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Trim state payroll for healthier Kentucky

By Jim Waters

While much attention focuses on Kentucky's unhealthy habits such as smoking and overeating, not nearly enough consideration is given to the fiscal obesity of Kentucky's state government. 

In 1982, Gov. John Y. Brown tried to put Kentucky's government on a diet by signing a law that would cap the number of executive-branch merit employees at 33,000. Unlike some diets, which require dieters to starve themselves, Brown offered a realistic and reasonable plan. If followed, it would have greatly improved Kentucky's fiscal health during the past two-plus decades. In fact, the stated purpose of KRS18A.005-KRS18A.200 was "to gain maximum utilization of human resources in order to provide better service to the citizens of this commonwealth."

The law, which clearly states the "total number of permanent full-time

personnel in agencies of the executive branch shall not exceed 33,000," has

never been kept. The number of executive-branch merit employees

routinely exceeds the cap. The Legislature allows the fiasco to continue

by waiving the requirement. A conservative estimate, based on

calculations using information obtained from various state agencies' Web sites, reveals that failure to contain the size of the executive-branch bureaucracy has cost state taxpayers an additional $1.4 billion. This is based on a median salary of $37,248 for 37,700 additional employees - the total number exceeding the limit since 1982.

This cost does not even include workers' benefits or the thousands of additional state employees not considered part of the executive branch merit-employee system. This group of additional state workers not subject to the cap includes employees of the General Assembly, Legislative Research Commission, Kentucky Higher Education Assistance Authority, the Kentucky Higher Education Student Loan Corp. and around 4,000 additional non-merit employees in the executive branch.

Obese government threatens the economic life of Kentucky.

The Kentucky Personnel Cabinet reports that next to manufacturing, the commonwealth's state and local governments comprise the second-largest employment sector in the entire state - more than 18 other sectors, including retail trade, health care, construction, mining and agriculture.

An obese state government looks unattractive to new businesses looking to expand or relocate. A company decision about moving or relocating often hinges on the size and efficiency of state government.

Obese people can take moderate steps to improve their health. Kentucky could improve its fiscal health by going - and staying - on Brown's diet.

It would shrink government's waist line, help the state's economy flourish and result in economic progress that rivals any Weight Watchers success story.

- Jim Waters is the director of policy and communications for the Bluegrass Institute, Kentucky's free-market think

tank.

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