Kentucky's Hedge Funder Governor Keeps State Money In Secretive Hedge Funds

Kentucky’s public pension system is a long-running, worst-in-the-nation disaster. Even as state workers chip in their fair share, the system suffers from years of chronic underfunding by the state. Seeking higher returns, the program, formally known as Kentucky Retirement Systems, has turned to “alternative investments” such as private equity and hedge funds. But those funds also carry far more risk than traditional investments in stocks and bonds ― and much higher fees.

Kentucky’s Governor Dramatically Cut Education Funding. Now He’s Getting Sued.

This spring, Kentucky Gov. Matt Bevin (R) bypassed the state legislature to unilaterally cut $41 million in education funding. Now, he’s getting hit with a lawsuit.

State Attorney General Andy Beshear (D) is suing Bevin over what he sees as a violation of state law and the governor’s authority. Bevin ordered a 4.5 percent cut to higher education funding in March, and Beshear told the governor he had one week to renege on his budget cuts or he would face a lawsuit. Bevin has refused to renounce his budget cuts, so the attorney general is following through on his promise to take the governor to court.