A Direct Fabrication by Beshear
There are a number of justifiable ways to look at budgets and shortfalls. Governor Beshear has directly cheated in coming up with his $1 billion number, however.
In our lengthy budget analysis, we noted that the budget passed in 2008 included a forecast of $9.1 billion in revenue for FY 2010. But when Beshear announced he was going to cal a special session this number had changed (our emphasis):
Beshear announced his intention to call a special legislative session minutes after an independent group of economists sized up the state's budget woes.
Since the shortfall is greater than 5 percent of the state's $9.3 billion budget for next fiscal year, Beshear said he is required by law to recall lawmakers.
Where did the $9.3 billion come from when the passed budget so clearly states that expected revenues for FY 2010 are $9.1 billion (page one here)?
We've asked around, and the extra $200 million is from the tax increases in HB 144 passed in the 2009 regular session.
In other words, part of Beshear's shortfall is that the state will not receive funds that we never expected to receive in the first place. It's an additional $200 million that wasn't expected to be revenue and wasn't budget for. He might as well say that the shortfall is $2 billion because he had expected to increase taxes $1 billion more in 2009 but didn't. None of it matters because it wasn't part of the budget in 2008.
Further, when Senate President David Williams accused the Governor of overstating things, the Governor responded:
Beshear's office dismissed Williams' argument, saying language in the budget bill enacted earlier this year is clear -- the state is required to compare the revised revenue estimate for 2010, which was issued Friday, with the enacted $9.3 billion budget for 2010.
Williams is mixing numbers from two different fiscal years, the office said.
He's accusing Williams of doing the very same thing that he is doing himself. His claims are not only spurious, but hypocritical.
