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Posted: Wednesday, 17 March 2010 1:19PM

GENERAL ASSEMBLY STRUGGLING WITH BUDGET



SOME STATE SENATORS EXPRESSED CONCERN TUESDAY ABOUT CUTTING TWO SCHOOL DAYS TO HELP BALANCE KENTUCKY'S BUDGET, BUT ONE KEY LAWMAKER WARNED THAT CUTS TO EDUCATION APPEAR INEVITABLE. THE SENATE APPROPRIATIONS AND REVENUE COMMITTEE BEGAN DELIBERATIONS ON THE HOUSE'S $17.5 BILLION, TWO-YEAR BUDGET THAT INCLUDED A HOST OF CUTS, INCLUDING AXING TWO SCHOOLS DAYS FROM THE CALENDAR TO SAVE $72 MILLION. HOUSE BILL 290, THE EXECUTIVE BRANCH BUDGET, ALSO INCLUDES $2.2 BILLION IN MONEY FOR SCHOOL, WATER, SEWER AND ROAD PROJECTS.
       HOWEVER, THE HOUSE LEFT $240 MILLION UNALLOCATED SO THE SENATE COULD ADD ADDITIONAL PROJECTS. STATE SENATOR TIM SHAUGHNESSY, OF LOUISVILLE, SAID DURING TUESDAY'S COMMITTEE MEETING THAT HE HAD STRONG RESERVATIONS ABOUT CUTTING THE SCHOOL YEAR TO 175 DAYS. HOWEVER, BUDGET CHAIRMAN BOB LEEPER, I-PADUCAH, WARNED COMMITTEE MEMBERS THAT THERE ARE FEW EASY DECISIONS LEFT AFTER THE HOUSE PLUGGED A NEARLY $1.2 BILLION HOLE IN THE BUDGET WITH A VARIETY OF FUNDS AND COST-SAVING MEASURES AND ADDED THAT THERE ARE SOME VERY DIFFICULT DECISIONS TO BE MADE.
       LEEPER SAID AFTER TUESDAY'S MEETING THAT THERE WAS LITTLE SUPPORT IN THE SENATE FOR PROPOSALS THAT GENERATED MORE THAN $300 MILLION IN THE HOUSE'S VERSION OF THE BUDGET. THOSE MEASURES INCLUDE THE SUSPENSION OF NET OPERATING LOSS TAX DEDUCTIONS FOR BUSINESSES AND THE TEMPORARY ACCELERATION OF SALES TAX PAYMENTS.LEEPER NOTED THAT IF THE SENATE DOES NOT APPROVE THOSE REVENUE MEASURES, THE STATE'S K-12 EDUCATION SYSTEM PROBABLY WILL NOT ESCAPE CUTS.