Problems for Beshear's Proposal
Governor Beshear's got alot of problems, and his budget proposal's just the start of it.
We have blogged about how his $0.70 cigarette tax increase is likely DOA, but there are plenty of other hurdles as well.
Part of the proposal would ask coal counties to contribute some of the incredible surplus of coal severance tax, allowing the funds dedicated specifically to coal producing counties to keep what was budgeted plus an additional $20 million, then using any additional coal severance tax receipts to shore up the general fund.
The Herald-Leader reports on opposition from House Democratic Leadership:
House Speaker Jody Richards and state Rep. Greg Stumbo, who is challenging Richards for the top leadership spot, both say they're against the idea.
...
Rep. Rocky Adkins, a Sandy Hook Democrat and House majority floor leader, says coal-producing counties should keep the money they generate.
"The money that is supposed to come back to coal counties must come back to the coal counties to make progress in resolving the needs we have," Adkins said.
House Appropriations and Revenue Chairman Harry Moberly takes issue with another element of the proposal.
Part of Beshear's proposal would transfer a $50 million surplus from the public employee health insurance trust fund to help defray the shortfall.
"Some of our members have looked at it and staff has looked at it and, as we see it, that move is unconstitutional," said Rep. Harry Moberly, chairman of the House budget committee. "Of course that presents a problem because if we can't get the money from that fund, we have to get it somewhere else."
So, of the Governor's proposal, the $81.5 million cigarette tax proposal and $67.5 million in transfers are in serious doubt, leaving a $149 million hole in his $456 million plan.
Perhaps he could balance those losses by increasing the elements of the plan where opposition has been low. We haven't heard too much discussion about the $147 million in planned spending cuts.
