Kentucky's Magic Surplus Account
The Department of Public Advocacy is suing the state with a claim that the Department will be $4.7 million short of funding to provide advocacy services through the end of the fiscal year.
Today, the Kentucky House introduced legislation that "found $4.7 million" for the Department, according to the Herald-Leader.
A legislative panel dug up $4.7 million Monday for the agency that represents poor criminal defendants in court, potentially averting a shut down of the Department of Public Advocacy next month.
That fiscal shot in the arm is one of several provisions contained in a revision to the state's budget approved Monday by the House Appropriations and Revenue Committee.
The bill is HB 433, a 25-page bill of budget edits that adds these funds and other small projects here and there.
As the General Assembly is constantly voting to hike taxes this year claiming that there will not be enough money to spend, "Where in the world," you might think to yourself, "could they possibly have found $4.7 million extra dollars?"
Here is the language in the bill:
Section 13. 2008 Kentucky Acts Chapter 127, Part I, Operating Budget; I. Justice and Public Safety Cabinet; 7. Public Advocacy; after (2) Lexington Public Defender's Office, at page 529, is amended by inserting the following:
(3) Necessary Funding: There is appropriated additional funds, not to exceed $4,700,000 in fiscal year 2008-2009, necessary for the operation of the Department, over the amounts appropriated above. These necessary funds shall be made available from the General Fund Surplus Account (KRS 48.700) or the Budget Reserve Trust Fund Account (KRS 48.705) upon approval of the State Budget Director.
Oh, they'll be funded out of the surplus!
Now, according to Governor Beshear's presentations on the need for tax increases, the amount of money in the "General Fund Surplus Account" is zero. As for the Rainy Day Fund (Budget Reserve Trust Fund), it started this budget cycle with $214 million, but $191 million is budgeted to be spent in the next fiscal year. This session, the General Assembly has passed legislation (HB 143) that allows $219 million of the Budget Reserve Trust Fund to be spent this fiscal year.
Math:
$214 million -- Original Level
-$191 million -- appropriation from biennial budget (RS08 HB 406)
-$219 million -- appropriation from HB 143
-$196 million
Now the Department of Public Advocacy is supposed to find another $4.7 million in this account. I guess they were shooting for a nice, round, $200 million hole.
