Letter: Kentucky should take pride in governing itself

This letter was published in the Lexington Herald-Leader on June 15, 2013.

Sovereign pride

Kentuckians are proud to live in a commonwealth rich in tradition and resources. However, I find it disconcerting that while we take pride in basketball, horses and bourbon, we often fail to take pride in state sovereignty.

When it comes to Kentuckians governing themselves, why do we seem content to sit on the sidelines and take orders from unelected bureaucrats spewing unilateral regulations from hundreds of miles away?

Why, for instance, do Kentuckians allow federal Environmental Protect Agency officials to dictate terms and conditions for how Kentucky utilizes coal, our state’s primary natural gift?

The EPA employs two primary tactics to hinder producers from providing jobs and low-cost energy.

First, it has stalled the permitting process for mine openings and expansions, causing uncertainty among investors, owners and miners. Second, the agency now requires expensive retrofits for coal-fired power plants that don’t even come close to offering sufficient economic benefits compared to the costs incurred.

Given the fact that Kentucky is a poor state in a struggling global economy, why are Washington bureaucrats allowed to strangle an industry that provides 93 percent of the commonwealth’s electricity and attracts energy-intensive industries — and the multitude of jobs they create — to the Bluegrass state?

The virtues and pitfalls of coal will always be debated. But one thing is certain: decisions about Kentucky’s resources should be made by those most affected — Kentuckians.

Logan Morford

Bluegrass Institute for Public Policy Solutions

Lexington

 

Herald-Leader editorial calls for Bluegrass Area Development District transparency

Transparency efforts seem to be a theme in Kentucky as of late. I, for one, like this trend and hope that it continues.

The Lexington Herald-Leader’s editorial page called for Auditor Adam Edelen to look into the spending practices of the Bluegrass Area Development District. I don’t know many specifics about their reasoning other than what they outline in the editorial. I will say though, that if there is a taxpayer funded entity not responding to open records requests, that is a problem.

I’m in favor of any call for transparency regarding taxpayer money. Now if we could only get calls for the pension system to be transparent…

Pension reform & political will

The issue of public pension reform is not going away.

Despite weak “reform” attempts in the 2013 Kentucky General Assembly, a remarkable unfunded liability remains. cn|2 Pure Politics recently caught with Sen. Chris McDaniel, R-Taylor Mill, who is advocating for further reform:

McDaniel said there will have to be more political will to talk about the issues still facing the retirement system including non-governmental organizations within the retirement system

Yes. More political will is needed if Kentuckians are going to see the changes needed. Moving the entire public pension system to a defined contribution, 401(k) style plan will be unpopular and will require considerable will to move forward BUT this must happen as the standard of living for all Kentuckians hangs in the balance of a $34 billion unfunded public pension liability.

BIPPS will discuss energy on WGTK-AM

The Bluegrass Institute  will be on “The Joe Elliott Show” on 970 WGTK-AM today at 9:35 a.m. (EDT).

We will be discussing the 2013 Bluegrass Energy Report: The EPA’s Economic Impact on Kentucky which was released this morning.

Listen live here: http://www.970wgtk.com/

News Alert: Bluegrass Institute energy report: EPA regulation proposals ‘redundant’

Bluegrass Energy Report 2013 Small
A new report by the Bluegrass Institute, Kentucky’s free-market think tank, assesses the effects of Environmental Protection Agency (EPA) regulations on the commonwealth’s economy.

2013 Bluegrass Energy Report: The EPA’s Economic Impact on Kentucky” discusses these regulations by:

  • identifying specific regulations that impact the commonwealth’s economy through higher energy costs and industry job loss
  • demonstrating the effects of these higher costs on the average Kentucky family
  • showing how the increased energy prices will affect the Bluegrass State’s overall economy through industry job loss, a decrease in the employment-growth rate and a decline in the growth of the State Domestic Product
  • investigating the extent to which environmental regulations specifically affecting Kentucky’s coal industry will reduce negative pollution externalities

One of the primary goals of these new EPA regulations is reducing the environmental impacts of the coal industry in Kentucky, particularly the contamination of waterways and the release of coal combustion residuals into the atmosphere.

However, as the report authors point out, many of these environmental harms already are addressed by existing regulations rendering recent EPA proposals redundant.

“This isn’t a matter of coal versus the environment,” said report author Philip Impellizzeri. “It’s rather a matter of which entity should weigh the costs and benefits of our energy sector to regulate it as effectively as possible: a federal bureaucracy in the EPA or the local citizens most affected by the outcomes?”

Kentucky’s energy sector provides a unique competitive advantage among states. Low energy costs – fueled primarily by coal – make the commonwealth an attractive manufacturing destination while also providing thousands of jobs in the coal industry.

Recent proposed EPA regulations threaten to have serious impact on Kentucky’s coal industry, including higher energy costs and significant numbers of jobs lost for Kentucky citizens.

“More than anything, I think the report shows how important coal is to all Kentuckians, not just those in Appalachia,” Impellizzeri said. “The EPA’s handling of our energy sector concerns all of us.”

For more information, contact Jim Waters at jwaters@freedomkentucky.com or (270) 782-2140.

Video: BIPPS talks public employee pension reform on KET’s Kentucky Tonight

Bluegrass Institute president Jim Waters joined a panel discussion about how much progress was really made toward public pension reform during the 2013 Kentucky General Assembly.

(click on the image below to view the video)
KYTonightPublicPensions

 

 

 

 

 

 

 

 

 

 

 

Read more about solutions to Kentucky’s public pension crisis.

Action Alert: We need your help on KET tonight!

FutureShockSolutionsSquareThe state’s public pension crisis takes center stage on statewide television tonight! Bluegrass Institute president Jim Waters will appear as part of a panel on KET’s Kentucky Tonight discussing how much, if any, progress was made toward repairing Kentucky’s damaged and woefully underfunded public pension system.

Joining Jim on the panel will be Bryan Sunderland, senior vice president of public affairs for the Kentucky Chamber of Commerce, Sharron Oxendine, president of the state teachers union and a member of the Kentucky Public Pension Coalition, and Jason Bailey, director of the Kentucky Center for Economic Policy.

So, how can you help?

kytonight

1 – Tune in and watch at 8 p.m. ET on KET

2 – Call in to the show 1.800.494.7605

3 – Tweet @KYTonightKET, @BIPPS, and use #KYpensiondebt to comment on the show on Twitter!

4 – Email the show for questions and comments: kytonight@ket.org

5 – Share this with your friends on Facebook and encourage them to watch!

It is important that our state legislators are exposed to the right solutions to address the $34 billion unfunded liability enabled by a neglectful General Assembly. This year, The Bluegrass Institute released Future Shock Solutions: 16 steps to treat Kentucky’s public pension ailment which lists specific actions the state legislature can take to get the system back on track.

For instance:

  • Make the public pension system transparent
  • Move state employees to a defined contribution
  • Change the cost-of-living adjustment formula from a simple to a complex COLA
  • Rollback 2005‘s HB 299 which greatly enhanced pension benefits for legislators

Read more solutions here.

BIPPS weighs in on Medicaid expansion for WHAS


On the eve of Gov. Steve Beshear’s announcement about his intention to expand Medicaid in Kentucky, Bluegrass Institute president Jim Waters had the opportunity to chime in on the debate. In a story by Joe Arnold of WHAS:

Under the law, the federal government would pick up the full tab of the increase for three years, but after that, Kentucky would have to fund ten percent of the added cost.

“We’re going to make a broken program bigger, not better,” argued Jim Waters, President of the Bluegrass Institute, a free-market think tank.

Expanding medicaid would inflict a one size fits all approach to Kentucky’s unique health care needs, Waters continued, ultimately reducing access for the people for whom Medicaid was created.

“And that is the truly poor and the truly disabled.  They need the care.  We need to find other ways to provide the other people better care as well,” Waters contended.

What does this mean for Kentucky? Well, you can read about that here.

 

News Release: Kentucky’s common-core testing program hits major snag

Lawmakers surprised to discover that education officials will not score constructed-response questions in high school exams

(LEXINGTON, Ky.) – Only one year after Kentucky became the first state in the nation to introduce an education assessment and accountability system aligned with the national Common Core State Standards (CCSS), the program has already hit a major snag.

In a decision with national overtones for the other 44 states that have signed on to the CCSS, the Kentucky Department of Education (KDE) has discontinued scoring for all constructed-response questions in each of the four CCSS-aligned high school end-of-course exams.

This decision means only multiple-choice questions remain as scored portions in these tests, which are a major element in the state’s accountability program for high schools.

The US Department of Education has put states under considerable pressure to adopt common-core standards with the goal of developing school programs that prepare students for college and careers.

Lawmakers expressed surprise when told of the dramatic action, which KDE officials quietly communicated to school districts earlier this year.

“This sudden, unannounced change raises questions as to whether the remaining high school testing program complies with a bill I co-sponsored in 2009 that required the Kentucky Department of Education to develop new, high-quality education standards and coordinated tests that are aligned with what our students need to be ready for college and careers, and that are consistent across Kentucky,” said Senate President Pro Tem Katie Stine, R-Southgate, a member of the state Senate’s Education Committee. “Because the Kentucky Legislature is ultimately responsible for education in the state, legislators need to hear from the KDE and others regarding this very disturbing development.”

Kentucky House Education Committee member Rep. Addia Wuchner echoed Senator Stine’s concerns.

“Senate Bill 1 from 2009 was targeted at getting our kids ready for college and careers,” said Wuchner, R-Florence. “To insure we remain on target, I am requesting a hearing about the drop of the constructed-response questions and a review of the CCSS adopted by KDE at the next convening of the Interim Joint Education Committee.”

Internal KDE documents reveal concerns among the state’s education leaders about constructed-response questions, including inadequate scoring turn-around times and a lack of diagnostic feedback explaining how scores for each answer are determined.

The slow score turn-around means constructed-response results could not be included in students’ final course grades and led to major delays in the “Unbridled Learning” results release for the 2011-12 school year – delays that could occur again had these questions not been deleted.

Reaction to the testing failure from other Kentucky organizations with Common Core interests has also been swift.

“Reacting as a parent, I can’t help wondering why Kentucky’s children have been exposed to these ongoing testing problems for more than two decades,” said Gina Glenn with Kentuckians Against Common Core Standards. “It seems like our children are locked in a continuously repeating experiment in the increasingly vain hope that the results will somehow turn out different the next time.”

Although Kentucky law requires scores be returned to schools well before the start of the following school term, the first CCSS-aligned test results were not issued until November of 2012. Department officials also said the state was not getting value for the $1.5 million annual cost of the constructed-response questions. Open-response question costs have been an issue in Kentucky since the early 1990s.

“Kentucky’s two-decades-long experience with constructed-response testing provides a rich history of the problems of locating test vendors who can reliably score constructed-response question results in a timely manner,” said Richard Innes, the Bluegrass Institute’s staff education analyst. “Very simply, it does not look like constructed-response questions in large-scale statewide testing programs can be properly scored within the necessary time constraints at a cost that states can afford.”

The KDE also announced that local high schools may continue to score the constructed-response questions at their option.

“This actually will de-standardize what is supposed to be a standardized test given the same way throughout the state,” Innes noted. “A quick check reveals some districts will locally score, but another won’t even administer these questions.”

For interview information, please contact Jim Waters at jwaters@freedomkentucky.com or dinnes@freedomkentucky.com.

When it comes to public pension reform, a little dab will NOT do ya’

Sometimes the truth IS scary.

A recent call to action by the Bluegrass Institute drew some fire because some believed that we did not tell the whole story about legislators who voted against HB 299. In fact, we were accused of fear mongering.

The truth is, Kentucky’s public pension crisis is worthy of fear as it is endangering the financial viability of our state.

The author of the critique had this to say:

Sure, the legislature is to blame for sweetening its own pension deals. But that’s not all legislators. It’s primarily leaders and those scheming the system to make a mountain of cash.

The Bluegrass revisionist history crew apparently doesn’t want the general public to know that many legislators have voted against sweetening their pensions. That bunch is also set on making sure the public doesn’t find out that each year for the last four years? The State Senate has passed legislation to stop these messes.

The Bluegrass Institute doesn’t bother to mention legislators like Senator Jimmy Higdon, who has stood firmly against this mess. Or that in 2010 he introduced legislation that would have gutted House Bill 299 – but the House refused to vote on it.

While it is true that some legislators voted against HB 299 in 2005 the following facts remain:

  • The General Assembly greatly enhanced their retirement benefits.
  • Nothing has been done to effectively change policies and corrupt practices resulting from that legislation.
  • Kentucky’s unfunded public pension liability doesn’t go away because a few legislators voted against a bill, but who still stand to personally benefit from it.
  • Many of the legislators that voted for HB 299 are still in office as well.

This list of all votes for/against 2005′s HB 299 was published in the Bluegrass Institute’s 2012 Future Shock report. See any names you recognize? Many of these folks are still in office. Notice how several state senators didn’t even do their job by failing even to cast a vote. [Read more...]