Pol Watchers

Versailles drops bid for Frankfort properties

A controversial land deal involving the city of Versailles and nine office buildings in Frankfort is dead, Versailles city officials announced on Thursday.

The Versailles City Council last month rushed approval of a plan to issue $56.5 million in 30-year bonds toward the purchase of the office buildings, which are owned or co-owned by Rodney Ratliff, a politically active Frankfort landowner.

The buildings are leased by Kentucky state government and used by various agencies.

H&W Development LLC of Georgia wanted to buy the buildings, with the financing to come from Versailles' tax-exempt, low-interest bonds, and a big team of lawyers and bankers from around the country aggressively pushed the deal. In the end, Versailles would own the buildings, but it wouldn't face any risk because European bank Dexia would issue a letter of credit guaranteeing payment on the bonds, H&W said.

However, a story in Friday's Herald-Leader raised questions about the deal among residents of Versailles.

The attorney general's office this week announced that it was opening a review of the deal. Subsequently, Dexia got cold feet and withdrew, causing the deal to collapse.

Versailles Mayor Fred Siegelman on Thursday said he was counting on the deal to provide $1.5 million toward the cost of a new police station.

"I'm very disappointed," Siegelman said. "The issue got confusing and taken away by people who just didn't understand it."

In New York, Dexia Credit Local Vice President Richard Skiera declined to comment.

For more on the story, see Friday's Herald-Leader.

-- John Cheves

Ex-first couple share reunion moment at rally

Former Gov. John Y. Brown introduced his ex-wife at a rally sponsored by the Alzheimer’s Association as one of Kentucky’s greatest first ladies, the mother of his children and “one of the greatest wives a fellow ever had.” “Welcome back to Kentucky, Phyllis,” Brown said, as the crowd laughed.

Phyllis George, whose mother died of Alzheimer’s, is a former Miss America and advocates on behalf of those who suffer from the disease. She recently moved to Lexington.

The introduction was impromptu. The event’s M.C. saw Brown in the crowd and called him forward to introduce his former wife. As he came to the microphone, George spoke to him. “I’m still telling him what to do,” she said to those nearby.

After the introduction, George thanked her ex-husband. “John, you still haven’t lost it,” she said. “That was like old times.”

She turned to the crowd of just over 100 who had gathered in the Capitol Rotunda. “He’s never been so nice to me,” she said. The crowd laughed again, this time nervously. “I’m kidding,” she said. “We’re friends.”

- Sarah Vos

Jennifer Chandler among appointees to agency

By Jack Brammer
JBRAMMER@HERALD-LEADER.COM

FRANKFORT -- The state agency that doles out money to local governments has hired Jennifer Chandler, the wife of Democratic U.S. Rep. Ben Chandler, and added 16 other appointed officials Wednesday, including Bell County's Democratic Party chairman.

State Republican Party Chairman Steve Robertson questioned the hiring at the Governor's Office for Local Development, or GOLD, "during what the Beshear administration has described as one of the worst fiscal times in the state's history."

"I would expect under the circumstances more belt-tightening from this administration," said Robertson, adding that Chandler has been hired for a new position.

Matt Sawyers, GOLD's chief of staff for Democratic Gov. Steve Beshear's administration, said he expects the office will end up with fewer non-merit employees than the number during Republican Gov. Ernie Fletcher's administration.

Earlier this month, the Beshear administration dismissed more than 20 appointed officials in the office.

Sawyers said Jennifer Chandler will start her job as executive director of the office of state grants in early February at an annual salary of $72,250.

He said her position "was not filled under the previous administration." He did not know whether it was newly created. She could not be reached for comment.

Ben and Jennifer Chandlers' primary residence is in Woodford County. When Congress is in session, Ben Chandler returns to Kentucky most weekends. He represents the Sixth Congressional District, which includes Lexington and most of Central Kentucky.

Bell County Democratic Chairman Leo Haggerty started working in GOLD Wednesday for $50,000 a year, Sawyers said.

Haggerty will be stepping down from his political post in Bell County, Sawyers added.

Haggerty, who helped select the Democratic Party nominee earlier this month for an open state Senate seat in Eastern Kentucky, could not be reached for comment. He declined to say during the selection process whom he supported.

GOLD distributes $150 million over the course of the state's two-year budget cycle in grants for downtown development, recreation facilities, public housing, government technology and water and sewer needs.

These GOLD appointments are political jobs that are not covered by the state merit system, which protects other state workers from political influence.

PHOTO CAPTION: Democrat Ben Chandler, with his wife, Jennifer, in 2004, celebrating his victory over Republican Alice Forgy Kerr. Photo by Pablo Alcala | Staff

Patton's ex-mistress asks appeals court to reinstate lawsuit

By Brandon Ortiz
BORTIZ@HERALD-LEADER.COM

FRANKFORT -- An attorney for the onetime mistress of Paul Patton urged the Kentucky Court of Appeals on Tuesday to reinstate her second lawsuit against the former governor.

Tina Conner's first lawsuit against Patton, in September 2002, alleged sexual harassment, outrage and violations of Kentucky's Civil Rights Act. Two claims were dismissed in December 2002, and the remaining claim, outrage, was dismissed in May 2006.

In October 2006, Conner filed a second lawsuit, this time claiming misconduct by a public official and government oppression. But a Franklin County circuit judge dismissed it, ruling that Conner was attempting to relitigate the same issues from her first lawsuit.

Lexington lawyer William C. Jacobs asked a three-judge panel from the Court of Appeals to reverse the dismissal.

"The claims in this lawsuit are different," Jacobs said after the hearing.

Louisville lawyer Sheryl Snyder, who represents Patton and has represented several other governors, said Conner is trying to take a second bite at the apple. He said the second lawsuit is identical to claims Conner unsuccessfully attempted to add to her first lawsuit.

Senior Judge William Knopf said the appeals court hopes to have a ruling within three weeks.

Patton and Conner did not attend the hearing.

In September, the state appeals court upheld the dismissal of Conner's first lawsuit.

Conner, who operated a nursing home in the Western Kentucky city of Clinton, claims Patton caused state regulators to ruin her business in retaliation for her ending their two-year affair. Her allegations effectively ended Patton's political career.

Patton, a Democrat, was governor from 1995 to 2003.

Conner eventually lost her nursing home, Birchtree Healthcare, through bankruptcy.

In November 2003, Patton became the first Kentucky governor ever disciplined for state ethics violations.

He admitted to the Executive Branch Ethics Commission that at Conner's request he had "attempted to influence" a decision to promote a vehicle-enforcement officer. And he conceded that he helped Conner's business get into a program for minority- and women-owned businesses.

But Patton maintained that he never retaliated against Conner and never abused his power. He agreed to a reprimand and a $5,000 fine, and said he did not knowingly violate the ethics code.

New York Times puts spotlight on KY's dental care

The New York Times, today, ran a piece about Kentucky's overall poor dental care, especially among low income residents.

One fact mentioned is that Medicaid for dental care to poor children increased 30 percent last year but reimbursement to dentists is still way below the industry averages. Here's one quote:

“Not much has changed over the years here, really,” said Glen D. Anderson, who for two decades has made dentures in Corbin, Ky. He sells a pair of dentures for $400 that many dentists sell for more than $1,200. Like his brother, father and grandfather, he makes them without a license.

“Bootleggers exist here for a reason,” Mr. Anderson said. “People need teeth, but they can’t afford to go to dentists for dentures.”

This comes as the state Medicaid program is reporting a $389 million shortfall for this year and as the state's two year budget projections increasingly appear to be tighter.

UPDATE 12:35 p.m.: The Kentucky Progress blog notes that state Rep. Tom Burch, D-Louisville, has a bill that requires denture makers to be licensed, which would make legal the work of Glen D. Anderson, the man quoted in the Times story. Any thoughts on that?

 

- Ryan Alessi

Democrats to block Holsinger nomination

By Halimah Abdullahh
abdullah@mcclatchydc.com

WASHINGTON -- Democrats will stay in session over the holiday break to prevent President Bush from naming James W. Holsinger Jr. as U.S. surgeon general and to block other "objectionable nominees."

"I will keep the Senate in pro forma session to block the president from doing an end run around the Senate and the Constitution with his controversial nominations," Senate Majority Leader Harry Reid said Wednesday evening. "So Mr. President, I hope this is a Christmas present for these people. These are important jobs and I wish them well ... and wish them all a Merry Christmas and a Happy New Year."

Holsinger served as Gov. Ernie Fletcher’s secretary for Health and Family Services from 2003 through 2005, was a professor and chancellor of the University of Kentucky’s medical center for nine years in addition to other academic and administrative medical school posts across the country and served for 26 years in the Department of Veterans Affairs.

He has a master’s degree in biblical studies from Asbury Theological Seminary in Wilmore.

For Holsinger, the quest to be the nation’s top public health position has been anything but merry. He declined to comment on Senate Democrats’ move to block a possible presidential recess appointment or on his rocky confirmation process.

Earlier this year, Holsinger faced strident criticism from gay-­rights groups, the National Organization for Women, the American Public Health Association and some public health experts for a Methodist church paper he wrote in 1991 titled "Pathophysiology of Male Homosexuality," which described same-­sex intercourse as incompatible with Christian teaching.

CONTINUE READING

KEEP reports raising $4 million at event

ALSO, BESHEAR SAYS CASINO BILL IS IN THE WORKS

The Kentucky Equine Education Project banked an estimated $4 million from its auction fund-raiser Friday night.

The group of horse owners and industry supporters is backing incoming Gov. Steve Beshear's proposal to allow casino gambling in Kentucky.

KEEP played a key role in the casino debate in the General Assembly two years ago as it ran more than $1 million in TV ads urging viewers in the commonwealth to support casinos here as a way "keep it Kentucky" -- a reference to money that residents spend at neighboring Indiana's gambling boats.

Patrick Neely, KEEP's executive director, said in an interview last month that KEEP's board of directors will decide what type of ad campaign, if any, the group might run this winter as Beshear tries to push his proposal for a constitutional amendment allowing casinos.

Neely said in a statement released yesterday through the group's marketing and P.R. firm Preston Osborne, that Friday night's auction event was "a tremendous success."

"This was by far the biggest stallion season auction ever held both in terms of stallion seasons (184) and money raised. These funds will a long way to help our organization continue its mission," he said of the group, which formed in 2004.

Meanwhile, Beshear confirmed to reporters in Lexington Friday that his staff already is assembling the skeleton of a bill to be introduced to the General Assembly that would propose changing the constitution. Such a constitutional amendment requires approval of two thirds of each chamber of the legislature and the final approval of a majority of Kentucky voters.

Once a rough draft a of bill comes together, Beshear said he will bring in various interest groups to hammer out key details, such as how many casinos would be allowed and which areas -- education, health care, etc. -- would receive what percentage of the tax revenue from gambling establishments.

Former Gov. Brereton Jones, the chairman of KEEP, said Thursday that he expects KEEP will be among the groups to have a say in that.

"It will be done in a way that the public has spoken loudly and clearly on: they want to be sure that if they’re for it, there's a way to guarantee there’s not a proliferation of gambling in this state," Jones said.

- Ryan Alessi

First candidate files to replace Draud in state House

Less than 24 hours after the state Board of Education picked Republican state Rep. Jon Draud of Edgewood as Kentucky's education commissioner, the first candidate to replace him has filed paperwork with the Board of Elections.

Will Terwort, a 32-year-old employee of the Kenton County Clerk's office, will run in the GOP primary in May for the Kenton County state House seat in the heavily Republican district.

Terwort, who is a member of the Kenton County Republican executive committee, will also seek the party's nomination to run to replace Draud for the remainder of this current term, which expires December 2008. That executive committee will select the nominee in the coming weeks for a special election that has not yet been set.

Terwort said he wants to bring fiscal responsibility to Frankfort.

"I'd like to repeal the annual sessions and repeal the state treasurer's office," he said after having his picture taken with Secretary of State Trey Grayson after filing his papers. Terwort and Grayson both graduated from Dixie Heights High School in the 1990s.

Draud's seat will be the third vacant legislative position next month. State Sen. Daniel Mongiardo, D-Hazard, is expected to resign his seat Dec. 11 when he is sworn in as lieutenant governor and Rep. Carolyn Belcher, D-Owingsville, has given up her seat since she was elected Bath County Judge Executive on Nov. 6.

- Ryan Alessi

Pence talks philosphically of future, past, providence

After four dramatic and unpredictable years in politics, Lt. Gov. Steve Pence is returning to the legal realm from which he was plucked in 2003.

Pence, who made his first public mark as a federal prosecutor, recently announced he would move to the other side of the courtroom as a private attorney specializing in white-collar crime defense as well as corporate litigation with the regional firm of Dinsmore and Shohl.

"I'm looking forward to getting back and doing what I do best, which is probably not politics but practicing law," said Pence, Kentucky's first Republican lieutenant governor since 1946.

After all, his time in public office didn't go the way Pence expected, considering that on a chilly December Inauguration Day four years ago he boldly declared that Gov. Ernie Fletcher and his election could be the beginning of a 16-year Republican dynasty.

Pence, after a public estrangement from Fletcher over the governor's pardons of aides during the state hiring investigation, didn't even make it to the first re-election phase. He famously dropped off Fletcher's ticket last year and has spent the last 17 months mostly making speeches to groups and doing charity work after the governor yanked away his official duties.

"It has not been without its trying moments," Pence said, adding that he often wondered whether he should have resigned but, in the end, decided that sticking it out was the most responsible course. "Many times I wish things had gone a little better or at least a little differently. But things always seem to work out for a reason."

Continue Reading: Pence philosophical on providence

Pence to join firm of Dinsmore and Shohl

Outgoing Republican Lt. Gov. Steve Pence confirmed today that after leaving office Dec. 11, he will resume practicing law, this time at the firm of Dinsmore and Shohl.

Pence said he and his wife, attorney Ruth Ann Cox, both will join Dinsmore and Shohl, which has offices in Louisville and Lexington, as well as Ohio, West Virginia and Pennsylvania. He and Cox previously worked at the firm of Pedley, Zielke, Gordinier & Pence in Louisville.

Pence, who was U.S. Attorney for the Western District of Kentucky before running with Gov. Ernie Fletcher in 2003, said he will focus on corporate litigation and white collar criminal defense. He became estranged from the governor in 2005 after Fletcher pardoned aides for any improper actions related to the state hiring investigation. Last year, Pence announced he wouldn't run again with Fletcher, who lost re-election last week to Democrat Steve Beshear.

Beshear recently selected Pence to lead his Justice Cabinet transition team.

- Ryan Alessi