Agency achieves GOLD standard for local government accountability

Much of the debate about wasteful spending focuses on activity in Frankfort. However, waste, fraud and abuse are growing problems at the local level as well.

The Whitley County Jail was recently shut down and the jailer indicted on charges he illegally lined his own pockets by forging an employee's name on payroll checks and trafficking in prescription drugs to inmates. Also, an audit of Knott County's books reveals that 21 percent of the county's budget was awarded to relatives of local officials or to a local contractor, according to the Lexington Herald-Leader.

At least one government agency is confronting the corruption in local communities. The Governor's Office for Local Development (GOLD) announced it will withhold funds intended for Knox County until the community's elected officials show they are accountable with taxpayers' dollars.

GOLD will not release $210,000 in coal severance-tax funds to county officials because the state auditor's office has concerns about the local governments financial practices, including the accuracy of official records, payments made to multiple vendors and questionable banking practices.

The agency will not release the funds until the county's financial situation is resolved. (The office also withheld coal severance funds in Knott County when concerns were raised about its financial practices.)

Knox County Deputy Judge-Executive Bruce Murphy calls GOLD's actions politically motivated and claims that not having the funds is hurting local police and fire departments. But if it's possible for funds to be mismanaged to the extent that the state auditor's office gets involved, perhaps police and fire departments in Murphy's county are suffering because funds intended to support those services have depleted through misuse.

While GOLD dishes up a lot of pork to municipalities across Kentucky, the agency deserves taxpayer's applause for confronting corruption in local governments by withholding funds until accountability takes hold.

Sources:

Knott County audit troubling by Lee Mueller, Lexington Herald-Leader, Oct. 20, 2005

State withholds coal severance tax from Knox County by Roger Alford, Associated Press, Nov. 29, 2005