How closely should the Kentucky treasurer oversee tax dollars? Candidates disagree.
For an annual salary of $124,113, the Kentucky treasurer keeps tabs on state tax dollars.
The two people running in the Nov. 5 general election for the constitutional office of state treasurer strongly disagree on how far that duty goes.
Republican incumbent Allison Ball, a former Floyd County assistant attorney, says her primary duty is to ensure that all payments using Kentucky tax dollars are legal, constitutional and correct.
Democratic nominee Michael Bowman, a branch manager for US Bank in Louisville and former legislative assistant for Louisville Metro Council who is making his first bid for elective office, calls that approach “a rubber stamp for bad spending.” He quickly mentions Republican Gov. Matt Bevin’s use of a state plane for undisclosed reasons.
The law says the duties of the state treasurer include heading the state treasury, managing the state’s depository, making records of all monies due and payable to the state, processing warrants from the Finance and Administration Cabinet, making payments on behalf of the state, overseeing unclaimed property and filing an annual report on all state money.
Ball says she has done that and more.
“I have done an effective job for the people of Kentucky,” she said in a recent interview. She called herself “a watchdog on our taxpayer dollars.”
She noted her office last December detected a $5.3 million online fraud attempt on the state.
Ball said the state was targeted right before Christmas and that the scheme may have worked if her employees had not received training on such issues.
Concerning Bowman’s claim that she needs to be more aggressive in pursuing government waste, Ball said her job is to carry out the law and follow what the General Assembly spells out on state tax dollars.
“My job is to make sure the money goes to where the law says,” said Ball.
If a state treasurer tries to block spending of tax dollars, he or she would be “a mini-dictator. You could be sued,” she said, adding that the state auditor is designated by the Kentucky Constitution to check spending by agencies of the state.
Bowman said he has the financial skills to be treasurer and wants to hold every branch of government accountable for its use of tax dollars.
He said he, unlike Ball, would be willing to tell the governor “I’m not going to sign that check.”
“The treasurer should be the one upfront who sees problems with expenses,” Bowman said. “We have a moral obligation to speak out about that. We have a reckless governor. My job would be to hold the governor, whoever it is, accountable.”
He also said on a recent appearance with Ball on Kentucky Educational Television that he would be more outspoken about state investments. He mentioned a failed battery manufacturing plant in Pikeville that was due to receive $30 million in tax incentives and a $15 million appropriation for Braidy Industries to help build an aluminum rolling plant in northeastern Kentucky.
Bowman said he thinks the treasurer could speak out about public spending and the auditor could check it out.
Ball defended the Braidy investment on KET.
“The General Assembly voted to send over certain dollars to Braidy, and that’s within their purview,” she said. “If I say no to that then I’m stepping out of my lane and doing something I’m not supposed to do. That would be taking my role and making it an activist role in a way that would be illegal.”
Both candidates disagree with calls over the years to abolish the state treasurer’s office and absorb it into the state Finance and Administration Cabinet.
In addition to stopping fraud, Ball said she has promoted financial literacy, created a tax-free savings plan for disabled people and returned to rightful owners more than $84 million in unclaimed properties.
The state treasurer also sits on several boards and commissions as an ex officio member, including the State Investment Commission, Teachers’ Retirement Systems, Kentucky Higher Education Assistance Authority and Kentucky Lottery Board.
The office has an annual budget of slightly more than $4 million and 27 employees.
The position of state treasurer exists in 48 states; it is elected in 36 and appointed in 12. Of the 12 states to appoint state treasurers, the governor is responsible for appointment in eight and the legislature is responsible in the other four.
In 2017, state treasurer salaries in the nation ranged from $195,972 in Tennessee to $68,500 in Colorado.
Ball, with her 2015 election, was the first Republican woman to hold the office since 1948. If re-elected, she will become the first Republican woman to be elected to a a consecutive term for a state constitutional office.
She made history by becoming in July 2018 the first Kentucky constitutional officer in history to give birth while in office.
State campaign finance records show Ball outpacing Bowman.
Ball started the general election race with $115,531, has received $34,445, spent $27,958 and had a balance of $122,018 as of Oct. 6.
Bowman’s records as of Oct. 6 showed a beginning balance of $12,002, receipts of $18,518, disbursements of $9,165 and a balance of $21,354.
Candidates On The Issues
Question: Should this office be eliminated and its duties absorbed by a state agency, such as the Finance and Administration Cabinet?
Ball: No. The treasurer serves a unique role as a constitutional officer that is separate from the governor. An independently-elected treasurer who is only accountable to the voters can have the final word on the legality and constitutionality of expenditures without fear of being removed by any other elected officials.
Bowman: The treasurer’s office is in our Constitution to serve as a critical check of accountability on any governor, whether they are Republican or Democrat. We shouldn’t have to wait for an audit to find waste or fraud. I will be a proactive watchdog for the people of Kentucky.
Question: Does Kentucky need more money to provide the services it has promised citizens? If so, how should Kentucky generate more money?
Ball: We must enact policies that encourage job growth, which will generate more revenue for public services. We also need to continue finding ways to better manage our current expenditures through cooperation with the federal government, other states, and the private sector where possible before burdening the public with higher taxes.
Bowman: I support expanding revenue without raising taxes. We need to help working families and invest in our people — education, job training, health care, and infrastructure. I support gaming and legalization of medical marijuana to create a new crop for Kentucky’s farmers, new jobs, and economic growth while keeping taxes low.
Question: The treasurer serves on the board of the Teachers’ Retirement System. What should teachers expect of you on that board?
Ball: While I’ve been on the board, TRS has obtained full ARC (actuarially required contribution) funding from the state during the last budget and has the highest amount of assets in its history. I will continue to make sure the state is meeting the promises that it made to our teachers.
Bowman: Kentucky’s teachers endorsed me because I am on their side. Teachers serve our children and are building our future. Teachers do not get Social Security and are counting on the retirement they earned. I will ensure we honor the commitments we have made and fully fund retirement security.
This story was originally published October 29, 2019 at 1:33 PM.
