FRANKFORT — State parks won’t close. Neither will public schools. But teachers won’t likely get a raise and neither will any other state employee. There won’t be any tax increase and no one’s talking about gambling except the governor.
And lawmakers continue to hope and expect at least some additional help from the federal government as they struggle to build a two-state budget that is short of revenue by $1 billion or more.
That was the message Friday morning from the state’s top two lawmakers, Senate President David Williams, R-Burkesville, and House Speaker Greg Stumbo, D-Prestonsburg. They made clear they’re happy to take over the budget process from Gov. Steve Beshear and seemed to make just as clear they’re in no mood to pass his proposal.
Their remarks came a day after Beshear sent House members a letter asking them to pass his budget proposal which relies on $780 million in gambling revenue although the electronic slots at racetracks he wants haven’t been approved – and aren’t likely to be in this session.
“I haven’t read it,” was Stumbo’s comment when asked about the letter. He said proponents of slots at the tracks “haven’t given up on (the idea), but it’s not an issue you can build a budget around.”
Williams called the letter “confrontational,” and accused Beshear of “trying to alienate the public as far as the legislature is concerned,” and of making statements to some lawmakers that “if he doesn’t get expanded gaming that we leave here, that he’s going to continue to blame any cuts contained in the budget on the legislature and call us back into session.”
But both said they expect the legislature to write a budget that Stumbo said won’t close state parks, won’t close the schools but which may reduce funding for some executive branch agencies and rely on savings in Medicaid along with some help from the feds. They said they anticipate at least six months more federal stimulus, probably through Medicaid assistance for cash strapped states, although Williams said it would “not be prudent” to rely on that before it is available.
Nor are they considering tax reform to solve the difficulties in putting together this budget: “We aren’t even talking about that,” said Stumbo. “We are preparing a budget under the scenario of existing revenues.”
Stumbo said he thinks there are more than $200 million of savings that can be wrung out of Medicaid – that’s the amount Beshear proposed in his own budget. He said they’ll look at the number and cost of personal services contracts issued by state government, at the number of executive branch employees, and look for ways to ensure state “agencies are spending their money wisely.” He said teacher won’t get raises in this budget.
Williams said that unlike the federal government, Kentucky’s budget is not “self-effectuating,” meaning the legislature must appropriate whatever the governor – Stumbo called him the state’s “chief administrative officer” – spends. But the governor is not required to spend that money. Williams said that might change and lawmakers could write into law how and where he is to spend what they appropriate.
Stumbo said it’s a “defining moment for the General Assembly,” a chance to be in charge of the entire budget. He said after the joint weekly press conference that once lawmakers take control of the entire budget process they aren’t likely to give it back – to this or to future governors.
“Once that genie is out of the bottle you can’t put it back in,” Stumbo said.
RONNIE ELLIS writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com. Follow CNHI News Service stories on Twitter at www.twitter.com/cnhifrankfort.
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