Pol Watchers

No deal yet on additional projects

Despite trading figures, offers and requests all week, lawmakers haven’t nailed down agreements on additional spending for water and sewer projects or a final list of road construction projects.

Top-ranking House and Senate Democrats and Republicans had been privately negotiating in the Capitol but left Friday evening without a deal to sell additional bonds that would pay for water line projects worth tens of millions of dollars. 

“We have agreements to approve this coming week, so that can fall apart over the weekend,” said Senate President David Williams, R-Burkesville.

Williams said lawmakers are awaiting input from Democratic Gov. Steve Beshear. He declined to release the amount of additional money for water and sewer projects or discuss the list of  state road projects, which cost several hundred million dollars, until all parties sign off on the agreement.

The promise of a supplemental spending bill for water, sewer and road projects was a key motivator for some lawmakers to vote for the state’s $19 billion, two-year spending plan on April 2.

Rank-and-file legislators have been off since April 3 for Beshear to consider vetoing legislation. He hasn’t yet issued any vetoes. The full General Assembly returns to Frankfort for its last two days of work Monday and Tuesday.

- Ryan Alessi

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Lunsford passes 'millionaires amendement' threshold

U.S. Senate candidate Bruce Lunsford, a Louisville Democrat and business owner, has kicked in more than $1 million of his own money in addition to $280,000 in contributions from others, the campaign says.

Lunsford's campaign says $545,000 that the candidate put into the race will show up on the campaign finance report that's due next week to the Federal Election Commission. Lunsford, who has been running TV ads since last Friday, added another $470,000 of his own money since March 31, the campaign's statement says.

In addition, Lunsford is expecting another $900,000 in pledged donations.

About $235,000 of the $280,000 Lunsford raised came in a two-week period, said spokeswoman Allison Haley. "Nearly 80 percent of the individuals who contributed live in Kentucky and the campaign raised over $45,000 in online contributions in the last week of March," Lunsford's campaign statement says.

The $800,000 that Lunsford's first quarter report will show is less than the $1 million his top rival in the May 20 Democratic primary, Greg Fischer, says he will report to the FEC.

Fischer, last weekend, released his campaign figures, saying he had raised about $500,000 from others and kicked in $500,000 of his own money.

By putting in $1 million of his own money, Lunsford passed a key first threshold of the so-called millionaire's amendment, which was part of the 2002 federal campaign finance reforms.

That wouldn't likely affect Fischer at this point, because Fischer has invested a half-million of his own money.

But pumping in more than $559,000 of his personal funds could allow the other five Democrats vying for the Democratic nomination to collect up to $6,900 from individual donors, as opposed to the current maximum of $2,300.

- Ryan Alessi

Fischer launching his first TV spot

Democrat Greg Fischer will begin airing his first TV ad on Saturday in the race for his party's nomination for U.S. Senate.

A news release from Fischer's campaign said the 30-second introductory spot, titled "The Promise," will air statewide.

"I strongly believe that people are looking for somebody who's not part of the system—because the system is broken," the Louisville businessman says in the ad. "I think people need to say ‘we’ve had enough of this and we need to get our country back.'"

Fischer began a three-week tour of the state on Monday. The primary election is May 20.

Front-runner Bruce Lunsford, also a Louisville businessman, began airing ads on April 4. Five other lesser-known Democrats are also vying for the spot to challenge Republican U.S. Sen. Mitch McConnell in the November general election.

Fischer's ad can be seen here.

- John Stamper

Deal for more projects not quite final, Speaker says

Democratic House Speaker Jody Richards said he and other legislative leaders hope to finalize by Friday a deal to boost the amount of money that will be used to pay for water and sewer projects, as well as an agreement on which road projects will be authorized.

"We're in pretty good shape on water and sewer but roads still need" to be worked out, Richards said Thursday before leaving the Capitol parking lot.

He declined to say how much in extra money, but lawmakers had hammered out an agreement Wednesday to sell $25 million in bonds that will be paid back using coal severance tax money. Legislators -- including House Democratic and Republican leaders and top Senators such as GOP President David Williams and Democratic Leader Ed Worley -- were working on agreeing to as much as $50 million more in bonds for additional water and sewer projects.

"I'm not at liberty to talk about the specifics," Richards said.

Richards and Worley met with Gov. Steve Beshear for more than 40 minutes Thursday afternoon. Beshear has through Monday to veto the spending bills or strike any lines from the budget bill. Lawmakers can use Tuesday -- the last day of the 2008 session -- to override any vetoes.

Richards said Beshear gave no indications about whether he will be vetoing certain parts of the budget or a companion bill containing other projects for eastern and western Kentucky funded through coal severance tax money.

"We just talked about general things," Richards said.

Legislative leaders, who have been hunkered down in various offices and committee meetings negotiating over projects this week, could unveil the latest addendum to the state's two-year, $19 billion spending plan as early as Friday morning.

- Ryan Alessi

Lunsford ad says 'Washington's changed' McConnell

Even though Democrat Bruce Lunsford is competing against six other Democrats in the May 20 primary election, his second ad of the campaign tries to draw a contrast with Republican Mitch McConnell.

The spot, titled "Real World," features Lunsford talking to the camera about his background, specifically mentioning how he helped pay for college laying blacktop, served in the National Guard and the Army Reserves and "helped grow a small business from three employees to 62,000."

"That's real world experience," he says. "Mitch McConnell's been in the Senate 24 years. Washington's changed him and things are getting worse."

Lunsford then concludes with a familiar mantra in Kentucky politics: "After 24 years, it's time for a change."

Former Republican Gov. Ernie Fletcher used the "time for a change" line constantly during his successful 2003 run for governor. That's probably not the comparison Lunsford wants, however, considering he is still trying to distance himself from Fletcher and make amends with Democrats after Lunsford dropped out of the Democratic primary for governor against Ben Chandler that year only to back Fletcher over Chandler, the Democratic nominee.

McConnell, who has GOP primary opposition from a candidate running a limited campaign, also has re-started his ad campaign in the last week, which highlight's his work on behalf of employees at the Paducah gaseous diffusion plant.

Here's the spot:

- Ryan Alessi

Lawmakers want to add more projects to budget

By Ryan Alessi
RALESSI@HERALD-LEADER.COM

FRANKFORT -- Legislative leaders hope to add at least $25 million more for capital projects to the $150 million worth that helped many lawmakers stomach voting for the state's two-year budget bill last week.

Richmond Sen. Ed Worley, the Senate's top Democrat, confirmed Wednesday afternoon that legislative leaders were negotiating over the additional chunk of money, which would come from selling more bonds. The state would pay off the bonds using tax money from coal companies.

Lawmakers, mostly from Eastern Kentucky, already had divvied up $100 million worth of coal severance tax money for a slew of projects, including water and sewer line construction, volunteer fire station buildings and little league equipment. Legislators spent $50 million more on projects in rural areas, paid for with bonds from tobacco settlement money.

Gov. Steve Beshear said he was aware that lawmakers were trying to add more money for water and sewer projects, but he declined to comment until he knew more details.

The additional project money comes as universities are proposing tuition increases, such as the 9 percent hike the University of Kentucky announced Tuesday, and as some school districts are bracing for layoffs, as a result of a $19 billion, two-year spending plan most lawmakers have described as austere.

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Beshear weighs in on search for new higher-ed chief

By Art Jester And Ryan Alessi
AJESTER@HERALD-LEADER.COM

Gov. Steve Beshear wants the state Council on Postsecondary Education to conduct a national search for its next president and hire a nationally recognized educator -- an apparent gubernatorial thumbs-down for Beshear's former law partner, Brad Cowgill.

Cowgill became the council's interim president on Sept. 1, after he had been budget director for Gov. Ernie Fletcher. Beshear, a Democrat, defeated Fletcher, a Republican, for governor last November.

Cowgill, whose interim term is supposed to end this month, is a Democrat, but he has been a lifelong friend of Fletcher's.

In a letter dated April 4, Beshear told chairman John Turner of Lebanon that he wanted to remind the council to carefully adhere to the requirements of state law.

Beshear wrote, in part: "Please be mindful that the statutes require the president to have 'an established reputation as a professional in the field of postsecondary education' and dictate that the president serve as an 'advisor to the Governor.' For that advice to be most valuable that person must have a full understanding of academia and wide-ranging, meaningful experience in higher education. I am sure you agree."

Beshear's letter indicated that copies were sent to council members. Cowgill said a copy was hand-delivered to his office on Monday.

Cowgill said he is interested in the permanent job, and that was confirmed by Turner.

Turner said that he and council Vice Chairman Dan Flanagan of Campbellsville met Wednesday with Beshear. Turner said the governor "didn't come right out and say, 'you can't have Brad Cowgill,' but he kept referring to the law."

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Beshear says he's still 'sifting through' budget

Gov. Steve Beshear said Wednesday before attending a Derby kick-off luncheon at the governor's mansion that he hasn't made final decisions on vetoing any bills, including provisions in the state's two-year, $19 billion spending plan.

"We're reviewing everything now and will be making those decisions in due course," he said. "We're sifting through it right now."

- Ryan Alessi

Prather: FBI has 'free rein' to investigate cabinet

Transportation Secretary Joe Prather told the Herald-Leader the FBI has 'free rein' to obtain information and interview employees during its probe into activities under the previous administration.

In a brief interview as Prather left Gov. Steve Beshear's office shortly before 11 a.m. Wednesday, Prather said he and the cabinet wouldn't be commenting on any specifics about the scope or targets of the probe. The cabinet has said only that it is cooperating with the FBI's investigation into practices in the cabinet during former Gov. Ernie Fletcher's administration.

"It's just inappropriate for us to be commenting on an ongoing investigation," he said. "We are cooperating through access to whatever we can allow them to view or discuss. We can't add anything to what's being done so the results will have to speak for themselves."

Prather also declined to say whether the activities being investigated were discovered by the cabinet and referred to federal investigators or whether the FBI initiated the probe.

"That will come out in due time," he said.

Marcelyn Matthews, who served as state highway engineer at the end of Fletcher's term and is now an administrative coordinator in the highway department, said she did provide information to the FBI regarding how the cabinet's engineers figure out costs of projects before they are sent out for bids by contractors.

"All they asked me was about our process -- the engineers estimates," Matthews said. "I don't know anything that's going to help you from the questions they asked me."

Matthews said that in a face-to-face meeting with Clay Mason, the special agent who runs the FBI's Frankfort office, she wasn't asked whether she knew if anyone improperly released bid information

"Again, they purely asked me factual questions about the process -- nothing about something not being done according to the process," she said.

Prather wouldn't confirm that the bid process is a part of the investigation.

"We can't legitamately comment on an investigation without causing the investigators undue problems," he said.

- Ryan Alessi

FBI probe focuses on Transportation Cabinet

By Ryan Alessi
RALESSI@HERALD-LEADER.COM

FRANKFORT -- The FBI has launched an investigation into the state Transportation Cabinet regarding "activities that occurred during the previous administration" of Gov. Ernie Fletcher, a cabinet spokesman confirmed Tuesday.

But Chuck Wolfe, the agency's communications director, said he couldn't discuss specifics, on the direction of Secretary of Transportation Joseph Prather, who came into office with Gov. Steve Beshear in December.

"The only thing I've been authorized by the secretary to say is that we are cooperating with an investigation of activities that occurred during the previous administration," Wolfe said.

When asked whether the federal investigation is focusing on a pattern of activities or a specific instance, Wolfe said, "I wouldn't know how to characterize it. I can't say anything beyond that."

FBI Special Agent Clay Mason, who runs the bureau's Frankfort office, said he could "neither confirm nor deny any ongoing investigation."

Last week, a high-ranking holdover from Fletcher's administration resigned from his $95,000-a-year post effective March 31.

James W. Rummage had worked for Fletcher, a Republican, as chief district engineer in District 7 since 2004. The district covers Fayette and 11 other counties. Before that he ran the neighboring District 9 for six years under Democratic Gov. Paul Patton.

Reached at his Morehead home Tuesday, Rummage said it was his decision to leave but wouldn't say why. He wouldn't comment on whether he had been interviewed by or provided information to the FBI.

"There's nothing I can help you out with right now. There's nothing I can say right now," he said.

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