All Entries in the "Rick Rand" Category

Kentucky Horse Park needs millions from state to balance budget

By Linda B. Blackford and Beth Musgave
lblackford@herald-leader.com

As most state agencies brace for dramatic budget cuts, the Kentucky Horse Park could be getting millions of additional dollars.

In Gov. Steve Beshear’s recommended budget, the Horse Park faces no budget cuts, and instead would receive an additional $3.5 million increase this fiscal year, plus another $1.6 million each year of the next two-year budget.

State officials told lawmakers on Tuesday that the funds are needed to cover operational shortfalls that stem from utility costs for roughly 264,000 square feet of new facilities built at the park in anticipation of the 2010 Alltech FEI World Equestrian Games.

Lawmakers said they want to hear more before agreeing to increase the park’s funding.

‘Comment’ will discuss state budget, redistricting

This weekend’s “Comment on Kentucky,” a public affairs show of the Kentucky Educational Television network, will discuss Gov. Steve Beshear’s proposed two-year state budget and the redrawing of state legislative and congressional district boundaries.

Joining host Ferrell Wellman will be three journalists — Greg Stotelmyer, political reporter for WTVQ-TV in Lexington; Joe Gerth, political writer for The Courier-Journal; and Jack Brammer, political writer for the Lexington Herald-Leader.

The show airs live at 8 p.m. ET on KET1.

On Monday’s edition of “Kentucky Tonight” at 8 p.m. ET on KET and at www.ket.org/live, host Bill Goodman and guests will discuss the state budget.

Adviser: State pension fund sinking fast

By John Cheves – jcheves@herald-leader.com

FRANKFORT — Kentucky’s state pension fund could run out of money in 2019 if contributions remain inadequate and market investments sag, under a worst-case scenario presented to lawmakers Thursday.

More likely, by 2018, the fund will pay out nearly half of its assets every year for retiree benefits, making it difficult to get the high returns it needs from large, long-term investments, pension officials said. The fund currently earns far smaller returns — 3.59 percent over the last decade — than its goal of 7.75 percent a year.

“You might be surprised at how expensive this is going to get,” Jim Voytko, president of R.V. Kuhns & Associates Inc., told the Program Review and Investigations Committee. R.V. Kuhns advises the Kentucky Retirement Systems, which covers 330,000 state and county employees and retirees.

“I’m already surprised,” replied Rep. Rick Rand, D-Bedford, a committee member.

Over the last two decades, the General Assembly sweetened retirement benefits for state workers, many of whom could leave after 27 years with a lifetime pension and free health insurance. But it failed to put enough money in the pension fund to honor its obligations.

Kentucky, like many states, now faces a growing wave of government retirees and no consensus on how to pay them without wrecking other state programs.

Leaders will discuss law-making session on ‘Kentucky Tonight’

Four state legislative leaders are scheduled to appear on Monday’s edition of “Kentucky Tonight” with host Bill Goodman to discuss the 2010 General Assembly.

They are Senate President David Williams, R-Burkesville; House Majority Leader Rocky Adkins, D-Sandy Hook; Senate budget chairman Bob Leeper, I-Paducah; and House budget chairman Rick Rand, D-Bedford.

The show will air at 8 p.m. EDT MOnday on KET and at www.ket.org/live.

Concerns raised about education cuts in Senate’s spending plan

FRANKFORT — Democratic House leaders raised concerns Tuesday about a provision in the Senate’s version of the two-year state budget that they contend could cut funding for primary and secondary schools by nearly $100 million.

Republican Senate leaders said on Monday that their budget cut the main funding formula for schools by $25 million over two years instead of axing two school days, which the House had proposed in order to save $36 million a year.

However, the Senate’s budget mandates that the school year remain unchanged but doesn’t restore the $72 million the House saved by cutting the days.

House budget chairman Rick Rand, D-Bedford, said it appeared to be an “unfunded mandate that could add up to $97 million in cuts over the two years” for schools.

Senate leaders acknowledged Tuesday that there is less overall money in the main funding formula for schools in their version of the budget, but said they have allowed school districts to divert money for construction projects to make up for the loss.

Senate President David Williams, R-Burkesville, said the Senate’s plan is a more fair way to cut the main funding formula for schools, called Support Education Excellence in Kentucky, or SEEK. Once the Senate’s proposed cuts are understood by the House, Williams said he believes the two sides can come to an agreement.

House budget would slash salary of economic development chief

By Beth Musgrave – bmusgrave@herald-leader.com

FRANKFORT — A little-noticed provision in the state House’s proposed budget would nearly cut in half the $250,000 salary of the state’s chief economic development officer.

The House on Wednesday passed a two-year, $17.5 billion budget that included a host of cost-saving provisions, including cutting the amount spent on service contracts by more than $100 million and saving $5 million by axing 120 political appointees over the next two years.

But deep in the budget is another provision that would cap the salary of Larry Hayes, the secretary of the Economic Development Cabinet. Hayes, who makes $250,000 a year according to the state’s transparency Web site, is the highest paid cabinet secretary.

The House budget says the Economic Development Secretary’s salary should not surpass the governor’s salary of $127,885.

Both Hayes and Beshear took 10 percent pay cuts this year.

House panel passes $17.5 billion budget

By Beth Musgrave – bmusgrave@herald-leader.com

FRANKFORT — A House panel approved a $17.5 billion, two-year state budget Tuesday night that includes $2.2 billion in borrowing for state projects, driving the state’s debt to record levels.

The proposal also cuts spending on education at all levels in an effort to erase a more than $1 billion gap between projected revenues and current spending levels.

State universities face a 1.5 percent trim in the first year of the budget, which begins July 1, and a 1 percent cut in the second year. They’ll also have to come up with about $63 million to operate and maintain buildings that will open over the next two years.

The state’s adult education programs will take a 3 percent cut under the House proposal. That’s roughly $1.3 million over two years out of the program’s $22.5 million budget.

The main funding formula for K-12 education was spared, but the spending plan would save $68 million over two years by shortening the school year by two days.

The House Appropriations and Revenue Committee voted 19-5 to pass the executive branch budget. House Bill 290 will likely go to the full House on Wednesday.

House approves revenue bill; Stumbo promises ‘aggressive’ construction plan

By Jack Brammer – jbrammer@herald-leader.com

FRANKFORT — The House voted largely along party lines Thursday to approve a bill that would raise more than $300 million to help balance the next two-year state budget.

House Speaker Greg Stumbo indicated soon after the 64-36 vote on House Bill 530 that those who supported the revenue measure will be rewarded with job-producing building projects in their districts.

“We believe this is a fairly good indicator of members who have concerns about jobs in their communities,” said Stumbo, D-Prestonsburg. “Those members who indicated that is a priority for them stepped up today and voted for the measure, and we certainly want to respond and try to create as many jobs as we possibly can across the Commonwealth.”

Stumbo said House Democratic leadership hopes to release an “aggressive” jobs-creation package focusing on schools, roads and infrastructure either Friday or Monday as part of a nearly $18 billion spending plan for the state over the next two years, beginning July 1.

All Democrats in the House except Reps. Jim Wayne of Louisville and Will Coursey of Benton voted for the revenue-producing bill. The only House Republican who voted for it was Rep. Jim Stewart III of Flat Lick.

House Minority Leader Jeff Hoover, R-Jamestown, said the bill was designed to raise a surplus of about $100 million “for pet projects.”

Bill to raise $371 million for state clears House panel

By Beth Musgrave – bmusgrave@herald-leader.com

FRANKFORT — A House committee approved a measure late Tuesday to raise $371 million in new revenue over the next two years, the first step toward approving the Democratic-led chamber’s version of the state budget.

The bulk of the revenue raised to help balance the budget comes from two big items — accelerating sales tax collections in the second year of the budget and suspending for two years a tax provision that lets businesses deduct net operating losses over a 20 year period.

The acceleration of sales tax payments would generate $90 million in the second year of the budget — which begins July 1, 2011. Not allowing businesses to deduct losses for two years would generate about $187 million in revenue.

The House Appropriations and Revenue Committee voted 17-11, largely along party lines, to approve House Bill 530.

The House is expected to take up a separate bill next week that would spend the new revenue as part of a possible $18 billion, two-year General Fund budget.

House Democrats defended the plan at Wednesday’s meeting, saying the revenue allows them to avoid draconian budget cuts.

“We are going to be able to escape this biennium with minimum pain to education and human services if we have the revenue that’s available in this bill,” said Rep. Harry Moberly, D-Richmond. “There will be a little pain for everybody.”

House leaders propose cutting two school days, university funds

By Beth Musgrave – bmusgrave@herald-leader.com

FRANKFORT — Democratic House leaders want to cut two school days and trim spending at many state agencies, including public universities, by two percent to help balance the state’s books over the next two fiscal years.

In briefings with reporters, House leaders gave a broad outline Thursday of how they plan to tackle a more than $1 billion shortfall over the two years — about $395 million in fiscal year 2011, which begins July 1, and $750 million the following year.

The plan, which leaders warned is still shy $200 million in the second year of the budget, raises no taxes, leaders said. It also would exclude several key areas from the two percent cut, including Medicaid, the main funding formula for K-12 education, the Department of Corrections and the Department for Behavioral Health, Developmental and Intellectual Disabilities.

Universities would face cuts in both years of the biennial budget, reducing their spending by about $40 million, according to House budget chairman Rick Rand, D-Bedford. Gov. Steve Beshear’s budget proposal had spared universities in the first year of the budget.

House Speaker Greg Stumbo, D-Prestonsburg, is also proposing to save $150 million by changing the state’s health insurance program and $68 million over two years by chopping two days from the state’s school year, reducing it to 175 days of instruction.

The plan also calls for the state to collect about $35 million in excess school funding that Beshear had proposed to let school districts use to offset other previous budget cuts.