Steve Beshear's Budget To Include Revenue From Expanded Gambling That Isn't There. So How Does That Work?
Beshear budget could spend gambling money
By Stephenie Steitzer
FRANKFORT, Ky. — With his deadline to propose the 2010-12 budget just a day away, Gov. Steve Beshear still hasn’t ruled out the bold but risky move of counting on revenue from an expanded gambling bill to help fill a massive hole in the two-year spending plan.
The move would be hugely unpopular with lawmakers, but it remains one of the limited options Beshear is considering to help reduce the cuts he would have to make in the face of a projected $1.4 billion shortfall.
“I think that would be a mistake, and I do not think the legislature would look too kindly on that,” House Minority Floor Leader Jeff Hoover, R-Jamestown, said.
In public statements, House Speaker Greg Stumbo, D-Prestonsburg, has repeatedly discouraged the governor from basing his budget on projected revenue from expanded gambling by allowing slots at racetracks.
As a courtesy to the governor, Stumbo said he would introduce a bill containing any budget Beshear proposes, but, “quite frankly we'd literally discard his budget and start from scratch” if it contains gambling revenue.
Asked about his plans to use expanded gambling revenue in the budget, Beshear would only say “we’re looking at all the options.”
But the governor has previously said he won’t support major tax increases, and last week he added that he plans to do as much as “humanly possible” to avoid deep cuts to education, social services and public safety.
With the contingency fund nearly spent and federal stimulus money drying up next fiscal year, it appears impossible to spare those areas without additional revenue.
“My priorities continue to be the same: Educating our kids, providing health care for our most vulnerable, providing public safety for our citizens and moving our state forward economically,” Beshear said in a press conference last week.
The governor is scheduled to unveil his proposed budget during a speech before a joint session of the General Assembly at 7 p.m. Tuesday.
With Beshear gearing up to run for re-election next year, he has incentive to avoid the wrath of education and social service advocates and other supporters who are pushing the governor to spend money on various projects and programs. Half the state's senators and all the House members are also up for re-election this year.
Republicans and Democrats warn that Beshear would further damage already-strained relations with both chambers by proposing a budget containing projected gambling revenue.
Stumbo supports allowing slots at tracks but has different ideas about how to spend the revenue. He wants to use the money to fund a massive package of school construction projects across the state, similar to the one he used last year to garner support in the House for the expanded gambling bill.
He said he plans to file an expanded gambling bill later this session, but its prospects in both chambers remain unclear. Stumbo said he is hopeful Congress would send funding relief to states, but he doubts it would come in time to help legislators craft the budget before the legislative session ends in April.
Congress is considering a second stimulus package, but prospects for final passage remain unclear.
Meanwhile, Stumbo has his own plans for shoring up the budget.
He said a group of Republican and Democratic legislators is working on a tax-reform proposal that he hopes would eliminate the corporate income tax, extend a tax credit to the working poor, reduce the sales tax rate from 6 percent to 5 percent, extend the sales tax to services and eliminate millions of dollars worth of exemptions to some industries.
Whether it is plausible this session, Stumbo said, “depends upon what the governor's budget reveals.”
Williams said he wants to begin the debate on tax reform, although it's unclear whether Republicans and Democrats could reach an agreement and whether the package would generate more revenue.
He said expanded gambling would not pass the House or Senate this session and that the governor should have the courage to make difficult cuts.
“I've made difficult votes throughout my career up here in the Kentucky State Senate, votes that weren't always popular with my own party,” he said. “The governor is going to have to do that because he's going to have to lead, follow or get out of the way.”
Reporter Stephenie Steitzer can be reached at (502) 875-5136.
By Stephenie Steitzer
FRANKFORT, Ky. — With his deadline to propose the 2010-12 budget just a day away, Gov. Steve Beshear still hasn’t ruled out the bold but risky move of counting on revenue from an expanded gambling bill to help fill a massive hole in the two-year spending plan.
The move would be hugely unpopular with lawmakers, but it remains one of the limited options Beshear is considering to help reduce the cuts he would have to make in the face of a projected $1.4 billion shortfall.
“I think that would be a mistake, and I do not think the legislature would look too kindly on that,” House Minority Floor Leader Jeff Hoover, R-Jamestown, said.
In public statements, House Speaker Greg Stumbo, D-Prestonsburg, has repeatedly discouraged the governor from basing his budget on projected revenue from expanded gambling by allowing slots at racetracks.
As a courtesy to the governor, Stumbo said he would introduce a bill containing any budget Beshear proposes, but, “quite frankly we'd literally discard his budget and start from scratch” if it contains gambling revenue.
Asked about his plans to use expanded gambling revenue in the budget, Beshear would only say “we’re looking at all the options.”
But the governor has previously said he won’t support major tax increases, and last week he added that he plans to do as much as “humanly possible” to avoid deep cuts to education, social services and public safety.
With the contingency fund nearly spent and federal stimulus money drying up next fiscal year, it appears impossible to spare those areas without additional revenue.
“My priorities continue to be the same: Educating our kids, providing health care for our most vulnerable, providing public safety for our citizens and moving our state forward economically,” Beshear said in a press conference last week.
The governor is scheduled to unveil his proposed budget during a speech before a joint session of the General Assembly at 7 p.m. Tuesday.
With Beshear gearing up to run for re-election next year, he has incentive to avoid the wrath of education and social service advocates and other supporters who are pushing the governor to spend money on various projects and programs. Half the state's senators and all the House members are also up for re-election this year.
Republicans and Democrats warn that Beshear would further damage already-strained relations with both chambers by proposing a budget containing projected gambling revenue.
Stumbo supports allowing slots at tracks but has different ideas about how to spend the revenue. He wants to use the money to fund a massive package of school construction projects across the state, similar to the one he used last year to garner support in the House for the expanded gambling bill.
He said he plans to file an expanded gambling bill later this session, but its prospects in both chambers remain unclear. Stumbo said he is hopeful Congress would send funding relief to states, but he doubts it would come in time to help legislators craft the budget before the legislative session ends in April.
Congress is considering a second stimulus package, but prospects for final passage remain unclear.
Meanwhile, Stumbo has his own plans for shoring up the budget.
He said a group of Republican and Democratic legislators is working on a tax-reform proposal that he hopes would eliminate the corporate income tax, extend a tax credit to the working poor, reduce the sales tax rate from 6 percent to 5 percent, extend the sales tax to services and eliminate millions of dollars worth of exemptions to some industries.
Whether it is plausible this session, Stumbo said, “depends upon what the governor's budget reveals.”
Williams said he wants to begin the debate on tax reform, although it's unclear whether Republicans and Democrats could reach an agreement and whether the package would generate more revenue.
He said expanded gambling would not pass the House or Senate this session and that the governor should have the courage to make difficult cuts.
“I've made difficult votes throughout my career up here in the Kentucky State Senate, votes that weren't always popular with my own party,” he said. “The governor is going to have to do that because he's going to have to lead, follow or get out of the way.”
Reporter Stephenie Steitzer can be reached at (502) 875-5136.
Labels: Kentucky politics
posted by KYJurisDoctor at 5:15 PM
0 Comments:
Post a Comment
<< Home