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ONE-ON-ONE - December 2003
by Ed G. Lane
'Waste, to Some Extent, Is Like Beauty; It's in the Mind of the Beholder'
Kentucky Speaker of the House Jody Richards discusses the issues facing state government – and what lies ahead
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House Speaker Jody Richards
House Speaker Jody Richards has held the 20th District seat in the Kentucky House of Representatives since 1976 and was named as Speaker of the House in 1995.
During his time as a state representative, Richards – a former teacher –has chaired the House’s education committee and played an instrumental part in engineering Kentucky’s sweeping education reforms. He was elected chairman of the Southern Legislative Conference in 1999-2000 and currently serves on the executive committee of that body as well as that of the National Conference of State Legislatures. He also serves on the Southern Regional Education Board.
Richards is owner of Superior Books, Inc., a wholesale book sales and distribution company. He and his wife, Neva, are residents of Bowling Green. |
Ed Lane: Governor Ernie Fletcher is a former state legislator and served with you in the Kentucky House of Representatives. Based on prior experience, how will you work with the new governor when it’s time to pass new legislation, tax reforms and the budget?
Jody Richards: Governor Fletcher did serve in our chamber. He did fine. He was a freshman, a new member and only served one term, as I remember. But he worked well with people, and I think the House of Representatives will work very well with him. My style is to work with people to make sure that Kentucky moves forward. I believe in cooperation, consensus building, and working together. I certainly plan to cooperate with the new governor.
EL: Democrats have controlled state government and hiring for decades. How responsive will the bureaucracy in state government be to directives from the governor and his new cabinet secretaries?
JR: State government will be responsive because the new governor, among other things, will have his appointees as cabinet secretaries, division directors and in other top management positions. I think you’ll see cooperation from the state employees.
EL: How long will it take Governor Fletcher’s administration to recruit new managers, reorganize and streamline government, and effect new programs and policies?
JR: Governor Fletcher told me that he hoped to have his cabinet in place by inauguration day. Lower level positions that he was not able to fill by that time, he would try to fill by the first of the year. It will take those folks a little while to govern along the lines that Governor Fletcher wants and to fulfill his wishes and vision for state government. Certainly, there is such a crunch from the time the governor is elected to the time the legislature meets. The governor’s main emphasis is going to have to be on presenting a balanced budget to the House by the 27th of January.
EL: I know you worked a lot on the current budget – which was tight to say the least. With growth in tax revenues and some cuts in spending, will the General Assembly be able to bring in a balanced budget for next year?
JR: It’s really going to be tough. Both candidates for governor ran on the idea that they would cut waste, fraud and abuse. And I can tell you that there’s not much of that. Waste, to some extent, is like beauty; it’s in the mind of the beholder. For some people, a program may be wasteful, for others it might be life sustaining. I don’t know if the governor can balance the budget and do what needs to be done without some sort of increased revenues. Raising taxes is going to be very difficult, because neither chamber, based on what was said during the election, is willing to raise taxes.
EL: Governor Paul Patton made a “lame duck” proposal to raise sales tax from six percent to seven percent, to increase sales tax on a pack of cigarettes from three cents to fifty-five cents, and to increase income taxes for persons making more than $80,400. These increases are projected to create $700 million in new revenue and are offset by about $100 million in tax cuts. What is the chance that these proposals would be adopted by the General Assembly?
JR: None. The next move is that of Governor Fletcher. Constitutionally and statutorily, he has to present a balanced budget to the House by the 15th legislative day. Once he presents the budget, it’s the turn of the House. We will then look at it, make changes, pass it to the Senate, and then of course, the House and Senate will have a conference committee and reconcile the differences. There’s so much experience in both the House and the Senate, when it comes to the budgetary process, that we will do as good a job as can be done with the money available. I maintain that the state is now operating a terrific budget – given the constraints. Remember that a significant number of the House members have signed a “no tax” pledge. I have not.
EL: Do you believe Kentuckians want to see constructive efforts by the governor and General Assembly that increase productivity and reduce waste in government before they will be receptive to tax increases?
JR: The predicate has been set for that. We have to pare the government to where the people have full confidence that we’re spending each dollar as wisely as possible. There really isn’t very much valid waste in government. Now somebody might want to change the way the money is spent, might want to change the priorities, but as far as waste, it’s going to be very difficult to find.
EL: Any legislation has to be passed by the House and Senate. How would you characterize your working relationship with Senate President David Williams?
JR: My relationships with David Williams and with the senators as a whole are good. The House certainly wants to work with them and the relationship is there for cooperation.
EL: In what areas do you often agree and disagree with Senator Williams?
JR: We very much agree that education is the most important function of state government. Education gets about 60 percent of the state’s generated tax dollars. How we get there is a little bit different, but generally, we agree on education.
I don’t know of anything that’s on the table right now that we have vast disagreements on.
EL: How about the expansion of gambling in Kentucky?
JR: Both the House and the Senate are generally on record as being opposed to expanding gaming in Kentucky. Governor Fletcher has said he would not initiate efforts to expand gambling and I don’t believe such legislation will be initiated by the General Assembly.
EL: What about the issue, at Governor Paul Patton’s request, of adding Keno as a new lottery game?
JR: I expect new legislation will be passed in this next session that will override the approval of Keno by the Kentucky Lottery Corporation’s Board.
EL: The state’s revenue receipts for the general fund increased from $4.64 billion in 1994 to $6.78 billion in fiscal 2003. This is a 4.6 percent average annual increase over 10 years. Average increases during the last five years have averaged 2.6 percent, which reflects an actual decline in revenues in 2002. Will historical growth in tax revenues and improved efficiency in government make it possible to balance the budget without major tax increases?
JR: The state needs to do some things to stimulate growth. Natural growth will not get the state to the point that it has adequate revenues to fulfill its obligation for a top-ranked education system and to treat our seniors and other vulnerable Kentuckians in the way that it should. I suggested a $1,000 tax deduction for any new or existing company that created a job that paid $1,000 more than the average job in that county. What Kentucky needs now is high-paying jobs. Governor Fletcher picked up on that in the general election and is promoting a similar program. The Kentucky Chamber of Commerce and other business groups have also endorsed that plan. Continued emphasis on education means that people who are coming out of college are going to hopefully get higher-paying jobs. The future can be bright, but the economy will require some stimulus.
EL: Manufacturing jobs are being outsourced. In the global economy, Kentucky jobs are going to foreign countries. Does Kentucky need to focus more on new technology, research and innovation instead of manufacturing?
JR: More than half the jobs created in the 21st century will be of a high-tech and new economy nature. They pay much higher wages.
EL: Do you envision a situation where the Office for the New Economy would expand its economic development efforts?
JR: I do. The Office for the New Economy has done a good job. Kentucky has had some natural disadvantages because it got a later start. But I do think that it must expand the new economy. To retrench or retreat right now would really be folly.
EL: A number of newspapers have been trying to designate Attorney General Greg Stumbo or Auditor Crit Luallen as the titular heads of the Kentucky Democratic Party. In reality, isn’t Speaker of the House the Democratic Party’s most influential leadership position?
JR: I do intend to be very active in any restructuring or rebuilding of the Democratic Party. I will say, the attorney general, the auditor and the treasurer have been very cooperative in seeking out my opinions and ideas on rebuilding the party. All of us have been working together – along with Senate Minority Leader Ed Worley. Once a new party chair and an executive director are named, we will revitalize the Democratic Party. I’m very optimistic about the future of the Democratic Party in Kentucky. Democrats care about people who need help, the most vulnerable in society. We also want to invest in our children, protect our seniors and put Kentucky families first. That’s my idea of how Democrats rebuild the party.
EL: Governor Patton reappointed board members and the executive director of the Kentucky Racing Commission on November 15th. Are you in agreement on these reappointments?
JR: He should have waited and allowed the new governor to make those appointments.
EL: The National Democratic Party seems to be getting more liberal; how will this move to the left affect conservative members of the Kentucky Democratic Party?
JR: Kentucky Democrats are different in many ways from many of our national counterparts. The Kentucky Democratic Party has its own creed, its own set of principles and we are much more conservative than the national party. We can work within that framework, and we have for years.
EL: Do you believe the Kentucky Democratic Party’s recent defeat is related to fundamental change in the philosophy of the National Democratic Party: the ethics, patronage, and mismanagement allegations relating to Governor Patton; the strong Republican candidate for governor or some other issue?
JR: I think that it was a feeling that there needed to be a change in the administration in Frankfort. If you look at the exit polls, that’s what most voters said. They simply wanted a change in the executive branch of state government. It is interesting that of the four gubernatorial elections this year; each one of them changed parties. There is a discontent that extends to governor’s mansions around the country.
EL: U.S. Senator Zell Miller (D – GA) says that the Democratic Party is not a national party anymore since it has essentially written off the South. Do you agree that the shift in political philosophy has had a significant impact on the Democratic Party in Kentucky?
JR: Southerners are generally more conservative than the rest of the country. Most legislatures are either Democratic or very competitive, and most local office holders are still Democrats, as they are in Kentucky. Some of the Democrats’ liberal views on social issues have caused the South to vote Republican in the last several elections. There is a redefining of the Democratic Party taking place. Remember that after Watergate, only 24 percent of the people were willing to say that they were Republicans.
EL: There have been suggestions that a number of Kentucky’s conservative Democrats may switch to the Republican Party. Are you concerned about this possibility?
JR: Not at all. I have talked with all 63 Democrat members of the House. I’m told by all that they are very comfortable where they are. There’s as big a likelihood that one or two Republicans might change to Democrats.
EL: Members of the Kentucky House will be up for reelection in November of 2004. Are you concerned about reducing the Democrat’s majority or losing control of the House of Representatives?
JR: We’ve recruited dynamic, really exciting candidates. We’re raising funds so that we’re able to support our candidates well. We will take advantage of the most modern campaign techniques. I feel very, very good about the prospects of the Democratic Party in the House in ’04.
EL: State Representative Susan Westrom and State Senator Daniel Mongiardo, the chair and vice-chair of the Kentucky Democratic Party, both resigned. Who are candidates to be their replacements?
JR: We are talking with various leaders around the state and the Democratic State Central Executive Committee. If I have my way, we’ll establish a strong executive director, then a chair and co-chair that are excellent spokespersons for the party.
EL: Did you think that Westrom and Mongiardo did a good job?
JR: They acquitted themselves well. They were appointed to serve during the time of the gubernatorial bid of Attorney General Ben Chandler. I thought they performed their duties as well as they could. But, both of them are considering seeking federal offices. It was time for them to pursue those.
EL: Governor Fletcher’s U.S. House seat will be vacated due to his election. Who are the best qualified Democrats to run for this position?
JR: There are some very strong candidates. If we choose one of those strong candidates and unite behind him – because I think most of the strong candidates are male on the Democratic side – the chances of a Democrat winning that congressional seat are very good.
EL: If Ben Chandler asked you whether he should run for that slot or not, what would be your recommendation?
JR: I’m very fond of the Attorney General. I got to know him better, really, during the fall race than any other time. I would say, “let this one go by and consolidate your life.” He’s got a wonderful family, and I know for a fact that he’s had to spend a lot of time away from home, and that is difficult when you have a good wife and three wonderful children, as he does.
EL: Are there any other major issues relating to the Patton administration that may become public after he leaves office?
JR: I don’t know of any, and I hope not. People in public life have to hold themselves to even a higher standard than private citizens. Sometimes they don’t and it’s always embarrassing. I believe that, as my mom used to say, “one should avoid even the appearance of evil or of wrong-doing.” I think that people who serve in public life have to hold themselves to a higher standard and always question whether every action is proper. That’s what I’ve tried to do during my 28 years in the legislature.
EL: How is the state’s educational system faring?
JR: Let me just say that I’m so proud of where Kentucky has come in terms of education in the last 13 years. For the first time in our lifetimes, the first time in history actually, Kentucky students are performing above the national average in math, science, reading and writing. That portends a great future for Kentucky. We must establish a culture in this state that values education and innovation. I believe that the General Assembly is absolutely committed to having the very best education system that we can afford and provide.
EL: Is an educated workforce the infrastructure for innovation, research and technology economy?
JR: Absolutely. Look at where Kentucky has come in the last decade. It’s the fourth largest producer of automotive vehicles. Poverty in Kentucky has decreased faster than all states but three. Kentucky has the third fastest growing per capita income and we’ve created net more new jobs than any other state in the union in the last five years. Kentucky is one of the medical centers of the world with heart experimentation and the hand transplant in Louisville. We have come a long way in the last ten years. Our challenge now is to build on those successes.
Ed G. Lane is chief executive of Lane Consultants Inc. and publisher
of The Lane Report.
edlane@lanereport.com
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