Archive for March, 2010

Mongiardo criticizes Conway for acting on case involving donor

By John Cheves – jcheves@herald-leader.com

FRANKFORT — Attorney General Jack Conway took nearly $10,000 in campaign contributions from people working for a natural gas company before intervening in the company’s rate-increase request before the state Public Service Commission.

Conway’s Democratic U.S. Senate campaign took the money since the start of 2009 from the political action committee, employees and lobbyists of Atmos Energy Corp., which serves more than 180,000 customers in 38 Western Kentucky counties.

Conway announced March 12 that he reached an agreement with Atmos Energy that reduced by 38 percent the company’s original request for a rate hike of $9.4 million, cutting it to $5.9 million. The PSC ultimately must approve such deals, but the attorney general is required by law to represent ratepayers’ interests.

Conway’s office said Wednesday that donations from Atmos Energy’s people had no effect on the attorney general’s dealings with the company, but Lt. Gov. Daniel Mongiardo, who is Conway’s key opponent in the May 18 Senate primary, on Wednesday accused Conway of putting a “For Sale” sign on the attorney general’s office.

Lawmakers at impasse on state budget

FRANKFORT — Leaders of the House and Senate abruptly halted negotiations on a state budget Wednesday after coming to a stalemate on funding for construction of schools and roads.

The deadlock puts at risk the passage of a two-year state budget in this year’s legislative session, which the Kentucky Constitution says must end by midnight on April 15.

Both Senate President David Williams, R-Burkesville, and House Speaker Greg Stumbo, D-Prestonsburg, said after a frantic Wednesday afternoon that they would be willing to continue negotiations.

Still, short of a last-minute agreement early Thursday morning, lawmakers will not have time to pass a budget by Friday night, the deadline for lawmakers to approve a budget and still have time to override any line-item vetoes issued by Gov. Steve Beshear.

The impasse came on the seventh day of negotiations. Both sides said they were making headway on other key issues such as education funding and cuts to Medicaid, the state-federal program for the poor and disabled, before they left the bargaining table shortly before noon.

Lawmakers push session back another day

FRANKFORT — State lawmakers will not return until Thursday for the 58th day of the 60-day legislative session — a move designed to provide more time to craft an agreement on the state’s two-year budget.

Tuesday was the sixth day of budget negotiations between House and Senate leaders. The two sides talked informally throughout the day, then went into a conference room shortly before 5 p.m. and stayed there until about 10 p.m.

Auditor questions homeland security spending

By John Cheves – jcheves@herald-leader.com

FRANKFORT — State Auditor Crit Luallen has found more questionable spending in a program that gives federal homeland security grants to counties around the Bluegrass Army Depot near Richmond, where hazardous weapons are stored.

Luallen on Tuesday released the second part of her annual statewide audit of Kentucky government. Among the problems she noted was tens of thousands of dollars in questionable spending reimbursed to Laurel County from the federally funded Chemical Stockpile Emergency Preparedness Program, or CSEPP, overseen by the Kentucky Division of Emergency Management.

A criminal investigation is underway into CSEPP reimbursements in Laurel County, based on the auditor’s past referrals to the FBI, U.S. Department of Homeland Security and state attorney general, Luallen spokesman Terry Sebastian said.

Laurel County Judge Executive Lawrence Kuhl did not return a call seeking comment Tuesday.

In her report, Luallen said auditors noted about $26,000 in equipment insurance costs that only had an office memo to verify the transaction, not a receipt or an invoice.

Beshear wants dropout, unemployment bills approved

By John Cheves – jcheves@herald-leader.com

FRANKFORT — Gov. Steve Beshear said Tuesday that he hopes two bills in particular do not die in the final days of the 2010 General Assembly — a school dropout prevention measure and a proposed fix for the state’s unemployment insurance program.

“These are two bills that are not partisan in nature,” Beshear told reporters. “These are two bills that address some pressing problems we have in this state.”

House Bill 301 would gradually raise from 16 to 18 the age at which Kentucky students could drop out of high school, unless they already had graduated. Beshear and first lady Jane Beshear personally have lobbied for it. Following changes by the Senate Education Committee on March 23, it’s awaiting a floor vote in the Senate. If the Senate approves the bill, the House must concur with the changes, which delay full implementation of the bill by two years to 2016.

House Bill 349 would decrease unemployment benefits and increase taxes on employers to fix the state’s bankrupt Unemployment Insurance Trust Fund, which faces a nearly $732 million deficit. The bill flew through the House with support from labor unions and the Kentucky Chamber of Commerce, but it has stalled in the Senate State and Local Government Committee. Senators say they are concerned about the higher taxes.

Budget negotiations begin, again

FRANKFORT — House and Senate leaders are back at the bargaining table for face-to-face negotiations over the state’s two-year budget.

The two sides — which talked informally throughout the day Tuesday — went into a conference room shortly before 5 p.m.

Tuesday was the sixth day of negotiations.

House Speaker Greg Stumbo, D-Prestonsburg, said an agreement had not yet been reached before entering the negotiating room in the Capitol Annex. He said he expects lawmakers to eventually reach an agreement, but not Tuesday night.

Senate President David Williams, R-Burkesville, did not comment before entering the room, which reporters are not allowed to enter.

Grayson calls on Paul to take down ad using 9/11 images

By Jack Brammer – jbrammer@herald-leader.com

FRANKFORT – Republican U.S. Senate candidate Trey Grayson called on his chief rival, Rand Paul, Tuesday to stop airing an ad that uses imagery of the Sept. 11, 2001, terrorist attacks in New York and Washington.

The Secretary of State’s campaign also released an Internet video Tuesday that implies Paul’s views on the terrorist attacks mirror those of the Rev. Jeremiah Wright, the controversial former pastor of President Barack Obama.

Grayson said in a statement that he was “truly offended” that Paul would use images from 9/11 “to deceive Kentuckians about his true beliefs.”

“Rand Paul should immediately take down this ad,” Grayson said.

Paul’s campaign manager, David Adams, responded by calling Grayson’s request to pull the 9/11 ad “nonsense.”

Grayson and Paul tangle over 9/11

By Ryan Alessi – ralessi@herald-leader.com

HAZARD — The Republican U.S. Senate candidates turned up the volume on their television ad shouting match Monday, this time over the sensitive issue of the Sept. 11, 2001, terrorist attacks.

Trey Grayson, Kentucky’s secretary of state, used his latest ad to again hammer his rival, Bowling Green eye surgeon Rand Paul, on national security issues.

“Paul even wonders whether 9/11 was our fault,” a female announcer says in the spot that began airing Thursday. The commercial then shows Paul speaking at a Blue Grass Policy Institute forum in March 2009, saying: “Maybe some of the bad things that happen are a reaction to our presence in some of these countries.”

Paul, in that quote, was paraphrasing his father, a Texas congressman and 2008 presidential candidate. Ron Paul made a comment in a 2007 presidential debate that U.S. foreign policy, such as building military bases in Muslim countries, fueled anger among radicals. Despite being booed by the GOP audience, the comment helped raise the elder Paul’s national profile.

After paraphrasing his father, Rand Paul went on to say during that 2009 forum that “I think that message can be presented and be something that Republicans can agree to.”

Senate passes college transfer, retired teacher healthcare bills

FRANKFORT — The state Senate passed two key House bills late Monday that would make it easier for junior college students to transfer to state universities and would ensure the future of health insurance benefits for retired teachers.

State Senate doesn’t like Joe B. Hall?

By Jack Brammer – jbrammer@herald-leader.com

FRANKFORT — The Senate has tossed out of the legislative game a measure to urge the Naismith Memorial Basketball Hall of Fame to enshrine former University of Kentucky basketball coach Joe B. Hall.

The Republican-led Senate on Monday did not concur with the House’s decision to add an earlier resolution urging Hall’s enshrinement to Senate Bill 68, which dealt with the selection of school principals.

Hall is a Democrat who sometimes speaks at fund-raisers for Democratic candidates, including Gov. Steve Beshear.

Senate President David Williams, R-Burkesville, said the Hall measure was not germane to the bill and is not in order to be considered.