Tuesday, December 17, 2013

Austerity Hysteria Rules in Kentucky

So why are Governor Beshear and state legislators determined to slash the already skeletal state budget?

From the State Treasurer's Office:

State Investment Commission Recovers $103.2 Million in Sale of Securities

Avoids potential losses from 2008 Financial Crisis!

"By holding on to these securities instead of immediately liquidating them back in 2008, the commission was able to successfully manage these assets over the past four years and now the state’s Treasury and the taxpayers are reaping the benefits!” said Kentucky Treasurer Todd Hollenbach, Vice Chair of the State Investment Commission (SIC).

During the financial crisis in 2007 and 2008, the Commonwealth owned a number of securities that had been downgraded by the ratings agencies resulting in a substantial reduction in their value. The State Investment Commission was faced with the decision to either immediately liquidate those securities or to hold them hoping for a recovery in value. The SIC choose to hold them until the market improved and at each subsequent quarterly meeting re-affirmed that decision. As time passed, many of the securities matured, some were sold and others restructured.

Earlier this year, the final security was liquidated. At that time, an accounting of the actions revealed that from the point in 2008 at which the SIC choose to hold the securities to the final liquidation this year, roughly $103.2 million was either earned or recovered. The money has been distributed to the general fund and other impacted state agencies.

The SIC is composed of the Governor (Chair), Treasurer (Vice Chair), the Secretary for Finance and Administration, and two independent bankers, Jon Lawson, President of the Bank of Ohio County, and George Spragens, President of Farmers National Bank in Lebanon, Ky.

Even as public schools, universities and state agencies beg for restoration of recession-era spending cuts in Kentucky’s next budget, officials are warning that a bleak revenue outlook means more cuts are likely.
Add this stupid fucking idea to the mix and you've got a recipe for the perfect repug non-government: poor people paying more taxes to support a public sector that provides services only to the rich.

Information on a proposed Kentucky constitutional amendment that would give cities and counties the authority to impose a local sales tax if voters agree will be explained Saturday at the Kenton Mayors Group.

Saturday’s forum should give elected officials from Kenton, Boone and Campbell counties enough information on the proposal so that they can decide whether they want to ask the General Assembly to let Kentuckians vote on the constitutional change in November 2014.


Under current Kentucky law, cities and counties are not allowed to impose sales taxes.

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