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Wednesday, November 21, 2007

WELCOME TO FRANKFORT STEVERINO!

That chuckling sound coming out of Frankfort this week wasn't Santa dropping off some early presents, it was a tradition almost as old. A departing administration hanging stockings with care for the new guys, filled with budget coal. That includes the big hole in Medicaid, which could run almost $400 million just this year.

(The old hands in the Nunn administration can tell you this is all very bi-partisan. The mess they inherited led to old Louis breaking his sales tax pledge and the Kentucky GOP left in tatters for years)

The Medicaid situation really typifies the promise and the problems of the Fletcher administration. Kentucky was the first state to take advantage of changes in federal law to turn our Medicaid program into managed care, or an HMO. We certainly needed to do something, our state has almost 18% of its population enrolled in this program compared to just 14% nationally.

A move to managed care can mean big cost savings provided, 1) you get some people who know what they are doing to run the program and 2) really draw a tough line on paying out benefits, as HMOs are supposed to do.

That last part I don't think the Fletcherites had the stomach to try, not after getting pole-axed on the relatively minor teacher benefits fiasco in 2004. Can Beshear be the one to turn it around, as Only Nixon Could Go to China, perhaps Beshear can keep the entitlements gang quiet while reforms (cuts) are made? I 'm not betting on it.

Other than dreams of casinos on every street corner and putting David Williams in the private sector full time, I don't think this new administration has engaged in any actual thinking about what it means to administer the modern state government. They will be swimming in the deep water soon enough though. Their buddies in the House have the unpleasant constitutional task of originating all revenue bills. That means the Democrats have to go first and stick their necks out if they even want to suggest a tax increase. With no guarantees in the Senate. Given the volatility of the tax issue in Kentucky (reference the worthy Mayor Abramson and his library tax) I doubt we're even going to see a tax laden budget bill come to the House floor.

Oh sure, for three or four months there can howls and protests that it's all Ernie Fletcher's fault and oh the unfairness of it all. But in the end, maybe after a symbolic budget showdown and government shutdown, it will be time to cut a deal. Meaning some faction of the Kentucky Democracy will be left out in the cold, screaming bloody murder.

But that comes next year. For now Beshearites, enjoy the festivities and the parties. Frankfort has some excellent caterers. And if you happen to run into Brad Cowgill and he mumbles something to you in French, it was probably- Apres moi, le deluge.

Frank Friday

1 Comments:

Blogger KYJurisDoctor said...

And to think Fletcher and his troops painted a rosey economic picture for us during the election.

It makes one wonder whether they were trying to fool the voters or they were operating out of ignorance.

Either way is BAD enough ...

... but I cannot help observing how amazing what those rose colored glasses will do for a person's view, particularly if that same person doesn't like the view WITHOUT them!

2:11 PM  

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