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ONE-ON-ONE - October
2003
by Ed G. Lane
'Kentuckians Have Been Embarrassed
by Scandals, Waste and Fraud in Frankfort'
Kentucky's Republican candidate for governor maps out his plan for leading
the state
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Ernie Fletcher
Ernie Fletcher is currently serving his third term in the U.S.
House of Representatives, where he is a member of the House
Committee on Energy and Commerce and chairman of the Policy
Subcommittee on Health.
His legislative service
began in 1995, when he was elected as state representative for
the 78th District. In that role, he served on the state’s
Commission on Poverty, the Task Force for Higher Education and
was selected by the governor to help reform Kentucky’s
healthcare system.
Prior to his involvement
in government, Fletcher served in the U.S. Air Force and was
a family practice physician for 12 years.
Fletcher holds an engineering
degree from the University of Kentucky and graduated from UK’s
College of Medicine in 1984. He and his wife, Glenna, reside
in Lexington.
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Ed Lane: The Fletcher-Pence campaign’s theme is “restoring
hope” for Kentucky. What are the key points of this plan?
Ernie Fletcher: The first priority
is to clean up the mess in Frankfort. That message is resonating all
across the state. Kentuckians have been embarrassed by the waste,
fraud, abuse, inefficiencies, and scandals in Kentucky’s state
government.
Second, creating more jobs and opportunities
is part of our “restoring hope” theme. With tax modernization
– without raising taxes, improved education and affordable healthcare,
we can attract businesses and create a lot more opportunity for Kentuckians.
EL: What are you specifically proposing?
EF: Kentucky’s state government
really hasn’t had any systematic change in several decades. We
want to review every cabinet and program and to be able to justify
each expenditure made – just like an individual would do in business.
If times get tight in a business, you’ve got to review your expenditures,
find the waste and make corrections. Kentucky has about 38,000 state
employees – about 6,000 more than authorized – plus burgeoning
numbers of personal service contracts, principal assistants, memorandums
of agreement, and political appointees. All of these expenditures
need to be reviewed to eliminate waste, fraud, or abuse.
EL: So evaluation of Kentucky’s
government is your No. 1 priority?
EF: It has to be. Kentucky is going
to have a several hundred million-dollar deficit if we don’t
make the necessary cuts. I am adamantly opposed to raising taxes.
That’s because people vote with their feet. If you raise taxes,
businesses will leave the state. It’s imperative that we cut
waste. Kentucky taxes more now than any surrounding state except West
Virginia.
EL: The Democratic Party has controlled
state government for over 100 years. Kentucky’s taxpayers seem
to perceive that Democrats have used patronage, no-bid contracts, political
appointments, double dipping, personal service contracts, state employment,
and legislation to benefit political allies and friends of the Democratic
Party. How important is this issue in this year’s campaign?
EF: When I talk about cleaning up
the mess in Frankfort, I’m talking about changing the culture
that’s developed over the years – “paybacks for political
insiders.” The Fletcher administration will eliminate the worn-out
politics of a bygone era. Other states have moved into the 21st century,
but Kentucky is still in an old patronage system – paybacks that
benefit a few instead of the entire state. That’s why Kentucky
still remains the eighth poorest state in the nation.
EL: As Kentucky’s attorney general,
Ben Chandler indicted Governor Patton’s top aides and labor leaders
for alleged violations in the 1995 governor’s election. The governor
ended up pardoning these individuals this year, prior to their case
going to trial. Even if they had been tried in court, the legal issue
would not have been resolved until after Governor Patton had been reelected
for a second term and served eight years in office. Is public financing
of the governor’s race good legislation that should remain on the
books?
EF: There are two points I want to
make on that question. The first is that Ben Chandler spent seven
and a half years on this case and still didn’t get a prosecution.
It didn’t take that long to convict Al Capone. And Kentucky has
had the most waste, fraud, abuse, and scandal that most of us can
remember while Ben Chandler was the chief law enforcement officer
of the state.
Second, Ben Chandler and I differ
substantially on this point. He supports taxpayer-funded campaigns.
Now to me, it is an utter waste of taxpayer dollars to pay for Ben
Chandler’s balloons, bumper stickers, and attack ads. When Kentucky
has a budget crisis, it is ridiculous for taxpayers to pay for political
campaigns.
EL: Because his top aides were involved
in alleged campaign irregularities, does that imply that Governor Patton
may also have been involved?
EF: You’d have to lay that responsibility
again at Attorney General Chandler’s feet. I don’t know
what responsibility the governor had or any election violations that
may have taken place. But clearly there’s been adequate time
for investigation. It’s nearly eight years now and nothing has
been resolved. Kentuckians are still left with the question as to
what happened in the 1995 election. It begs the question, what has
Ben Chandler – the chief law enforcement officer – been
doing?
EL: What specific duties will your
running mate, former U.S. attorney Steve Pence, have as lieutenant governor?
EF: Steve Pence is not just a ribbon
cutting kind of guy. He’s going to do a day’s work for a
day’s pay. He’ll show up for work everyday. He’s very
interested in heading up our program to control the drug problem in
Kentucky. He’s been extremely effective as a prosecutor. Most
people remember the BOPTROT trials – he prosecuted 20 cases in
just two years. We complement each other very well.
EL: Some of the newspapers have alleged
that you are a puppet of Senator Mitch McConnell (R-KY).
EF: That probably makes for good journalism.
Senator McConnell is a good friend and colleague. Senator McConnell
was not there when I was flying F-4s intercepting Soviet aircraft,
or practicing medicine, or serving in the state legislature, or sitting
next to President Bush and heading up major healthcare legislation
for the country. As the whip of the U.S. Senate, Senator McConnell
is in a position to help Kentucky a great deal. I think people want
Kentucky’s next governor to have a close relationship with some
of the most powerful people in the United States. Kentucky does not
take full advantage of grants from the federal government. Look at
federal research laboratories; Kentucky is only one of two states
that don’t have one.
EL: How do you feel your experience
as a state legislator and U.S. congressman will aid you as governor?
EF: It’s very important to have
legislative experience, given the difficulties the governor and General
Assembly have had working together. I work very well with Senator
David Williams (R), the president of the Senate, and Representative
Jody Richards (D), speaker of the House. I’ve done so in the
past. Compare that to my opponent, who states openly that “he’s
good at making enemies.” That’s not what you need to build
a coalition and get legislation passed.
EL: In addition to political experience,
you served as a fighter pilot in the U.S. Air Force, and are a medical
doctor and lay minister. How have you managed to achieve so much in
your career?
EF: Glenna, my wife, and I have had
a lot of opportunities; a lot of doors that have opened. We got married
in college, we have two children and four grandchildren now. We spent
almost six years in the Air Force. We traveled substantially when
I was in the service. Then medical school. My life has been one that’s
focused on “let’s serve people.” We were raised that
way. I really never planned on running for governor, but a number
of people, Republicans and Democrats, said, “Ernie you’ve
got a good reputation. You have done a good job. You’ve been
able to get both Republican and Democratic support, and this state
is in need of new leadership.” So they’ve recruited me to
run. I get more and more passionate about this opportunity because
Kentucky has tremendous potential and I think we can help Kentucky
realize its potential.
EL: Who influenced your decision to
run for governor?
EF: The first probably is my wife,
Glenna, because we make all these decisions as a partnership. We spent
two or three days at the beach and talked about what we are going
to be able to accomplish and is this something we need to do? We gave
it a lot of thought and prayer. The Republican Party, my colleagues
in the House, and people in the 6th District have all been very supportive.
EL: The Republican’s state organization
is headed by Ellen Williams. How do you rate her performance?
EF: Ellen is doing a great job. She’s
very well spoken. She’s obviously put our party in much better
financial condition than the Democratic Party. I think she’s
providing real leadership. After I was nominated by the Republican
Party, I talked to her and expressed my gratitude for her leadership
and work. I wanted to make sure that she remained throughout this
election because she’s an outstanding chair for our party.
EL: Your campaign’s state chairpersons
are U.S. Representatives Ann Northup (R – 3rd district) and Hal
Rogers (R – 5th district). How involved are they in your day-to-day
campaign?
EF: They’ve both helped in fundraising,
building grass roots organizations, and strategy. I was just down
in Laurel County. Congressman Rogers was there. We actually had a
record event that raised more campaign contributions than anyone has
ever raised in that county. That reflects the enthusiasm our campaign
chairs have for this election.
EL: Your campaign has recruited top
business and political leaders in Louisville – Ed Glasscock, Frost
Brown Todd; James Gaunt, Fifth Third Bank; and Owsley Brown Frazier,
Brown-Forman – and in Frankfort, Judge/Executive Teresa Barton
(D) and Bill Kirkland of McBrayer, McGinnis, Leslie and Kirkland. How
well are these campaign leaders performing?
EF: They’re doing an outstanding
job. With the Louisville business leaders, we participated in an issue
forum which involved not only economic development, but also education
and healthcare. The event brought together several hundred of the
top business leaders in Louisville and provided me with a chance to
interact with them.
Teresa Barton and Bill Kirkland have
planned wonderful events in Franklin County. We’re working with
state employees; even they realize that the culture in Frankfort must
change.
EL: For the first time, the Kentucky
Senate has a Republican majority. What are the benefits of having a
viable two-party system in state government?
EF: Tennessee gives an indication
of what a two-party system can do. The average family of four in Tennessee
makes $3,000 more than a Kentucky family. Tennessee taxes less than
Kentucky does. Tennessee has created jobs during the first part of
this year, about eight to 10 thousand, while Kentucky has lost jobs.
But the difference is simply that Tennessee has a two-party system,
which helps improve government. It holds elected officials more accountable.
Kentuckians want a government they can look at, be proud of, and trust.
A two-party system does a much better job of giving that to the people.
EL: Major legislation or a constitutional
amendment to expand gaming at Kentucky’s seven racetracks may be
proposed. What is your position on this issue?
 EF:
Let me make a contrast here. Ben Chandler said he will take a leadership
role and push for slots at racetracks. When he was in Owensboro, he
opened up the door to casinos. He’s begun to affiliate himself
with the Las Vegas crowd. At this time, I’m not supporting expanded
gambling, but I am willing to let the people vote on this issue.
I am extremely supportive of the horse
industry. There’s no one in the U.S. Congress that’s taken
more of a leadership role in making sure our Thoroughbred industry
is healthy than I have. I worked on equine tax incentives and Internet
gambling bills. I will be looking at every way to strengthen the horse
industry because it adds $3.4 billion to Kentucky’s economy.
EL: What is your position regarding
tax increases?
EF: Kentucky doesn’t tax too
little; we spend too much. If you look at surrounding states, they
deliver more for the tax dollar than Kentucky does. Kentucky has a
burgeoning bureaucracy in Frankfort with waste, fraud, and abuse that
needs to stop. I’m going to cut the wasteful spending. I want
tax modernization that’s revenue neutral; I’m not going
to increase the taxes on Kentuckians. We can make Kentucky more business
friendly. The last thing we need to do at a time of budget crisis
is to increase taxes.
EL: Over the last 10 years the general
revenue fund for the state increased 46 percent, yet the state is currently
operating with a budget deficit.
EF: Kentucky has increased annual
expenditures at twice the rate of inflation, about 6.1 percent. If
Kentucky had held spending at the rate of inflation plus an adjustment
for population growth, we would have in this last fiscal year a surplus
of over one billion dollars. Kentucky’s problem, as noted by
USA Today, is that our state government has done a very poor job in
managing its budget.
EL: Kentucky uses fund versus activity-based
cost accounting. For this reason, government financial reports cannot
effectively measure the costs of providing services, productivity gains,
or the financial feasibility of outsourcing services (personal service
contracts). Would you support modernizing the state’s accounting
in order to provide more transparency of the state’s finances to
the executive branch of government, legislators and taxpayers?
EF: Absolutely. It’s crucial
to improve accounting and needs to happen. One of the bills I introduced
in the General Assembly in 1996 was a total review of the budgetary
process.
In order to be accountable to the
taxpayers, state government has to have a budgetary process and accounting
system that is transparent, open, and very easy to evaluate. I’ll
do everything I can to develop a more transparent budget process for
state government.
By the way, the bill I introduced
– under the Democratic leadership – didn’t go anyplace.
I don’t think the “good-old-boy” political system in
Frankfort wants transparency, because it’s going to uncover a
lot of inefficiencies and waste that has existed for years.
EL: One of the key issues facing Kentucky
is a demographic shift in population. The metro areas – Louisville,
Lexington, Bowling Green and Northern Kentucky – are showing steady
population growth and the rural areas have declining or static population
trends. Will there be more emphasis in the General Assembly to support
urban legislative initiatives?
EF: One thing we haven’t had
is the leadership to unite Kentucky. The reason that Kentucky has
this division is that the state has not had a strategic plan to show
if we invest a dollar in Louisville, or Lexington, or Owensboro, or
Pikeville, that here’s the return we get. As we improve the entire
quality of life in Kentucky by making strategic investments, people
won’t see an investment in Western Kentucky as hurting Eastern
Kentucky, but rather they can see it as helping the entire state.
Kentucky also has an abundance of
natural resources. Illinois, for example, provides incentives for
clean coal technology and they’ve done a much better job of developing
their coal industry than we have. That’s why I’m running
for governor, because Kentucky hasn’t had forward-looking, progressive
leadership.
EL: The rising costs of medical malpractice
insurance is causing hardships for physicians, hospitals and patients.
What are you recommending to solve this problem for Kentucky’s
healthcare system?
EF: There’s only one thing that’s
going to bring medical malpractice premiums under control and that’s
real comprehensive reform. That’s where I differ substantially
from my opponent. Ben Chandler is very tied to the personal injury
lawyers so he can’t take us there. He is not supporting a constitutional
amendment and that’s necessary. Eight hundred physicians have
left Kentucky over the last three years. Hospitals have closed their
labor and delivery wards; emergency rooms have had problems with staffing
and are going to have to close. We are in a crisis in healthcare and
it’s going to require real leadership. I will bring that to Kentucky.
EL: How serious are problems in Kentucky’s
transportation department?
EF: There’s no question, they’re
serious. Kentucky has been embarrassed by the scandals in the Department
of Transportation. Taxpayer dollars have been wasted. I’m committed
to bringing new leadership and cleaning up the department. Kentucky
deserves better. Most of the 6,000 state workers within the department
want and deserve better.
EL: What do you think about increasing
the gasoline tax so the state can build more roads?
EF: I am opposed to raising the gasoline
tax. I will do everything I can to make sure we have the money for
infrastructure. We’ll modernize the tax system, but I oppose
raising the gas tax.
EL: You mentioned that there are 6,000
employees in the Department of Transportation. Do you feel there are
just a few bad employees or do you think it’s a rampant problem?
EF: You’ve got to bring to Frankfort
the spirit of “there’s a new sheriff in town.” You
can change all the laws that you want, but if you don’t bring
the right people, the right values, and the right skills, and the
ability to manage, then you will not make any real change in Frankfort.
That’s why people are looking for real change rather than the
game of musical chairs which has existed over the last several decades.
EL: The Department of Agriculture
and the Governor’s Agricultural Policy Board have been working
to diversify and “add value” to Kentucky’s agricultural
products. What will be the approach of your administration?
EF: You mentioned the increase in
population in the urban areas and the diminishing population in the
rural areas. Part of that is because the farm economy has taken quite
a beating from the drop in tobacco quotas. Agricultural diversification
is essential in order to keep Kentucky’s family farms healthy.
Some things need to happen: One, farmers need to get a tobacco buy-out
on the federal level, and as a U.S. Congressman, I have been working
very hard on that. If the buy-out is not completed by the end of this
year, as governor I will work with the federal delegation to provide
all the support I can to get that legislation passed. That will literally
bring billions of dollars back to Kentucky and help our farmers diversify.
Fifty percent of the Phase II tobacco settlement money now goes back
into the agriculture industry and I promise to keep that money going
to our farmers.
We need to promote “Kentucky
Fresh” produce and to construct farmer’s markets and packaging
plants. We can brand Kentucky beef and create other value-added endeavors
such as the ethanol plant in Hopkinsville.
EL: The Office of the New Economy
has supported a number of initiatives to stimulate innovation and research
in Kentucky. Do you favor continuation of this effort?
EF: Bill Brundage has done a good
job. I’ve read his report; he talks about a window of opportunity
that Kentucky has and that if we don’t take advantage of the
window of opportunity it will leave. The initiative I rolled out for
a federal research lab will help Kentucky take advantage of that window
of opportunity.
EL: In what city do you think the
federal lab will be located?
EF: That needs to be decided by bringing
the University of Kentucky and the University of Louisville together
and allowing them to decide where best that location would be in order
to create the most jobs, the most opportunity, the largest number
of satellite companies. Federal research labs provide the basic research
that government needs to fund; companies provide the marketable research.
I’m encouraged that Dr. Lee Todd and Dr. James Ramsey are working
closely together.
EL: What other areas of state government
are a major concern from your perspective?
EF: Kentucky has got to look at healthcare
regulation to reduce the cost of health insurance premiums. I’ve
had several small business owners tell me they pay at least 50 to
70 percent more in Kentucky to insure their employees than they did
in other states, particularly North Carolina and Georgia. Kentucky
can lower health insurance premiums by increasing competition, making
more products available, returning healthcare to a more consumer driven
system, and providing association health plans so people can come
together and self-insure.
The cost of health insurance for our
state workers and teachers also needs to be reduced. A teacher reported
to me that she spent one-third of her income on her health insurance
premium to cover her family.
Additionally, Medicaid needs to be
reformed. Several hundred million dollars can be saved and we can
provide better healthcare.
The other issue is education. If Kentucky
is going to grow jobs in the new economy, we’ve got to have an
educated workforce.
EL: Ben Chandler’s campaign had
a big fundraiser in California with movie and sports celebrities. Why
have the Democrats gone to California to raise money?
EF: I don’t know why Ben Chandler
is aligning himself with the far left – Hollywood elite. There
also were representatives at the event from the casino industry in
Las Vegas. Chandler seems to be having trouble raising support from
Kentuckians. This is highly unusual for a Democratic candidate for
governor.
EL: Ben Chandler and Charlie Owen’s
campaign has set a conservative theme. How conservative are the Democrat
candidates?
EF: Ben Chandler has alluded to the
fact that he’s not going to be able to balance the budget without
raising taxes. But more pointedly, Chandler has attacked President
Bush, me, and the federal delegation that supported tax relief for
about 1.2 million Kentuckians. This clearly demarcates the philosophical
differences that we have. Chandler aligns himself with Al Gore, Ted
Kennedy; I align myself with President Bush and Kentucky’s congressional
delegation. Chandler had Terry McAuliffe, head of the Democratic Party,
visit Kentucky. Chandler said he wasn’t going to use the national
figures, but in fact he’s resorted to that. Chandler has aligned
himself, along with Charlie Owen, with the liberal side of the Democratic
Party. Remember, Charlie Owen was Al Gore’s campaign chair for
Kentucky.
EL: What is the top reason Kentucky
voters should cast their vote for you on Election Day?
EF: Kentuckians have been embarrassed
by scandals, waste and fraud in Frankfort. Steve Pence and I want
to restore hope and opportunity. We are the only candidates who can
bring real change to Frankfort. People realize this and that’s
why we’re getting bipartisan support and feel tremendous momentum
in this election.
Ed G. Lane is chief executive of Lane Consultants Inc. and publisher
of The Lane Report.
edlane@lanereport.com
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