Issue Position: Fiscal Responsibility

Issue Position

Pension Crisis - Our state is teetering on the edge of a financial disaster because of a failing national economy, but also because our government has lived beyond its means and has ignored financial commitments it has made. There is no better example of this impending financial crisis than the current position of the retirement plan for state employees which has an unfunded liability of over $33.7 billion, and growing every day. This is not a new problem. Our state government has chosen to ignore it for years. Ironically, the pension fund of our state legislators is running a surplus!

Tragically, the shortfall in the retirement fund of state employees is only one of the many areas our state government has inadequately funded. The only solution our state government has found to balance our budget is to borrow from our federal government and shift funds - the proverbial "robbing Peter to pay Paul."

Job Creation - Creating new jobs in Kentucky is the best way to ensure financial stability for our state and generate tax revenue sufficient to meet our financial needs and obligations. As of May 2013, Kentucky's unemployment rate is 6.5% higher than the national average. For Grayson County, the unemployment rate is 33% higher than the national average and 24% higher than the state average. Grayson County has the highest unemployment of any of its surrounding counties and of any county within the Lincoln Trail Area Development District. Frankfort is obviously failing us. The legislature needs to eliminate any and all barriers to job creation in Kentucky.

Tax Reform - A critical element in creating new jobs and finding financial solvency for the state is the overhaul of an antiquated tax code which punishes productivity and rewards consumption. Since 1982, Kentucky has funded 12 studies on its tax code and each sudy has shown that state revenues do not grow in proportion with the economy. Yet, the legislature continues to ignore the problem; opting instead to cut the state budget by $1.6 billion. Tax reform should be an immediate action in Frankfort.

Re-inventing Government - Mark Twain said he hoped he would be in Kentucky when the world comes to an end because everything happens 20 years later in Kentucky! How Kentucky conducts its business is no exception. State government needs to take a critical look into how it conducts its business and adopt the same principles and practices as private enterprise does. As an example, I would propose eliminating the position of Lieutenant Governor. It is a needless, antiquated position which role was effectively diminished and virtually eliminated with an amendment to Kentucky's constitution in 1992. The only formal purpose it serves is to replace the Governor should he or she die or become incapitated while in office. There could be other means to address this issue should it arise and save the state the cost of a six figure salary plus benefits.

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