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Sunday, February 17, 2002

Ky. Politics


End run to raise taxes? Let the intrigue begin

map
        Gotcha. Republican Kenton County Judge-executive Dick Murgatroyd may not have been trying to sidestep a court ruling that has prevented the fiscal court from raising the county's payroll tax.

        But it sure looks that way.

        A couple of years ago the fiscal court tried to raise the payroll tax cap to pay for a new jail. Lots of opposition flared, particularly when it was discovered that some workers would be paying a 275-percent tax hike.

        A lawsuit was filed, the tax was struck down by the Kenton Circuit Court, the county appealed and now the issue is before the Kenton Court of Appeals, where it may take a couple of years for a ruling.

        Cut to Frankfort, where Mr. Murgatroyd and his deputy judge-executive, Scott Kimmich, have been pushing a provision in a bill that would allow counties of more than 30,000 people to raise payroll taxes higher than the current cap of 1 percent.

        County officials have said they only backed the bill so other counties wouldn't find themselves in the same position as Kenton County, fighting in the courts over a tax increase. And counties would not have carte blanche to raise taxes because most cities in a county would have to approve the increase.

        But Democrats say the Republicans have been caught in the act of trying to duck the court ruling and begin laying the groundwork in the legislature for another run at increasing the payroll tax.

        “Dick Murgatroyd has been exposed,” said Mark Guilfoyle, an Edgewood Democrat. “Is there no end to his desire to raise the payroll tax?”

        Mr. Guilfoyle is a political adviser to Patrick Hughes, the Fort Wright Democrat running against Mr. Murgatroyd in the fall. And it should be noted that the pair — both lawyers — are involved in the tax lawsuit against the county.

        The provision the county Republicans were pushing was eventually gutted from the bill through an amendment filed by Rep. Arnold Simpson, D-Covington.

        But it wasn't just Democrats unhappy about the provision.

        Rep. Jon Draud, R-Crestview Hills, and Rep. Joe Fischer, R-Fort Thomas, said they were against the portion of the bill — which addressed several local government issues — dealing with the payroll tax.

        “It's an open door to tax increases ... in these larger counties,” Mr. Fischer said.

        Sen. Thayer? Republican Damon Thayer, one of the sharpest GOP strategists in the state, may run for Northern Kentucky's new seat in the state Senate.

        Over the last decade, Mr. Thayer, 34, served as treasurer of the Grant County Republican Party and then chairman of the 4th District GOP. He's now the vice-chairman of the state Republican Party and a member of the party's state executive committee.

        He also worked on nearly every major GOP campaign, from President Bush's presidential campaign to the Senate campaigns of Jim Bunning and Mitch McConnell to statehouse and even county elections.

        But he moved from Northern Kentucky more than a year ago to Scott County to be closer to his job in Lexington, where he is vice president of Breeders' Cup marketing for the National Thoroughbred Racing Association, essentially professional horse racing's league office.

        GOP elected and party officials have talked to Mr. Thayer about running for the 17th District, which includes Scott and Grant counties and southern Kenton County.

        “Due to the quality of the people who have talked to me about this, I have promised them my full consideration,” Mr. Thayer said. “I have family and career concerns that will factor into the equation.

        “But it's a very appealing district. I have a lot of friends, politically and otherwise, in these counties. And it would be an honor to represent them in Frankfort.”

        Because of quirks in statehouse redistricting, the seat — now held by Sen. Dan Mongiardo, D-Hazard — may be up for election this year. But there may not be a contested race until 2004.

        Kenton County Republicans may want to have one of their own run for the seat. But Mr. Thayer is a de facto Northern Kentuckian who knows how to build and run a campaign organization. He also brings a strong fund-raising base.

        Patrick Crowley covers Kentucky politics. He can be reached at (859) 578-5581, or by e-mail at pcrowley@enquirer.com.
       

       



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