Meet the candidates for auditor

BY KENTON HORNBECK | LINK nky REPORTER

The auditor is elected to a four-year term and is only allowed to serve two consecutive terms. Election Day is May 16.

LINK nky sent a questionnaire to both candidates. What follows is based on their emailed responses.

Derek Petteys

Derek Petteys has worked as a project manager in central Kentucky for approximately 30 years. In this role, he managed budgets, contracts and capital resources. On his website, Petteys advertises himself as a “citizen candidate” and “constitutional conservative.”

He holds an undergraduate degree in public administration from Western Michigan University and an MBA from Northern

Kentucky University. He also has training as a fraud examiner, which he says will be beneficial for criminal investigation cases.

What do you think are the key qualities and experience needed to be an effective auditor of public accounts, and how do you believe your own qualifications fit this profile?

Petteys: “Everything the government offers is a service TO the taxpayers paid for BY the taxpayers. Ideally, the auditor should be someone from outside the political world who is experienced in finance, management and client services. My professional career and education covers these areas and would allow me to pragmatically find and fix problems without fear or favor.”

Can you discuss any specific policies or initiatives you would prioritize if elected as auditor of public accounts, and how these would benefit the state and its citizens?

Petteys: “Numerous counties have recently changed political leadership and discovered significant operational shortcomings and financial irregularities. I intend to travel the state extensively to work directly with local leaders to address those issues and work toward more efficient and responsive government services. My office will also publish an annual ‘Waste Report,’ which will identify those agencies and officials which must ‘do better’ for the taxpayers.”

What do you see as the most pressing issues facing the state of Kentucky right now, and how do you think your role as auditor of public accounts can address these issues?

Petteys: “Currently, Kentucky is facing a $13 billion deficit in its pension fund. The state must honor its promises to retirees, but not at the expense of taxpayers. By eliminating waste and improving efficiencies, we can address this shortfall while improving gov-

Continues on page 22 ernment services. Also, I intend to closely analyze school district budgets to ensure that funding focuses on student outcomes rather than social agendas.”

Allison Ball

Allison Ball is the current Kentucky treasurer. During her two terms in office, Ball returned more than $142 million of unclaimed property, launched a website for transparency in government spending and established a savings and investment program for Kentuckians with disabilities called STABLE Kentucky.

Prior to her role as treasurer, Ball practiced bankruptcy law and also served as the assistant Floyd County attorney. She holds a law degree from the University of Kentucky and a bachelor’s degree from Liberty University.

What do you think are the key qualities and experience needed to be an effective auditor of public accounts, and how do you believe your own qualifications fit this profile?

Ball: “It is the auditor’s duty to protect taxpayer dollars and good government by ensuring that all areas of government use state money correctly and that processes follow the law. To that end, the state auditor must have the qualifications to prepare him or her to investigate and hold people accountable. You must be able to understand fiscal and legal matters. My track record as treasurer demonstrates my commitment to these principles. Prior to being treasurer, I practiced bankruptcy law for two years and also served as a prosecutor for four. I have the ethical, financial, legal and investigative tools to successfully serve as state auditor.

As treasurer, I have protected taxpayer dollars from unconstitutional spending, fraud and abuse. I have protected pension dollars from being invested politically and have ensured these dollars only be invested to achieve the best returns possible for state retirees. Additionally, I have stopped millions of dollars of fraud attempts at the Kentucky Treasury.

In addition to having the skills to do the job, I believe it is also important that the auditor is impartial and unbiased in carrying out his or her duties. During my time as treasurer, I have demonstrated a commitment to following the law, no matter what.”

Can you discuss any specific policies or initiatives you would prioritize if elected as auditor of public accounts, and how these would benefit the state and its citizens?

Ball: “As auditor, I want to find creative ways to save money and streamline processes. I particularly want to focus on lowering the cost of audits on local governments by consolidating services and finding ways to partner with others, including the private sector. I have had great success doing this at the Kentucky State Treasury.

I have talked with many local elected officials, and I think there is an opportunity for the state auditor to work with county and city officials on the front end before audits occur to improve local accounting practices and increase government transparency and accountability. I believe this can be especially beneficial to newly elected county and city officials who are learning the correct procedures for government services and accounting for the first time.

By lowering fees for local municipalities and working with them to improve the understanding of best practices, we can have a direct impact on our state by saving municipalities and in turn, taxpayer money.”

What do you see as the most pressing issues facing the state of Kentucky right now, and how do you think your role as auditor of public accounts can address these issues?

Ball: “Kentucky continues to have one of the worst-funded pension systems in the nation. Having a poorly funded pension system means not only that our state employees’ future retirements are in jeopardy, but it also threatens the financial future of our state as a whole. We have seen in recent years that this unfunded liability has even caused the state’s credit rating to be downgraded.

As treasurer, I have fought to protect state pension dollars from being invested in ESG (Environmental, Social and Corporate

Governance) funds that place political objectives above solid returns. I championed the passage of HB 236 this year, which makes it clear that Kentucky law does not allow pension dollars to be invested for objectives other than good financial returns.

I also supported the passage of SB 205 in 2022, which directs the state treasurer to create a list of companies that are boycotting fossil fuels. The law then directs state governmental entities to begin divestment from these companies. This work has been imperative to ensuring that our already strapped pension plans are not utilized to fund political agendas while losing money. It has been especially important at a time when ESG funds are being strongly outperformed by fossil fuels.

The state auditor sits on the Public Pension Oversight Board and is directly involved in working to improve the solvency of these plans. As state auditor, I will continue my fight to ensure that state employees’ retirements and the financial livelihood of the commonwealth are protected.”