Moberly says tax increase needed to resolve budget shortfall
FRANKFORT – A tax increase is needed to solve the nearly half-billion budget shortfall Kentucky faces, House budget chairman Harry Moberly Jr. said Tuesday.
State Rep. Harry Moberly, D-Richmond
Moberly, D-Richmond, said the shortfall could be addressed only with cuts but that approach “would be too painful” and the state would “seriously cripple” important programs.
Moberly’s comments came after he and several House leaders met privately for about an hour in the Capitol with Gov. Steve Beshear and members of his staff. Beshear had met earlier in the day behind closed doors with Senate leaders.
After the meeting with House leaders, Beshear declined again to say whether he will propose a tax increase when he releases his plan either Thursday or Friday to address a projected $456.1 million shortfall in the budget this fiscal year.
He unsuccessfully pushed for raising the state cigarette tax from 30 cents a pack to $1 a pack in this year’s legislative session.
Moberly said the Democratic governor told legislative leaders he might include revenue-producing measures in his plan but he was not yet sure.
House Speaker Jody Richards, D-Bowling Green, said Beshear told the lawmakers that “everything was on the table,” adding that he has never seen a state budget in worse condition.
House Minority Caucus Chair Bob DeWeese, R-Louisville, said Beshear spent most of the time in the meeting showing the current state of the budget and stressing “how we have to work together.”
Senate President David Williams, a Burkesville Republican who has been resistant to any tax increase, said without elaboration in a statement that the discussion with Beshear “was a candid and confidential meeting about how to move Kentucky forward.”
Beshear said he has no more meetings planned with legislative leaders and that they would use his plan as “a starting point” to address the shortfall.
He also said he was “open” to when the legislators address the budget shortfall but said he preferred it be done in January to help agencies manage their money.
The state budget office said Tuesday that November revenue receipts for the state rose slightly from the same month a year ago but year-to-date receipts were down.
General Fund receipts rose 5.8 percent compared to November 2007, an increase of $38.7 million.
Beshear downplayed any gains in revenue, saying he expected revenues would decline in the remaining months of this fiscal year based on estimates by a group of independent economists of a $456.1 million shortfall.
–Jack Brammer and Beth Musgrave
Filed Under: Featured • KY General Assembly • State Government • Steve Beshear
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Exactly what the gov’t should not do in a slowdown. To help pay for higher taxes, there are many ways for people to get help and save on all sorts of bills and debts. For example the government and others are giving help with mortgages to 2 million people, help with utilities, companies help consolidate debts, save on property taxes, and many other. I found programs and tips here.
http://www.needhelppayingbills.com
We have a leadership deficit. A 4% across the board cux is a cop out. Our leaders should set priorities, not cut every state department the same. The priorities should be education #1, public protection (police, prosecutors) #2, health care #3, etc…tourism, LRC, public parks, homeland security should all be cut to the bone before the absolute essentials of public government takes any cuts. The “across the board” approach is just the cowardly leaders way of not doing their job, setting priorities.
From the Office of the Budget Director website, Jan – Jun General Fund receipts were up $106.5 million (from a little manual addition). July-Oct is up $34.8 million and Nov. is up. So any way you add it, year to date or physical year to date is up not down.