Lawmakers agree: We'll pass the budget

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Despite having different opinions, leaders in the House and Senate say they can create a budget without a special session.

The legislature failed to pass a budget in regular session in 2002 and 2004. Public financing of political campaigns was the key sticking point in 2002. In 2004, lawmakers were unable to reach an agreement on proposed tax reform.

A tax revenue package proposed by the House that includes a 25-cent cigarette tax increase is a key disagreement this year.

However, House Speaker Jody Richards, D-Bowling Green, and Senate President David Williams, R-Burkesville, say there's no need for a special session this time.

Williams said he expects the appropriations committee to pass the budget this morning and it will be voted on in the Senate this afternoon.

Williams said a free conference committee could start negotiating tonight and would have about five days to reach an agreement.

"We look forward to working together in a bipartisan way," Williams said.

Williams said the budget proposed by the Senate will be different from the House version, which includes about $400 million a year in new taxes. The House revenue package would also include a plan to restructure the outstanding general fund debt and save $150 million a year.

Williams said the Senate plan will not include any tax increases or debt restructuring, which he called "irresponsible."

At the same time, Williams said the Senate plans to increase employer contributions to state retirement systems by $84 million. Gov. Steve Beshear froze contributions at 8.5 percent, which would add about $800 million to the unfunded liability.

Despite the differences, both Richards and Williams said they're not planning on a special session.
Rep. Carl Rollins, D-Midway, said he's not certain legislative leaders will be able to reach an agreement although he's optimistic they will.

Rep. Derrick Graham, D-Frankfort, said he expects conference committee negotiations to be successful.

"I think we owe it to people to make sure we come to agreement on a budget," he said. "I hope we don't leave this 60-day session without one. I would be disappointed."

Sen. Julian Carroll, D-Frankfort, said the local sewer and water projects are likely to be cut in the Senate although he said he provided justification for each of the projects in his district.

"Each of those projects are of critical importance," he said.

As for not having a stalemate, Carroll said the Kentucky Supreme Court ruled that executive spending plans are unconstitutional so without a budget, non-essential government services would shut down. Carroll said everybody wants to avoid that.

"Everybody is hopeful we can agree on a budget," he said.

Former House Majority Whip Joe Barrows said life continued as normal in 2002 and 2004 because Gov. Paul Patton and Gov. Ernie Fletcher were able to issue spending plans.

"You couldn't tell we didn't have a budget," he said.

Now with the court decision, things would be different, Barrows said, because non-essential government services would be shut down at the end of the fiscal year. Nobody is interested in having that happen, Barrows said, because it would damage both political parties.

"Everybody's political interests are best served by having a budget by June 30," he said.

As the final budget proposal is crafted, local leaders say they will work to ensure that funding for Franklin County projects is retained.

The House plan includes about $2.6 million for sewer and water projects in Frankfort and Franklin County.

Frankfort Mayor Bill May said $733,000 would be used to complete drainage and sewer improvements to the Holmes Street area. The project includes plans to extend a drainage pipe to the Kentucky River and separate the storm water and sanitary sewer systems.

"This would go a long way towards helping," he said. "It has long been a priority for me."

About $550,000 would also bring clean drinking water to the Peaks Mill area on U.S. 127.

The Frankfort Plant Board would also get $325,000 for water line extension projects.

The Farmdale Sanitation District also plans to use $550,000 to design a 750,000-gallon wastewater treatment plant. Bruce Lee, chairman of the sanitation district, said the treatment plant would replace failing septic tanks and privately owned "package" treatment plants south of Interstate 64 and west of the Kentucky River.

Lee said the equipment is more than 20 years old and needs to be replaced because it's creating a health problem.

"The Franklin County Health Department says it's identified as the number one problem in Franklin County," he said.

The Farmdale Water District will also have $992,000 to build a new water tank. Franklin County Judge-Executive Ted Collins said the project would improve service and supply to the area.

"They're extremely important projects for our community," he said.

The House plan would also restore funding to projects vetoed by Gov. Ernie Fletcher in 2006, including $17.5 million for repairs to locks and dams on the Kentucky River.

Kentucky State University would also get $7 million for a new parking garage and $4.9 million to renovate the Betty White Nursing Building.

The road plan also includes $30.8 million for highway projects and bridge repairs in Franklin County in the next two fiscal years. The list includes:
>$570,000 to replace the KY 1665 bridge over Stoney Creek
>$10.4 million to widen U.S. 421 to five lanes near Chenault Industrial Road
>$680,000 to reconstruct U.S. 421 between Bald Knob and Harvieland Road
>$8.2 million to reconstruct U.S. 60 between Martin Luther King and Schenkel Lane
>$260,000 for drainage improvements to I-64 at milepost 58
>$520,000 for drainage improvements to U.S. 421 at milepost 2
>$1.7 million to improve the intersection of Cardwell Lane and Davenport Drive
>$280,000 to build a turn lane at Jim Beam on U.S. 460
>$1.6 million for safety improvements to the KY 151 interchange
>$6.7 million to widen U.S. 60 from South Benson Creek Bridge to Vicky Way