Kentucky Law Review

STATE: "Beshear wants Luallen to audit state pensions" But will judicial pensions and potential senior status judges strain come under Crit's watchful eye too?

Will this audit look at ALL state pensions?  How about the judicial pension?  Will separation of powers prevail to prevent phinancial inspection?

You gotta love Crit.  Ethics unquestioned, judgment top drawer, and tough as nails at calling 'em how she sees 'em. 

Here's the post from Herald Leader's Bluegrass Politics Blog, John Cheeves.

Beshear wants Luallen to audit state pensions

By John Cheves on Steve Beshear

 By John Cheves - jcheves@herald-leader.com Gov. Steve Beshear wants State Auditor Crit Luallen to scrutinize investment practices at the Kentucky Retirement Systems. In a letter this week to KRS Board Chairman Randy Overstreet, Beshear suggested an outside audit to delve into the nearly $13 million in fees paid since 2004 to "placement agents," the middlemen who bring private investment deals to the KRS, a public agency that provides benefits to state and county retirees. The KRS released an internal audit of placement agents on Aug. 12 that disclosed the names of placement agents and their fees but identified no serious problems. The agents' fees are paid by investment companies, not the KRS, although the KRS then pays management fees to the companies to cover their expenses. The KRS Board of Trustees voted last week to reopen the audit and return it to a board committee for further review, in part because several trustees complained that they were unaware of the large sums collected by placement agents until the audit essentially was finished.

NEWS: "Beshear defends Toyota on MSNBC"

From Bluegrass Politics blog.  As Governor defends Toyota's recall of defective foot pedal, did he insert foot in mouth by supporting a business that might have reckless disregarded the safety of the consumers?

Here's the story:

Beshear defends Toyota on MSNBC
By Government Editor on Steve Beshear

And more:

Beshear urges Washington to treat Toyota fairly
By Government Editor on Steve Beshear

Beshear, Daniels urge fair treatment for Toyota
Govs. Steve Beshear of Kentucky and Mitch Daniels of Indiana have jumped to the defense of Toyota, a major employer in both states, in light of looming congressional investigations into recent safety problems in some Toyota vehicles.

And some other stories that put this story in perspective.  Will the pedal problem be Toyota's Pinto or just a horse of a different color:

William Pesek | Toyota's world upended

You know Japan's world is upside down when the fabled Toyota is a global laughingstock. A name once synonymous with quality has fallen so far that Americans are actually rushing out to buy Detroit's clunkers. You have to love a corporate scandal that boosts General Motors and Ford and gins up consumer advocate Ralph Nader in one fell swoop.

Report: Toyota plans to recall 300,000 Priuses

TOKYO (AP) — Toyota plans to recall about 300,000 Prius hybrids worldwide over a brake problem and will notify the U.S. and Japanese governments Tuesday, a news report said.

Ky. drivers among those suing Toyota

Ten drivers of Toyotas in Northern Kentucky and Ohio are suing the automaker, claiming that their cars are given to unwanted acceleration because of unreliable electronic fuel control systems, not sliding floor mats or sticky gas pedals.

Marc Murphy | Toyota's publicity nightmare

Toyota Has Pattern of Slow Response on Safety Issues from New York Times

Governor: "Appeals court ruling limits governor’s pardon power"

From Bluegrass Politics blog:

Appeals court ruling limits governor’s pardon power

By Beth Musgrave on State Government

FRANKFORT -- A three-judge panel of the state Court of Appeals recently ruled that a governor's power to pardon is limited to criminal cases. In a ruling released Friday, the state Court of Appeals ruled that the Executive Branch Ethics Commission could proceed in an ethics case against Basil Turbyfill even though former Gov. Ernie Fletcher had issued a pardon in a criminal case against the former director of the Governor's Office of Personnel and Efficiency. Turbyfill was one of several former Fletcher administration employees who were charged for violating the state's merit hiring laws and later pardoned by Fletcher.

STATE: Some state agencies told to plan for 6% cuts

From Bluegrass Politics Blog is Beth Musgrave's story on the implentation of budget cuts.  AOC and legislature not under the Gov's control but nonetheless to share in the belt tightening.  Their last belt tightening with the 44 person cuts turned out to be a faux cut as most were hired back in other positions with some given raises.

Some state agencies told to plan for 6% cuts

By Beth Musgrave on Steve Beshear

 FRANKFORT — The state’s budget director warned several agencies Friday to plan for a possible six percent spending cut in coming months. In letters to agencies that have already been slashed over the past 18 months, State Budget Director Mary Lassiter said more cuts may be needed to resolve a $160 million to $170 million shortfall this fiscal year, which began July 1. In the letters, Lassiter asks agencies to show how a possible six percent cut would impact programs, services and their workforce. Those plans are due to her office by Nov. 30. The letters indicated that several state agencies will be exempt from cuts, as they were in previous budget reductions. Those groups included Kentucky Education Television, public universities, the main funding formula for K-12 schools, prosecutors, public defenders, Medicaid and mental health services. Kerri Richardson, a spokeswoman for Beshear, cautioned that Beshear’s office was collecting the data for planning purposes and no final decision has been made.

Here's another story by Beth Musgrave highlighting the dire straits out state's finances are in; this time relative to the prison system:

Report: State prison population, costs up sharply in last decade

By Beth Musgrave on State Government

FRANKFORT -- A new report by a state legislative group shows that Kentucky's prison population and the amount spent to house criminals has jumped by about half in the past 10 years. Despite those increases, the report says Kentucky's spending for prisons is on par with many states with similar prison populations. The study was compiled by staff of the legislature's Program Review and Investigations Committee. The state's rising prison population has been the subject of other reports. In 2008, a Pew Center on the States report showed that Kentucky's prison population was growing faster than other states. Cindy Upton, a staffer with the Program Review and Investigations Committee, told the legislative committee Thursday that from fiscal year 2000 to fiscal year 2009 -- a span of about 10 years -- the average number of inmates increased by almost 42 percent and annual costs increased by more than 53 percent. On average, the state housed 21,473 inmates in 2009, compared to 15,164 in 2000. Kentucky spent $294 million to incarcerate prisoners in 2000. In 2009, the cost was $451 million.

GOV: Judge Orders Gov. Beshear to testify in bid rigging case

I have not posted much on the trials and tribulations developing in the Lawson/Nighbert bid rigging trial in federal court.  But, Judge Reeves is ordering the Governor to show up and testify.  Not by deposition; not by proxy.  Here are some links to recent posts from the Herald Leader's Bluegrass Politics Blog:

• Beshear says he will testify at bid-rig trial
  By Beth Musgrave on Steve Beshear

• Judge: Beshear must testify in bid-tampering trial
  By Government Editor on Steve Beshear

STATE: Unemployment Insurance Task Force Appointed AFTER State Loses $45 million in fed money (or now you lose it, now you don't)

Where were these folks and this task force as the state was losing federal stimulus money for unemployment funds???  Looks like the door was closed after the horse got out of the  barn on this one.    See, Courier Journal story - Ky. will miss out on $45 million for jobless benefits Fri Mar 27, 2009.  However, not everything was falling through the cracks at the state asNew program will help unemployed get re-trained at KCTCS (Bluegrass Politics Blog, Ryan Alessi).

Post from Bluegrass Politics Blog:

Beshear appoints task force on unemployment insurance

By Jack Brammer on Steve Beshear

FRANKFORT –Gov. Steve Beshear created a task force Friday to study and propose changes to the state’s financially strapped unemployment insurance trust fund. “In these difficult economic times, it is imperative that we address head on a critical issue for Kentucky that has been overlooked in the past,” Beshear said in a statement.

While reading Mark Herbert's post on this issue at Gov. Names Unemployment Study Group, I saw an interesting paragraph which looks like an attempt at an executive "do over" --

Kentucky is receiving all allowable unemployment benefits for which we are eligible under the law. Currently, the state pays out 59 weeks of benefits including 26 weeks of regular and 33 weeks of extended benefits. In addition, Gov. Beshear has signed an agreement with the U.S. Department of Labor to temporarily increase the weekly payout by $25.

Of course, I am all in favor of the appropriate changes in state law to obtain the increased benefits allowed by federal law, but I wonder if the executive agreement complies with state law or encroaches upon the legislative power in implementing the change?  I don't know.

In a financial, economic, and/or political crisis, it is always easy to skirt the rule of law under the guise of necessity or the ends justify the means.  Think about Congressional laws to change the tax laws after the fact and earmarked for the AIG Bonus receivers!  Yes, the fact of the bonus is controversial and tax payers are outraged at the millions of dollars going to reward those who are believed to have been part of the problem and not part of the solution.  But, we do have a rule of law, and isn't there another way? 

If you do not believe in the creativity of our executive and governmental intrusion into the private economy, just think about GM and their CEO who was asked to leave as a condition to receiving future stimulus money.  And again, the TARP may be a TRAP for those asking and getting financial assistance.  And when this crisis is over, what will we have, who will own it, and what next?

GM CEO asked to quit

Rick Wagoner, Chairman and CEO of GM, will step down immediately at the request of the White House. » Details

COURTS: Sarah McCray get's award and job back from improper firing by Fletcher administration

The mistakes from the Fletcher administration continue to impact our state's budgetary woes as shown in the following award in story by Stephanie Steitzer at the Courier Journal today.

Fired state worker gets job, cash settlement

A former Transportation Cabinet worker who was allegedly fired during the Fletcher administration for blowing the whistle in the merit system scandal has settled with the state for $500,000 and a new state job.

Sarah Missy McCray filed suit in 2005 against the Transportation Cabinet, claiming she was a victim of retaliation because she cooperated with the attorney general's investigation of hiring practices during former Gov. Ernie Fletcher's administration.

The four-page settlement agreement released by the cabinet states that McCray will receive a lump sum payment of $500,000 and a job in the Personnel Cabinet that pays $62,500. [click heading for entire story].

STATE: "Issue of Cowgill hiring sent to attorney general "

Issue of Cowgill hiring sent to attorney general HERALD LEADER

Gov. Steve Beshear requested an attorney general's opinion Wednesday to determine whether the Council on Postsecondary Education acted legally when it hired Brad Cowgill as its president on Monday.

GOVERNOR: "Governor Beshear & Executive Branch Ethics Commission Unveil Ethics Agenda"

Governor Beshear & Executive Branch Ethics Commission Unveil Ethics Agenda

GOVENROR FLETCHER: "Fletcher received nearly $92,000 in gifts for legal defense"

Fletcher received nearly $92,000 in gifts for legal defense per Herald Leader story.