Kentucky ranks poorly on occupational licensing

Do you need government permission to work? That’s the question from the Institute for Justice in its new report, “License to Work: A National Study of Burdens from Occupational Licensing.” Kentucky ranks poorly in some areas and reasonably well in others. For example, Kentucky licenses relatively few jobs, but weirdly licenses such jobs as “Sign Language Interpreter” and “Mobile Home Installer.” Kentucky also has particularly burdensome regulations on the jobs it does license.

To be sure, when you someone to do work for you, it’s important to you that they do a good job. A primary problem with charging government with the task of separating the good from the bad is that licensing requirements tend to better serve the interests of incumbent workers, thus reducing important market competition and raising prices. The benefits to consumers are harder to demonstrate.

Here’s the introductory video presented by IJ’s Dick Carpenter:

Economic freedom in health care

My friend and former professor Stephan F. Gohmann is featured in this new video on freedom in health care. Gohmann lays out the economic and regulatory reasons why most Americans get their health care through their employers.

Lower the price of Kentucky’s legislature

Once again, we have a special legislative session. And once again, newspapers trot out that special session legislative days cost tens of thousands of dollars. So what?

As I’ve noted before, regular legislative session days are close to 18 times more expensive than special session days.

In that post, I offered to correct my calculation that regular legislative session days cost more than $1.1-million each. So far, no takers from either the General Assembly or the Legislative Research Commission. So, again I ask to be corrected if you have an argument to make on that subject. You can send me a note here or here or here.

My point is to illuminate out a deeper problem: Lawmakers have apparently no incentive to prioritize their workload or simply have too much work to do. It takes resources to do the commonwealth’s business. There may be ways to improve the process through legislative rules, but those rules likely aren’t sustainable or they would have been adopted by now. One potential solution to the problem of too many special sessions is to give lawmakers fewer financial decisions to make.

One of the key criticisms from the Mercatus Center’s Freedom in the 50 States is that Kentucky is highly fiscally centralized. Other states don’t funnel nearly as much money through their state lawmakers. How many local projects are included in the Kentucky budget? The bulk of the costs of numerous golf courses, industrial parks, arena renovations, water projects, recreation centers and all sorts of other local matters are too often borne by taxpayers elsewhere in the commonwealth.

The process for devolving local projects to local decisionmakers probably isn’t an easy one, but doing so is critical if we care about lawmakers having a workload that matches their time, energy and abilities.

Will Kentucky ‘ban the scan’?

Al Cross points to an interesting backward step Kentucky may take on transparency:

The state House has passed and sent to the Senate a bill that would allow county clerks to charge up to 50 cents per page for paper copies of any record and let them ban scanners, cameras and other devices that could be used to make electronic copies. An attorney general’s opinion limits the charge to 10 cents per page unless the actual cost of producing the copy is greater.

More here.

Making it up to five times more expensive for Kentuckians to get a good look at government records may make clerks some money, but it’s hard to see how the public is better served by making government less accessible.

Every Contractor a Potential Crony?

My friend Zubedah Nanfuka at the Sunlight Foundation highlights my colleague Logan Morford’s wake-up call about the risks of shutting off government contractors from Kentucky’s open records laws.

Why do we require government agencies (and those who contract with the government) to avail themselves of requests for information from the public? A few reasons.

  1. It’s our business! It should never be forgotten in this debate over government transparency that government derives its just powers from the consent of the governed. When governments perform basic services for us (or use contractors to do so), we have an affirmative right to access almost all of the basic information and sometimes very detailed information about how they’re doing that job.
  2. Government overseers can’t be everywhere. It might be tempting to allow lawmakers or executive agencies exclusively police the activities of their subordinates or contractors. It would a recipe for disaster. Without public input (reporters, citizen journalists and interested parties), lawmakers would be blinded by the sheer volume of material that would be necessary to get a clear picture of agency or contractor activities.
  3. Cronyism is real. This is perhaps the most relevant point to be made today. When Governor Beshear hands out “incentives” (read: subsidies) to Kentucky businesses, the public should be entitled to know almost every detail about how their tax dollars are being used by private entities under the popular guise of “economic development.” For simplicity, let’s leave aside the poor record of government officials to pick winners and losers in the marketplace and simply say that if you are a government contractor or beneficiary of subsidies from the government, you’re already a suspected crony. Shielding your records from public scrutiny won’t help your case.

What’s that? I can hear the complaints already.

“But Caleb,” a would-be opaque contractor might say, “it’s just such a burden for us to comply with these open records laws.”

My retort: There are already protections built into Kentucky’s open records laws (and Attorney General interpretations of those requirements) to protect against overly burdensome requests. There is no reason why these protections can’t be extended to government contractors. Also, so what? Being open with the public is a cost of doing business as a government contractor. Compliance is likely a tax deductible expense.

“But Caleb,” the same would-be opaque contractor might respond, “if I have to share certain details about my work with the government, I’ll certainly have to give up details that will help my competitors.”

My response: If your competitors will be using this information with which to form a more competitive bid to that agency, then your complaint smacks of chutzpah. It’s like saying, “But if I compete in the open, my profits might be lower.” For the taxpayers who are the ultimate funders of government contracts, your government-derived profits are perfectly irrelevant to the goal of providing quality low-cost government services.

When contractors do the work that governments can’t or won’t, the public can reap some savings by having a more nimble and market-responsive organization doing the job. But there’s simply not a good case to be made for allowing those same organizations – when they act as government contractors – to ignore the rules that would make them at least as accountable as the agency paying them to do work for Kentucky citizens.

Read more of Logan’s open records tips.

When choosing a better school is a crime

This is how the Associated Press describes the story

Tanya McDowell, the Bridgeport mother accused of fraudulently enrolling her son in a Norwalk school and stealing more than $15,000 in educational services from the district, has pleaded guilty.

McDowell was sentenced to 12 years in prison, suspended after five, and must pay back up to $6,200 to the city of Norwalk for stealing her son’s education.

McDowell’s 12 year sentence also includes four counts of drug possession and sale charges, which she pleaded guilty to on Wednesday.

McDowell was homeless when she was charged with felony larceny last year. Authorities allege she enrolled her son in kindergarten in Norwalk using a babysitter’s address when he should have attended Bridgeport schools, where her last permanent address was.

Ask yourself this: If you were homeless and believed education was the only way your child could avoid your fate, would you lie to the government if it securing that education? Would you vote to convict a parent who did the same thing?

(h/t Chris L. Hayes)

Raw milk fight guaranteed to continue

The FDA has won its fight against a Washington-area Amish farmer who had the temerity to sell unpasteurized (raw) milk to willing customers who were typically fully aware of the risks.

The FDA has won its two-year fight to shut down an Amish farmer who was selling fresh, raw milk to eager consumers in the Washington region, after a judge this month banned Daniel Allgyer from selling his milk across state lines, and he told his customers he’ll shut his farm down altogether.

The decision has enraged Mr. Allgyer’s supporters, some of whom have been buying from him for six years and who say the government is interfering with their parental rights to feed their children. But the Food and Drug Administration, which launched a full investigation complete with a 5 a.m. surprise inspection and a straw-purchase sting operation against Mr. Allgyer’s Rainbow Acres Farm, near Lancaster, said unpasteurized milk is unsafe and said it was exercising its due authority to stop its sale from one state to another.

Kentucky has a piece of legislation winding its way through the process that would recognize “cow sharing,” the legal recognition of those who own a cow in common for the purposes of divvying up the raw milk.

Even if this bill becomes law, the FDA would still be empowered by Congress and the White House to go after those who sell natural food to willing customers. Most of us will continue to buy pasteurized milk from a grocery store and are perhaps a bit weirded out by something so … well, raw. So why allow the federal government to engage in 5 a.m. raids and undercover sting operations just to shut down the willing buyers and sellers of a natural product?

There’s no question that raw milk is a controversial topic. There are risks associated with consuming it. Whatever those risks, taking responsibility for one’s own diet is one of several responsibilities of adulthood. How many other rights are implicated when a federal agency can legally prohibit the sale of natural food in the name of protecting you from your own choices?

Kentucky’s annual gamble

Kentucky lawmakers have had a strange love affair with expanding gambling. Every year, they gather and seem to get a little bit closer to handing a brand new revenue source to the various race tracks around the commonwealth.

The chief argument against expanded gambling in Kentucky seems to be that it will have some corrosive impact on the culture. Whether or not that’s true, it’s important to understand that freedom can be rather messy. People sometimes fail to take advantage of the upside of basic liberties. People sometimes make bad choices. Expanded gambling offers people a chance to blow their whole paychecks on the turn of a wheel, a toss of the dice or the dealing of cards. And some poor souls choose that path. These facts should not be taken as an argument against freedom. Instead they’re an argument for people to make better choices on behalf of their families.

The side that tends to favor expanded gambling makes the point that Kentucky’s government needs the money. Budgets are tight, after all, and revenues from gambling will be the state budget elixir. There are so many things the government does that may have to be sacrificed if Kentucky doesn’t approve a tax on those who choose to gamble said paychecks for the chance at a better tomorrow.

Unfortunately, both sides of this debate are horribly misguided. Yes, you can lose your family’s source of sustenance on a roll of the dice. So what? It’s your job as an adult to make the right choices with your hard-earned income. Bright lights and the promise of big wins doesn’t absolve you of the responsibility to do right by yourself and those who depend on you.

And yes, expanding gambling could provide additional revenues to the government. So what? The problem with Kentucky’s government isn’t that revenues are lacking, it’s that Kentucky’s government is involved in too many activities that ought to be left to the voluntary sector. Should the government own a dozen or more state parks, golf courses or industrial parks? Should the government really be in the business of subsidizing entertainment venues in Lexington, Louisville, Corbin or Pikeville? Should the government be picking winners and losers with special “tax incentives” that favor some businesses over others?

Before you pick a side in the fight over expanded gambling in Kentucky, ask yourself this: Have Kentucky’s lawmakers been good stewards of your tax dollars thus far? Are there programs that lawmakers support that might ought to be cut in lieu of seizing a larger share of taxpayers’ earnings? Will a new tax really help lawmakers make ends meet?

I hope you’ll agree with me that giving lawmakers control over a bigger chunk of Kentucky’s economy is a bad bet.

Hal Rogers helps himself

Since 2002, U.S. Rep. Hal Rogers – Kentucky’s own “prince of pork” – has secured $7.1 million for improvements to College Street and other portions of Somerset, Ky. The main reason this is news is that Hal Rogers’ home is on College Street. The Washington Post today discusses the appearance of personal enrichment by many lawmakers and the possible impropriety.

The problem here isn’t that Mr. Rogers has enriched himself with this project to improve his own street (it probably has improved his home’s value), the problem is that Mr. Rogers can always enrich himself with federal handouts no matter who gets the direct benefit. The payoff to Rogers may not come in the form of home equity, but it could come in the form of future favors, future votes from other members of the House and future campaign contributions from thankful recipients of federal handouts.

So rather than ask why Hal Rogers is devoting a tiny portion of federal spending to fixing up his own street, we should be asking why the federal government has the money and power to fix any local street at all. The people who benefit most should be the people who pay for local improvements. Instead of taxpayers in New York and California paying for Hal Rogers’ street repair, it should be local city or county taxes that foot the bill.

Hal Rogers, of course, sees no problem with paving his street with federal tax money. His spokesman told the Post, “Congressman Rogers sees no conflict of interest in helping local leaders achieve their goals for growth at large or in this case in particular.”

Reason.tv and Citizens Against Government Waste named Hal Rogers their Porker of the Month in 2010. Surely he’s earned that honor again since then, right?

Pension reform in other states, so why not Kentucky?

Economist Brian Strow stresses the need for state pension reform in the Bowling Green Daily News:

A growing number of states have recently engaged in public pension reform, and rightfully so.

Unfunded state pension liabilities have been an albatross around the necks of more than one state balance sheet. Illinois, New Jersey, Wisconsin, Ohio, Michigan, Connecticut and Rhode Island have all implemented recent pension reforms to reduce unfunded liability. These include both Republican- and Democratic-run state legislatures. The Democratic governors of New York and California have each submitted plans to revamp their states’ public pension plans. Thinking Republicans and Democrats alike realize that public pension reform is not a conservative or a liberal cause. They realize it is about the math. States cannot make promises to public employees which exceed their ability to pay for them.

It is time for Kentucky’s state legislature and governor to engage in public pension reform here. The $30 billion plus hole in the state’s pension system isn’t going away. Rather, like an untended sinkhole, it is quickly expanding. Each year, Kentucky’s pensions are adding hundreds of millions of dollars in unfunded liability. Left unchecked, Kentucky’s unfunded pension liability is going to cripple the entire state’s economy.

The bandwagon of state pension reform is one worth jumping on. Failure to do so illustrates a fundamental misunderstanding of math. Such a misunderstanding will only get worse when our school budgets are cut to feed the pension monster the state legislature has created. Failure to reform our state pension system will cause our state to face yet another credit rating downgrade and drive us one step further to insolvency.

Read Lowell Reese’s devastating Bluegrass Institute report on Kentucky’s pension system here.