate, but give him credit for making the heretofore seemingly invincible McConnell work up such a sweat.

3. McConnell’s fellow Republican senator from the Bluegrass State, Jim Bunning, has said repeatedly that he will seek re-election in 2010. I hear he reiterated that stance during a teleconference with reporters Tuesday. But some of the recent whispers on the Kentucky political winds are starting to suggest otherwise. We’ll see. Assuming Bunning is the R candidate in ‘10, Democrats would be wise to get a name contender in the field shortly early in 2009 - unless they have another Lunsford on their bench who can self-fund a pricey campaign on short notice. Anyone else would have to start working early to raise the kind of money needed to pose a serious challenge to an incumbent senator.

After two weeks of desk duties at the Herald-Leader mother ship and another week of vacation during which I managed to do a fair imitation of a turkey by getting stuffed on Thanksgiving Day, I’m back, at least for a couple of weeks. Now, if someone would please remind me what a person does with a blog, I can get back to work. (Just kidding, sorta.) Anyway, let’s ease back into the routine with a few observations about some of the news from the last three weeks.

1. You know, for people who get and keep their jobs through what are essentially popularity contests, politicians can be really dense about appreciating the public perception created by their own actions. One example of that in recent weeks was Gov. Steve Beshear signing off on a 25 percent bump in salary (from $80,000 to $100,000) for a position he tapped friend and campaign donor Ralph Coldiron to fill in the Department of Homeland Security. At the time, Beshear knew the state was facing a projected shortfall in revenue for this fiscal year. He didn’t know the shortfall was going to be as much as the $456 million now estimated by the Consensus Forecasting Group, but he knew it was going to be significant. He also knew he was going to have to ask state agencies to cut back on funding the services they provide the public and/or ask Kentuckians to pay higher taxes. Under those circumstances, approving a salary increase for a position you’re naming a buddy to fill is, well, not very smart. It needlessly undermines the message Beshear will be delivering to the public and legislature over the next few weeks as he outlines his plan for dealing with a serious budget shortfall. A governor who plans to ask others to tighten their belts and make do with less needs to set the example with his own appointees.

2. Of course, Beshear is not alone among elected officials in Frankfort in being fiscally insensitive. A couple of recent stories (one in the Herald-Leader and another in The Courier-Journal) illustrated how profligate state lawmakers can be when traveling on the public dime. John Cheves’ story in the Herald-Leader dealt with the state police who provide security during out-of-state trips by Senate President David Williams and House Speaker Jody Richards, a practice that cost taxpayers $12,000 in just one month last summer. The Courier-Journal story by Tom Loftus reported that lawmakers in general spent $1.3 million of the public’s money on out-of-state travel between Jan. 1, 2006 and Oct. 31, 2008. Obviously, some travel by lawmakers to conferences and conventions can be beneficial since it can expand their knowledge about dealing with issues all states face. But state Sen. Tom Buford, R-Nicholasville, traved at public expense an average of more than 40 days a year during that time frame. Others among the General Assembly top frequent flyers averaged 25-30 days a year during that period. Considering the state’s budget woes in recent years, that’s excessive. And I can think of no legitimate justification for the state police escort Williams and Richards have been getting in their travels. After all, outside of Kentucky, who would know either man or what positions they hold well enough to target them for harm?

3. It would be way, way dumb of House Democratic leaders if they try to “steal” the 26th District seat from Rep. Tim Moore, R-Elizabethtown. Moore narrowly won re-election over Democratic challenger Mike Weaver, who held the seat prior to his unsuccessful 2006 campaign for the 2nd District U.S. House seat. Weaver and D leaders have discussed the possibility of contesting Moore’s election when the General Assembly convenes next month because of a malfuntion in a voting machine at one precinct. Such a contest would be settled by a vote of the full House, where D’s hold a sizeable majority. But Weaver and D’s leaders should end those discussions and accept defeat in the 26th District. Otherwise, they’ll only wind up looking as foolishly arrogant and petty as Williams and Senate R leaders looked when they tried to seat Dana Seum Stephenson despite court rulings that she failed the constitution’s residency requirement for serving as a state senator.

Hope you all had a spectacular Turkey Day.

1. It appears some Republicans want Mike Duncan, the chairman of the party’s national committee, to take the fall for the beating they took at the polls Nov. 4. Several reports indicate the Inez banker may have competition, perhaps from former House Speaker Newt Gingrich among others, if he seeks re-election in January. But it seems a bit odd to me that Duncan would become the scapegoat. After all, the R’s got their butts kicked because of President Bush’s disastrous policies on the economy and in Iraq, not because of the way Duncan ran the party machine. Any R who believes otherwise is in a serious state of denial. If there is any Kentuckian who should be blamed for the beating R’s took on a national basis, it is Senate Minority Leader Mitch McConnell, who has been Bush’s enabler in chief on all those disastrous policies.

2. When the Consensus Forecasting Group meets Friday, expect an even gloomier revenue projection than the $294 million shortfall Gov. Steve Beshear’s budget analysts predicted a couple of weeks ago. Expect that gloomier forecast to cause Beshear and House Democratic leaders to suggest an increase in the cigarette tax. But since the election didn’t produce any change in Frankfort’s political dynamics, don’t expect any increase to be passed because President David  Williams still mans his roadblock in the Senate.

3. A story in The Courier-Journal Tuesday reported that the Horseshoe casino (formerly Caesar’s) has paid $740 million in Indiana state taxes in its 10 years of existence. Some $215 million of that went back to Harrison County, where the casino is located. In addition, the county got another $100 million in profit-sharing. One Indiana casino contributed a total of $840 million to the public bank accounts in 10 years. Think what nine casinos could be contributing to Kentucky’s public bank accounts. But don’t think too hard about it right now, not with the roadblock still functioning in the Senate.

1. It’s been nearly 24 hours since U.S. Sen. Ted Stevens was convicted on seven felony charges. Why doesn’t Bruce Lunsford’s campaign already have ads out there linking the Alaska Republican to his good buddy, Senate Minority Leader Mitch McConnell? As I’ve noted before, Lunsford’s ability to self-finance a large part of his campaign got him into a competitive position, which became a virtual dead heat after the collapse of the nation’s financial markets. But he still has to close the deal. Stevens’ conviction gives him an opening to do so. If I were Lunsford, I would have had ads out there pairing Stevens with McConnell no later than this morning. And I would keep them going non-stop for the next seven days. But so far, all the Lunsford camp has done is issue a couple of statements, giving McConnell time to try to distance himself from Stevens. Makes you wonder how much the Lunsford camp wants to win.

2. And it’s not as if they don’t have the McConnell camp on the defensive. The R’s wouldn’t be trying to make a big deal out of a silly little flap over a recording device at last week’s debate in Gilbertsville if they weren’t running scared.

3. I was surprised when a recent Courier-Journal Bluegrass State Poll put Gov. Steve Beshear’s approval rating at 60 percent. I knew he had bounced back from a rating in the high 30s at the end of the General Assembly session, but I didn’t think he had bounced back that much. However, the Herald-Leader/WKYT Kentucky Poll gave Beshear a very similar 57 percent approval rating. So, I guess Beshear has been making a number of right moves since the spring. Still, his folks know the improved numbers of late are “soft” and could drop quickly, particularly if sluggish revenues force the administration to make more painful spending cuts.

OK, I know you all may think from the scarcity of recent posts that the old Kurmudgeon is a slacker who’s been laying down on the job. And you’re partly right. I did take some time off. But the time off was sandwiched between a period of filling in for absent colleagues at other H-L editorial board duties and a period of participating in the time-consuming process of interviewing candidates for endorsements. But my part in that process is over. This Sunday’s column is written. And I’m back to a more normal routine at least through Election Day. I even cancelled plans to take next week off just in case anyone associated with either presidential campaign finally figures out where to find Kentucky. So, let’s start with a couple of quickies:

1. Like most members of the media who have been following this story, I was surprised by Franklin Circuit Judge Thomas Wingate’s ruling in the case involving domain names of on-line gambling sites. And I remain unconvinced that the state ultimately will prevail in seizing those names and forcing the sites to block play in Kentucky and pay restitution for past illegal Internet gambling. But even if the state does win, the on-line gambling industry will find new ways to reach out and put the touch on Kentuckians. That’s why I still believe the best way to deal with this issue is pass legislation regulating on-line gambling and then tax it.

2. Earlier this month, the Connecticut Supreme Court handed down a 4-3 ruling legalizing same-sex marriage, making it the third state (joining California and Massachusetts) where such unions are authorized. A subsequent poll conducted for The Hartford Courant found that 53 percent of the state’s residents agreed with the ruling, compared to 42 percent who disagreed. Those numbers suggest that a state referendum that could ultimately lead to a constitutional ban on such marriages could well be defeated. Regardless, the court ruling and the poll results show that the times are a-changin’ for our gay and lesbian friends and family members - slowly to be sure, but they are changin’.

I’m back, sorta. Between filling in for absent editorial board colleagues and taking some time off myself, this old KyKurmudgeon hasn’t been very active recently. So, let’s do a little catching up, particulary about a couple of results from the The Courier Journal Bluegrass State Poll.

1. That millionaire businessman Bruce Lunsford, with all his baggage and with a campaign that has not been overly impressive, could be in a statistical dead heat with Senate Minority Leader Mitch McConnell (45 percent for McConnell to 44 percent for Lunsford) in a conservative state like Kentucky speaks volumes about how low the Republican brand has sunk in this country. Another clear indication of that is the fact that Sen. Barack Obama trails Sen. John McCain by just 10 points in a state where he hasn’t actively campaigned since getting blown away in the Democratic primary. I must confess that I never gave Lunsford much chance to beat McConnell. But this poll of likely voters, conducted as the nation’s financial meltdown was occurring, suggests he just might pull off what would have to be considered a huge upset. If he does, Democrats may well find themselves with a filibuster-proof majority in the Senate.

2. Even more surprising to me than the results from the Senate race was the fact that the poll gave Gov. Steve Beshear a 60 percent job approval rating. After stumbling badly in his first legislative session, Beshear’s approval rating sank to 39 percent in a poll conducted last spring for the Herald-Leader and WKYT-TV. Once lawmakers left town, he started using his executive powers in ways that produced some positive changes and made him look more gubernatorial. So, I wouldn’t have been surprised to see a current approval rating around 50 percent. But a 60 percent approval rating after getting off to such a bad start represents quite a rebound.

1. Sen. John McCain’s selection of Alaska Gov. Sarah Palin as his running mate caused TV’s talking heads to start asking immediately whether she has the experience and qualifications to be a heartbeat away from the Oval Office. Such questions are reasonable to ask, considering her limited experience and McCain’s criticism of Sen. Barack Obama’s inexperience. However, my reason for questioning McCain’s judgment is that he opened the door for the ticket being lampooned as “The Beauty and the Beast,” or even “The Beauty and the Least.” In addition, her youth emphasizes his age to his detriment.

2. It’s hard to believe Republican officials would even think about delaying their convention out of fears that Tropical Storm Gustav would hit New Orleans while they were boogying down in St. Paul and remind the world how incompetent an R administration’s response was to Hurricane Katrina’s devastation. How stupid is that? By simply mentioning the possibility of delaying their party for that reason, they ALREADY have reminded the world of the Bush administration’s incompetent response to the greatest natural disaster this nation has suffered in modern times.

3. Obama gave a good speech, not a great speech. But of all the Big Five speakers at the D convention - the two Obamas, the two Clintons and Sen. Joe Biden - Biden’s was the most disappointing. He didn’t live up to his billing.