Somerset —  

Sounds simple. Take a little of what the Senate proposed, add a little of what the House wanted and add those to the 95 percent of a two-year state budget on which both sides always agreed.

That’s basically what Gov. Steve Beshear proposed Wednesday to get beyond the budget impasse between the two chambers of the legislature which threatened a partial government shut-down. He said he’ll call lawmakers back to town on May 24 to pass his proposal in five days. Democratic House Speaker Greg Stumbo, D-Prestonsburg, and Senate President David Williams, R-Burkesville, sounded surpris-ingly optimistic the two sides can agree.

It’s surprising because most of what Beshear is proposing was discussed during the regular 60-day session which ended with each side digging in their heels and blaming the other. Now, taxpayers will foot a $64,000 a day special session to pass at $17.1 billion spending plan.

“I don’t see how anyone could walk away from this budget proposal,” Williams said. “Subject to the details and the budget language – which I haven’t seen – this is the sort of budget I feel we can support.”

“I want to thank Governor Beshear for bringing this proposal forward and for outlining parameters for prompt resolution,” Stumbo said in a statement. “I support his recommendations, espec-ially regarding education and human services.”

The two sides had split over bonding for school and water and sewer projects in the House budget and cuts to education funding in the Senate proposal. Beshear included bonding for 14 schools in the worst physical condition – if those districts pass local levies to support new construction. That was essentially the Senate’s proposal.

But he restored funding to SEEK, the funding formula for public schools and Medicaid, positions adopted by the House. He added back two instructional days in the school calendar, with the state funding one of them and local districts the other – reflecting the Senate position. He removed the water and sewer projects and additional school building funding. (Equalization for extra levies passed in the Glasgow and Boyd County districts is included. So is funding for the Glasgow State Nursing Facility, the Oakwood Specialty Clinic and Eastern State Hospital.)

Beshear softened cuts to Kentucky State Police, public defenders, prosecutors, KET, corrections, juvenile justice, and economic development. Higher education is cut 1.4 percent in the first year and 2.4 percent in the second, but universities can issue bonds from their own funds. There will be some money for water and sewer projects but only for those which were authorized in previous budget cycles and are just now getting under way. 

The proposal contains no new taxes or revenues from expanded gambling. It includes a carry-over after the first year of $279 million to lessen the impact of the loss of federal stimulus funds in the second year. 

“Any sort of continuation budget is unacceptable,” Beshear said, adding there are no indications state revenues will improve any time soon, and “we cannot delay simply because it’s an election year.”

Beshear said he will ask lawmakers to include language in the budget to allow him to furlough state employees to help reduce costs or achieve what lawmakers call “government efficiencies” to balance budgets. Beshear said he is asking the two chambers to agree on a road plan prior to May 24. He said he will only add things to the agenda such as a plan to shore up the unemployment insurance trust fund if both chambers agree on them in advance.

Initial reaction from two lawmakers was relief – with some reservation.

“Because it’s a compromise, I don’t like parts of it,” said Rep. Tanya Pullin, D-South Shore. “But in a compromise, you have to take some things you don’t entirely like. Everybody has to give something.” She said she is pleased Beshear proposes to fund SEEK which she said is “very important to me and very important to other representatives in the House I’ve talked to.”

Rep. Johnny Bell, D-Glasgow, was pleased about SEEK, Medicaid and the Glasgow State Nursing Facility, but he wasn’t happy that funds for water and sewer improvements isn’t included and he wants to make sure KEES scholarships are funded. But like Pullin, Bell said it’s better than no budget.

“I don’t think we should be in a situation where we don’t have a budget,” Bell said. “I’m very hopeful we end up with a budget.”

Lawmakers see that option as potentially politically fatal – especially during an election year in the midst of an economic downturn which has left voters in a surly mood.

Ronnie Ellis writes for CNHI News Service and is based in Frankfort, Ky. He may be contacted by email at rellis@cnhi.com. Follow CNHI News Service stories on Twitter at www.twitter.com/cnhifrankfort.