FRANKFORT, Ky. (AP) - Lawmakers last week bemoaned funding cuts for education and other areas of state government, but at the same
time authorized hundreds of millions of dollars worth of projects
for things such as ballparks, football equipment and museums back
home.
After more than a week of budget negotiations, legislators said
they had settled on an approximately $19 billion two-year "bare
bones" budget that slashed funding for public universities by 3
percent and cut funding for human services. It was also free of
special projects.
But, in an election year budget session, some legislators
threatened to vote against the project-free budget, putting state
government's spending plan in jeopardy. Ultimately, House and
Senate lawmakers brokered a deal that authorized millions of
dollars worth of projects across the state.
"Quite frankly they can't pass a budget through the House
without those," Senate President David Williams, R-Burkesville,
said of the special projects. "We have shown that we can pass a
budget through the Senate without those, but traditionally those
House members go out and make those commitments."
Kentucky lawmakers had returned to the Capitol in January, faced
with the daunting task of crafting a state spending blueprint with
revenue projected to decline by $900 million over the next two
years. Gov. Steve Beshear had ordered 3 percent cuts just to manage
an estimated $434 million shortfall in the current fiscal year that
ends June 30.
The newly elected governor proposed the General Assembly raise
revenue and increase the state's tax on cigarettes by 70 cents per
pack. Beshear also urged legislators to approve a proposed
constitutional amendment that would legalize casino gambling - a
plan he says could eventually raise $500 million per year in extra
revenue.
Lawmakers, however, decided not to raise taxes.
Instead, the legislature agreed to raise more than $300 million
in revenue by capitalizing on an expected flood of retiring state
employees, capturing more revenue from the Kentucky Lottery and
restructuring some state debt.
Nevertheless, House Appropriations and Revenue Committee
chairman Harry Moberly voted against the budget proposal calling
it, "One of the worst I've ever seen."
Still, the legislators agreed to authorize additional projects
as part of a separate spending bill when they return to the Capitol
on April 14. During the break between last Thursday and their
return, lawmakers are negotiating exactly which projects will get
funded.
Richards said talks on those projects will begin sometime early
this week and include $50 million for water and sewer projects in
coal counties and $100 million in non-coal counties.
Legislators also agreed to authorize $230 million in road
projects and about $100 million in coal-severance projects over the
next two years. The plan keeps proposed Louisville bridges on track
through federal bonds and frees up money for other road
construction in the state.
Legislators agreed to appropriate coal severance revenues, which
come from a mining tax, to pay for hundreds of projects in the
state's coal counties. In some cases, the money will be used for
treating drug addicts, renovating jails and buying police cars. In
others, it will be used for storm warning systems, building
factories, or expanding recreational opportunities.
There's also an appropriation of $275,000 for an ATV training
facility and trailheads in Knott County, $275,000 for operating and
maintaining the East Kentucky Expo Center in Pikeville and $250,000
for Elkwood Golf Course, club house, parking and storage in
Sturgis. Harlan county is getting $249,000 for a little league
batting cage and building, while Bell County's getting $5,000 for
football equipment for youngsters.
The list goes on.
Williams said such projects won't cost the state money from its
general fund and would eventually generate more revenue through the
state's income, sales and gasoline taxes. Funding for some things
such as fire trucks can also be a worthy investment that helps keep
local insurance rates down, Williams said.
But Rep. Tom Burch, D-Louisville, said appropriating that type
of money sends a "very bad message" to voters at a time when the
state as a whole is facing tough times. With enough votes,
legislators could have decided to spend that money elsewhere, Burch
said.
"It shows you that materialism is taking too big a hold on this
country," Burch said. "Why do we have to have projects now?"
But Rep. Rick Nelson, D-Middlesboro, said that idea is "100
percent wrong." Revenue from the mined coal comes "off the backs
of the coal miners" and should be returned to their areas, Nelson
said. He also noted that a portion of the revenue from that tax
goes into the state's general fund, which pays for things such as
education and health care.
"When they needed $10 million last year for Ford (Motor Co.,
which has plants in Louisville), all the mountain legislators voted
for them. We need to support each other and coal severance is a
part of the law," Nelson said. "We don't have a tax base and
those projects, I think help improve the community. Some of them on
there might not be what everybody likes, but what is?"
Below is a selection of coal-severance projects lawmakers have
authorized for the next two years:
- $600,000 for Leslie County 911 operations improvements.
- $500,000 for Clay County ambulance center construction.
- $275,000 for ATV training facility and trailheads in Knott
County.
- $100,000 for horse trail, stable and RV park in Knott County.
- $275,000 for operating and maintaining the East Kentucky Expo
Center in Pikeville.
- $250,000 for Elkwood Golf Course, club house, parking and
storage in Sturgis.
- $200,000 for construction of hospice center in Perry County.
- $200,000 for purchase of police vehicles for Pikeville.
- $200,000 for improvements at Lawrence County industrial park.
- $195,363 for operating the Kentucky Museum Hall of Fame in
Mount Vernon.
- $150,000 for Breathitt County museum and welcome center.
- $100,000 for ATV trail in Pike County.
- $100,0000 for Morgan County High School drug treatment
program.
- $75,000 for a Bookmobile in Floyd County.
- $61,700 for installing lights and other improvements for
Ashland National Little League.
- $60,000 for lights for the Tri-City Little League in Harlan
County.
- $50,000 for a skateboard park in London.
- $25,000 for a softball complex in Barbourville.
- $20,000 for storm siren in Ohio County.
- $20,000 for Letcher County Coal Miner's Museum.
- $15,000 for youth golf program in Bell County.
- $10,000 for an animal spay/neuter program in Middlesboro.
- $5,000 for football equipment for kindergartners to sixth
graders in Bell County.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
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The legislation is House Bill 406 and House Bill 410.
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Associated Press Writer Roger Alford contributed to this report.