Trial Has Been Exhausting For Convicted Barren County Sheriff, Chris Eaton, Who Faces Removal From Office Plus Imprisonment And Fines.

Whole Case has been Exhausting for Sheriff Eaton

It hasn't been long since a federal jury handed out verdicts for Barren County Sheriff Chris Eaton, Deputy Aaron Bennett and Barren Edmonson County Drug Task Force Detective Eric Guffey.
While Sheriff Eaton didn't return our phone calls his attorney Guthrie True says this case has taken a big toll on Eaton.
"I think in large part he was somewhat overwhelmed by both exhaustion and just kind of a sense of shock initially. He's had a little time to decompress since then and is absorbing it. We've talked some about what I think some of the problems are with the verdict on those two counts and what we may be doing, but he's kind of in the process of trying to recover from the physical exhaustion and to just try to help his family through this right now," said True.

For Sheriff Eaton, it was good and bad news.
He was found not guilty for the alleged beating of Billy Randall Stinnett of Glasgow and the alleged cover-up, but was found guilty on two counts of witness tampering.
Eaton's attorney Guthrie True said it doesn't make sense.
"It does appear on its face to be inconsistent. I think there may be some other legal issues frankly with regard to the guilty verdict on those two counts," said True.
True said they plan to make some motions and will continue the fight.

The other two defendants in this case, Bennett and Guffey were found not guilty on all charges.
Guffey's attorney called him a hero.
"Eric got out of that truck and he ran after a meth head who was violent. He's a hero and it's a shame he had to go through this. Thank god the jury saw that he was a good person, did the right thing," said Guffey's attorney Brian Butler.

Bennett's attorney Buddy Alexander is very glad the jury found his client not guilty, but said this whole case was a witch hunt.
"This wasn't about justice. This was about notching your gun when you get a win. That's ridiculous. It's a rough guess, but the federal government has probably spent three million dollars to prosecute this case and you know for what?" said Alexander.
Eaton's sentencing will be August 1st.

The federal sentencing guidelines estimate Eaton would serve between 15 and 21 months.
State law says Eaton would not be immediately required to step down, but could be removed from office by the Commonwealth Attorney once all appeal rights have been exhausted or abandoned and the conviction becomes final.

(hat tip: WBKO).

Barren County Judge Executive, Davie Greer, To Appoint New Sheriff Following Felony Convictions Of Sheriff Chris Eaton.

The Barren County Judge Executive, Davie Greer, is expected to appoint a new Sheriff for the county following the felony convictions yesterday of the county sheriff, Chris Eaton.

More news to follow later.

I AM SO INTERESTED IN CHUCK HAGEL'S CONFIRMATION AS SECRETARY OF DEFENSE I AM GIVING YOU A LIVE FEED OF THE SENATE HEARINGS. ENJOY AND SHOW YOUR SUPPORT FOR HIM.

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Governor Steve Beshear Makes A Very BOLD Move, Rejects Louisville Hospitals Merger As Not Being In The Public Interest.

Listen to the Governor below:



You may also be interested in reading Jack Conway's report on the merger, and you can read more of the news account below:

University Hospital merger with Jewish, Catholic Health Initiatives rejected by Governor Steve Beshear
Written by Laura Ungar

Gov. Steve Beshear on Friday rejected a controversial merger that would have united three Kentucky hospital companies to create the state’s largest health care system.

“… After exhaustive discussions and research, I have determined that this proposed transaction is not in the best interest of the Commonwealth and therefore should not move forward,” he said in a statement. “In my opinion, the risks to the public outweigh the potential benefits.”

The merger — which cannot proceed without the governor’s blessing — was assailed by critics because a Catholic health system would have had majority ownership of Louisville’s public hospital, and many residents and community leaders expressed concern that reproductive and end-of-life care could be curtailed.

University Hospital, Louisville’s main safety-net hospital for the poor, had hoped to merge with Jewish Hospital & St. Mary’s HealthCare and Saint Joseph Health System in Lexington, owned by Denver-based Catholic Health Initiatives.

CHI follows Catholic health directives, and other merger partners agreed not to perform certain procedures banned by the directives: elective abortions; sterilizations; contraceptive dispensing for the purpose of contraception only (except in cases of sexual assault when the victim isn't already pregnant); artificial insemination and in-vitro fertilization; and euthanasia.

That raised concerns among many community members and leaders, who also worried about the possibility of more limitations in the future if Catholic directives change.

Beshear said “significant legal and policy concerns” were raised, including Constitutional and public policy questions such as those regarding reproductive care. He also pointed to the potential costs of unwinding the merger if it had gone forward.

“However, most troubling to me is the loss of control of a public asset. University Hospital is a public asset with an important public mission, and if this merger were allowed to happen, U of L and the public would have only indirect and minority influence over the new statewide network’s affairs and its use of state assets. Many of these issues have been raised and analyzed in a report from Attorney General Jack Conway, who recommends not going forward with the merger.”

"A Different Kind Of Public Service" Is Another Reason To Like Rand Paul.

A different kind of public service
Man says Rand Paul saved his life with free cataract surgery

By ANDREW ROBINSON, The Daily News

U.S. Sen. Rand Paul, R-Ky., walked the halls of Downing-McPeak Vision Center on Friday afternoon, consulting patients on various matters.

He wasn’t campaigning or fundraising, or even discussing legislative matters.

For Bowling Green resident Jerry Meredith, Paul was making a difference.

“It’s a miracle, he saved my life,” Meredith said.

On May 21, Meredith had cataract surgery performed by Paul, a Bowling Green ophthalmologist. He was already blind in one eye and could see only hand movements before the surgery.

“I got to see my grandkids for the first time,” Meredith said, leaning forward in his chair, trying to hold back tears. “He was excellent, Dr. Paul was. I’m grateful to him for doing what he’s done for me.”

Paul performed six surgeries May 21. Dr. Aaron J. Porter also performed surgeries that day. Downing-McPeak performs the surgeries annually as part of a nationwide program called “Mission: Cataract.” The program offers free cataract surgery to people of all ages who have no means to pay.

“I want to stay in practice so in case the voters decide they get tired of me, I have a job when I get home,” Paul said.

Meredith had been waiting about a year for the surgery and said he was depressed before the surgery. He couldn’t get around because of a lack of vision, and he also lost his job.

“I didn’t want to do anything,” Meredith said. “I just laid around, I was down in the dumps. I really didn’t care if I lived or died.”

Now, a week later, there’s optimism in Meredith’s voice as he speaks about his experience with Paul.

“I’m hoping to get back to work and just play with my grandkids and live the rest of it up,” Meredith said.

For Paul, it’s like living in two worlds, he said. Just a matter of days ago, Paul was on the Senate floor, filibustering against the USA Patriot Act.

“When I’m up (in Washington, D.C.), I’m in the middle of doing a filibuster and then I’m back home and my wife has a list of things I’m supposed to do in the yard,” Paul said.

Paul saw roughly half a dozen patients as he made the rounds around the office. Washington, D.C., didn’t come up - rather, he consulted about post-surgery matters, such as when to apply eye drops.

“I’d like to ask a lot of questions (about Washington, D.C.),” Meredith said. “I just haven’t gotten up the gumption.”

Paul is among just a few members of Congress who still occasionally provide medical services, such as U.S. Sen. Tom Coburn, R-Okla.

“It’s hard to find time,” Paul said. “Not all of them find the time to do them.”

Paul said he is looking for other opportunities to provide his services statewide in Kentucky.

Western Kentucky Will Be Key Battleground In Race For Kentucky's General Elections.

Western Kentucky will be key battleground in race for governor
By Jack Brammer and Beth Musgrave

FRANKFORT — Supporters of Democratic Gov. Steve Beshear and Republican nominee David Williams already are eyeing battle lines in the state for what is expected to be a contentious contest this fall for governor.

A review of how each of Kentucky's 120 counties voted in Tuesday's Republican primary election for governor shows Williams and his running mate, Agriculture Commissioner Richie Farmer, dominated in Eastern Kentucky and Southern Kentucky and did well in rural areas of Western Kentucky.

Still, the winning GOP ticket did not get 50 percent of the GOP vote statewide and floundered against underfunded Tea Party favorite Phil Moffett of Louisville and his running mate, state Rep. Mike Harmon of Danville, in the so-called "Golden Triangle" between Louisville, Lexington and Northern Kentucky. That region of the state is home to all the Democratic nominees for state constitutional offices this fall.

Williams also trailed Moffett in Western Kentucky counties with large cities — Daviess, Warren and McCracken.

The state's key political battleground will remain Western Kentucky through Nov. 8, said House Speaker Pro Tem Larry Clark, D-Louisville.

The area is Democratic in registration but conservative in political ideology.

Beshear, a Clark County attorney, is expected to constantly remind folks in Western Kentucky that he was born in Dawson Springs, while counting on his running mate, former Louisville Mayor Jerry Abramson, to help run up a large victory margin in Louisville.

Meanwhile, the rural ticket of Williams, the Senate president from Burkesville, and Farmer, a popular University of Kentucky basketball star in the early 1990s from Clay County, must make heavy inroads in Western Kentucky's cities while finding a way to remain competitive in the Lexington area.

"I would have the governor and Mayor Abramson spend much time in the west," Clark said Wednesday.

Beshear was in Murray Wednesday to announce 75 new jobs at a vinyl products plant and in Owensboro to announce energy efficiency and homeland security grants. Williams had interviews with radio talk show hosts in Louisville and Lexington.

Though geography is important in politics, the personality of Beshear and Williams will be more important than an "urban-rural split" in the state, Clark said.

"President Williams will have to play to the right to get Tea Party support and when he does that, he will lose some moderate Republicans and that will help Beshear pick up more Democrats," Clark said.

House Minority Leader Jeff Hoover, R-Jamestown, agreed with Clark that too much emphasis is put on an urban-rural divide in the state.

"Williams and Farmer are popular in Eastern Kentucky and south-central Kentucky, and will be strong there in November," Hoover said. "The biggest key in the race will be turnout based on enthusiasm."

Republicans also "will make President Obama an issue every chance they can get," Hoover said.

Obama is not popular in the state, primarily because of policies on coal and health care.

"He couldn't get a cup of coffee in Kentucky with a $10 bill," said Larry Forgy, a Lexington attorney and Republican who lost the 1995 governor's race.

House Majority Leader Greg Stumbo, D-Prestonsburg, predicted that Williams and Farmer will continue to have difficulty in urban areas, in part because of media scrutiny.

"In the urban areas, President Williams has a challenge because of the heavy media coverage," Stumbo said. "You don't have to be a rocket scientist to figure that out."

Stumbo said both Beshear and Williams are qualified to be governor, but "I do believe Gov. Beshear will prevail because he has done a good job."

Stumbo also said he thinks many Tea Party movement members will "stay home" in November.

"Many of its people helped Moffett in the Tuesday Republican primary and I don't think they can come around to Williams, who has been in state government several years," he said.

Harmon, Moffett's running mate, said he is not sure if their supporters will switch allegiance to the Williams-Farmer ticket in the fall.

"I think some of them will but some of them won't," he said.

Scott Lasley, a political science professor at Western Kentucky University, attributes Williams' less-than-stellar showing Tuesday in urban areas to the Tea Party.

"The Tea Party seems more organized in urban areas," he said.

Lasley also said support for expanded gambling in the state, which Williams opposes, probably is stronger in urban areas and weaker in rural areas.

Lasley agreed with Hoover that enthusiasm will be key in the race.

Beshear is in a stronger position as an incumbent governor than Republican Gov. Ernie Fletcher was four years when he sought re-election but had to contend with a state hiring scandal, Lasley said.

"But neither side this year has built up the enthusiasm necessary to win," he said.

Lasley predicted that Beshear will "play it safe for awhile. He's probably in the lead at this point. He's played it safe as governor."

Williams is at his best, Lasley said, when he is aggressive.

"He's a fine speaker and can excite a crowd with his aggressive comments," he said. "He will leave no shots unfired in this race."

It's not certain at this point how often Kentuckians will see Beshear and Williams debate each other.

Asked Tuesday night if he is willing to debate Williams, Beshear said, "I'm sure we will be seeing each other a lot on the campaign trail."

Williams, responding to a reporter's question about debating Beshear, said, "I'll debate him on numerous times. You ought to ask him if he plans on debating me. That's the real question."

Read more: http://www.kentucky.com/2011/05/18/1744908/western-kentucky-will-be-key-battleground.html#ixzz1Ml4GjRaH

Congratulations To ALL Winners -- And Not So Winners -- Of Kentucky's Primary Elections Yesterday. On To November, You March. Good Luck To All.

Congratulations to ALL the candidates. My analysis will follow after court this afternoon.

Update: Watch David Williams accept the GOP nod for Governor:



Now watch Richie Farmer:

BOMBSHELL: Indiana U. S. Senator, Evan Bayh, Waves Bye, Bye To Re-election Idea, Has No "Love" For CONgress". Who Would Blame Him? Not I! Watch Video.

Chuck up another expected win for Republicans.

WOW.

Does Kentucky Need A One Chamber Legislative Body? Stumbo Thinks So ... What Do You Think?

Stumbo: Ky. should consider one-house legislature
By Jack Brammer

Kentuckians should consider abolishing their law-making system in favor of a single legislative chamber, House Speaker Greg Stumbo told the Herald-Leader this week as lawmakers prepared to start the 2010 General Assembly.

Stumbo, D-Prestonsburg, said he is "intrigued" with the idea of a unicameral legislature, which would permanently end bickering between Kentucky's Republican-controlled Senate and Democratic-led House.

He said his staff has researched the issue and that such a move would require a change in the state constitution, which requires approval by the legislature and Kentucky voters.

"I don't know if the people of Kentucky would be interested in something like that or not, but I think it's worth some debate at least," Stumbo said. "I'm intrigued by it. I don't know if I'm for it, but it's interesting."

Nebraska is the only state in America with just one chamber. Most city lawmaking bodies are unicameral in the sense that city councils are not divided into two chambers.

About half of the world's sovereign states are unicameral, including the most populous — the People's Republic of China — and the least populous — Vatican City.

Stumbo said unicameralism is touted for saving money and providing better representation because it breaks an area down into equal districts with smaller constituencies — possibly 138 districts in Kentucky.

"This idea that there needs to be some overriding force to keep things in check, maybe as a country we have outgrown that," said Stumbo.

Other leading Democrats disagree. Senate Minority Leader Ed Worley, D-Richmond, said the checks and balances of two chambers "is healthy for Kentucky, and it is what will continue to be our structure."

POTUS Barack Obama Makes Second Press Appearance To Decry "unacceptable .. Systematic Failures" In Homeland Security System. Watch Video.

Former State Auditor, Ed Hatchet Is Good Pick To Lead Kentucky Association Of County Officials.

Former state auditor likely to be next KACo director
By Ryan Alessi

Former state Auditor Edward B. Hatchett is the pick to take the helm of the Kentucky Association of Counties, an organization that was blistered in a state audit this year for unchecked and rampant spending.

An 11-member search committee of local officials chose Hatchett from among four finalists they interviewed Monday at Lexington's Embassy Suites Hotel. The committee will formally recommend Hatchett to the full KACo board at a special meeting Dec. 28.

"Ed was selected because we felt he is best qualified from a number of outstanding candidates to provide the leadership necessary to earn back the trust of Kentucky taxpayers and build on our strong record of service to our members," said KACo President Rick Smith, a Clark County magistrate.

Hatchett was the state auditor from 1995 through 2003. If approved, he would replace Bob Arnold, who resigned in September after KACo's spending became the subject of public scrutiny.

The Herald-Leader reported that the organization spent more than $600,000 in two years on travel, meals and entertainment.

Auditor Crit Luallen's review of KACo found more than $3 million in excessive, undocumented or improper spending at the organization, which provides services and lobbying for counties and sells local governments insurance and finances their projects.

Luallen described KACo as fostering a "self-serving culture" in which board members and top staff indulged in expensive dinners and trips.

In a statement Monday, Luallen said, "Ed Hatchett brings the background and experience to lead KACo into the future with an emphasis on increased accountability."

Hatchett, reached on his way to his Glasgow home, said becoming the new executive director would be "an extraordinary opportunity."

He said his first goal to address problems in oversight and accountability for money — most of which flows from county coffers in the form of dues and insurance payments — will be to enforce new policies suggested by Luallen's audit report and approved by KACo's board in recent months.

"We'll create a manual and stick by it," he said. "I'll set about the business of assuring our members that we're going to be membercentric again and return to our roots to give the highest possible return on their dollars."

He said it was "too early" for him to think about any personnel changes or restructuring of the organization.

KACo is undergoing a management review and a strategic planning process that are being conducted by two consultants.

J. Michael Foster, the Christian County Attorney who recently finished his term as KACo president, called Hatchett "the right person to fully implement the comprehensive management control policies" the board already has approved.

LaRue County Judge-Executive Tommy Turner, who also served on the search committee, said he expects Hatchett will "return credibility" to the organization and add stability just in time for the General Assembly session to begin Jan. 5.

"Having an executive director on board as the legislative session starts will be good for KACo and the counties it represents," Turner said.

During Hatchett's time as state auditor, he developed a reputation as methodical and thorough, as his office reviewed the books of county officials and some quasi-governmental organizations.

Hatchett said he didn't expect any awkwardness of working with officials who once were the subjects of his office's reviews.

Hatchett said he hadn't yet talked with KACo leaders about his salary and details of a contract. Arnold, as executive director, earned $178,000, and because of a clause in his contract will be paid that through June 2010 even after his resignation. A lawyer by training, Hatchett has served as managing partner and counsel for Blue Spring Creek, LLC, a family partnership that supervises a 900-acre farming operation as well as real estate and other investments in Glasgow.

More than 50 people applied for the KACo executive director position. The search committee narrowed the field down to four finalists, who were interviewed Monday.

Two Shinning Stars, Senators Jimmy Higdon And Damon Thayer, Start To Emerge Before Kentucky General Assembly Session.

Campaign finance revisions on agenda
By Joseph Gerth

For the fourth time in as many years, the Kentucky General Assembly will consider changes to the state’s campaign finance law aimed at providing greater transparency on donations to candidates.

The bill’s primary sponsor, Sen. Damon Thayer, R-Georgetown, is hoping that it fares better this year than in the past.

The bill has typically died in the House — without explanation.

Thayer said he is considering changes in the bill that may make it more palatable to House leaders who have killed the measure in the past.

The bill, which was recommended by a task force on elections several years ago, calls for additional campaign finance reporting deadlines and requires campaign accounts to be closed by a certain date after elections.

A portion of Kentucky’s election law was struck down by a federal court in 2004, leaving gaps that allow candidates to continue raising money indefinitely to pay off campaign debts.

Thayer’s bill also would require candidates for statewide office to file their fundraising reports electronically.

Additionally, the bill would allow campaigns to accept contributions from federal political action committees that are based in Kentucky, which is currently prohibited, and would give the state Registry of Election Finance greater ability to quickly dispose of frivolous complaints.

The legislation also would allow campaigns to quickly correct mistakes in reports to avoid being guilty of campaign finance violations. Currently, a campaign is guilty of a non-knowing violation if it accepts an illegal contribution, even if the contribution is immediately returned to the donor.

Federal campaign law gives campaigns a grace period to identify contributions that are larger than allowed by law or that violate other provisions of campaign finance law.

Thayer said he plans to remove controversial provisions that helped hang the bill up in the past, including one that exempted media companies from having to report a candidate endorsement as a contribution.

Some groups had opposed such a provision because it would hold newspapers to a different standard than other businesses and political action groups.

But Thayer said lawyers have told him the provision isn’t needed and that even without the exemption media companies wouldn’t be required to report.

Other bills that will be considered include a constitutional amendment to remove from the state’s oath of office language in which the officeholder must swear that he or she has not been involved in a duel with deadly weapons and another amendment that would restore felons’ right to vote after they serve their sentence.

Jimmy Higdon, the Senate’s newest member, has prefiled bills that would make it illegal to send recorded political phone calls to numbers on the federal do not call list and one that would limit sessions of the General Assembly to just 30 days per year.

Thayer also has prefiled legislation that would require so-called 527 groups — political organizations created under chapter 527 of the IRS code — to file reports listing spending and donors with the Kentucky Registry of Election Finance before elections. Under the current law, such groups must file reports only at the end of the year.

One of those groups, Keep Our Jobs in Kentucky, has spent hundreds of thousands of dollars this year on two special state Senate elections.

The Election Of State Senator Jimmy Higdon Is Already Paying Dividends. Read More.

Higdon proposes repeal of costly legislative retirement perk
By Jack Brammer and Beth Musgrave

FRANKFORT — A newly elected Republican state Senator wants to cancel a costly, four-year-old benefit in the retirement system for state lawmakers that has been wielded recently by Gov. Steve Beshear as a political weapon.

Sen. Jimmy Higdon, R-Lebanon, filed legislation this week that would cancel a 2005 provision that allows annual retirement benefits to increase dramatically for former lawmakers who switch to a judicial or executive branch job.

Higdon said no one is elected to the legislature with the expectation of receiving a plum retirement. The private sector is cutting back on such perks and so should the legislature, he said.

“It’s a benefit that we clearly can no longer afford,” Higdon said.

The two legislative committee chairmen who oversee state government issues also said last week that they support repealing the benefit during the 2010 General Assembly that begins Jan. 5.

Lawmakers first approved the provision, which can increase six-fold the annual retirement benefits of affected lawmakers, during the waning hours of their 2005 law-making session.

It specifically altered the legislative pension program so that lawmakers who become judges or take a position in the executive branch will get a pension benefit based on their highest three years of salaries in state government — not just as a lawmaker.

At the time, Donna Early, executive director of the system that manages both the judicial and legislative pension programs, could not say how much the provision would cost the state. But she accurately predicted that the cost would increase over time.

A recently released actuarial report for the Kentucky Legislators Retirement Plan said the cost of providing pensions for state legislators will jump from $759,158 in the current budget to $4.28 million over the next two years.

Almost half of the $4.28 million will be used to pay for the 2005 provision. That spike is due in part to so many legislators over the past two years opting to take jobs in the executive and judicial branch.

The issue has gotten more attention this year because Beshear, a Democrat, appointed two Republican senators to jobs with high salaries that will dramatically increase their pensions.

Beshear was hoping to chip away at Republican control of the Senate. He was successful in one race but not the other.

Consequently, the legislative pension of Sen. Charlie Borders, R-Russell, will jump by at least $37,500 a year if he works at least three years in his $117,000-a-year appointment to the Public Service Commission.

The pension of former Senate Majority Leader Dan Kelly, R-Springfield, who was appointed to a circuit judgeship, will also increase dramatically. Kelly will make $124,620 a year as a circuit court judge. As a legislator, he made about $50,000.

In a special election in early December to replace Kelly, the issue of the retirement perk became a campaign issue.

Higdon, a former state representative, won the race to replace Kelly. Higdon said he campaigned on the promise to file a bill that repealed the provision.

Higdon’s bill eliminates the enhanced benefit for anyone elected to the legislature after November 2010, but Higdon said he plans to amend the bill to scrub the entire program.

Meanwhile, Senate State and Local Government Chairman Damon Thayer, R-Georgetown, said he, too, is working on a bill that “generally speaking would close the loophole that allowed the governor to attempt to subvert the usual electoral process and take over the state Senate.”

He said the current provision is “very costly” and “we should make a serious attempt to close the gap.”
In the Democratic-led House, State Government Committee Chairman Mike Cherry, D-Princeton, said the pension benefit will receive scrutiny.

Cherry voted against the original provision in 2005.

“I think there is a good chance of some action repealing some of that legislation,” Cherry said. “I would want to see what Sen. Higdon’s legislation says first. But I am discussing this issue with leadership and other members of my caucus.”

Where Did That Bank Bailout Go? Watchdogs Aren't Entirely Sure. That Sobering News Should WORRY All Of Us!

Where did that bank bailout go? Watchdogs aren't entirely sure
Chris Adams

WASHINGTON — Although hundreds of well-trained eyes are watching over the $700 billion that Congress last year decided to spend bailing out the nation's financial sector, it's still difficult to answer some of the most basic questions about where the money went.

Despite a new oversight panel, a new special inspector general, the existing Government Accountability Office and eight other inspectors general, those charged with minding the store say they don't have all the weapons they need. Ten months into the Troubled Asset Relief Program, some members of Congress say that some oversight of bailout dollars has been so lacking that it's essentially worthless.

"TARP has become a program in which taxpayers are not being told what most of the TARP recipients are doing with their money, have still not been told how much their substantial investments are worth, and will not be told the full details of how their money is being invested," a special inspector general over the program reported last month. The "very credibility" of the program is at stake, it said.
Access and openness have improved in recent months, watchdogs say, but the program still has a way to go before it's truly transparent.

For its part, the Treasury Department said it's fully committed to transparency, and that it's taken unprecedented steps to report the status of TARP to the public. It regularly posts information on which banks have received money, as well as details about each of those transactions. Further, Treasury said, it doesn't agree with all of its watchdogs' recommendations, which it said could hamper the program's effectiveness.

TARP was passed in the midst of last fall's financial meltdown as a way to keep American banks from falling deeper into the abyss.

The program was controversial from the start. Its supporters say it's helped spark bank lending in the country, but critics say it's unfairly rewarded the big banks and Wall Street firms that pushed the economy to the brink.

The program also has undergone a major transformation. When the Bush administration first went to Congress for the money, TARP's main purpose was to buy up hundreds of billions of dollars in bad mortgages and so-called mortgage-backed securities that were bought and sold on Wall Street.

Today, TARP consists of 12 programs that sent those hundreds of billions of dollars to big banks, but it's also bailed out auto companies, auto suppliers, individuals delinquent on their mortgages, small businesses and American International Group, the big insurance company.

The watchdogs now must oversee the maze that TARP has become.

Just because a lot of people are watching, however, doesn't mean they get everything they want to see.

One of the most prominent watchdogs is Elizabeth Warren, a Harvard Law School professor who chairs a TARP oversight panel created by Congress.

Her panel has released 10 major reports that examine TARP's plans and policies, finding that much of the work by the Treasury and the Federal Reserve has been opaque, with unclear or contradictory goals.

One report took Treasury to task for vastly undervaluing more than $250 billion in transactions with the country's major banks, and another suggested several ways to revamp federal regulation over the financial sector. Other reports have criticized the Treasury for its initial defensiveness in opening its books.

Despite its mandate, however, the panel doesn't have subpoena power. That means it can ask, but can't compel, officials from Treasury, the Federal Reserve or the nation's banks to testify.

Henry Paulson, the Treasury secretary under former President George W. Bush, repeatedly stiff-armed the panel. Timothy Geithner, the current secretary, has been more open, but so far has testified just once before Warren's group. Geithner is scheduled to appear again in September, and has agreed to do so quarterly, and two other senior Treasury officials also have appeared.

California Politicians Put Partisanship Aside, Pass Budget And Avoid UNMITIGATED Disaster.

Read more below:

A deal -- at last

Gov. Arnold Schwarzenegger and legislative leaders agreed Monday to erase California's $26 billion deficit by cutting broadly across state government, shifting costs into the future and taking funds from cities and counties.

State leaders believe their budget plan is good enough to end the state's issuance of IOUs, a practice California is using for only the second time since the Great Depression.

Standing with legislative leaders in front of his Capitol office Monday evening, Schwarzenegger called the deal "a really great, great accomplishment," and heralded the fact that the $88 billion general fund budget includes no tax increases.

Legislative leaders spoke in sober tones about producing a plan with $15.5 billion in cuts they know will face scorn from millions of Californians who depend on state government for services, education or employment, as well as from local officials whose budgets were already teetering. Both Democrats and Republicans blamed the ongoing recession for the choices they made.

"This is, of course, one of the most difficult economic times to face our state since the Great Depression," said Assembly Republican Leader Sam Blakeslee, R-San Luis Obispo. "So none of these were easy choices. All of them entailed difficult options for the state."

A floor vote is expected Thursday, and leaders plan to brief their caucuses by phone Tuesday. While leaders expressed confidence in Monday's handshake agreement, the last "Big Five" deal in February met resistance once it reached the Senate floor.

The budget includes $6 billion in new cuts to K-14 schools, as well as $3 billion in cuts to higher education, some of which colleges can offset with federal stimulus dollars.

Leaders used a retroactive $1.6 billion cut to avoid suspending the state's Proposition 98 guarantee for school funding. They also committed the state to paying an extra $9.8 billion to schools when the economy rebounds as compensation for 2008-09 budget cuts, in addition to $1.5 billion owed for 2007-08.

The budget agreement also has about $850 million in cuts to three major safety-net programs – In-Home Supportive Services, CalWORKs and Healthy Families low-cost medical insurance.

"For Democrats, I have to tell you that many of the cuts we had to make … in another time we would have thought were unthinkable," said Assembly Speaker Karen Bass, D-Los Angeles, who said that because of the recession she felt they "didn't have a choice."

Democrats said they protected CalWORKs and Healthy Families from being eviscerated by the governor, who originally had proposed eliminating the programs. Steinberg said that "frankly, we had one hand tied behind our back" because Republicans would not support tax hikes.

Schwarzenegger and Republican leaders, however, highlighted permanent increases in sanctions designed to force more welfare recipients into work that take effect in July 2011. Those include more interviews and reviews of recipients, as well as benefit reductions if parents don't meet new requirements.

Leaders agreed to require fingerprinting of In-Home Supportive Services providers and recipients, excluding amputees. Providers would undergo background checks. The governor suggested it was part of "cutting the waste, fraud and abuse in some of the programs."

But advocates said leaders should have raised taxes on tobacco and oil production to preserve benefits.

"This is the biggest step back from protecting and investing in vulnerable Californians in a generation," said Frank Mecca, executive director of the California Welfare Directors Association.

Leaders agreed to cut $1.2 billion in the state's corrections budget, but they would not discuss how they would realize those savings until after they meet with their caucuses.

The state will take about $4.7 billion from cities, counties and special districts.

The plan relies on $2 billion in borrowing the state promises to repay in 2013; local governments are expected to seek loans to compensate. It also takes $1 billion from gas tax money that now pays for local road projects, as well as $1.7 billion in redevelopment funds.

Lexington Herald Leader Editorial: "More Scrutiny Appreciated".

More scrutiny appreciated

Officials at the state Department of Insurance rightly have begun a review of operations at the Kentucky Association of Counties and the Kentucky League of Cities.

In addition to the other services these two organizations provide for the state's counties and cities, both offer various forms of insurance to their respective members.

And as recent Herald-Leader stories have detailed, KACo and the League have spent hundreds of thousands of dollars in the last few years on travel, entertainment and gifts.

Put these circumstances together, and there is reason for state insurance officials to step in and make sure the portion of the two organizations' wining and dining that benefited officials of their member local governments did not take the form of improper inducements designed to influence those local governments' decisions concerning insurance.

As the recent articles have detailed, both KACo and the League have been rather cavalier about justifying all their entertainment and travel expenses.

That sloppiness may make it difficult to determine whether either organization crossed the line in this regard.

But even if the state review turns up no evidence of improper inducements, it is still a worthwhile exercise if it impresses on KACo and League officials the importance of erecting some kind of fire wall between their insurance operations and those portions of their organizations where entertainment expenses of a limited nature might seem more appropriate.

Their free and easy spending habits suggest that the need for such bright lines of division may not have been evident to them in the past.

But it certainly should be in the future.

Out Of Control Spending Kentucky League Of Cities & Association Of Counties Face Audits. Some People Need Criminal Defense Lawyers, & I'm Available!

Follow this link: State to audit League of Cities, KACo
By Ryan Alessi and Linda B. Blackford

State Auditor Crit Luallen said Wednesday she will audit the Kentucky Association of Counties and Kentucky League of Cities after "alarming media reports" by the Lexington Herald-Leader that created "serious concerns over spending."

Luallen sent letters to KACo President Mike Foster, the Christian County Attorney, and League president Connie Lawson, Richmond's mayor, notifying them of the forthcoming audit.

The auditor's investigation comes after the Herald-Leader reported this week that KACo's five top officials spent nearly $600,000 in two years on travel, meals and other expenses. More than half of those expenses were charged by Bob Arnold, KACo's executive director.

Last month, the newspaper reported that the League's top three leaders charged $300,000 in trips and expenses over three years.

"It is clear by the examples of extravagant spending and lack of transparency that these agencies and their boards need the necessary tools to fulfill their responsibilities to the taxpayers," Luallen said in a statement.

Both organizations are non-profit groups funded through dues from local governments and fees for providing insurance and financing services to counties and cities.

In addition to the newspaper articles, Luallen said her office has received "specific concerns" about the two organizations.

"In these tough economic times, it's more important than ever that these two agencies, which are funded by the public and governed by elected officials, have full transparency and thorough scrutiny," Luallen said. ...

the League [has] declined a subsequent open records request from the Herald-Leader, saying it had complied with earlier requests voluntarily and is not a public agency. The Herald-Leader plans to seek a ruling from the attorney general's office on the League's status as a public agency.

Luallen said the League's decision to stop providing documents to the Herald-Leader made her reconsider an earlier decision to hold off on deciding whether to audit the agency until its board implemented new rules.

"We felt it was important to move forward in spite of that (reform) because once the League made the decision not to share any more public records, I think it raised questions about transparency," Luallen told the Herald-Leader Wednesday.

Editor's comment: This is about the best news that has come out of Kentucky in a long while, and like my caption states: many folks are going to need criminal defense Attorneys and I am available for hire.

To read the Auditor's audit announcement, go here.

Update: To read her letter to Kentucky league of cities, go here, and here for her letter to the Kentucky Counties organization.

Tsk, tsk.

Breaking News: Al Franken Makes Senate Victory Speech. Watch Video.

Breaking News: It Is All Over In Minnesota U. S. Senate Race As Norm Coleman Concedes To Al Franken. Watch Concession Speech Video.

I guess you can say the fat lady has sung.

As Expected, Minnesota Supreme Court Kills GOP Hopes, Hands POTUS Barack Obama Filibuster Proof Senate Majority & Says Al Franken Beat Norm Coleman.

Read the court's opinion here.

Important points made by the court, while affirming the three-judge panel's ruling that declared Franken the winner, are as follows:

In the Matter of the Contest of the General Election held on November 4, 2008, for the purpose of electing a United States Senator from the State of Minnesota, Cullen Sheehan and Norm Coleman, contestants, Appellants vs. Al Franken, contestee, Respondent.
Ramsey County.

1. Appellants did not establish that, by requiring proof that statutory absentee voting standards were satisfied before counting a rejected absentee ballot, the trial court's decision constituted a post-election change in standards that violates substantive due process.
2. Appellants did not prove that either the trial court or local election officials violated the constitutional guarantee of equal protection.
3. The trial court did not abuse its discretion when it excluded additional evidence.
4. Inspection of ballots under Minn. Stat. § 209.06 (2008) is available only on a showing that the requesting party cannot properly be prepared for trial without an inspection. Because appellants made no such showing here, the trial court did not err in denying inspection.
5. The trial court did not err when it included in the final election tally the election day returns of a precinct in which some ballots were lost before the manual recount.
Affirmed. Per Curiam.

Editor's comment: you are free now to call Al Franken Mr. Senator from Minnesota, and any chance Republicans have of filibustering POTUS Barack Obama's legislation or court appointments has now evaporated.

As for any chance of the U. S. Supreme Court taking up the case -- there is NO CHANCE of that happening.

The issue is now up to the U. S. Senate, which has the power to sit -- or refuse to sit -- Al Franken.