The State Liar
How does one know when Commissioner of Administration Kristy Nichols is lying? According to the word at the Capitol she is lying whenever she is speaking to a committee.
Recently, Nichols told the public as well as the Joint Lege Budget Committee that the state ended the 2014 Fiscal Year with a $178 Million surplus. State Treasurer John Kennedy said it wasn’t true. He is the only public official who dared to question Nichols.
In response, Nichols launched personal attack at Kennedy. She even falsely accused Kennedy of not properly accounting for the state’s revenues, a job that falls under her responsibilities.
This afternoon Kennedy issued a statement regarding the $141 Million deficit for the fiscal year ending on June 30. Here are some excerpts:
At Treasurer Kennedy’s urging, [Kristy Nichols] agreed to language that will apprise potential investors [in state bonds] of the state’s $140.6 million operating deficit and other pending budget issues.
“On a budgetary basis, fiscal 2014 state general fund operating revenues declined about 1% from fiscal 2013 while expenditures grew 2.5%, leaving a $140 million year-end operating deficit. The revenue shortfall did not emerge until late in the year in the fiscal year to make sufficient offsetting mid-year adjustments.”
Now Nichols will have to take $140.6 Million from the revenues in the current budget (which will result in mid-year budget cuts) to fill the deficit or she will have to reach into her secret stash of funds to pay off the deficit.
Kennedy is to be commended for having the integrity to refuse to furnish fictitious information provided by Nichols to the bond rating agencies. Not only would it have been illegal to do so, but could have been devastating to the state’s future bond rating.
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