Senate passes $19 billion Ky. budget, House debates

April 02, 2008 10:48 pm

— It took a last minute deal promising to fund water and sewer projects in non-coal counties. But with the help of several Republican House members who wanted those projects, the legislature was expected to pass a $19 billion, two-year budget late Wednesday.
It passed the Senate 35-3, with Democratic Senators Perry Clark of Louisville and Ernesto Scorsone of Louisville and Republican Senator Richie Sanders of Franklin voting against it. Sanders said he voted against the budget because it included no funding for the Glasgow State Nursing Facility. At press time, the budget was being debated in the House but was expected to pass.
The budget provides nearly $200 million in additional money through employee retirement savings ($85 million each year), $7 million each year from the lottery, about $50 million from restructuring some existing state debt, and about $100 million over two years from government efficiencies.
But it reduces funding for higher education by roughly 3 percent from current funding which has already been reduced this year by 3 percent. That almost certainly means higher than expected increases in tuition. The budget authorizes several university capital projects which the universities will finance with their own funds. It gives teachers and state employees 1 percent raises each year, less than the House sought.
And it includes debt service from the general fund for $417 million of projects and debt service from the road fund for $135 million of road bonds. It cuts $40 million in health and human services. It provides $10.3 million in road funds for the Kentucky Horse Park to upgrade roads for the 2010 World Equestrian Games and $9 million for the Kentucky Center of Arts renovation.
When the day began, passage was in doubt. Many Democrats in the House were opposed because of the cuts to education and health and human services. Others were unhappy their earmarked projects in coal producing counties had been eliminated. The coal severance funds were left intact for those counties but local governments would have to apply for state approval of projects they proposed.
But there were no projects for non-coal producing counties and some lawmakers – including several Republican House members – said they could not vote for a budget which had no projects for their district.
Rep. Greg Stumbo, D-Prestonsburg, then cut a deal with Senate leaders to bond $50 million from the general fund and $50 million from the tobacco settlement account for water and sewer projects in non-coal counties. Suddenly, there were sufficient Republican House votes to go along with the remaining Democratic votes to pass the two-year, $19 billion budget.
The late addition of the water and sewer projects couldn’t be added to the budget, so a “supplemental” appropriation will be worked out during the interim between Wednesday and April 14 when lawmakers return for two days to consider any vetoes by Gov. Steve Beshear. They’ll pass the supplemental bill at that time – but that means if Beshear vetoes it, it can’t be over ridden.
Rep. Tommy Turner, R-Somerset, said Wednesday night he was told that an agreement was worked out with Beshear not to veto the projects and he planned to vote for the bill because of the need for water and sewer infrastructure in Pulaski County.
Earlier Wednesday, House Democrats caucused behind closed doors for just over two hours, and several were unhappy when they emerged. Several said there were no more than 35 to 40 votes for the budget.
Some wanted more money for education and health and human services, and some objected to projects in a budget that cuts funding for higher education, health and human services but provides money for capital projects.
“I’m not going to vote for it,” said House budget chairman Harry Moberly, D-Richmond. During budget negotiations with the Senate last week, Moberly repeatedly said if the legislature was unwilling to raise revenues to fund education and human services he could not support capital projects in that budget.
Rep. Johnny Bell, D-Glasgow, was visibly unhappy.
“I’m not going home without those jobs at the (Glasgow State Nursing Facility),” Bell said.
The facility is old and deteriorating and the Cabinet for Health and Human Services has said it may eventually have to close if it isn’t either renovated or replaced. The House budget included money to finance reconstruction of the facility, but the Senate removed it. Sanders, the lone Republican Senator to vote against the budget, said language was added to require the cabinet develop a plan to replace the building and get legislative approval before any beds are moved to another facility.
“I can go home without roads and I can go home without water and sewer,” Bell said. “But I can’t go home if we lose those jobs while we’re bonding money to build agricultural projects and museums.” He was talking about a diagnostic center at the University of Kentucky and other capital projects.
House Speaker Jody Richards, D-Bowling Green, said it would pass. Asked how many Republican votes he needed to pass the budget, Richards answered: “Some.”

Ronnie Ellis writes for CNHI News Service and is based in Frankfort, Ky. He may be contacted by email at rellis@cnhi.com.

Copyright © 1999-2008 cnhi, inc.

Copyright © 1999-2008 cnhi, inc.