Morgan Watkins, and Tom Loftus

The Courier-Journal

FRANKFORT, Ky. - Gov. Matt Bevin issued an executive order Tuesday morning that will consolidate a trio of boards that handle tax appeals as well as victim compensation and state negligence claims – a move to reduce costs and speed payments.

Bevin's executive order alters the state's Crime Victims Compensation Board, its Board of Claims and the Kentucky Board of Tax Appeals. On Oct. 1, all three boards will be abolished and their responsibilities assumed by a new group called the Kentucky Claims Commission.

The governor is appointing three people to serve as the sole members of all of those boards in the meantime. Those appointees, whose terms expire on Sept. 30, are Marcus S. Carey of Sparta, Carlo Wessels of Villa Hills and Jessica Burke of Stearns. Tuesday's executive order ended the terms of the boards' other – and now former – members.

When it is established in October, the new commission will be comprised of three members appointed by the governor with the state Senate's consent, according to Bevin's executive order. It will handle claims regarding state negligence as well as compensation claims by crime victims and tax-related disputes.

This is the latest of several reorganizations the governor has implemented in recent months. Bevin has used executive orders to revamp the University of Louisville Board of Trustees, the Kentucky Workers' Compensation Nominating Commission and the Kentucky Retirement Systems Board of Trustees, all of which have been challenged in court.

Attorney General Andy Beshear is challenging Bevin's reorganizations of the U of L Board and the retirement systems board. But Beshear had no comment Tuesday on this new order consolidating the three boards.

Bevin's consolidation of the tax appeals, crime victims compensation and claims boards will save around $350,000 per year, according to a news release from the state's Public Protection Cabinet. In the past, board members received "extravagant" compensation packages that ended up costing Kentucky taxpayers almost $370,000 each year, but the governor's executive order reduces the package members receive by around $270,000, according to the news release.

Bevin's executive order stated that over $1.3 million was spent on operating expenses for the Crime Victims Compensation Board and the Board of Claims in fiscal year 2015, while only $760,000 in funding was used to compensate crime victims and pay for sexual assault examinations.

“Consolidating these agencies will reduce costs and make funds available to reduce a $2 million backlog of payments to crime victims and to health care providers who conduct sexual assault examinations," Bevin said in the news release. "Rather than pay excessive salaries to board members, this money will be used to compensate victims. It’s an easy and prudent decision that will benefit Kentuckians.”

The Board of Tax Appeals had been a three-member board, and a single five-member panel had comprised both the Board of Claims and the Crime Victims Compensation Board prior to Bevin's executive order. Members of the former boards were paid modest salaries for their part-time work, but with benefits including health insurance and pension, according to the Public Protection Cabinet. Annual salaries for the eight former members of the former boards ranged from $19,473 to $33,215 before benefits, according to the Public Protection Cabinet.

Under the new arrangement, eight former board members will be replaced with three members of the new commission. According to the cabinet, the salaries will be reduced: the new chair will be paid $18,000 and each of the other two members will be paid $14,400. Like their predecessors on the abolished boards, these new commission members will also get benefits.

The governor's reorganization of these boards is expected to hasten the claims process and streamline payment to health-care providers for the sexual assault examinations they conduct, the news release said. Bevin's executive order noted that providers have experienced unacceptable delays in receiving those reimbursements in the past.

Reporter Morgan Watkins can be reached at mwatkins@courier-journal.com or (502) 875-5136. Reporter Tom Loftus can be reached at tloftus@courier-journal.com or (502) 875-5136.