Tuesday, 18 July 2006
Abramson Vetoes Metro Council on Arena
« Sen Evan Bayh for President? | Main | Northup Dominates Yarmuth in Fundraising »In a surprise move, Mayor Abramson vetoed the Metro Council's plan that would give control to unions and enforce prevailing wages for all arena workers. I didn't think the mayor had the nerve to stand up to the unions on this issue. Of course, I didn't take into account the number of wealthy campaign donors who would be on the other side of the debate. It also keeps Downard from gaining traction on this issue in what is shaping up to be an interesting mayoral election.
The veto came on the heels of Fletcher's vows to not release 75 million in bonds to pay for the project. He believed that the newly inserted "labor agreement" was against Kentucky's laws governing the state's process for open bids in all contracts.
Gov. Ernie Fletcher said that provision will keep the state from issuing $75 million to pay for the project ��� and he said he���s not going to negotiate that point.
���I���m not here to negotiate at all,��� Fletcher said in an interview. ���That���s not part of my job. We���ve presented our offer to the council to support this project. The council needs to determine if they want the arena to move forward or not. The ball is in their court.���
I thought this was a bold move by Fletcher that caused the Mayor to blink and capitulate. Once again the Governor has done an excellent job setting the state's policy and making sure money is not wasted. The reality is that the project with union dominance and the demand for "prevailing wages" would have dramatically increased the cost of the project. Fortunately because of Fletcher, it looks like we are going to be saved that fate.
Council member Rick Blackwell, D-12th, who led the effort to insert labor provisions into the resolution that prompted the veto, asked Abramson for a meeting Tuesday, saying he hopes an agreement can be reached that will suit both sides. He conceded that Democrats don���t have the votes to override Abramson���s veto.
Of course the unions freaked out.
���Now there is no one at the table in the process that will advocate for workers. No one,��� said Larry Hujo, a union representative. ���It���s all about the business community. It���s all about the governor and his appointees, and I don���t think he has the interest of working families at heart.���
Let me translate for you. We will not have anyone at the table that can funnel money to us by fleecing the public. It is all about the commonwealth being able to save money through good leadership by accomplished businessmen. None of those guys will have our best interests at heart regardless of how much we could have fleeced the public.
Of course my favorite quote from Larry is about right to work.
���This is another step in their plan to bring right-to-work to Kentucky, which as everyone knows undermines the living conditions of working families,��� he said.
Ummm, Larry you and the labor cronies are the only ones who believe that right-to-work undermines living conditions of working families. In fact good economics would say that right-to-work would actually boost the living conditions by working families by creating more jobs and providing equal opportunity for success. Otherwise the monopolistic unions would horde both the money and opportunities for good paying jobs. They would be the arbiters of who "succeeds" and not the free market.
All in all, it is a good day for the people of Kentucky and Louisville. Well as good as a day is possible considering they have committed to building this silly stadium in the first place.
Update: 5:30 PM I received a letter from GLI (City Chamber of Commerce) today. I have included part of it below.
We finally stand at the threshold of success on this project, with the final decision in the hands of the Metro Council. Unfortunately, the resolution passed last week by the Council will result in the loss of the $75 million instate funding critical for the project's success.
The Council's resolution includes a condition that was not negotiated with the Arena Authority and includes a mandate that was not funded. This situation creates unknown and unacceptable risks for both the public and private sectors.
Because of these changes, GLI and the business community will not move forward with the $45 million in private funding pledged by business leaders in support of a downtown, multipurpose arena. In addition, we will not raise any new dollars from the private sector until the public sector financing is restored.
It appears that all of the major forces except unions are aligned against the 15 Democrats on the council. It will be interesting to see what they do.
