Commonwealth Journal

Local News

February 13, 2010

Stumbo, Williams say they can proceed with budget without gambling — or Beshear

FRANKFORT — State parks won’t close. Neither will public schools. But teachers won’t likely get a raise and neither will any other state employee. There won’t be any tax increase and no one’s talking about gambling except the governor.

And lawmakers continue to hope and expect at least some additional help from the federal government as they struggle to build a two-state budget that is short of revenue by $1 billion or more.

That was the message Friday morning from the state’s top two lawmakers, Senate President David Williams, R-Burkesville, and House Speaker Greg Stumbo, D-Prestonsburg. They made clear they’re happy to take over the budget process from Gov. Steve Beshear and seemed to make just as clear they’re in no mood to pass his proposal.

Their remarks came a day after Beshear sent House members a letter asking them to pass his budget proposal which relies on $780 million in gambling revenue although the electronic slots at racetracks he wants haven’t been approved – and aren’t likely to be in this session.

“I haven’t read it,” was Stumbo’s comment when asked about the letter. He said proponents of slots at the tracks “haven’t given up on (the idea), but it’s not an issue you can build a budget around.”

Williams called the letter “confrontational,” and accused Beshear of “trying to alienate the public as far as the legislature is concerned,” and of making statements to some lawmakers that “if he doesn’t get expanded gaming before we leave here, that he’s going to continue to blame any cuts contained in the budget on the legislature and call us back into session.”

But both said they expect the legislature to write a budget that Stumbo said won’t close state parks, won’t close the schools but which may reduce funding for some executive branch agencies and rely on savings in Medicaid along with some help from the feds. They said they anticipate at least six months more federal stimulus, probably through Medicaid assistance for cash strapped states, although Williams said it would “not be prudent” to rely on that before it is available.

Nor are they considering tax reform to solve the difficulties in putting together this budget.

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