By RONNIE ELLIS
FRANKFORT — There is growing sentiment among lawmakers in Frankfort the state’s budget crisis can’t be solved by budget cuts alone.
“That’s exactly right,” said House Majority Leader Rocky Adkins, D-Sandy Hook, after a caucus of House Democrats with their leaders to discuss the options available to close an estimated $456 million revenue shortfall for this fiscal year which ends June 30. “The consensus of the caucus is to find enough revenue so we don’t have to make the drastic cuts.”
Gov. Steve Beshear proposes raising the cigarette tax by 70 cents as part of the solution, but the Republican Senate was thought to oppose any tax increases. That sentiment may be softening.
“At this juncture, it appears to me there will be a need for some new revenue,” said Senate President David Williams, R-Burkesville. Like Adkins, Robin Webb, D-Grayson, the first vice chair of the House budget committee, and House Speaker Greg Stumbo, D-Prestonsburg, Williams provided no specifics. But Stumbo and Webb said, “All options are on the table.”
“Nobody wants to sustain the level of pain that’s in the other option,” Webb said. Rep. Jim Wayne, D-Louisville, called the other option “doomsday cuts.”
Before Senate Republicans caucused, Majority Leader Dan Kelly, R-Springfield, said he couldn’t say what position Republicans might take on revenue until they’d met and discussed it. They met late Tuesday afternoon, but offered little insight into their discussions. But Wayne said House Democrats don’t want to make the kinds of cuts they’d have to make without more money for the state.
“We all agreed that we don’t want cuts and we all agreed that some level of revenue enhancement will be absolutely necessary,” Wayne said after the House Democratic caucus. He said no one is committed to a specific revenue option at this point.
“Everything’s on the table, everything’s ripe for discussion,” Webb said when asked what types of revenue increases might be considered. She said Democrats asked their leaders to continue negotiations with the Senate, keeping in mind House Democrats want to avoid further deep cuts.
“We believe further budget cuts to the level that would be required with no new sources of revenue would be devastating to Kentucky families,” said Stumbo. He said rank and file members didn’t suggest any range of money necessary to secure their support on the budget fix and while there was discussion of the cigarette tax, Stumbo said, there was no discussion of a specific level which the caucus would support.
Later, Stumbo said he thinks any cigarette tax increase is likely to be less than 70 cents, however.
“I can vote for the governor’s proposal, but realistically, I think it’ll be something lower than that,” Stumbo said.
Stumbo earlier said one of the “options on the table” is to increase some alcohol taxes as well as the cigarette tax.
House and Senate leaders have been going through the budget for the last couple of weeks, after hearing from cabinet secretaries and agency heads about how additional budget cuts would affect their services and the people they serve. They’ve also been meeting with leaders of the other chamber behind closed doors on what steps might be necessary to close the budget hole.
The $456 million revenue shortfall comes on top of last year’s budget cuts, and Beshear and legislative leaders continue to say next year’s revenue picture may be even worse in the midst of a deep and apparently expanding world-wide recession.
Stumbo and Webb said the legislative leaders will continue to work to find solution. Both sides – and Beshear – have consistently characterized the talks as cordial and cooperative. Williams said last week that he’d never in his time in the legislature seen more cooperation and a more sincere desire on the part of all negotiators to resolve the problem.
Ronnie Ellis writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com.
