All Entries in the "State Budget" Category

State revenues up 8.4 percent in March

By Beth Musgrave
bmusgrave@herald-leader.com

FRANKFORT — Kentucky state government brought in $57 million more in taxes and other fees in March than it did last year, according to numbers released Tuesday.

General Fund revenues were up 8.4 percent in March compared to March 2011. Kentucky collected $738 million in March, compared to $675.8 million in March 2011, according to the Office of the State Budget Director.

March receipts continue an upward trend in state revenues over the past nine months. The official revenue estimate calls for 2.8 percent growth in revenue for the entire fiscal year, which ends June 30th. Revenues can decline 1.1 percent over the remaining three months of this fiscal year and still meet the official revenue estimate. Legislators use that estimate to craft a two-year budget.

If revenues do not meet the projection, the state will have to cut. If revenues come in over the projection, the money will go into the state’s “Rainy Day” fund.

Individual and corporate income taxes are still strong. Corporate income taxes have increased 45 percent this year and 9.0 percent in March. Individual income taxes grew 10.9 percent in March and have grown about 2.5 percent through the first nine months of the fiscal year, according to the Office of State Budget Director.

Road Fund receipts – used to fund transportation projects — also rose 6.1 percent over March 2011

House, Senate approve compromise state budget

By Beth Musgrave
bmusgrave@herald-leader.com

FRANKFORT — The Republican Senate gave its approval Friday to a compromise two-year state budget that provides little money for new projects and cuts funding by 8.4 percent for many state agencies and 6.4 percent for state universities.

House Bill 265 now heads to the House, where it is expected to be approved later Friday and sent to Gov. Steve Beshear.

Friday was the 59th day of the 60-workday legislative session. The General Assembly is set to return April 12 for the final day of the session, which will be used to consider overriding any potential vetoes by Beshear.

House and Senate leaders said early Friday that they did not expect an agreement on the two-year road plan on Friday. That means that the measure will likely be taken up on April 12.

General Assembly poised to approve state budget on Friday

By Beth Musgrave
bmusgrave@herald-leader.com

FRANKFORT — The Kentucky General Assembly is poised to vote Friday on a $19 billion, two-year state budget that provides $3.5 million to help the Kentucky Horse Park and $2.5 million to start the redevelopment of Rupp Arena.

Leading lawmakers closed agreed on a compromise budget just minutes before a self-imposed deadline of 3 a.m. Thursday, giving legislative staffers enough time to make requested changes in the bill before rank-and-file members vote on it Friday.

Later Thursday, legislators were scrambling to get an agreement on a two-year road plan, which outlines funding for key road projects throughout the state, and House Bill 499, a revenue bill that contains a tax amnesty program designed to raise millions of dollars.

If there are no hiccups on Friday, this will be the first two-year budget the General Assembly has approved on time since 2006. Lawmakers plan to use April 12, the final day of this year’s 60-workday session, to override any line-item vetoes issued by Gov. Steve Beshear during the next two weeks.

“We have white smoke,” Senate President David Williams, R-Burkesville, said shortly after the deal was inked early Thursday morning. “They gave us until 3 o’clock in the morning and I want everyone to know that we finished five minutes early.”

Group raises questions about $2 million for road near Ark Encounter theme park

By Beth Musgrave
bmusgrave@herald-leader.com

FRANKFORT — A nonprofit group that advocates for the separation of church and state raised questions Wednesday about the legislature’s plan to spend $2 million on road improvements near the proposed Ark Encounter theme park in Grant County.

Americans United for Separation of Church and State, a Washington D.C. nonprofit, is protesting the legislature’s decision to include $2 million for improvements to KY 36, a project included in road budgets proposed by Gov. Steve Beshear and approved by the House and Senate.

The $2 million would be used to purchase right-of-way and pre-construction work on an interchange with I-75.

Rev. Barry W. Lynn, executive director of Americans United, said the Kentucky Constitution bans the use of taxpayer dollars to support religion. Section 5 of the Constitution says taxpayers may not be forced to “contribute to the erection or maintenance” of any place of worship.

Lawmakers wrangle over debt in state budget

By Jack Brammer
jbrammer@herald-leader.com

FRANKFORT – Senate President David Williams and House Democratic leaders wrangled over how much debt there should be in the state budget Wednesday in a third day of negotiations over the two-year, $19 billion spending plan.

Leading lawmakers are trying to produce a budget by 3 a.m. Thursday, which would allow the chambers to vote Friday on a budget bill. If they don’t meet that deadline, lawmakers still could rearrange the legislative calendar so that Saturday or Monday becomes the 59th day of the 60-workday legislative session. Wednesday was the 57th day of the session, which must end by April 15.

Lawmakers hope to preserve the final day of the session to override any vetoes Gov. Steve Beshear might issue during a 10-day window in early April.

In little more than an hour of negotiations Wednesday morning, lawmakers argued over whether to include in the budget a $100 million bond for school construction and a $20 million bond for high-tech economic development construction projects.

House and Senate at odds over spending on government contracts

By Beth Musgrave
bmusgrave@herald-leader.com

FRANKFORT — House and Senate budget negotiators agreed Tuesday on how to book savings from interest rates on bonds, a key hurdle in discussions on a $19 billion, two-year state budget.

The agreement — which would allow the state to book savings generated by lower-than-expected interest rates — was one of several agreements between the two chambers on the second day of budget negotiations.

The Democratic House and Republican Senate passed similar two-year budgets earlier this month. Both follow Gov. Steve Beshear’s recommendations in several key areas, such as an 8.4 percent cut to many state agencies, no change in the main funding formulas for k-12 schools and no raises for state employees. The House and Senate budgets also nix a 1.2 percent cost-of-living increase for state retirees, a move designed to shore up the state’s ailing pension fund.

But the two sides locked horns on some issues, such as requiring Beshear to cut an additional $98 million from the state’s contracts.

The Republican Senate believes the administration can make the cuts, but Democratic House leaders expressed reservations, citing the deep cuts some agencies have already made in recent years. Some agencies have cut more than 35 percent of their spending over the past four years.

Copper theft bill heads to Beshear

By Beth Musgrave
bmusgrave@herald-leader.com

FRANKFORT — Scrap metal recyclers will have to register with the state and pass background checks under a measure that passed both chambers and is now headed to Gov. Steve Beshear’s desk for his signature.

Backers of House Bill 390 say it will curb the growing number of copper thefts in Kentucky by ensuring that only registered scrap metal recyclers can process the metal. Rep. Tanya Pullin, D-South Shore, and sponsor of the bill, has said that the majority of the state’s metal recyclers are behind the bill. Most of the stolen copper is taken to less-than-reputable scrap recyclers. Those recyclers will not register with the state.

House and Senate discuss differences on state budget bill

By Beth Musgrave
bmusgrave@herald-leader.com

FRANKFORT — After meeting for a little more than an hour Monday morning, House and Senate leaders agreed to return at 2:15 p.m. to resume negotiations on a more than $19 billion, two-year state budget.
The morning meeting focused on line-by-line differences between the House and Senate versions of the budget.

Senate budget committee Chairman Robert Leeper, I-Paducah, said there are very few major differences between the House and Senate budgets. Once some global decisions are made — particularly involving debt — there will be few decisions left to make, he said.

House budget committee Chairman Rick Rand, D-Bedford, said after the morning meeting that the break will allow both sides an opportunity to gather more information about why the other chamber made key decisions.

The House authorized $552 million in borrowing while the Senate version authorized $391 million. The Senate also booked savings throughout its budget by lowering the projected interest rates of bonds, which are at historic lows.

Lawmakers have a week to settle their budget battles

By Beth Musgrave and Jack Brammer
bmusgrave@herald-leader.com

By Beth Musgrave and Jack Brammer
bmusgrave@herald-leader.com

FRANKFORT — House and Senate leaders will start negotiating a compromise two-year state budget Monday but only have about a week to settle their differences if they hope to override any vetoes Gov. Steve Beshear might make.

House Speaker Greg Stumbo, D-Prestonsburg, was optimistic Friday that the Democratic-led House and Republican-led Senate can strike a deal next week on the more than $19 billion budget.

“We’re really not that far apart,” Stumbo said.

But Senate President David Williams said he is “very concerned” about the fleeting days of this year’s General Assembly and the heavy workload that remains. Friday was the 54th day of the 60-workday session.

Senate hopes to pass budget on Thursday

By Beth Musgrave
bmusgrave@herald-leader.com

FRANKFORT — Senate President David Williams said Wednesday the Senate is hoping to vote on its version of the upcoming two-year budget on Thursday.

Williams said even if the Senate does not pass the bill until earlier on Friday, budget negotiations between the House and Senate should begin later that day. Williams did not give any details Wednesday on how the Senate’s two-year budget will vary from the House version, passed earlier this month.