Beshear tells lawmakers ‘the time to act is now’

Read Beshear’s full speech

By Jack Brammer and Beth Musgrave

FRANKFORT — Gov. Steve Beshear exhorted Kentucky lawmakers Monday to “help families survive” by approving a swath of legislation he has put on the agenda of a special lawmaking session.

Beshear, speaking before a joint session of the General Assembly Monday evening, asked legislative leaders to put aside partisan differences and approve his proposals to balance the state budget, allow slot machines at racetracks, overhaul the state’s job-creation programs and establish a way to fund mega-transportation projects.

Although some may prefer other ways of tackling these topics, “there should be no argument that the issues addressed in these proposals are critical and that the time to act is now,” Beshear said on the first day of the session.

Despite facing a complicated agenda, House and Senate leaders said they hoped the session, which costs taxpayers $60,000 a day, would conclude quickly. Still, it’s not clear how long the session will take.

“We’re going to work as fast as we can but we’re going to do it in a controlled manner,” said House Speaker Greg Stumbo, D-Prestonsburg. It may take as long as two weeks, he said.

Senate President David Williams, R-Burkesville, said he doesn’t think the legislative session should last longer than five days. To accomplish that, the Senate would have to receive all bills from the House by the end of business Wednesday, he said.

Williams said the Senate has not made any decision yet on what might happen to House bills that get to the Senate after Wednesday.

The Republican-led Senate will try to “reach an accord” with the Democratic-led House, he said, but “we also don’t need to be up here all summer while they haggle over in the House with the governor over what they are supposed to do.”

In his speech, Beshear said the “biggest and the most critical” legislation on his agenda is a proposal to balance the budget for the new fiscal year that begins July 1.

Kentucky faces a nearly $1 billion budget shortfall. Beshear has proposed using more than $700 million in federal stimulus money and cutting about $200 million in planned spending to resolve the shortfall.

He also has proposed restructuring the state debt, enhancing tax collections and suspending several paid holidays for state workers. Beshear noted that his budget plan calls for no tax increases.

Citing “the devastating impact of a global economic crisis,” Beshear also implored lawmakers to revamp the state’s economic development programs.

“The proverbial toolbox we use to attract and retain businesses needs serious attention,” he said. “Our current economic tools are rusty. They’re dull. They’re missing parts. And some of them are outdated. We’re using hand tools in a power tool world.”

His plan, which died in the final days of the regular legislative session earlier this year, also includes legislation to help secure an advanced battery manufacturing plant in Hardin County and subsidize an expansion of the Kentucky Speedway in hopes of attracting a NASCAR Sprint Cup race to Kentucky.

“These opportunities are worth hundreds of millions if not billions of dollars,” Beshear said. “They would bring thousands of critically needed jobs. They would solidify Kentucky’s reputation as a vibrant place to work, to live and to play.”

Beshear also used his 21-minute speech to call on the General Assembly to pass a controversial proposal that would place electronic video lottery terminals at the state’s racetracks.

Beshear called the issue critical to saving the state’s horse industry, saying that Kentucky racetracks face threats from tracks in states with expanded gambling.

The proposal would boost profits at racetracks, allowing them to increase purses and incentives for winning Kentucky-bred horses. At the same time, it would also generate additional tax revenue in future years, money the state needs to balance its books, Beshear said.

“It’s time for an ‘up’ or ‘down’ vote,” Beshear said.

Williams immediately rejected that call, saying lawmakers shouldn’t vote on a slots bill until the next regular legislative session begins in January. In the meantime, he urged Beshear to allow lawmakers to consider his own proposal to boost horse racing purses by raising $83 million a year through a lottery ticket surcharge and other taxes and fees.

Beshear again repeated his mantra that the state can’t afford “to lose the equine industry’s 100,000 jobs.” However, a 2005 study by the consulting firm Deloitte said the industry employs only 51,000. If you include other jobs created by the spending from horse jobs you could credit Kentucky’s horse industry with “a total employment impact of 96,000,” the report found.

Beshear also noted that his slots bill would give automobile owners a partial credit on their car tax and exempt active-duty military from Kentucky’s income tax.

Filed Under: KY General Assembly • State Budget • State Government • Steve Beshear