A nonprofit publication of the Kentucky Center for Public Service Journalism

Northern Kentucky lawmakers discuss issues facing the 2017 General Assembly at CBC luncheon.


By Mark Hansel
NKyTribune managing editor

Northern Kentucky stakeholders got a preview of issues that could be considered by the Kentucky General Assembly during the 2017 session, at the Covington Business Council 2016 Legislative Session luncheon.

McDaniel

McDaniel

State Sen. Chris McDaniel, R-Taylor Mill, and Rep. Arnold Simpson, D-Covington addressed the group in an informal discussion at the luncheon at the Madison Event Center Wednesday.

Topics raged from right-to-work and prevailing wage to charter schools and the challenges facing the pension system, but the discussion began with November’s historic election, which saw Republicans take control of the State House for the first time since 1921.

“Not only did it change the Republican body, but it changed to a super majority and what that means is we have enough votes to pass a constitutional amendment,” McDaniel said. “It also means that you have enough votes without any votes from the opposing party to open the Commonwealth’s budget.”

The General Assembly is only in session for 30 days in off years, but the shift in power means issues that are traditionally not addressed, will likely get attention in this session.

Normally budgetary issues can only be addressed in even-numbered years, but with a super-majority, Gov. Matt can address the budget in 2017, and McDaniel said he expects him to do just that.

“You’ll see that the governor obviously, I believe, will advance a very ambitious agenda that will be very business friendly agenda,” McDaniel said. “It is his belief, and I believe rightly, that the business community is what creates jobs. We have to have good solid jobs if we going to continue to attract and retain employers.”

Simpson, an African-American, drew the biggest laugh of the day when he said that he is accustomed to being a minority, “so that’s nothing new for me.”

Simpson

Simpson

Simpson said McDaniel hit the nail on the head with the assessment of the election and its impact on the upcoming session. He said Democratic leaders knew a change was possible, but no one saw the scale of the victory, which he expects to have an impact not just on budgetary issues, but all policies.

“Historically if the numbers were close, it would necessitate creating a partnership with the other party, which would be Democrats,” Simpson said. “It’s going to be an interesting experience for us. Notwithstanding that we take solace in the fact that we all work for the common good and that’s been true for all of us in Kentucky.”

McDaniel said there is a “better-than-even chance” for right-to-work legislation to gain approval, despite a lack of support in eastern and parts of western Kentucky.

“I certainly think it will be on the table for a solid, robust discussion and it probably stands a pretty good opportunity,” McDaniel said. “We’ve seen it pass the Senate many times. In the House you only need 51 to pass and you certainly can afford some peel-offs.”

Simpson said that Democrats have historically been more sympathetic to workers on labor issues and while Republicans have the votes strictly along party lines, the matter is not cut-and-dried.

“Something that is very interesting (is that) a lot of the new (Republicans) come from new districts which have been historically represented by Democrats,” Simpson said. “I think in many instances it could be a challenge for them to vote on an issue of this magnitude. It’s going to be interesting to see how the new dynamic occurs.”

McDaniel said there is broad support to repeal prevailing wage in Kentucky among chambers of commerce, school boards and many Fiscal Courts.

Those in attendance at the CBC luncheon heard Sen. Chris McDaniel and Rep. Arnold Simpson discuss a wide range of issues facing the General Assembly in 2017 (photos by Mark Hansel).

Those in attendance at the CBC luncheon heard Sen. Chris McDaniel and Rep. Arnold Simpson discuss a wide range of issues facing the General Assembly in 2017 (photos by Mark Hansel).

Prevailing wage is the hourly base wage and fringe rate paid to workers, laborers and mechanics of each classification when working on public works projects that are estimated to cost more than $250,000.

“What happens with prevailing wage is that ultimately you have inflated costs on the job, which we know, on the low end to be in the six-to-10 percent range,” McDaniel said. “It really is definitely an artificial increase in pricing. I think it’s something that with the economy being what it is and the state of government finance at every level being what it is, we simply can’t have.”

Simpson said he is not sure if repealing the prevailing wage will result in a vast reduction of costs.

“In politics you can secure reports on any given position,” Simpson said. “In this instance I think it’s prudent for Kentucky to ensure that workers receive a living wage. In some instances, as opposed to the profits going to the agency, it could go to the owner of the company.”

Attorney Rob Hudson of Frost Brown Todd moderated the discussion and covered a wide range of topics, including charter schools.

Simpson said 43 of 50 states have charter schools, but the devil is in the details and it should be about the kids.

“Our states are laboratories. We have certain states that in my opinion, have demonstrated proven legislation that is positive for kids,” Simpson said. “Although, I have never supported charted schools, I’ve never precluded the possibility of voting for them.”

He encouraged Republicans in Frankfort to look at what has occurred in other states before moving ahead.

McDaniel said that probably in about 105 of the state’s 120 counties, charter schools would not have an opportunity to work because they don’t have the population base to make them a viable system.

“What you do see, though, and to me one of the biggest benefits of charter schools is the ability to hold them accountable for the results,” McDaniel said. “A lot of people point to charter schools that have closed as failures. To me that’s an overall success of the system. That we have the ability to close failing schools.”

One subject both legislators agreed on was the need to address the pension system.

“The commonwealth pension system is the number one issue we face,” McDaniel said. “We have eight pension systems and the second-largest is the worst-funded one in the nation. There is a unique focus on this issue that you see with almost nothing else.”

Simpson said that in 2002, the pension system was overfunded and as recently as 12 years ago, it was 80 percent funded.

“One thing I would add is this, it’s remarkable, our pension liabilities and our challenges are so great, but we have no committee dedicated to that,” Simpson said. “We have a pension oversight board and only four or five legislators serve on that. We need to direct our attentions on it.”

The Covington Business Council luncheons provides opportunities for members to interact with each other as well as the City of Covington elected officials and staff. Luncheons generally include a presentation on a topic of local interest to the community at the Madison Event Center.

Contact Mark Hansel at mark.hansel@nkytrib.com


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One Comment

  1. Marv Dunn says:

    Stumbo was never my favorite Democrat but he and his small majority were the last hope against Governor “Mad Matt” Bevin and his destructive administration. Now that we are all Republican, I think you will find that every crazy idea that ever crossed a teapartier/alt-right voter’s mind will be found in a new bill submitted to the Legislature. Some will be passed, some will be signed. We have rejoined the Old South socially and Kansas fiscally. On the other hand, I’m encouraged that Hoover has some new leadership people that aren’t all eastern Kentuckians.

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