We keep talking about how we need common sense answers to political problems. Here is one.
Kentucky Auditor candidate John Kemper proposed a solution today to the state’s immediate need to make a $28 million interest payment to the federal government and avoid the loss of $640 million in tax credits by Kentucky businesses related to unemployment insurance loans.
“Governor Beshear should go ahead and pay the money out of the rainy day fund on September 30 when it is due,” Kemper said. “Frankfort is gridlocked trying to score political points over this, while Kentucky taxpayers twist in the wind. We can’t afford to play these games. An independent auditor would tell them to get on past this as efficiently as possible, so that’s what I’m doing.”
John is right. You will hear more about this over the next few weeks as the players in Frankfort jockey for position, calling for a special session or trying to figure out a way to delay this interest payment. Other states have already taken the tax hit for putting off the inevitable payment. And the last thing we need is another expensive special legislative session to fix a problem that can be solved with the stroke of a pen. Technically, someone could file suit against Gov. Beshear for paying this money out of the state rainy day fund, but the alternatives are all worse. I say let them threaten to sue. Even with a lawsuit, this is the cheapest option and we have other fish to fry.