Lexington Herald Leader: Spending On All The Wrong Things.

Spending on all the wrong things

It's a little hard to know just where the outrage-o-meter should land in the latest story about the free-spending world of the Kentucky Association of Counties.

Should it point directly at executive director Bob Arnold who summarily dismissed long-term employees, ultimately racking up $1.8 million in settlements and fees for wrongful termination?

Or, should it reach into KACo's less-than-illustrious past to former executive director Michael Magee, whose behavior toward a staff member was so distracting that he missed critical meetings and ignored important KACo business, then retaliated against employees who voiced their concerns?

Or, should it land on the KACo board and executive committee that — on the occasions they seemed to even be aware of the activity — rewarded, or at least tolerated, it.

Truth to tell, there's plenty of blame to go around. That said, we vote for number three.

KACo board members, like too many others examined in Herald-Leader stories about wild spending and bad management at quasi-governmental organizations inexcusably failed to do their jobs.

This complex soap opera matters because it's being funded by taxpayer dollars paid to KACo in dues and fees for insurance. Every dollar wasted at KACo is one that could have been used by a cash-strapped county to provide services to the citizens who pay taxes there.

Time and again, the executive committee made up of county executives chose to spend its way out of jams. Consider:

■ When a staff attorney prepared a detailed report on Magee's distractions, his retribution and the liability the hostile work environment created for KACo, the board bought out the attorney's contract for $71,353. KACo later settled a lawsuit with him for $175,000 plus $125,000 in attorney's fees;

■ When he finally resigned — after the above-mentioned report as well as a four-page letter to the full board from a private attorney presenting the concerns of the employees he represented — Magee received $118,553 in severance pay;

■ Despite the upheaval under Magee, the board seemed to glide along in blissful ignorance while, during the first year under Arnold, nine of the 11 employees who had hired the private attorney were either fired or resigned.

When board members finally learned about the departures and the costly settlements, their only action was to require Arnold to run dismissals by the executive committee before they were carried out.

And many KACo board members continue to defend Arnold, saying he's returned the organization to profitability.

While that is apparently true, it's no reason to overlook serious, expensive problems that have arisen under Arnold's leadership. Running KACo effectively is Arnold's job and one for which he is paid very well. In 2008 Arnold's salary was $178,080 plus some generous perks.

At that level of compensation, the board has not just the right, but the obligation, to demand fiscal solvency and competent personnel management.