Author Archive for John Cheves

Sparks fly at Kentucky Republican gubernatorial debate

By John Cheves | jcheves@herald-leader.com

Sparks flew several times on Kentucky Educational Television’s Kentucky Tonight on Monday as the three Republican candidates for governor debated how far state government should reach on certain issues, such as drug abuse and education.

The three are competing for the chance to run against incumbent Gov. Steve Beshear in November.

Kentucky Senate President David Williams, generally considered the frontrunner in the May 17 GOP primary, praised his opponents for offering themselves for public service. Williams pledged to support whoever wins the nomination.

However, Williams also jabbed at Louisville businessman Phil Moffett, leading the two men to argue and talk over each other during parts of the live program.

State pension agency posts salaries online

By John Cheves – jcheves@herald-leader.com

Eight executives at the Kentucky Retirement Systems make more than $100,000 a year, according to salary data now available online at http://opendoor.ky.gov.

The salaries were a source of controversy this month after KRS refused to disclose them to a state retiree who requested them under the Kentucky Open Records Act. Attorney General Jack Conway ruled that KRS — which manages about $13 billion in assets for state and county retirees — had violated the law.

On April 7, responding to Conway’s ruling and several other recent controversies, the KRS board of trustees voted to replace its longtime chairman, Randy Overstreet, and fire its executive director, Robert Michael Burnside. KRS General Counsel Schuyler Olt also is departing.

The new board chairwoman, Jennifer Elliott, on Friday said the board insisted that KRS salaries be posted online as quickly as possible.

State pension agency fires executive director

By John Cheves — jcheves@herald-leader.com

Stung by recent controversies, the Kentucky Retirement Systems on Thursday fired its executive director and replaced its longtime board chairman.

“The majority of us thought it was time for a change,” said Christopher Tobe, a member of the KRS board of trustees.

Tobe cited pending inquiries into KRS’ business practices by the U.S. Securities and Exchange Commission and State Auditor Crit Luallen. Also, this week, Attorney General Jack Conway ruled that KRS violated the Kentucky Open Records Act by refusing to divulge KRS staff salaries to members of the public.

“It’s just the overall sense that there’s too much stuff going on here, and we need to go in a different direction,” Tobe said.

KRS oversees $13 billion in assets to provide benefits for state and county government retirees.

AG says state pension system violated open records law

By John Cheves – jcheves@herald-leader.com

Kentucky Retirement Systems must publicly disclose its employees’ salaries, Attorney General Jack Conway’s office said Tuesday.

KRS oversees $13 billion in assets to provide benefits for state and county retirees. Although it is a public agency, it refused Feb. 10 when state retiree Eva Smith-Carroll of Frankfort filed a request for its “current payroll records” under the Kentucky Open Records Act.

“All the other state employee salaries are posted online. It wasn’t clear to me why this one agency should not have to disclose the size of its salaries,” Smith-Carroll said Tuesday.

KRS told Smith-Carroll her request was “unduly burdensome.” Additionally, KRS cited a state law shielding certain information about individual pension accounts and said it prohibits disclosure of KRS salaries.

KRS general counsel Schuyler Olt declined to comment Tuesday.

But Conway, whose opinions carry the force of law in open records cases, disagreed with KRS and ordered the information released. In his order, Conway said “the public is entitled to know who works for (KRS) and how much they earn.”

House committee approves reforms in drug laws

By John Cheves — jcheves@herald-leader.com

FRANKFORT — The House Judiciary Committee on Tuesday night approved the most sweeping changes to Kentucky’s penal code in a generation in an effort to reduce prison and jail crowding.

The committee voted unanimously to send House Bill 463 to the full House, where a floor vote is expected Thursday.

Paul to offer $500 billion spending cut plan

By John Cheves – jcheves@herald-leader.com

U.S. Sen. Rand Paul on Friday said he plans to unveil his own version of the federal budget next week that would cut $500 billion a year, eliminating or consolidating the U.S. departments of Education and Energy and reducing many other agencies to 2008 spending levels.

“Pretty much everything is in it,” said Paul, R-Ky. On the Education Department, for example, Paul said he would close parts of it and return many of its responsibilities to local school districts. Some popular programs such as federal aid for college tuition would transfer to other federal agencies, he said.

Paul had just addressed Kentuckians for Better Transportation in Lexington in what was billed as his first public speech since taking office this month.

During his speech and afterward, talking to reporters, Paul said the federal government needs to make deep spending cuts in nearly every area, including Social Security and Medicare. Paul said Social Security needs to raise its eligibility age and Medicare should cost more for higher-income Americans.

“Nobody wants to deal with this,” Paul said. “But if you don’t approach it, then the alternative is maybe there’s no Social Security or maybe there’s no Medicare because we’ve destroyed the value of the dollar.”

Beshear defends donors, vacancies from job cuts

By John Cheves – jcheves@herald-leader.com

Of 81 political appointments that Democratic Gov. Steve Beshear has asked the state Personnel Board to save, 11 are vacant — two have been unoccupied since 2007 — and nearly 40 percent of the rest are held by campaign donors to Beshear, the Democratic Party or both.

The Personnel Board is scheduled to meet Friday to decide whether to allow the jobs to disappear on Dec. 31.

The appointees serve in management jobs across state government with an average salary of $74,457. A budget-cutting law the legislature passed this year caps the number of appointed mid-level managers unless Beshear wins exemptions from the Personnel Board.

Total salaries for the occupied positions are $5.2 million a year.

The Beshear administration said each job is essential to run state government. Nobody’s political activity was considered when deciding which jobs to defend, said Beshear spokeswoman Kerri Richardson.

“In reviewing these positions, we looked at positions, not people,” Richardson said. “These positions — not the individuals filling them — are important to the proper functioning of state agencies.”

State pension agency hires new investment chief

By John Cheves – jcheves@herald-leader.com

The Kentucky Retirement Systems is getting a new chief investment officer on Tuesday.

Timothy “T.J.” Carlson will oversee investments at the agency that handles $13 billion in assets to provide benefits for state and county retirees. Carlson replaces Adam Tosh, who resigned in July for a private sector job.

“I am excited about the wonderful opportunity to come to Kentucky, and I look forward to working with the seasoned KRS team to help navigate these interesting and challenging times for our pension and insurance programs,” Carlson said in a prepared statement.

Last year, Carlson was named a principal at investment consultant Ennis, Knupp & Associates in Chicago. Prior to that, he was chief investment officer and treasury director for the Marshfield Clinic in Marshfield, Wisc. He also worked for the West Virginia Investment Management Board and the Iowa Public Employees Retirement System.

In May, acting on behalf of Ennis, Knupp & Associates, Carlson defended higher management fees that were paid by the North Carolina Teachers and State Employees Retirement System to a firm, Relational Investors, that hired the state treasurer. Previously, the state treasurer had invested state funds with Relational Investors, according to Carolina Journal.

Official count shows Chandler defeating Barr by 649 votes

By John Cheves – jcheves@herald-leader.com

U.S. Rep. Ben Chandler, D-Versailles, leads Republican Andy Barr by 649 votes, according to official vote totals from all 16 counties in the 6th Congressional District.

The last of the county totals, which have been certified by county clerks but have not yet been given the final stamp of approval by the Kentucky Board of Elections, were submitted to the secretary of state’s office on Friday.

The official count is Chandler with 119,812 votes and Barr with 119,163 votes, said Les Fugate, spokesman for the secretary of state.

As county and state officials double-checked their math, there were slight adjustments to totals in Estill County, which Barr won, and Fayette and Franklin counties, which Chandler won.

Chandler declared victory on Tuesday night, but Barr, a Lexington lawyer, has not conceded and requested a recanvass, a machine-by-machine check of the vote totals. The recanvass is scheduled for Nov. 12.

Chandler gave a 45-second speech re-declaring victory at his campaign office in Lexington Friday.

“Today the county boards of elections certified their vote totals and sent them to the secretary of state, reconfirming our victory and showing that the people of Central Kentucky have again chosen me to be their voice in Congress,” Chandler said. “Andy Barr fought hard, and I commend his willingness to serve the people of Central Kentucky.”

Chandler did not take any questions directly from reporters, disappearing into a back office immediately after his statement.

Andy Barr not conceding, still considering next move

UPDATED AT 6:20 P.M.

By John Cheves – jcheves@herald-leader

It may be a while before Central Kentucky voters get the official word on who their congressman will be starting in January.

U.S. Rep. Ben Chandler, D-Versailles, claimed victory on Tuesday night with a 600-vote lead over Andy Barr, his Republican challenger, out of more than 239,000 votes cast in the 6th Congressional District.

With 640 of 640 precincts reporting, numbers from the Associated Press show Chandler leading Barr 119,845 to 119,245. The Kentucky Board of Elections’ Web site, which still lacks numbers from at least one precinct in the district, shows Chandler with a 644 vote lead.

Although an election-law expert said Wednesday it’s highly unlikely that Barr can overcome a 600-vote deficit, Barr on Wednesday would not concede defeat.