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<oembed><version>1.0</version><provider_name>The News Journal</provider_name><provider_url>https://qa.thenewsjournal.net</provider_url><title>House GOP shows solidarity, challenges the status quo &ndash; The News Journal</title><type>rich</type><width>600</width><height>338</height><html>&lt;blockquote class="wp-embedded-content" data-secret="l9C3unfR7p"&gt;&lt;a href="https://qa.thenewsjournal.net/house-gop-shows-solidarity-challenges-status-quo/"&gt;House GOP shows solidarity, challenges the status quo&lt;/a&gt;&lt;/blockquote&gt;&lt;iframe sandbox="allow-scripts" security="restricted" src="https://qa.thenewsjournal.net/house-gop-shows-solidarity-challenges-status-quo/embed/#?secret=l9C3unfR7p" width="600" height="338" title="&#x201C;House GOP shows solidarity, challenges the status quo&#x201D; &#x2014; The News Journal" data-secret="l9C3unfR7p" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" class="wp-embedded-content"&gt;&lt;/iframe&gt;&lt;script type="text/javascript"&gt;
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</html><thumbnail_url>https://qa.thenewsjournal.net/wp-content/uploads/2016/03/Jim-Waters-beacon.jpg</thumbnail_url><thumbnail_width>234</thumbnail_width><thumbnail_height>84</thumbnail_height><description>How unfair it was for former Gov. Steve Beshear to claim he was leaving the commonwealth&#x2019;s bank account in much-better shape than he was handed when, in reality, the incoming Gov. Matt Bevin administration found itself staring at a shortfall of hundreds of millions of dollars. This scenario resulted in the new governor&#x2019;s first budget proposal containing across-the-board spending cuts of 4.5 percent during the current fiscal year and 9 percent in the next budget. Bevin&#x2019;s budget pays the bills, adds an additional $1.1 billion in funding to the pension system and tucks away nearly $1 billion in savings to address future pension payments in a Kentucky Permanent Fund &#x2013; $500 million of which is coming from surplus funding in the state&#x2019;s public employee health insurance fund. State retirees, despite being largely a Democratic party constituency in elections, have given an increasingly enthusiastic &#x201C;thumbs up&#x201D; to Republican Bevin&#x2019;s plan. But House Democrats forced a budget through on Wednesday that dramatically reduces Bevin&#x2019;s proposed cuts and uses the $500 million in surplus health insurance funding to pour more money into the commonwealth&#x2019;s Kentucky Teachers&#x2019; Retirement System rather than save it for the future or at least put it toward the Kentucky Employees Retirement System (KERS), which is in much greater danger of going belly-up. The difference is KERS can&#x2019;t match the campaign-contributing ability of teachers&#x2019; unions. Still, it&#x2019;s not as if Bevin neglected the teachers&#x2019; fund as evidenced by his proposal to pour an additional $660 million into the KTRS pension plan. Even some of the governor&#x2019;s supporters question the need to save when there are pressing funding needs. But it&#x2019;s like the family being able to pay for a repair if the car breaks down or someone has to make an unexpected trip to the emergency room without totally busting the budget. The state has itself taken a few such &#x201C;trips&#x201D; recently, including a shockingly high bill from Kynect, Kentucky&#x2019;s Obamacare-style health insurance exchange. The tab was more than $60 million for this duplicative and wasteful program despite the fact that Beshear claimed his administration would operate Kynect for less than $34 million. There&#x2019;s also the matter of finding revenues to cover Kentucky&#x2019;s portion of the bill generated by Beshear&#x2019;s unilateral expansion of Medicaid eligibility resulting in a half-million Kentuckians being added to the taxpayer-funded health insurance program, which now includes 400,000 enrollees with household incomes between 69 percent and 138 percent of the federal poverty level &#x2013; many of whom could purchase private insurance if they weren&#x2019;t being encouraged to attach themselves to the government dole. Part of Obamacare&#x2019;s promise was to cover a major portion of the expanded Medicaid costs now and into the foreseeable future. Still, even the best scenario requires Kentucky to pick up 10 percent of the expansion&#x2019;s cost by 2020. So the Democrats pass a budget that keeps most of the spending but refuses to tuck away badly needed savings, even though they have no clue what that cost will be. What if it&#x2019;s a lot higher and requires taking more General Fund money to pay those bills? House Republicans showed inspiring solidarity on Wednesday by refusing to go along with this nonsense. Not a single one of the House&#x2019;s 47 Republicans voted for the Democrats&#x2019; irresponsible spending plan, which is dead on arrival at the Republican-controlled Senate. The GOP&#x2019;s unity is especially satisfying and significant as it&#x2019;s directed at arch enemies of changing the direction of our commonwealth from poverty to prosperity: outdated political relics in charge of the House&#x2019;s majority party who refuse to cut spending, save for the future or even represent their own constituencies. Jim Waters is president of the Bluegrass Institute, Kentucky&#x2019;s free-market think tank. Reach him at jwaters@freedomkentucky.com. Read previously published columns at www.bipps.org.</description></oembed>
