Thursday, December 17, 2015

Much can be cut from state budget, if Bevin knows where to look

Every time I go to Frankfort, I pass by the office of an obscure state agency. I’ve never heard of anything this agency has ever done. As far as I know, it’s never been in the news for anything. I’m not exactly sure what its duties are. All I know is that it’s a state agency that consumes dollars from the state budget.

Since the agency has an office that’s separate from any other state facilities, it’s a safe bet that the state pays rent on the building. Since there’s an office, that means there’s a staff that must be paid. It also means there are bills for electricity and telephones and water and other services.

I recently heard that this obscure state agency was looking to hire a public relations person. I have never seen this agency in the news. I have never seen any press releases issued by this agency, or by any other agency touting this office’s work. If this office has labored in obscurity to this point, why does it need publicity now?

What’s the name of this agency? That’s irrelevant to this discussion. The fact is that such an agency exists, and it has several other siblings scattered across state government. It seems to me that this agency is ripe for abolition, with its functions being absorbed into other existing cabinets and departments. There are several agencies that would be perfect fits. The office expenses could be abolished, personnel costs absorbed through attrition and some money saved within the state budget.

Many of us believe that the government has strayed far from the duties for which it was intended. While it’s true that federal overreach is a hot topic, and the 10th Amendment and the concept of “reserved powers” would seem to give much governmental authority to the states, there’s still a widespread belief that government at all levels does too much, and too many things it was never meant to do. Personally, I struggle with the concept that the founders and framers would endorse the idea of government-paid health care.

We keep being reminded that times are lean. Former Gov. Steve Beshear frequently talked of shortfalls in the state budget and the number of cuts he had to make. He seemed to be fond of making overall cuts to the budget instead of targeted cuts to weed out unnecessary and duplicative programs.

New Gov. Matt Bevin has a golden opportunity to rein in the scope and power of Kentucky’s state government. Here’s hoping he will take full advantage of the chance that has been given him.

Bevin won’t be able to do anything immediately, unless he and his budget wizards are really good. He will have to present a budget for the upcoming biennium to the General Assembly barely a month into his term, which began last week. It’s likely he will be able to submit nothing more than a continuation budget until he and his staff get a handle on things in Frankfort. Plus, he’s sure to face opposition from the House of Representatives, currently under control of House Speaker Greg Stumbo and the Democrats, if he attempts wholesale cuts or implementation of new programs.

But in 2018, there’s real potential. By that time, the governor’s staff will have had a chance to review the offices and programs in state government. They should be able to pick out the ones that do very little, are duplicates of other efforts or don’t provide what is truly an essential service to the public. In addition, there’s a good likelihood that the House will be “flipped” from control by the Democrats to the Republicans in next year’s state legislative elections, which will give him two chambers that will be friendlier to his proposals. Bevin and Sen. Mitch McConnell may still be on tenuous terms, according to some, but they’re united in their goal of “flipping” the House next year. And even if Republicans don’t succeed in gaining control of the House, Bevin can omit those wasteful, duplicative and nonvital programs in his budget, then use the line-item veto to strike them if the House includes them.

We all agree that there are things the government must do for the betterment of society. Enforcing the law and building and maintaining roads are just a couple of those essential services. But there are many offices, agencies, commissions, boards, bureaus, departments and divisions tucked away in the recesses of state government, consuming resources but providing questionable benefit. The vast majority of Kentuckians wouldn’t miss them if they disappeared, especially if their important functions could be taken over elsewhere. And the taxpayers would appreciate a break and the opportunity to keep more of what they earn.

Some fear that Gov. Bevin is going to take a “slash and burn” approach to state government. I don’t foresee that happening. I think he will be reasonable and measured with the needed downsizing. He and his advisors will evaluate the cost of each function against the value. When the unneeded and redundant programs are eliminated, there will be more money available to meet the vital needs of the state without increasing taxes. And there are many areas of state government that are desperately underfunded, and not just the pension either, although that situation’s gotten most of the attention. Unneeded offices and programs are sucking money away from areas where it needs to be spent.

It’s been nothing short of amazing to watch Bevin’s opponents melt down on social media, in the press and in online comments on news stories. They don’t realize that the Medicaid expansion they’re championing is unsustainable over the long term. Projections vary, but the consensus is that it may be sustainable for a year or two but will not be sustainable after 2020, especially when federal funding dries up. How can the state pay for it without a devastating tax increase? And no one seems to be asking the bigger question of why it’s the state’s responsibility to provide health insurance anyway.

New Kentucky governors really don’t get a chance to settle into the office and get their programs in place. There’s only a month between the election and the inauguration. Then there’s only about a month before they and their new personnel have to present a budget. So it’s much too early for Bevin’s big-government liberal detractors to jump up and down about how he’s damaging the state.


Matt Bevin’s only been governor for a little over a week now. He’s still making appointments to his staff and trying to figure out the lay of Frankfort, being that he arrived as an outsider businessman instead of a career politician. He has the opportunity to make a real and lasting mark on the commonwealth. He can begin by identifying and eliminating wasteful and duplicative spending, such as for that obscure little agency I pass by on my way into Frankfort.

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