Archive for July, 2011

Beshear aide allegedly gave coal industry early word of regulator’s firing

By John Cheves
jcheves@herald-leader.com

FRANKFORT — An employee of Alliance Coal said an aide to Gov. Steve Beshear called him in 2009 to tell him that a state regulator unpopular with the coal industry was about to get fired, according to court records filed Friday.

The revelation solves a 19-month-old mystery about how key members of the coal industry learned about the firing of Ron Mills, the state’s mine permits director, around the same time Mills was informed of his dismissal.

Mills was unpopular with the industry for blocking a controversial policy called “the 33 1/3 rule,” which allows coal companies to mine without showing they hold the legal right to enter all of the land in their mining plans. The Beshear administration overturned Mills and reinstated the policy following industry lobbying.

Mills is suing the state for wrongful termination in Franklin Circuit Court, arguing that he lost his job because he opposed illegal mining practices that benefited Alliance Coal and other politically influential companies. Energy and Environment Secretary Len Peters has said he ordered Mills fired because of poor job performance. A trial is set for October.

Business leaders to meet with Beshear on unemployment insurance

By Beth Musgrave
bmusgrave@herald-leader.com

FRANKFORT — Business leaders will meet with Gov. Steve Beshear on Tuesday to discuss how the state can pay a $28.5 million interest payment on a federal government loan used to shore up the state’s unemployment benefits.

If the state defaults on the payments on Sept. 30, Kentucky businesses and the state could lose more than $571 million in federal tax credits and federal appropriations.

Bryan Sunderland, vice president of public affairs for the Kentucky Chamber of Commerce, said Friday that business leaders will meet with Beshear to discuss possible solutions.

Without a plan to repay the interest, Kentucky businesses could lose a federal tax credit that could cost 80,000 Kentucky businesses about $357 per employee, according to the latest estimates by the Office of the State Budget Director. There are more than 1.6 million Kentucky workers who are covered by unemployment insurance benefits.

“It could result in job losses,” Sunderland said.

Williams calls for special session to fix unemployment insurance issue

By Beth Musgrave
bmusgrave@herald-leader.com

FRANKFORT — Kentucky businesses could lose $640 million in federal tax credits if the state doesn’t appropriate money to make interest payments on a federal loan that is bankrolling unemployment benefits, Gov. Steve Beshear’s administration told lawmakers on Thursday.

Senate President David Williams quickly urged Beshear to call a special legislative session to approve using some of a $121 million surplus from the fiscal year that ended June 30th to pay for part of a $28.5 million interest payment due on Sept. 30.

“We are fighting to hold on to every job that we can,” Williams said. “The fact that every employer in the state could lose up to $400 in federal credit for each of their employees could be devastating.”

According to the state’s two-year budget, Beshear cannot spend any of the $121 million surplus, which was deposited in the state’s “rainy day” fund, to make the interest payment unless he has legislative approval.

Beshear: Lawmakers must ‘get their act together’ on federal debt deal

By Beth Musgrave
bmusgrave@herald-leader.com

FRANKFORT — Gov. Steve Beshear chided Washington lawmakers Thursday for not reaching a deal to raise the federal debt limit.

“I am appalled at the performance of those in Washington D.C. who are entrusted with the leadership of this country,” Beshear said at a Capitol news conference. “They are giving no thought to the interest of the American public. It is time that they get their act together up there and put the people first and their partisan political goals second.”

States are scrambling to figure out how a federal debt default would affect them if lawmakers don’t read a deal by a Tuesday deadline. Kentucky receives about $11.5 billion each year from the federal government for key programs such as Medicaid, education and transportation.

“It’s very difficult to plan right now because no one knows for sure what the federal government will do, what bills they will pay, and what programs they will not fund. And until we know that, it’s pretty hard to do much preparation,” Beshear said.

Beshear denies accusation that he misled public about Obama visit

By Beth Musgrave
bmusgrave@herald-leader.com

FRANKFORT — Gov. Steve Beshear said Thursday that he did not mislead the public when he said a scheduling conflict prevented him from appearing with President Barack Obama at Fort Campbell in May.

Although the White House did not extend a formal invitation for Beshear to attend Obama’s appearance, Beshear said he would have been there to greet the president if his schedule had allowed it.

“We learned of the president’s visit about 36 hours before it was to take place,” Beshear said during a Capitol news conference called to discuss an education grant. “There were apparently no formal invitations sent, but I feel as governor it is always my responsibility and privilege to welcome a president of the United States.”

At the time of Obama’s appearance, Beshear said he was already scheduled to meet with executives at Churchill Downs on the friday before the Kentucky Derby.

Claims about unemployment increase during Beshear’s term true

Throughout this year’s campaign for governor, the Herald-Leader will fact-check statements made by candidates and their surrogates.

The statement: “Kentucky has lost 94,000 jobs” and “Kentucky’s unemployment’s up 75 percent.”

— Bluegrass Prosperity, a group associated with the Republican Governors Association, in a television ad this week in support of Senate President David Williams’ bid for governor.

The ruling: True

The facts: The ad focuses on Kentucky job losses during the administration of Democratic Gov. Steve Beshear, who is seeking re-election on Nov. 8.

According to the U.S. Bureau of Labor Statistics, Kentucky’s unemployment rate in December 2007, when Beshear took office, was 5.6 percent. In May 2011, the unemployment rate was 9.8 percent, an increase of 75 percent.

Similarly, in December of 2007, the number of unemployed in Kentucky was 112,470. In May of 2011, the number of unemployed was 207,013. The difference between 207,013 and 112,470 is 94,543.

However, higher unemployment has not been unique to Kentucky.

In December 2007, the national unemployment rate was 5.0 percent. It was 9.1 percent in May 2011, an increase of 82 percent.

The unemployment rate last month in Kentucky was 9.6 percent, the lowest since 9.2 percent in January 2009.

- Jack Brammer

State deposits $121 million in Rainy Day fund

By Beth Musgrave
bmusgrave@herald-leader.com

FRANKFORT — Kentucky is saving again.

After more than three years of budget deficits, the state was able to deposit $121 million in its budget reserve trust fund, commonly called the “Rainy Day” fund. It is the largest one-time deposit into the Rainy Day fund as a result of an end-of-year surplus in state history, according to Gov. Steve Beshear’s office.

The state finished the last fiscal year — which ended June 30 — with a surplus of $156.8 million. Some of that surplus — about $35 million — went to pay for emergencies such as storm clean up in Western Kentucky and other necessary expenses that were not included in the two-year budget. The remaining money — approximately $121.8 million — will be deposited, Beshear announced Thursday.

Lawmakers have tapped out the fund during the past three years as the state’s revenues plummeted and demand for services jumped. At its peak, the fund had more than $278 million in fiscal year 2001. All of that money was used to balance the state’s books during the 2001 recession. By 2007, the fund had been replenished to $231 million.

Jill Biden will miss military concert in Louisville

Jill Biden, wife of U.S. Vice President Joe Biden, will not appear at Tuesday night’s USO concert in Louisville due to a schedule change, but the show will go on.

“We were extremely pleased last week to hear that Dr. Biden was going to attend our concert,” Maj. Gen. Edward W. Tonini, adjutant general for Kentucky, said in a news release. “It’s unfortunate that she won’t be here tonight, but that does not diminish the message we’re sending out this week.”

Tonini said a huge crowd is expected for the concert with country music superstar Montgomery Gentry. A large viewership also is expected on the Pentagon Channel and the Internet at www.pentagonchannel.com.

A joint effort between the USO and the Kentucky National Guard, the concert will be broadcast live from Louisville’s KFC YUM! Center at 7 p.m.

A crowd of 16,000 is expected at the concert, the capstone event for more than 1,400 attendees at the National Guard’s 2011 National Volunteers’ Workshop and Youth Symposium, also held in Louisville.

The concert is the first USO concert created especially for military families.

–Jack Brammer

RGA launches second TV ad supporting Williams

By Beth Musgrave
bmusgrave@herald-leader.com

FRANKFORT — A group with ties to the Republican Governors Association is running a second television ad supporting Senate President David Williams for governor.

The ad, sponsored by Bluegrass Prosperity, focuses on Kentucky job losses and pushes the Burkesville Republican as the candidate who can help Kentucky’s economy rebound.

The ad portrays Williams as a tough guy, saying he is “to enough to get Kentucky working again.”

According to cn|2 Politics, which is owned by Insight Communications, the advertisement will run for a week in its Lexington, Northern Kentucky, Louisville and Owensboro/Henderson markets.

Williams faces incumbent Democrat Gov. Steve Beshear in the fall. Gatewood Galbraith, a Lexington lawyer, also officially filed his paperwork to run as an independent last week.

Jill Biden to attend Louisville concert for military families

FRANKFORT — Jill Biden, wife of Vice President Joe Biden , is scheduled to attend the first-ever “USO Homefront Concert” Tuesday night at KFC YUM! Center in Louisville.

The free concert, which is to feature Kentucky’s own Montgomery Gentry, is for U.S. military families and volunteers who support them, said a release Friday from the Kentucky National Guard.

It is a joint effort of the USO and the Kentucky National Guard and marks the first USO concert created especially for military families.