After a financial scandal that shook the faith of many, the Kentucky Association of Counties is back and better than ever with increased accountability within the organization, officials said.

"KACo is alive and well," said F.J. "Bear" Finn, who stepped back into a leadership role with KACo around the same time The Herald-Leader published a series of stories detailing $600,000 in spending by five of KACo's executives, including charges to Louisville strip clubs and a Lexington escort service. As a result of the investigative series, former KACo Executive Director Bob Arnold was asked to resign.

When the immediate past president resigned from the board, KACo policy was to ask previous presidents to fill in. Finn was president of KACo's board in 2005 and was third to be asked, but first to be available.

His tenure in that role ended Wednesday during KACo's annual conference.

"There's no doubt there were some wrongdoings," Finn said. "Some of it was mishandled and that's what we were trying to correct, and have corrected."

Many counties, including Mason County, have health, property and liability insurance through KACo, as well as worker's compensation. Finn said KACo will continue to save counties thousands of dollars, despite a few operating changes.

"The operation's going to be different, but the result as far as savings go, it'll be the same or better," Finn said.

Attending the annual conference with Finn was Mason County Judge-Executive James "Buddy" Gallenstein.

Gallenstein said the outgoing president of the board, Mike Foster was given a standing ovation for "putting KACo back on track."

The theme of the annual conference was "Going Green for Kentucky," an issue important to the entire state and every individual county, Finn said. Particularly important for Mason County, perhaps, with three power plants located relatively near, and attempts to reduce emissions ongoing, Finn said.

Gallenstein said an address by House Majority Floor Leader Rocky Adkins covered energy. Adkins noted how blessed Kentucky is with its rich natural resources, like coal, but that Kentucky needs to continue efforts with green energy.

It was not the "go green" theme that captivated Gallenstein's attention, however.

Gallenstein said the conference, which ends today, revealed all associations are experiencing and anticipating budget cuts.

"My personal take on each one of those issues, we're all going to have to absorb some type of budget cuts," Gallenstein said.

Gallenstein said Gov. Steve Beshear's speech indicated the commonwealth's economic state will not soon turn around. The levels of income will remain the same, Gallenstein said, but the cost of government and doing business will only increase.

Gallenstein said he hopes that not all cuts will be passed on to local governments.

Contact Misty Maynard at misty.maynard@lee.net or by calling 606-564-9091, ext. 272.

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