Local legislators say its unlikely they will reopen the budget and fund from a revenue surplus all the projects Gov. Ernie Fletcher proposed in his State of the Commonwealth speech Tuesday.
The $232 million surplus can be used to provide additional funding for education and health-care initiatives, Fletcher said. Fletcher attributed the surplus to his effort to modernize the tax code and improve efficiency in government.
"This is not a budget year, but our effort to run government effectively has created the opportunity to address some of Kentuckys pressing needs in this session," Fletcher said.
Rep. Carl Rollins, D-Midway, said Fletcher proposed some good programs, such as providing $5 million for adult education and $20 million for need-based tuition assistance. However, Rollins said putting money in the budget reserve trust fund or the state retirement systems will have priority.
"It is unrealistic to think everything will be funded right now," Rollins said. "But we could consider some of the programs for the next budget cycle."
Rollins agreed with Fletchers plan to use the surplus to provide an additional $50 million for state employee and teachers retirement systems. The money would be divided and $25 million will be put in the health insurance fund for both retirement plans.
"That is the most important issue," Rollins said. "If we dont fund it now, we will be paying a lot more later on."
Another $150 million would be put into the budget reserve trust fund, Fletcher said, to improve Kentuckys bond rating. Combined with the pledge to support the retirement funds, that doesnt leave a lot of money to do anything else, Rollins said.
Rep. Derrick Graham, D-Frankfort, also said he supported several of Fletchers proposals, including restoring funding for $370 million projects he vetoed last year. The money would include $11.9 million for Kentucky State University and $17.5 million to repair locks and dams on the Kentucky River.
"Its the right thing to do," Graham said.
However, its unreasonable to expect the budget to be revisited in order to fund all of the other projects Fletcher discussed, Graham said. He said those proposals must be put in the context that Fletcher is seeking re-election and faces a serious challenge from within his own party. This election is the first real test of gubernatorial succession laws, Graham said, because Gov. Paul Patton only faced token opposition when he sought re-election.
"That makes the stakes higher, sooner," Graham said. "Gov. Fletcher has gone into campaign mode."
Stuart Victor, chairman of the Franklin County Republican Party, described Fletcher as forceful when he addressed the House and Senate in a special joint session Tuesday before a statewide TV audience. Victor agreed with the plan to restore funding for the vetoed projects and reinforce the state retirement systems. However, Victor said its understood that most of the other proposals wont be considered unit the next budget cycle in 2008.
"The legislators have been very clear on that point," Victor said.
Bill Kirkland, a Frankfort lawyer and self-described Republican "foot soldier," said Fletcher was confidant and poised when he delivered his address to the General Assembly. Although the budget may not be reopened this session, Kirkland still said it was good for Fletcher to present his ideas to lawmakers.
"There is some surplus, and its time to talk about what youre going to do with it," he said. "The state has many needs."
Kirkland said he supports Fletchers plan to build a 10,000-seat outdoor spectator arena for the 2010 World Equestrian Games and the decision to reinforce the state retirement fund. Kirkland said Franklin County has more than 5,500 state retirees, second only to Jefferson County.
"Its a matter of critical importance to this county," Kirkland said.
Its also necessary to support the academic initiatives that were presented Tuesday night, Kirkland said. Fletcher discussed the need to provide more support for teachers and students involved with advanced math and science courses, also a priority in the Senate. Kirkland agreed and said that improving access to higher education will also benefit all Kentuckians.
"It will improve the standard of living and thats good for everybody," he said.
Although the speech included lots of new projects, Larry Forgy said Fletcher presented a conservative plan at heart. Forgy, a Frankfort lawyer and supporter of the Fletcher administration, said putting the surplus into the retirement system and reserve trust fund was fiscally responsible.
"I think it was a highly conservative speech because there is usually a tendency to want to build monuments when there is a surplus," Forgy said.
Although Fletcher now supports a plan to fund the projects that were vetoed last year, Forgy said it was necessary at the time to preserve Kentuckys bond rating. After the projects were vetoed, Kentuckys bond rating on the Standard and Poors index rose from stable to positive.
"He was right to hold the legislature back," Forgy said.