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February 8, 2010

Still no proposal for state budget

By Ronnie Ellis / CNHI News Writer

Despite plans to share broad ideas on how to craft a state budget with House Democrats by mid-week, House leaders still had no proposal to share when the week ended.

House Speaker Greg Stumbo, D-Prestonsburg, said Friday he hoped to have such broad outlines “sometime by the end of next week.” But he and Senate President David Williams, R-Burkesville, again indicated those plans aren’t likely to include new revenue from tax reform – or gambling.

Stumbo said historically the legislature moves no more than about 1 percent of the appropriations in a governor’s budget proposal but this time will be different. That’s because Gov. Steve Beshear’s budget proposal relied on $780 million in revenues from expanded gambling, something which the legislature hasn’t yet approved and which Stumbo and Williams say won’t pass this session.

Lawmakers effectively dismissed Beshear’s proposal and said they would craft a state budget “from scratch.” Revenue estimates indicate the state will fall around $1.4 billion short of current spending levels and without new revenue, legislators face a difficult task of passing the constitutionally required balanced budget.

Stumbo and Williams have several times indicated they are looking at ways to pare back the size of state government to “reduce the base” as Williams describes it.

House Minority Leader Jeff Hoover, R-Jamestown, this week introduced a bill which would require the Personnel Cabinet to report the number of state employees on a quarterly basis, indicating which are political or non-merit appointees and how many are employed by personal services contracts. Hoover said it’s possible the General Assembly could pass the bill quickly enough that the administration would have to comply by March 1 – before the legislature gives final approval to a budget.

On Friday morning, Stumbo said he supports Hoover’s bill. Williams said he hasn’t seen it – but he has consistently spoken of the need to “reduce the base” and cost of government operations.

In non-budget matters, the Senate passed a bill requiring the Kentucky Association of Counties and the Kentucky League of Cities to provide more transparency to their operations. Both groups, quasi-governmental agencies made up of member counties and cities which pay dues and purchase insurance coverage and other benefits from the organizations, were criticized by state auditors for undocumented, sometimes questionable spending, and poor oversight of professional staff by state auditors.

KACo and KLC would have to adopt ethics and nepotism codes, be subject to state open records and meetings laws, and undergo annual audits and make their finances publicly available.

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