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Legislative News Releases

Updated June 24, 2009

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June 24, 2009

 

 

Legislative week in review

 

FRANKFORT -- As Senate leaders had warned, the Beshear-proposed and House-passed racetrack slots bill was DOA in the upper chamber this week, failing to even get out of committee, but the other three items on the governor's call were agreed on and passed in good order as the special legislative session wrapped up work in just eight days.

 

Passed: An economic incentive-package probably best known for seeking to lure a major NASCAR event to Northern Kentucky, coupled with the so-called 'Bridges Bill' to create a finance-and-control authority for massive transportation megaprojects like the $4.1 billion Ohio River twin-bridges project in Louisville, and a rebalanced state budget to fix what Gov. Steve Beshear and some predictors called a near-$1 billion shortfall in the coming fiscal year.

 

The economic-incentive measures lawmakers agreed to include $75 million to boost existing incentives that encourage the expansion of businesses already operating in Kentucky. Plus, in addition to tax credits to help Kentucky Speedway in Gallatin County land a NASCAR Sprint Cup race, it also includes tax incentives to attract the Breeders' Cup horse racing championships to Louisville, and creates a tax credit for small businesses and for film and TV productions shooting in the Commonwealth.

 

It also exempts active-duty military from state income taxes.

 

The initial reason Beshear called the special session for June 15 was to revise the state budget. His proposal called for using $741 million in federal stimulus funds to fill most of the projected shortfall. He also proposed across-the-board spending cuts for most state agencies -- but sparing education -- of 2.6 percent. Those steps lawmakers approved.

 

But in the agreement reached between House and Senate negotiators late Tuesday,   the governor's proposal to suspend three paid holidays for state workers making less than $50,000 a year and five holidays for those making $50,000 or more was deleted from the final bill.

 

Overall, observers hailed the session as highly productive, given quick and relatively painless agreement on three major issues. But the biggest newsmaker in the room -- video lottery terminals, or video slots – came up short when it landed in the Senate.

 

The governor had added VLTs to the session call to help save the state's troubled Thoroughbred industry, by drawing more patrons to tracks and injecting new money into race purses. The hope was to keep racetracks open, and horses and horsemen in the state.

 

The VLT idea has been bubbling under the legislative surface for a decade or more, but no full chamber has ever actually voted on it -- until the House voted 52-45 last week to approve the measure. But House leaders added a sweetener this year: a sudden proposal to tie most slots revenues to debt service on bonds for more than $1 billion in school-building construction, both at state colleges and in school districts statewide where crumbling elementary and secondary buildings need replacement.

 

However, Senate leaders felt relying on slot-machine revenue was bad public policy, and had their own proposal to help the horse industry without expanded gambling: Taxing state lottery sales and adding a surcharge for simulcasting signals from Kentucky horse racing tracks.

 

In the end, neither chamber could agree to the other's proposal.

 

Editor's note: Even with this special session adjourned, the work of the Legislature continues. Soon, between-sessions committee meetings will begin to study and debate possible legislation for the next regular session in January.

 

The Legislature is committed to year-round citizen involvement in its work. Kentuckians are encouraged to visit the Legislative Research Commission website at www.lrc.ky.gov. They will find there a wealth of resources pertaining to the current legislative session, as well as past sessions and the legislative process in general.

 

They may also call the General Assembly's toll-free Message Line at 1-800-372-7181, to leave a message for their legislator.

 

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June 24, 2009

 

 

Incentives, bridges bill goes to governor

 

FRANKFORT – Legislation is on its way to becoming law that would help Kentucky finance billions of dollars in construction of mega highway projects along with millions of dollars in incentives to expand business, tourism and give tax breaks to Kentucky’s military and car buyers.

 

House Bill 3, sponsored by Rep. Tommy Thompson, D-Owensboro, won final passage in the House by an 86-10 vote. The bill, which includes changes agreed upon by a committee of House and Senate conferees over the past couple days, passed the Senate by a 35-0 vote earlier today. It now goes the governor for his signature.

 

Transportation provisions in HB 3 would allow a newly-created state transportation infrastructure authority to approve in-state and bi-state projects included in the state’s current biennial highway construction plan that cost at least $500 million, such as the $4.1 billion Louisville bridges project, although the Kentucky General Assembly would control creation of the authorities, approval of state authority projects and changes to a project’s scope. Bi-state projects would relate only to those road or bridge projects co-funded by Kentucky and Indiana, with tolls authorized to pay for bonds issued for bi-state or in-state projects.

 

“This … affirms the power and responsibility of the Legislature to control state appropriations for these large projects, and to monitor plans and activities of the authorities that may be created,” said Rep. Don Pasley, D-Winchester, who filed the mega-project legislation.  “We can do this without micromanaging.”

 

New economic incentives, tax breaks and tourism provisions added by the House and Senate to HB 3 include a motor vehicle use tax incentive that would only tax car buyers on the difference between a new car purchase and the owner’s trade-in, loan support for certain economic incentive projects, an extension of tourism development incentives and an income tax exemption for Kentucky’s active-duty military, beginning Jan. 1.

 

“With the extension of the deployments that we’re seeing… this will be a real benefit to our military families,” Senate President David Williams, R-Burkesville, said before the Senate vote on HB 3.

 

Other provisions in the bill include incentives for reinvestment in existing manufacturing facilities, streamlining of business incentives while creating new jobs, increasing the cap from $3 million to $5 million for historic preservation projects, incentives to draw film and Broadway play productions to the Commonwealth, incentives to attract a NASCAR Sprint Cup race to Kentucky Speedway and the Breeders’ Cup to Churchill Downs, small business tax credits and income tax incentives for railroad improvement and transport.

 

“The main emphasis will allow for our existing industry to retool and retrain,” said Thompson.

 

Also added to the bill by the House and Senate is a tax credit of up to $5,000 for new home buyers, capped at $25 million.

 

“Of the 10.6 percent unemployment rate that we presently have, a good portion of those people are in the construction industry. This will allow a lot of them to get off the unemployment rolls and go back to gainful employment,” Thompson said.

 

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June 24, 2009

 

 

Final budget reduction plan passes, headed to governor

 

FRANKFORT — A final plan to bring the state’s budget in line with expected revenues was passed today by both the House and the Senate, sending it to Gov. Steve Beshear for his signature.

 

The governor called a special session, which began June 15, after state economists projected  next year’s revenues to come in more than 5 percent under the previously approved budget’s expectations.

 

House Bill 4, written by a conference committee of lawmakers from both chambers, reconciled differences between the House and Senate’s budget plans and added language on certain economic development projects.

 

The budget agreement largely follows the original proposal put forth by Gov. Beshear, but changed some sections. While most executive branch agencies would be cut by 2.6 percent, K-12 SEEK funding, colleges and universities, and local jail funding will be kept constant. The state’s Medicaid program will also be fully funded, while the governor’s proposal to require state employees to forgo some holiday pay was removed. The judicial branch will send $22.6 million back to the treasury as its part in the budget reduction plan, while the legislative branch will send back more than $2.6 million.

 

The plan also increases funding to county attorneys, Commonwealth’s Attorneys, and public defenders, whose expenses are largely personnel-driven. County PVAs, another office whose spending goes mostly to salaries, are forbidden from being cut, while state parks received a boost of $4.9 million.

 

HB 4 now also includes language authorizing Jefferson Community and Technical College to purchase nearby land, the University of Kentucky to borrow $100 million to finish its medical center expansion, and UK to work with a private company to update other facilities, including its athletics campus.

 

Finally, the bill approves a 1,550 acre site in Hardin County to be used for a proposed advanced battery plant.

 

The bill passed 35-0 in the Senate and 97-0 in the House.

 

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June 22, 2009

 

VLT legislation voted down in Senate committee

 

FRANKFORT — Legislation to allow video lottery terminals at horse racing tracks across Kentucky failed to clear a crucial hurdle Monday, losing a 10-5 Senate committee vote.

 

“All 138 members of the Legislature, without exception, want to help the horse industry,” said Sen. Charlie Borders, the Appropriations & Revenue Committee chair. “Regardless of House Bill 2’s success… this state legislature is determined to help the horse industry.”

 

The Senate on Friday passed its own plan, without slots, to aid the state’s horse industry as part of House Bill 3. The Senate changes to that bill, which also includes economic development incentives and a proposal to fund transportation megaprojects, were rejected by the House and could be studied by a conference committee.

 

In addition to allowing video slots, HB 2 would also have decreased the state’s motor vehicle tax and repealed the state income tax on active military pay.

 

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June 22, 2009

 

 

Ky. House honors slain woman, condemns violence in Iraq

 

FRANKFORT -- Members of the Kentucky House of Representatives today passed a resolution sponsored by Rep. Tom Riner honoring an Iranian woman who was killed while protesting suspected corruption in her country’s presidential elections.

 

Images of the Neda Soltani’s final moments of life were captured on a cell phone camera after she was shot in the chest in Iran on June 20. The graphic images spread throughout the world’s online community within hours as she became the face of Iran’s struggle and her name became a rallying cry for fellow protesters in Iran.

 

“She wasn’t doing anything other than observing and being part of the freedom movement,” said Riner, D-Louisville, while presenting his resolution in the House. “She was standing for the rights of all Iranians to life, liberty and the pursuit of happiness.”

 

Riner was joined by 93 co-sponsors in supporting the resolution, which was approved without opposition.

 

Soltani’s death has “shown the world the consequences of government leaders placing their own lust for power above the God-given rights of their people to be treated with truth, justice, and mercy,” the resolution states.

 

The resolution condemns the recent violence committed by the government of Iran against its own people and the suppression of information in that country. It also states that Kentuckians do not support suppression “of God-given freedoms and rights by the Iranian government and are praying for the safety and welfare of the Iranian people...”

 

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June 19, 2009

 

Legislative week in review

 

FRANKFORT -- It unfolded gradually this spring, as numbers crunchers began warning that the state might face a billion-dollar budget shortfall next fiscal year, hard on the heels of the tough cuts needed to balance this year's budget during the Legislature's off-year short session last winter.

 

Gov. Steve Beshear finally reckoned that projected state finances were indeed that dire -- this despite skepticism on that point by some key legislative leaders, who said the real deficit was much less if calculated properly, and did not require legislative intervention. Regardless, the governor called the Legislature into special session, beginning June 15, to put the budget back in balance.

 

After issuing the original session call limited to that topic, he added some other items: Economic-development incentives that would in part attempt to lure a major NASCAR race to Kentucky Speedway and The Breeders Cup to Churchill Downs, as well as a so-called megaprojects measure (commonly called the 'bridges bill') that would provide a funding and control mechanism for huge and expensive infrastructure projects like the multi-year, multi-billion dollar Ohio River bridges proposal in Louisville.

 

And, working without a net politically – since no consensus existed on the issue, and in fact it faced powerful resistance – the governor also added video lottery terminals (otherwise known as video slots) at Kentucky racetracks to the session call.

 

The putative reason for this was to save the state's troubled Thoroughbred industry, by drawing more patrons to tracks and injecting new money into race purses, thereby keeping racetracks open and horses and horsemen in the state.

 

An underlying rationale, though not as frequently cited in the discussion that evolved, was that slots could rake hundreds of millions of dollars in licensing fees and taxes into the chronically strapped State Treasury, at a time when the phrase 'billion-dollar budget shortfall' had entered Kentucky's public-policy lexicon for the first time.

 

The VLT idea has been with us for years, and it's always been controversial. The same is true this year. Advocacy groups instantly mobilized both pro and con, with TV and radio ads and demonstrations in Frankfort, and Senate leaders signaled all along that if any VLT legislation made it down the hall to them it would face severe uphill sledding in that chamber.

 

The House had never voted to endorse the idea in previous legislative sessions, despite multiple attempts. But as the session's first week wore on, the VLT proposal taken up by the House had morphed into a potent, politically alluring form for that chamber: A huge chunk of VLT-generated revenue would be devoted to debt service on bonds for more than $1 billion in school-building construction, both at state colleges and in school districts statewide where aging elementary and secondary buildings need replacement.

 

When the measure came before the full House on Friday, it was approved on a 52-45 vote. As a result, the chamber will include the school-construction provisos in the budget-balancing bill it plans to take up next week. It's not clear what form that bill will take, but the governor has proposed that most of the shortfall be made up with federal stimulus money, coupled with 2.7 percent across-the board agency cuts – with important exceptions: Basic funding for public schools and universities would be spared the axe.

 

Aside from the VLT drama, last week saw legislative action on economic development measures and legislation to support transportation mega-projects. After receiving bills on these topics from the House, the Senate added a state budget-balancing plan to one measure while rolling together plans for economic development incentives, transportation megaprojects and aid for the horse industry into the other.

 

The Senate budget plan largely mirrors the governor’s budget reduction proposal, including cuts to most state agencies but eliminating unpaid holidays for state employees.

 

Under the Senate’s approach to helping the state’s horse industry, lottery tickets would include a 10 percent surcharge, while tracks and off-track betting centers would pay a 1.5 surcharge for their simulcasting signals from Kentucky horse racing tracks. The money raised — projected at more than $85 million — would benefit purses at Kentucky racing tracks, horse breeders, local horse shows, and the state’s KEES scholarship programs.

 

Efforts to iron out differences between House and Senate approaches to the issues of the current session are sure to be underway when lawmakers return to Frankfort next week. In the meantime, lawmakers are seeking feedback from their constituents. Citizens can find contact information on lawmakers – as well as a wealth of resources pertaining to the current legislative session -- on the Legislative Research Commission Web site at www.lrc.ky.gov or can call the General Assembly's toll-free Message Line at 1-800-372-7181, to leave a message for their legislators.

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June 19, 2009

 

Senate approves special session items

 

FRANKFORT — The Senate approved legislation concerning the issues behind the governor’s call for a special session today.

 

Senate changes to House Bill 4 largely mirror the governor’s plan for budget reduction, including cuts to most state agencies but eliminating unpaid holidays for state employees called for by the governor.

 

The budget bill passed on a 33-0 vote, with one senator passing.

 

The Senate rolled plans for economic development incentives and transportation megaprojects, along with Senate President David Williams’ plan for aid to the state’s horse industry, into an omnibus substitute for House Bill 3.

 

The Senate economic development plan is substantially similar to the version passed by the House, which revised state programs to better help small businesses, high-tech businesses, and projects needing tax increment financing. The plan also includes targeted incentives to attract an advanced battery factory to Hardin County, a Sprint Cup race to Kentucky Speedway in Gallatin County, and Breeders’ Cup races to the state’s thoroughbred tracks.

 

House Bill 3 would also allow the creation of local authorities to plan transportation megaprojects on the order of $500 million or more. Such authorities would be subject to legislative ratification both in the scope and the funding model for their projects. “The General Assembly will not be micromanaging,” said Sen. Ernie Harris, R-Crestwood, but would exercise oversight as it does with other bonded projects across the state.

 

In addition, the plan authorizes a bi-state authority to allow Kentucky officials to work with Indiana officials concerning bridges across the Ohio River.

 

Finally, House Bill 3 includes a proposal to aid the state’s horse industry. Under the Senate-approved plan, lottery tickets would include a 10 percent surcharge, while tracks and off-track betting centers would pay a 1.5 surcharge for their simulcasting signals from Kentucky horse racing tracks. The money raised — projected at more than $85 million — would benefit purses at Kentucky racing tracks, horse breeders, local horse shows, and the state’s KEES scholarship programs.

 

“With the money that’s available… Kentucky will have the richest purses in America,” said Williams, R-Burkesville.

 

HB 3 passed 32-0, with one senator abstaining. Both bills now return to the House for its concurrence in the Senate changes.

 

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June 19, 2009

 

 

Video lottery machine bill passes House

 

FRANKFORT -- The Kentucky House voted 52-45 today in favor of an expanded gaming bill that would allow the state’s racetracks to be licensed to operate video lottery terminals in hopes of boosting the horse industry and state programs like public education.

 

House Bill 2, sponsored by House Speaker Greg Stumbo, D-Prestonsburg, is projected to yield over $1 billion in state revenue over the next five fiscal years, including $194.3 million in fiscal year 2010. Initial licensing fees paid by tracks with VLTs would add another $102 million per year over five years, Stumbo said, giving the state what he described as a “conservative” total of around $300 million a year for individual income tax and horse farming tax breaks, regional infrastructure, education and job growth.

 

“If this bill becomes law, it will not only save the signature industry (horse industry) in this state,  it will save thousands of jobs,” Stumbo told the House. “Kentuckians need to go back to work, and we have the ability and the tools to put them back to work today.”  HB 2 now goes to the Senate for its consideration.

 

The bill is designed to help the state’s ailing horse industry by funding breeder incentives and attracting more horse races through bigger purses, or race winnings. Planned uses for anticipated state revenue in HB 2 includes, but is not limited to, income tax relief for the military, income tax relief of $250 per person or $500 per couple from the state motor vehicle property tax, horse farming sales tax relief, a fund for treatment of problem gamblers, a tourism and infrastructure fund and billions of dollars for education.

 

The legislation is expected to provide at least $143 million a year to pay off future bond issues for capital construction at both public schools and state colleges and universities. Funding for educational technology and equipment and an increase in funding per pupil funding for school districts is also planned under HB 2.

 

Rep. David Osborne, R-Prospect, spoke in favor of the bill as a Kentucky horseman. Osborne told the House before the vote on the bill that HB 2 would help decide the fate of a centuries-old industry. “These are not strangers,” he said. “This is an industry that has been here before we were a state.”

 

Opponents of the HB 2, including Rep. Danny Ford, R-Mt. Vernon, questioned estimates of how much revenue the bill would create. He also said the bill would add over $1 billion in new debt by authorizing more bond issues.

 

“We’re talking about $1.3 billion in new bonding in this bill,” said Ford.

 

Ford added that Governor Steve Beshear’s initial call this special session required state lawmakers to pass a revised state budget in light of a nearly $1 billion shortfall. “To my knowledge we haven’t discussed or debated a bill that would address a budget shortfall,” he said.

 

House Minority Floor Leader Rep. Jeff Hoover, R-Jamestown, said he opposes expanded gaming in Kentucky, and HB 2, because he doubts the General Assembly’s “fiscal discipline” with such revenue. “This body…would not be able to be fiscally responsible to take the revenue and address current problems,” said Hoover.

 

House Appropriations and Revenue Committee Chair Rep. Rick Rand, D-Bedford, explained  that expected revenue shortfalls in fiscal year 2010 and a current state unemployment rate of around 10 percent support the need for HB 2.

 

“Just 12 short months ago, we had just completed our 2008 session and things were pretty good,” but that changed as the nation fell into recession, he said.

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June 18, 2009

 

 

Gaming legislation passes House budget committee

 

An expanded gaming bill that would allow video lottery terminals at Kentucky racetracks cleared the House Appropriations and Revenue Committee today.

 

House Bill 2, sponsored by House Speaker Greg Stumbo, D-Prestonsburg, is projected to yield over $1 billion in state revenue over the next five fiscal years, including $194.3 million in fiscal year 2010. Initial licensing fees paid by tracks with VLTs would total $102 million per year over five years, Stumbo said.

 

“We need to have as much stability in our revenue stream as we possibly can,” Stumbo told the committee. Through the 5-year payment plan on fees, Stumbo said the state would be assured at least $100 million a year in revenue during what could be a period of continued state budget shortfalls.

 

The bill is designed to help the state’s ailing horse industry by funding breeder incentives and attracting more horse races through bigger purses, or race winnings. Planned uses for anticipated state revenue in HB 2 includes, but is not limited to, income tax relief for the military, income tax relief of $250 per person or $500 per couple from the state motor vehicle property tax, horse farming sales tax relief, a fund for treatment of problem gamblers, a tourism and infrastructure fund and billions of dollars for education.

 

Under HB 2, at least $143 million a year would go toward education to fund capital construction at public schools and state colleges and universities, educational technology and equipment, and increase state funding per student in school districts across the state.

 

HB 2 now goes to the full House for its consideration.

 

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June 17, 2009

 

 

Economic development and mega-projects bills pass House

 

FRANKFORT – The Kentucky House passed bills today that would create financing authorities for transportation mega-projects costing over half a billion dollars and create incentives to both keep and attract new jobs, and tourism, to the Commonwealth.

 

House Bill 4, sponsored by House Budget Review Subcommittee on Transportation Vice Chair Rep. Don Pasley, D-Winchester, passed by a vote of 89-9. It would allow bi-state authorities to be created between Kentucky and Indiana to finance and build projects connecting the two states, like the $4 billion Louisville bridges project and the I-69 bridge project near Henderson.  It would also allow authorities to be created for other mega-projects solely within Kentucky.

 

“We have some $12-$13 billion in projects now on the radar that we have no feasible way to pay for,” said Pasley.  Projects within Kentucky that could be funded under the bill could include construction of bridges in West Kentucky’s lake region, a proposed I-66 through Southern Kentucky and expansion of other state highways, Pasley said.

 

A Kentucky Public Transportation Infrastructure Authority would be created to approve and oversee all mega-project construction and financing, which could include revenue bonds paid for with tolls. Pasley said the bill has safeguards to ensure that authorized tolls are used only to retire debt on bonded projects. 

 

Pasley said the legislation is needed now to move ahead with desired projects like the Louisville bridges project, which includes building two new spans between Kentucky and Indiana and reworking a Louisville interchange known as Spaghetti Junction. It could also help attract more federal dollars for such projects, he said.

 

“We need to have this in place…so we can seek more federal funds for projects we have on our books,” Pasley said.

 

HB 3, sponsored by Rep. Tommy Thompson, D-Owensboro, passed the House 97-1.  The legislation would expand tax incentives for existing businesses to help them expand, add small business tax credits and tax credits and refunds for high tech businesses, expand the kinds of properties that qualify for tax increment financing (TIF), establish a refundable income tax credit for films produced in Kentucky, increase the cap on incentives for historic preservation from $3 million to $5 million, provide incentives to bring a NASCAR Sprint Cup race to Kentucky Speedway the Breeder’s Cup to Kentucky and secure funding for an advanced battery manufacturer proposed for Hardin County. Incentives to upgrade short line rail tracks and other provisions are also included.

 

The bill was amended to reduce base wages required in the original bill for certain economic development incentives to 125 percent of the federal minimum wage in counties with enhanced incentives and 150 percent of the federal minimum wage in other counties. The 125 percent rate, Thompson said, would amount to a base wage of $9.06 per hour. He told a House budget committee on Tuesday that the change reflects recent increases in the federal minimum wage.

 

Rep. Jim Wayne, D-Louisville, called the 125-percent rate wage “a poverty wage” and proposed raising  the rate to its original 150 percent, increasing base pay slightly to $10.87 per hour . Lawmakers rejected the proposal after lengthy debate about its possible effect on economic development recruitment in rural Kentucky.

 

Thompson called HB 3 as passed “responsible policy,” adding “I think it will help Kentucky expand our economic base.”

 

HB 4 and HB 3 are two of four House bills that Gov. Steve Beshear has asked state lawmakers to consider during a special session that began Monday. The other two bills, which are expected to come before the committee later this week, would modify the state’s budget to address a shortfall next fiscal year and propose expanded gaming at racetracks.

 

HB 4 and HB 3 now go to the Senate for consideration.

 

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June 16, 2009

 

 

Mega-projects, incentives bills clear House budget hurdle

 

FRANKFORT – Legislation that would help Kentucky finance mega-transportation projects and allow the state retain and retool existing businesses while attracting business and tourist attractions passed the House budget committee this afternoon.

 

House Bill 4, sponsored by House Budget Review Subcommittee on Transportation Vice Chair Rep. Don Pasley, D-Winchester, would allow bi-state authorities to be created between Kentucky and Indiana to finance and build projects connecting the two states, like the $4 billion Louisville bridges project and the I-69 bridge project near Henderson.  Each project would be developed separately, Pasley told the House Appropriations and Revenue Committee, and establishment of the bi-state authority would be subject to approval by a Kentucky Public Transportation Authority created by the bill. Bi-state authorities with other states, like Ohio, are not mentioned in the bill.

 

HB 4 and HB 3, an economic incentives bill sponsored by Rep. Tommy Thompson, are two of four bills proposed by Gov. Steve Beshear for state lawmakers’ consideration during a special session that began Monday. The other two bills, which will come before the committee later this week, would modify the state’s budget to address a nearly $1 billion shortfall next fiscal year and propose expanded gaming at racetracks.

 

“Projects like the Louisville bridges are not going to move forward without some sort of alternative financing,” Pasley told the committee.

 

The bill would also allow financing authorities to be created for other projects within Kentucky that are not shared with Indiana.  KPTA would oversee construction and financing of the projects, which could include issuing revenue bonds and tolls. Pasley said the federal government “will have the final say on what can be tolled.”

 

The General Assembly would oversee the projects, Pasley said, by ensuring that eligible projects are included in Kentucky’s six-year plan for highway and bridge construction, through Senate confirmation of KPTA gubernatorial appointees and by KPTA annual reports to state lawmakers.

 

HB 3, sponsored by Rep. Tommy Thompson, D-Owensboro, would expand tax incentives for existing businesses to help them expand, add small business tax credits and tax credits and refunds for high tech businesses, expand the kinds of properties that qualify for tax increment financing (TIF), establish a refundable income tax credit for films produced in Kentucky, increase the cap on incentives for historic preservation from $3 million to $5 million, provide incentives to bring a NASCAR Sprint Cup race to Kentucky Speedway the Breeder’s Cup to Kentucky and secure funding for an advanced battery manufacturer proposed for Hardin County. Incentives to upgrade short line rail tracks and other provisions are also included.

 

Thompson said Kentucky is approaching a 10-percent unemployment rate, and his bill will give the Commonwealth a chance to grow.

 

“Not one credit or one refund will be provided until someone does something to make an investment in Kentucky,” he told the committee. “We will give a dividend back to them for making an investment.”

 

The bills now return to the full House.

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June 3, 2009

 

 

Tobacco funds for early childhood program benefiting families

 

FRANKFORT – More than 90 percent of Kentucky tobacco settlement dollars spent on a home visitation program for first-time, at-risk parents are used for front-line services, not administration, a panel of state lawmakers heard today.

 

State officials who coordinate the state’s early childhood initiative called, KIDS NOW (Kentucky Invests in Developing Success NOW,) told the Tobacco Settlement Agreement Fund Oversight Committee today that at least 90 percent of the $9.2 million budgeted over the past year for the HANDS home visitation program benefit families directly.  The overall KIDS NOW budget for the year totals around $30 million.

 

“This money is meant to deliver services to people… That is our focus,” said Dr. Ruth Shepherd, M.D., director of the state’s Division of Maternal and Child Health, in response to a question from Sen. David Givens about how much of the HANDS budget goes directly for services to families.

 

“So those dollars are touching people, they’re not paying staffers who are supporting back services,” said Givens, R-Greensburg.

 

HANDS is one of several components of  KIDS NOW, which is funded by 25 percent of Kentucky’s share of a  $206 billion settlement reached in 1998 between 46 states and the nation’s large tobacco companies. Shepherd said HANDS is a national model for helping first-time overburdened parents and serves around 11,000 families a year.

 

The program is voluntary for any parent who meets certain risk criteria, regardless of income, Shepherd said.

 

Other components of the early childhood initiative include a folic acid program designed to prevent the birth defect spina bifida--or open spine--in newborns; a substance abuse prevention and treatment program for pregnant women; newborn hearing and metabolic screenings; eye exams; oral health services; immunizations; child advocacy and early child care and education assistance programs.

 

Kentucky Child Care Assistance Program official Robin Herring said approximately 43,000 Kentucky children receive subsidized child care each month through the KIDS NOW initiative. Approximately 29 percent of those children, Herring said, are cared for in a center that is quality-rated by the state through KIDS NOW.

 

When asked by Committee Co-Chair Rep. Dottie Sims, D-Horse Cave, if KIDS NOW’s current budget includes any federal funding, Shepherd said it didn’t, although she added that budgeted dollars are used to draw federal Medicaid matching funds for the HANDS program.

 

“We do a really good job of spending our dollars, and many of our programs actually pull down large amounts near the end of the year,” Kentucky Division of Early Childhood Development Director Annette Bridges told lawmakers.

 

 

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June 3, 2009

  

Lawmakers updated on stimulus road money

 

FRANKFORT — More than half of Kentucky federal stimulus money for road projects has already been awarded for work ready to begin, a panel of lawmakers learned yesterday.

 

The American Recovery and Reinvestment Act, commonly known as the federal stimulus plan, designates $421.1 million for highway infrastructure improvements in Kentucky, State Highway Engineer Mike Hancock told the Interim Joint Committee on Transportation. Of that total, $40.6 million goes to the state’s four metropolitan areas and $367.8 million is distributed statewide. The General Assembly decided which projects across Kentucky would be funded through House Bill 330 earlier this year.  

 

Ten projects have already been let, Hancock said, with many more ready to be let in the coming months. More than 50 percent of the road stimulus must be obligated by June 30, he added, and the state is well past that threshold. Hancock told committee members that of the more than $800 million in road projects eligible for stimulus money in the current six-year road plan, Transportation Cabinet officials put an emphasis on projects that were ready to proceed immediately, so that the June 30 deadline could be met.

 

All money must be obligated by March, 2010, and the projects must be completed by September 30, 2015, to receive stimulus money.

 

A similar situation exists for the state’s $51.5 million in stimulus money designated for buses and other mass transit, Hancock noted. 

 

 

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May 6, 2009

 

 

State tobacco panel hears benefits of switchgrass

 

FRANKFORT—State lawmakers heard today about how a native Kentucky grass could mean extra money for farmers and reduced emissions from coal-fired power plants in the Commonwealth.

 

The plant is switchgrass, a warm season grass that is being reestablished in the state as part of a four-year pilot project overseen by the University of Kentucky and funded by a grant from the Kentucky Forage and Grassland Council with state tobacco settlement dollars. Twenty farms in 12 counties are involved in the project, which sent 70 tons of ground-up switchgrass to an East Kentucky Power plant in Mason County last year to be burned as biomass with coal in hopes of lowering plant emissions.

 

Researchers, farmers and the power industry are hopeful that switchgrass could become a supplement to coal at coal-fired generating plants, UK agronomist Tom Keene told the Tobacco Settlement Agreement Fund Oversight Committee today. One East Kentucky Power official on a UK video shown by to the panel by Keene said the grass “could become a very viable economic opportunity to help us achieve our mission of low cost energy supply to our customers.”

 

It could also supplement farm income. Keene said UK is crunching numbers on the potential payment per ton to farmers for switchgrass, adding that many would like to see farmers receive $60 per ton. Since the grass is a perennial and has so many uses—biomass, grazing, hay, and even conversion to cellulosic ethanol—lawmakers were excited about its possibilities.

 

“As an agricultural crop, I think the future could be very exciting,” said House Agriculture and Small Business Chairman and tobacco committee member Rep. Tom McKee, D-Cynthiana. “I hope a lot of our research will continue to center on the profit potential per acre.”

 

Sen. Charlie Borders, R-Russell, was hopeful that use of switchgrass could give some relief to Kentucky’s coal industry, which might face stringent federal regulations on carbon emissions in the near future. Keene said burning switchgrass in coal-fired plants reduces carbon, sulfur and nitrogen while sequestering carbon in the soil.

 

“Going in this direction with emissions,” said Borders, “hopefully that would take some of the pressure off some of the (people) in Washington, D.C. who want to do harm to our coal industry. Maybe some of these folks wanting to outlaw coal…better stop and realize we’re doing some things that are being very helpful here.”

 

Keene said there are no hard numbers on how much the switchgrass burned by East Kentucky Power last year lowered carbon emissions, because the amount burned was so small. He said the project hopes to increase the amount burned this year.

 

What was delivered to East Kentucky Power was enough to supply “green energy” to a half million Kentuckians, he added.

 

Generally, Keene said the work being done with switchgrass in Kentucky now is laying a foundation for future decades. “I think the worst thing we can do is paint a panacea for Kentucky farmers of Kentucky industry that this is a silver bullet, or magic wand.”

 

Senate Agriculture Chairman and tobacco committee member Sen. David Givens, R-Greensburg, responded, saying, “so it does bear potential, but let’s not get ahead of ourselves.”

 

But Keene did say that many farmers are interested in the project, and there are plans to ask for its expansion.

 

Tobacco Oversight committee Co-Chair Rep. Dottie Sims, D-Horse Cave, thanked Keene for his work on the project.

 

“I’ve looked over some of the papers on the switchgrass, and it’s very interesting,” Sims said.

 

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March 27, 2009

 

 

LEGISLATIVE WEEK IN REVIEW

 

FRANKFORT -- Anticlimactic it may have been, since the largest and stickiest issues on the table had been well disposed of earlier. But the scheduled final two days of this year's legislative session did convene in Frankfort Thursday with a bit of uncertainty hanging over it -- and some drama at the end.

The question going in: Would the House take up any of the bills that were still pending between chambers when the Legislature adjourned two weeks ago for its veto recess?

Three bills in particular were being talked about: An overall economic-incentive package aimed partly at luring a major NASCAR race to the state; a measure creating a River Bridges Authority (or some other mechanism) to oversee the massive Louisville project or other large bridge projects; and a bill to fund public defenders in Kentucky, who warn they may have to start turning away clients because of budget shortfalls.

With two working days left when lawmakers returned to Frankfort, the Senate and the governor took the position that those measures were important enough and near enough resolution for the Legislature to wrap up work on them and pass them before final adjournment.

The House had a different take. Earlier in the session, that chamber passed rules of operation that included a stipulation the final two 'veto days' of the session would be limited to just that: Considering overrides of any vetoes the governor might impose on passed legislation during the 10-day recess built into the schedule specifically for that purpose.

The Senate and the governor countered that rules of legislative procedure are suspended regularly for important and even minor matters, and they could and should be suspended in this case because of what they considered an urgent need to finish and sign those bills. The House pointed out that such a last-minute rush to pass bills has caused problems and confusion in past -- including 'stopping the clock' at midnight and the lawsuits and litigation that resulted -- and that the rule in question was designed specifically to prevent such hasty 11th-hour practices.

In the end, the House decided that the bills, while good ones, did not require immediate action, and chose not to take them up at this time. And since neither the House nor Senate felt it was necessary to contest the one minor veto Gov. Beshear had imposed on a section of Road Plan language, the Legislature's work for this year was over. Both chambers adjourned sine die before sundown Thursday, after using 29 of their allotted 30 days for this year's session.

Despite this procedural difference in the final hours, all parties agreed that this year's session was a highly productive one, notable for its spirit of harmony and bipartisan cooperation in the face of hard times.

In addition to passing a revenue package of targeted tobacco-and-alcohol taxes to help close a major budget shortfall, the session will be remembered for finally voting to eliminate the controversial CATS school-accountability testing program, replacing that test with something better able to track and compare individual student progress. An ambitious Road Plan for Kentucky was passed and funded.

Other bills too will have their impact, either now or down the road:

 

  • Drug diversion. SB 4 directs jail officials to screen inmates for drug use as soon as they are booked. Judges can then order outpatient drug counseling, while serious addicts can volunteer for inpatient treatment. Those who complete a follow-up program and stay clean can have the felony wiped from their record.

 

  • Penal code. Senate Joint Resolution 12 continues a study of the state’s criminal laws, putting it under the jurisdiction of the legislature’s Interim Joint Committee on Judiciary.

 

  • Personal services. SB 22 requires home health agencies and other personal service businesses to conduct criminal background checks on their employees and bans anyone convicted of abuse, drug crimes, or sex crimes from being hired.

 

  • Flags. SB 33 requires all U.S. and Kentucky flags purchased by state and local governments to be made in the U.S.

 

  • ATVs. House Bill 53 requires all-terrain vehicles to be titled, just as motor vehicles are.

 

  • Oil and gas. SJR 67 directs a study of potential benefits from oil and gas exploration on state lands.

 

  • Local government pensions. HB 117 allows employers in the County Employees Retirement System to phase in their health care payments over 10 years, just as the state government does.

 

  • Sex offenders. HB 315 bans convicted sex offenders from MySpace, Facebook, and other social networking sites where minors are allowed. It also requires them to register their e-mail addresses, screen names, and other online IDs with state authorities.

 

  • Missed school days. HB 322 allows school districts to ask the Education Commissioner to waive 10 school days from the school calendar due to school closings caused by the winter ice storm and the windstorms caused by last fall’s Tropical Storm Ike.

 

  • Gasoline tax. HB 374 sets the current gas tax of 22.5 cents per gallon as the new base, rather than allowing it to fall with gas prices on April 1. This will in part fund the ambitious statewide road contraction plan also passed this session.

 

  • School athlete safety. HB 383 requires high school coaches to become certified in student safety. Beginning next school year, one certified coach must be present at every practice and game.

 

  • Payday lending. HB 444 sets up a database to enforce the state’s two loan/$500 maximum on payday loans. The bill also puts a 10-year moratorium on new payday lending stores.

 

Although the 2009 regular session is now in the history books, already there is speculation that a special session may be needed later this year to deal with a projected continuing deficit in the budget for next fiscal year beginning July 1. Only a governor can call a special session, so that will be his call. Meanwhile the legislative interim resumes: The period between sessions when joint committees of the House and Senate meet monthly to study issues and prepare legislation for the next session.

 

Citizens can stay informed of legislative activity year-round by on logging onto the Legislative Research Commission website at www.lrc.ky.gov . To find out when a committee meeting is scheduled, they can call the LRC toll-free Meeting Information Line at 800-633-9650.

 

Anyone wanting to share a comment or concerns with their legislator can call the toll-free Legislative Message Line at 800-372-7181, also year-round.

 

The next regular session of the Kentucky General Assembly will convene Jan. 5, 2010.

 

 

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March 26, 2009

 

 

General Assembly’s 2009 session ends

 

FRANKFORT — The Kentucky General Assembly’s 2009 session gaveled to an end today, capping 29 days of legislative activity that included the passage of bills on school testing reform, drug screening and treatment for felony offenders, and tracking for payday lenders.

 

More than 700 bills were introduced in the two legislative chambers this year, including legislation to plug shortfalls in the state budget. Measures sent to the governor to be signed into law include the following:

 

CATS testing. Senate Bill 1 overhauls the state’s end-of-year school accountability exams, eliminating writing portfolios as well as arts and practical living exams. Those elements would be retained as school programs, however.

 

Drug diversion. SB 4 directs jail officials to screen certain drug abuse offenders as soon as they are booked. Judges can then order outpatient drug counseling, while serious addicts can volunteer for inpatient treatment. Those who complete a follow-up program and stay clean can have the felony wiped from their record.

 

Penal code. Senate Joint Resolution 12 continues a study of the state’s criminal laws, putting it under the jurisdiction of the legislature’s Interim Joint Committee on Judiciary.

 

Personal services. SB 22 requires home health agencies and other personal service businesses to conduct criminal background checks on their employees and bans anyone convicted of abuse, drug crimes, or sex crimes from being hired.

 

Flags. SB 33 requires all U.S. and Kentucky flags purchased by state and local governments to be made in the U.S.

 

ATVs. House Bill 53 requires all-terrain vehicles to be titled, just as motor vehicles are.

 

Oil and gas. SJR 67 directs a study of potential benefits from oil and gas exploration on state lands.

 

Local government pensions. HB 117 allows employers in the County Employees Retirement System to phase in their health care payments over 10 years, just as the state government does.

 

Budget revisions. HB 143 deals with state budget shortfalls with 4 percent cuts for most state agencies. The Medicaid program, corrections and SEEK funds for schools were protected from the cuts. Higher education received 2 percent cuts. The budget revision plan also uses some of the state’s “Rainy Day” funds to close the budget gap.

 

Revenue. HB 144 will generate additional revenue for the state by doubling the state’s tobacco tax, increasing the tax on cigarettes to 60 cents a pack, and extending the state’s 6 percent sales tax to retail alcohol sales.

 

Sex offenders. HB 315 bans convicted sex offenders from MySpace, Facebook, and other social networking sites where minors are allowed. It also requires them to register their e-mail addresses, screen names, and other online IDs with state authorities.

 

School days. HB 322 allows school districts to ask the Education Commissioner to waive 10 school days from the school calendar due to school closings caused by the winter ice storm and the windstorms caused by last fall’s Tropical Storm Ike.

 

Gasoline tax. HB 374 sets the current gas tax of 22.5 cents per gallon as the new base, rather than allowing it to fall with gas prices on April 1.

 

School athletes. HB 383 requires high school coaches to become certified in student safety. Beginning next school year, one certified coach must be present at every practice and game.

 

Payday lending. HB 444 sets up a database to enforce the state’s two loan/$500 maximum on payday loans. The bill also puts a 10-year moratorium on new payday lending stores.

 

Student loans. HB 480 mandates that when money is tight, the state restricts access to new loans by the Best in Class program, which forgives loans for teachers who enter the fields of math, science, and special education. Current teachers whose loans need forgiveness would have priority in the program, which will also add nurses and public-service attorneys to the program.

 

 

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March 13, 2009

 

 

Legislative Week in Review

 

FRANKFORT -- The last day before the veto recess of a General Assembly session almost always vibrates with urgency – and a big dose of uncertainty. Normally, a raft of major, controversial bills remain unresolved in conference committees from each chamber, as lawmakers struggle, sometimes late into the night, to work out differences between versions passed by the House and Senate so the unified bills can go to the governor.

 

Getting to that step is key to why the Legislature started building a 10-day 'veto recess' into its schedule. Since the governor must veto a bill within 10 days of receiving it, saving a day or two of its allotted 30 for after recess gives the General Assembly a chance to override that action.

 

This year, that last-day urgency was muted – in a way that reflected something leaders and observers have remarked upon: A cooperative spirit of 'get things done in the face of tough times' that has descended on Frankfort this long winter.

 

Consider what the Legislature faced when it went to work that last day, Friday, and how it played out:

 

·          The biggest sticking point anticipated for this year's session – how to plug a half-billion dollar hole in the state budget – was resolved weeks ago. Cigarette and alcohol taxes were raised, further but not Draconian agency spending cuts were authorized, and Rainy Day funds were temporarily transferred to make up the difference. House and Senate leaders worked with the governor to get this done, and the bill passed without much drama.

 

·          An issue that in past years would have almost surely caused deadlock – dumping the controversial CATS testing system in state schools and replacing it with something different, more focused, and more able to track individual student achievement – had broad bipartisan support this year. A bill to that end passed both chambers, with minor differences. A conference committee worked Friday to iron out some technical details of its implementation, including timing of the changeover and what to use for testing in the transition to a new state test. Agreement was arrived at later in the day.

 

·          The one sticking point still out there Friday on an ambitious $3.7 billion multi-year road package was, 'when to pass the pennies?' Even this, one leader called 'just a disagreement over process.' The state gas tax is based largely on the price of gasoline. It's currently 22.5 cents. The Senate wanted to pass the bill to freeze the state gas tax at its current level (four cents a gallon higher that it will otherwise be April 1, when it's scheduled to drop because gas prices have plunged) only after the governor signs the Road Plan bill itself. The House wanted the pennies passed now and sent to the governor as part of the overall transportation package, since the road projects will need that money. Failure to freeze the tax rate would cost the Road Fund $128 million in lost revenue. Both bills were stalled Friday as the final process was negotiated in conference committee, with agreement reached later in the day to pass the tax freeze now.

 

Otherwise, in a busy week, several other bills of note cleared both chambers, including:

 

·          Passed and sent to the governor was House Bill 489, which requires that judges include health insurance or health coverage for children as part of child support arrangements.

 

·          Heading for the governor is Senate Bill 4, under which persons charged with a felony would be screened for substance abuse before they go to trial. At a judge’s discretion, the offender could be ordered into an outpatient recovery program as a condition of bail. Upon completing the pretrial diversion program (and assuming no further offenses) the charges could eventually be dropped and no felony listed on his or her record. The bill is aimed in part at reducing the population of our clogged and costly prisons, while returning substance abusers to productive lives in the community.

 

·          HB 444, a bill to regulate so-called payday lending, would require that a state database be created by July 2010 for lenders to search for any outstanding loans a customer might have. It would impose penalties on businesses that violate the two-loan/$500 or less per-customer limit now on the books, and prohibit new payday loan stores from opening over the next ten years. It’s been sent to the governor.

 

·          Schools that missed many instructional days due to this winters ice storm and last fall’s Hurricane Ike will welcome HB 322, which allows school districts to ask the state to waive up to 1- “disaster days” once all planned makeup days are used. It would also allow schools to extend the instructional day by 30 minutes to prepare for statewide testing, and lengthen school days to make up any days missed due to bad weather.

 

As mentioned, the Legislature leave today on a planned recess, a 'veto recess' while the governor reviews bills for any he'd like to strike. Lawmakers then return for the final two days of this session March 26-27, to consider overriding those vetoes, and to tie up loose ends and pass – or not – any bills not agreed to by both chambers at day's end Friday.

 

You can stay informed of legislative action on bills of interest to you this session by logging onto the Legislative Research Commission website at www.lrc.ky.gov or by calling the LRC toll-free Bill Status Line at 866-840-2835. To find out when a committee meeting is scheduled, you can call the LRC toll-free Meeting Information Line at 800-633-9650.

 

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March 13, 2009

 

 

CATS reform passes, ready for governor

 

FRANKFORT — A comprehensive overhaul of the state’s system of student assessment is headed to the governor’s desk following final passage by the House and Senate today.

 

Senate Bill 1, sponsored by Sen. Ken Winters, R-Murray, and Senate President David Williams, R-Burkesville, would put emphasis on individual student test scores, allowing parents and teachers to evaluate their strengths and weaknesses and design a curriculum for their needs.

 

“We’ve established a new day in the education of our young people,” Winters declared.

 

Open-response questions will be removed from the state’s end-of-year student assessments in favor of a national norm-referenced test augmented by additional multiple-choice tests to cover the state’s core content. The focus on multiple-choice exams is designed to allow quicker feedback and allow changes to a student’s education plan the next school year.

 

Writing portfolios will no longer be used as part of the assessment program, beginning immediately, although they will be retained as a teaching tool in grades 5-12. Likewise, end-of-year tests in the arts and vocational skills would be eliminated beginning with next school year, although schools as a whole will be evaluated on their offerings in those areas, with a spotlight on performance-oriented courses.

 

As the state makes a transition to national norm-referenced tests, students will be required to complete Kentucky Core Content exams in math, reading, science, and social studies used for school and district accountability. They will also take survey norm-referenced exams to measure their individual readiness. When the new exam system is in place for the 2011-2012 school year, testing time will be cut in half to five days.

 

The compromise bill, worked on by a conference committee of House and Senate lawmakers, passed each chamber unanimously and now heads to the governor’s desk.

 

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March 12, 2009

 

 

Drug treatment plan approved, heads to governor

 

FRANKFORT -- A proposal to treat arrested drug addicts before heading to trial won final passage today, sending it to the governor for his signature.

 

Senate Bill 4, co-sponsored by Senate Majority Floor Leader Dan Kelly, R-Springfield, and Senate Minority Floor Leader Ed Worley, D-Richmond, had earlier passed each chamber unanimously. With the Senate concurring in House changes today, the program is one step from becoming law.

“This is an outstanding piece of legislation,” Worley said. “It pays for itself.”

 

Under the plan, those charged with a felony would be screened for substance abuse problems before they appear at trial. At the judge's discretion, the offender could be ordered into an outpatient recovery program as a condition of bail. If they completed the pretrial diversion program and did not commit any other offenses, the charges could eventually be dropped and no felony listed on their record.

 

The state corrections system would also set aside at least 200 beds for an inpatient facility — similar in restrictions to a minimum security prison — for people who have been charged with a felony and have substance abuse issues. Prisoners in the program would voluntarily undergo intensive counseling for at least 90 days to make sure they can overcome their addictions. An aftercare plan would also be in place for each participant, including referral to a local substance abuse counselor, to make sure they stayed away from their vices upon leaving the facility.

 

The General Assembly provided funding for the program in the budget last year, Kelly said. He gave credit to state Justice and Public Safety Secretary J. Michael Brown with initiating parts of the program already, giving the state a head start in its implementation.

 

“There could soon be people across the commonwealth whose lives will be affected for the positive,” Kelly said. 

 

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March 6, 2009

 

Legislative week in review

 

FRANKFORT -- All bills are important to someone, but some bills affect almost everyone. As the 2009 session of the General Assembly dwindles down to just seven working days, one of those across-the-board issues was closer to resolution at week's end.

 

The issue is roads, and the question is: What will the state Road Plan look like for the next few years, and how will it be paid for? Specifically, what to do about a little-remarked downside to collapsing gasoline prices?

 

The answer -- unveiled Thursday and passed by the House Friday before heading to the Senate for a vote early next week -- came in the form of an ambitious roads package hammered out in talks between House and Senate leaders and the Beshear Administration over the past few weeks.

 

The road plan would commit to significant spending -- some $3.7 billion -- to give a major boost to road building across the state, which has slowed markedly in the current recession. Of that money, some $400 million would come from issuing bonds, and another $400 million from the recently passed federal stimulus package.

 

The balance will come from the State Road Fund, which is now facing a difficulty also addressed in the bill -- falling revenue. Here's why: The state gasoline tax raises money for the Road Fund, which is dedicated exclusively to highways and bridges and road maintenance across the state. The gas-tax rate is based largely on the wholesale price of gas. Without going into the math of it, a portion of the tax is variable, so rates go up periodically as the price goes up, rates drop as the price goes down.

 

Because gas prices have plummeted dramatically since last summer, to under $2 a gallon from a high of over $4, the tax is scheduled to be cut by 4 cents a gallon April 1. Those four pennies would cost the Road Fund – already strapped for cash – some $128 million in lost revenue. One legislative leader said the potential loss of that revenue would be 'catastrophic.'

 

To fix that, the roads package passed by the House keeps the four pennies and freezes the gas-tax rate at its current level, 22.5 cents per gallon.

 

Proponents say the vigorous building plan will not only create jobs related to the construction work itself, but be a long-term economic stimulus by encouraging business and industry to remain or locate in areas well-served by good transportation.

 

Meanwhile, as the Legislature faces a final full week of work devoted mostly to considering bills sent over from the other chamber, several other bills made that penultimate step last week.

 

The House this week passed a bill in response to a tragedy: The heat-related death of 15-year-old Max Gilpin, a Pleasure Ridge Park High School football player who died last summer during practice on a hot August day. House Bill 383 instructs the Kentucky Board of Education to review and revise, if necessary, its hot-weather policies for athletic practices and events.

 

The bill was amended to remove a requirement that an ice-pool be available for athletes in hot weather, after other possible health problems were cited concerning that particular treatment for apparent heat stroke.

 

The Senate passed a bill to expand KEES, the achievement-based program that has given thousands of Kentucky students financial help to earn a college degree. While both public and private school students are eligible for the program -- which awards up to $2500 for each year of college -- home-schooled students have not been.

 

SB 180 would give those students the same opportunity as their public and private school counterparts. Under the bill, home schoolers' KEES award would be based on their standardized ACT score rather than their GPA, until after the first year of college. Then, the portion of their KEES award normally based on their high school GPA would be based on the GPA from their college freshman year.

 

You can stay informed of legislative action on bills of interest to you this session by logging onto the Legislative Research Commission website at www.lrc.ky.gov or by calling the LRC toll-free Bill Status Line at 866-840-2835. To find out when a committee meeting is scheduled, you can call the LRC toll-free Meeting Information Line at 800-633-9650.

 

If you would like to share your comments or concerns with me or another legislator about a particular bill under consideration this session, you can call the toll-free Legislative Message Line at 800-372-7181.

 

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February 27, 2009

 

 

Legislative week in review

 

FRANKFORT -- After an urgent first push dealing mostly with the state's budget crisis, and a week with no chamber action so committees could re-focus attention on the remaining big issues facing this winter's session, the rhythms of the legislative process resumed and quickly gained impetus in the Capitol this week.

 

Both chambers reconvened and passed significant bills, and the sense of precious time passing sharpened: Only 12 legislative days remain of the constitutionally allotted 30 before the 2009 session, as now scheduled, adjourns March 27.

 

In news not directly related to this week's action -- but certainly of major import to a Legislature constantly struggling with money woes -- it was announced this week that Kentucky expects to get a bit more than $3 billion from the just-passed federal economic stimulus package over the next 28 months.

 

The stimulus bill stipulates that $924 million in federal dollars will be used for education in the state, $421 million for roads and bridges, and about $990 million for Medicaid -- the latter welcome money indeed, since the program already faces a $232 million shortfall this year even as demand for services grows dramatically in the recession.

 

Additionally, about $272 million is designated for human services, $71 million for water and sewer projects, and $66 million for workforce development, among other targeted areas. Some $120 million will go to the General Fund, to help mitigate cuts in key programs and services feared for next year's budget.

 

Just two weeks ago, facing a $456 million budget shortfall by the June 30 end of this fiscal year, lawmakers passed legislation raising taxes on cigarettes and other tobacco products and extending sales taxes to package alcohol, while authorizing spending cuts even beyond those already imposed. But further significant shortfalls are expected in the next two-year budget cycle, and the underlying structural imbalance remains.

 

In light of the ongoing problem, legislative leaders this week were quick to caution that the massive injection of federal money, while welcome, was no long-term solution to Kentucky's chronic budget woes. Their underlying cautionary message: We must not become dependent on one-time money, or mislead ourselves into thinking it solves our long-term budgetary problem.

 

In floor action this week, the House approved legislation that would allow school districts who lost significant instructional days to last September's Hurricane Ike or last month's ice storm to get waivers for making up as many as 10 missed days. Under current state policy, districts that miss fewer than 20 days must make up those days or add minutes to each day to make up the lost time. That means some hard-hit districts this year face having to continue classes into summer.

 

The bill does require that the state education commissioner approve such waivers on a case-by-case basis. The bill now goes to the Senate.

 

A bill to bring more transparency to campaign fundraising and advertising passed the Senate this week. Senate Bill 53 requires that so-called 527 groups -- political advocacy groups created under Section 527 of the Internal Revenue code -- file campaign finance reports during state campaigns.

 

Basically, the bill requires such groups to follow the same campaign-finance reporting schedule as candidates for statewide office. Federal law doesn't require such reporting until after the campaign -- meaning large amounts of money, sometimes millions, can be raised and spent on advertising that essentially supports one candidate or the other, without the public knowing specifically who's paying for them.

 

Citizens can stay informed of legislative action on bills of interest to them by logging on to the Legislative Research Commission website at www.lrc.ky.gov or by calling the LRC toll-free Bill Status Line at 866-840-2835. To find out when a committee meeting is scheduled, they can check the website or call the LRC toll-free Meeting Information Line at 800-633-9650.

 

To share comments or concerns with a legislator about a particular bill or issue, they can call the toll-free Legislative Message Line at 800-372-7181.

 

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February 27, 2009

 

 

Executive Branch ethics bill passes House 92-0

 

FRANKFORT – A pared-down version of a former House bill that would improve state employee job protections and ethics in hiring passed the House today by a vote of 92-0.

 

House Bill 304, sponsored by Rep. Mike Cherry, D-Princeton, is a revised version of Cherry’s Public Employee Protection Act which was considered in 2007 and 2008 but did not become law. The 2009 bill has fewer provisions than the two earlier bills since most provisions have been implemented by the governor, Cherry said, but several areas left unaddressed are the bill.

 

HB 304 now goes to the Senate for its consideration.

 

Provisions in HB 304 include covering Personnel Cabinet board members under the Executive Branch ethics code, requiring that former non-merit employees serve a 12 month probationary period before being appointed to a merit system position, with few exceptions, and allowing employees to seek nonpartisan elected office (such as a school board position) if there is no perceived conflict and the employee has fully disclosed their intent to run for office to their employer.

 

The bill would also place limits on compensatory time block payments for non-merit employees, limit comp leave payments for any employee who leaves state government service to 240 hours (the equivalent of 10 days), and allow state employees who have been on leave for active military duty or training to return to their job and appeal any possible dismissal.

 

The state merit system is a classified employment system that is designed so employees are hired based on their qualifications.

 

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February 27, 2009

 

Oil, gas leasing on state lands moves forward

 

FRANKFORT — State land could be leased for oil and gas exploration if a bill passed by the Senate today become law.

 

Senate Bill 138, sponsored by Sen. Tom Jensen, R-London, would allow state agencies and universities to lease their property for drilling. Any leasing fees or royalties would go back to the agencies for their own use, and the process would make sure that the state receives a fair price for the mineral rights, Jensen said.

 

The state’s scenic beauty and other concerns would come into play, Jensen said. “The state will have a higher standard than normal,” he stated. “We’ll consider the aesthetic effects. We’ll consider the safety of citizens when they’re on state lands.” Regulations in the bill require any lease to be in the “best interest of the Commonwealth” and maintain environmental quality of the land.

 

Many other states already allow such leases, and federal land in Kentucky is already eligible, Jensen said. “The University of Kentucky is currently drilling on property in another state that it has an interest in,” he noted.

 

The bill, which passed 36-0, now moves to the House for its consideration.

 

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February 27, 2009

 

Senate approves executive branch ethics bill

 

FRANKFORT — State contracts would be essentially forbidden to anyone giving money to candidates under comprehensive ethics legislation passed today by the Senate.

 

“Ethical government and ethical elections are crucial to the success of self-government, and legislation to promote those core American values is as important as anything we do here,” said Sen. Damon Thayer, the sponsor of Senate Bill 2.

 

SB 2 includes business partners as those who cannot benefit from the actions of a state official. Currently only the official and their family members are included in the prohibition.

 

The bill also extends the ban on state officials going to work for a business they regulated to two years. The current prohibition is six months.

 

Among the most notable elements of SB 2 is the ban on any business entity receiving a state contract within 18 months of donating more than $500 to a candidate for office. Individuals acting as their own business would have a limit of $50, and both limits would apply to the entire length of the contract as well. “One of the strongest provisions of Senate Bill 2 would end the practice of ‘pay to play,’” said Thayer, R-Georgetown.

 

The makeup of the Executive Branch Ethics Commission would change under the bill, giving other constitutional officers a greater role in its membership. While the first appointment under SB 2 would be made by the governor, the next three appointments would be chosen from a list submitted by the Attorney General, Secretary of State, and Auditor of Public Accounts.

 

The bill, which passed 32-4, now moves to the House for its consideration.

 

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February 13, 2009

 

 

Legislative Week in Review

 

FRANKFORT Earlier in the session than many expected and with less high drama than some feared, the House and Senate this week approved a bill to increase taxes on both tobacco and package alcohol sales, as the last leg of a three-pronged approach to plugging a half-billion dollar hole in the state budget: Cuts, fund transfers and new revenues.

 

House Bill 144, the tax measure, passed the House Wednesday and the Senate Friday. It was then sent to the governor for his expected signature. It represents a bipartisan consensus worked out over the past few weeks by leaders from both chambers to cope with a projected $456 million revenue shortfall this fiscal year.

 

The bill doubles the state cigarette tax, to 60 cents a pack from 30 cents. It also doubles current taxes on chewing tobacco, snuff and other tobacco products. To spread the burden and avoid an even more dramatic cigarette-tax jump (to a dollar a pack, as proposed by the governor) it also extends the state's 6 percent sales tax to retail purchases of package beer, wine and liquor. By-the-drink sales in bars and restaurants are already subject to that tax.

 

While these new user fees could generate as much as $180 million a year, it's estimated they will only raise $52 million this fiscal year – the immediate shortfall year – which ends June 30. They will take effect April 1.

 

The two other fixes in this week's overall budget package are transfers of money from other state accounts (including $219 million from the budget reserve 'rainy day' fund) and around $147 million in cuts from state agencies and the legislative and judicial branch budgets.

 

Basic elementary and secondary schools funding would be spared further reductions this year, and corrections, mental health services, and Medicaid, along with a few other core functions, dodged this winter's bullet. It was felt that previous dramatic cuts in this year's budget – cuts that already have many agencies struggling to provide services – precluded a 'cuts only' approach to dealing with this latest shortfall.

 

Most of this week's public and legislative debate centered on the alcohol tax instead of the tobacco tax, possibly reflecting the fact Kentucky has long had one of the lowest cigarette tax rates in the nation (fourth lowest nationally until now), while alcohol taxes are said to be among the highest. In addition to the new sales tax contained in the bill, Kentucky already levies an 11 percent wholesale tax on alcoholic beverages. 

 

Industry spokesmen and other opponents of the move were vocal in their contention that one of Kentucky's signature industries should be spared this increase. But supporters countered that the tax would be paid at the retail level by consumers, not the industry, and there is little indication sales would suffer much because of the levy.

 

Ultimately, a supermajority in both the House and Senate agreed. (Any tax measure proposed in a 30-day non-budget session requires 60 votes in the 100-member House and 23 in the 38-member Senate). The final tally was 66-34 in the House, 24-12 in the Senate.

 

Meanwhile, one other bill emerged from the Senate this week that could generate headlines as the session continues: Senate Bill 1, which would dramatically revamp the controversial school-accountability testing system in Kentucky public education.

 

The bill, stated simply, would eliminate the current system of school testing known as CATS -- a test specific to Kentucky and filled with largely open-ended questions -- and replace it in part with a national standardized multiple-choice test. The intent: Have a test that can empirically compare individual student to individual student (and school district to school district) here in-state, and Kentucky overall to other states taking the common test.

 

With a growing sense among lawmakers that some revisiting of CATS in an idea whose time may have come, the exact form such revision takes could emerge as a major issue as the Senate bill now goes to the House for its consideration, and the session moves past the immediate budget crisis to other issues.

 

One item of note: Legislative leaders have amended this year's session calendar to build more 'committee work only' days into the schedule (thereby saving official 'legislative days' while still working to get bills in shape for floor action). As a result, the chambers will not convene in full session this coming week. The revised calendar now extends final adjournment to March 27.

 

Kentuckians can check that calendar and stay informed of legislative action on bills of interest to them by logging onto the Legislative Research Commission website at www.lrc.ky.gov or by calling the LRC's toll-free Bill Status Line at 866-840-2835. To find out when a committee meeting is scheduled, you can call the LRC toll-free Meeting Information Line at 800-633-9650.

 

Citizens can also share comments or concerns with any legislator by calling the toll-free Legislative Message Line at 800-372-7181.

 

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February 13, 2009

 

 

Tax plan squeaks through Senate; budget headed to governor

 

FRANKFORT — A package to cut state spending and increase revenue to address a $456 million deficit narrowly passed the Senate this morning, sending it to Gov. Beshear’s desk for his signature at a 1 p.m. event.

 

House Bill 144, the tax portion of the plan, passed 24-12 vote, one more vote than constitutionally necessary. HB 143, concerning the revenue cuts, passed 35-1.

 

“People on both sides of this issue understand the dire circumstances we’re in,” said Senate President David Williams, R-Burkesville.

 

The plan would double the tax on tobacco products and subject alcoholic beverages to the state’s 6 percent sales tax. Meanwhile, most state agencies would face 4 percent cuts, with the remainder of the deficit filled with fund transfers.

 

Under the plan, cigarettes would be taxed at 60 cents per pack, while snuff would be taxed at 19 cents per tin and other products would see a 15 percent wholesale tax. Alcohol currently faces an 11 percent wholesale rate, but is exempt from the retail tax.

 

Both increases would begin on April 1.

 

While most state agencies, including the legislative and judicial branches, would see their budgets trimmed by 4 percent, colleges and universities would be cut only 2 percent, while Medicaid, corrections, and P-12 education’s SEEK funding would be spared. Local economic development funding, including coal severance receipts, will also be protected from the cuts and transfers.

 

“Cuts of a half billion dollars have already been made, with more to come,” said Sen. Charlie Borders, R-Russell. “The road is not going to get better any time soon.”

 

The lengthy debate — more than half of all senators rose to speak — centered on the need for a more comprehensive look at the tax structure in the future.

 

“This is a stopgap measure, and that’s OK,” said Williams. “We’ve set the stage for a new day.”

 

Sen. Tim Shaughnessy, D-Louisville, said the vote was simply a preview of what lies ahead. “This is the easy part,” he said. “The real difficulty will come in the next biennium.”

 

Criticism of the tax package focused on the targeted items. “My problem is with the equity and fairness,” said Sen. Julian Carroll, D-Frankfort. “I came here prepared to vote for a tax, but not this tax.”

 

Sen. Julie Denton, R-Louisville, pointed out that alcohol is not sold everywhere in the state. “It’s targeting the big counties that happen to be wet,” she said. “This is a 120-county problem that we’re strapping to the backs of 30 counties.”

 

The bill will also allow the governor to make use of any emergency funding passed by Congress. “I can only hope the stimulus package … will add some help to our state’s situation,” said Sen. David Boswell, D-Owensboro.

 

 


February 10, 2009

 

 

School testing reforms, early graduation program passed in Senate

 

FRANKFORT — Broad changes to the state’s system of student testing and a program to allow motivated students to graduate high school in three years were both approved by the Senate today.

 

Senate Bill 1, sponsored by Sen. Ken Winters, R-Murray, and Senate President David Williams, R-Burkesville, would remove open-response questions from the state’s end-of-year student assessments in favor of a national norm-referenced test augmented by additional multiple-choice tests to cover the state’s core content.

 

Winters noted that focusing on multiple-choice questions would allow parents and teachers to receive feedback more quickly and immediately adjust to individual students’ learning needs. “The CATS test as we know it now provides very little information on students,” he said, because school accountability is the major focus. Open-response questions are also subject to the judgment of those grading the answers, rather than very clear answers on multiple-choice exams.

 

Kentucky students could also be compared to students in other states and nations, said Senate Majority Floor Leader Dan Kelly, R-Springfield.

 

Under SB 1, writing portfolios would no longer be part of the assessment program, but would be retained as a teaching tool in grades 5-12. Likewise, end-of-year tests in the arts and vocational skills would be eliminated. Instead, schools’ programs would be evaluated to make sure students were able to pursue those courses effectively.

 

“This program will put us many, many years ahead,” Winters said of the bill, which passed 36-0.

 

Winters spoke of the urgency in getting the bill to the House before next week’s legislative recess, which will allow various parties to discuss the final version before it receives final passage.

 

SB 3, also sponsored by Winters and Williams, would allow students who complete 15 core courses to graduate high school in three years. Currently, all students must complete 22 credits over their four-year scholastic careers. “We want to give students the opportunity to opt out of the electives and aggressively concentrate on the core courses,” Winters said. Among the 15 required credits are four years of English, two years of a single foreign language, and two years of algebra along with geometry, chemistry, biology, and U.S. history.

 

Students who graduate early would be granted unconditional admission to any state college or university with a 3.0 grade point average, ACT scores that meet or exceed benchmarks in math and English, and completion of two Advanced Placement or International Baccalaureate courses.

 

Students who graduate early would be given an extra year of KEES scholarship money based on their first three years’ awards, and the per-pupil funding ordinarily given to their local school district would go to their college or university instead. “If there are students who aren’t interested in extracurriculars, who don’t want to join the band or play sports, who want to focus on their studies and want their college education to me more affordable, we should make that possible,” Williams said.

 

SB 3 passed on a 24-12 vote. Both bills now move to the House for its consideration.

 


February 10, 2009

House budget committee passes tax, budget bill to reduce shortfall

 

FRANKFORT— The House budget committee approved a tax bill today that would help plug a $456 million hole in the state budget this fiscal year with over $150 million in new revenue.

 

The revenue created by House Bill 144, sponsored by House Speaker Greg Stumbo, D-Prestonsburg, now goes to the full House where it is expected to be voted on tomorrow. At least 60 House members will have to approve the tax measure before it can be sent to the Senate for consideration.

 

Projected new revenue from HB 144 would come from two sources: an increase in tobacco taxes, which would raise the state tax on each pack of cigarettes by 30 cents to 60 cents and double the taxes on chewing tobacco and snuff, and a 6 percent sales tax on package alcohol sales at liquor stores and groceries.  The bill would not increase taxes on alcohol at the wholesale level, according to House Appropriations and Revenue Committee Chairman Rep. Rick Rand, D-Bedford.

 

A budget modification bill, House Bill 143 sponsored by Stumbo, was also passed by the committee and goes to the full House tomorrow. Rand explained that HB 143 would help cover the rest of the shortfall without the use of coal severance or tobacco settlement funds and without state employee furloughs. It would instead authorize the governor to make a one-time transfer of up to $50 million from the state employee health trust fund if actuarially sound, give the governor authority to make necessary spending cuts among state agencies, authorize cuts of up to 4 percent in the legislative and judicial branches and allow the state to use up to $219 million from its reserves this fiscal year to fill the budget hole.

 

Rand added that HB 143 includes a list of areas that lawmakers hope the governor will hold harmless--or not cut—including teacher’s retirement, Medicaid, SEEK per pupil funds for school districts among others. He also said that lawmakers hope millions taken from the state budget reserve trust fund can be replaced next fiscal year with revenue created by HB 144.

 

House Appropriations and Revenue Committee First Vice Chair Rep. Robin Webb, D-Grayson, said the budget plan passed by the committee also leaves room for any federal funds Kentucky might receive from a federal stimulus plan now before Congress. The stimulus plan passed the U.S. Senate today and is now being reconciled with a bill in the U.S. House.

 

“We have addressed the possibility of federal stimulus money. Although that is a fluid process…we have included language (for) that potential revenue enhancement,” said Webb, adding that any funding received should be used in a “prudent manner.”

 


February 6, 2009

 

Legislative leaders amend 2009 session calendar

 

FRANKFORT -- Kentucky Senate and House leaders today approved changes to the calendar for the General Assembly’s 2009 legislative session. The session is now scheduled to conclude on March 27, three days later than previously planned.

 

In addition to observing the Feb. 16 Presidents’ Day holiday by not convening that day, the General Assembly will also not be in session on Feb. 17, 18, 19 and 20, according to the amended calendar.

 

The veto recess – the period of time during which lawmakers return to their home districts to wait for potential gubernatorial vetoes – will be held from March 14 to March 25. After the recess, lawmakers will return to the Capitol on March 26 and 27 for the final days of the session.

 

A copy of the new 2009 legislative calendar can be viewed here.

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February 6, 2009

Legislative Week in Review

 

FRANKFORT -- A growing sense that new revenues will indeed be required this winter as the Legislature struggles to plug a nearly half-billion dollar gap in the state budget marked the General Assembly's return to Frankfort this week, as the 2009 session resumed.

 

In a week that saw Gov. Steve Beshear deliver his State of the Commonwealth Address to a joint session of the House and Senate, key leaders in both chambers seemed in basic accord on one aspect of the governor's budgetary analysis: Cuts alone would not be a practical fix, coming as they would with a fiscal-year deadline looming, and state agencies are already struggling to deal with economies previously imposed in this year's spending plan.

 

The budget faces a $459 million shortfall this fiscal year alone, a period ending June 30.

 

To deal with the immediate crisis, the governor has proposed – and reiterated in his speech Wednesday – a package of spending cuts and fund transfers coupled with a sharp rise in the state cigarette tax, from 30 cents a pack to a dollar a pack. The proposal also calls for significant tax increases on other tobacco products.

 

Kentucky's cigarette tax is the fourth lowest in the nation, and as the governor noted, the state consistently ranks first in the number of smoking-related deaths.

 

But in a subdued speech with heavy emphasis on bipartisanship and cooperation, the governor emphasized that specifics of his plan remain open to discussion – which if nothing else reflects the political reality that a full 70-cent hike in cigarette taxes seems a hard sell at best with many lawmakers.

 

Within the Legislature itself, talks continued last week among key leaders and budget panel members of both chambers, as they work to arrive at a consensus proposal that can pass the Legislature before adjournment -- perhaps well before adjournment. At a press conference this morning, Senate President David Williams, R-Burkesville, and House Speaker Greg Stumbo, D-Prestonsburg, said they hope a compromise budget bill can be acted upon in both chambers next week -- freeing the remainder of the session to deal with other pressing matters.

 

While details of such a negotiated package have not been finalized, the idea has been raised that some combination of a cigarette and alcohol taxes could prove palatable to the membership this year, given the seriousness of the situation and the fact that scorched-earth cuts seem needed if cutting is undertaken in isolation.

 

Beyond the budget question, one indication that the road ahead could be busy this session is that legislative leaders approved a proposal to alter the session calendar to build more 'committee work only' days into the schedule (thereby saving official 'legislative days') and extend final adjournment to March 27, three days later than previously planned.

 

One surprise in Beshear's speech was his call to conduct a comprehensive review of KERA -- the Kentucky Education Reform Act of 1990.

 

KERA, while considered a national model by some and praised in many quarters, has also been controversial. It dramatically increased funding for public schools and totally overhauled how they are governed and how student achievement – and overall school success or failure -- is measured through testing.

 

But the testing program, in particular, has been heavily criticized for not giving teachers reliable statistics for gauging student progress, or comparing Kentucky schools with others nationwide. The pressure to do well on the testing has led to 'teaching the test,' some critics say.

 

Beshear offered no specifics about what the proposed review would involve, or when it would be undertaken. But after nearly 20 years it may be an issue whose time has come; there is already a strong push underway this session to revamp the testing component of KERA.

 

Kentuckians can stay informed of legislative action on bills of interest to them by logging onto the Legislative Research Commission website at www.lrc.ky.gov or by calling the LRC toll-free Bill Status Line at 866-840-2835. To find out when a committee meeting is scheduled, you can call the LRC toll-free Meeting Information Line at 800-633-9650.

 

Citizens can also share comments or concerns with any legislator by calling the toll-free Legislative Message Line at 800-372-7181.

 

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February 5, 2009

 

Senate approves drug diversion program, drugged driving plan

 

FRANKFORT — Arrested drug addicts could be treated for their problem before heading to trial — and potentially head off a lengthy prison sentence — under a plan passed today by the Senate.

 

Senate Bill 4, sponsored by Senate Majority Floor Leader Dan Kelly, R-Springfield, and Senate Minority Floor Leader Ed Worley, D-Richmond, would require local jails to screen felony offenders when they are first booked. Those with drug problems could be required by a judge to seek outpatient addiction treatment and counseling as a condition for bail.

 

Kelly said that without treatment, many if not most offenders will be arrested again before their trial, leading to a lengthier sentence.

 

More serious addicts could voluntarily enter a secure facility, much like a minimum-security prison, for three months to a year to get the help they need. Follow-up supervision would be a crucial component of both programs, Kelly said. If the offenders stayed clean, they could have the felony charge wiped from their record, allowing them to lead a normal life and hold a steady job.

 

“This provisions of Senate Bill 4 are a smart way to deal with this problem,” Kelly said. He noted that of Kentucky’s 22,000 prisoners, around 5,000 are in jail simply for drug possession, while 80 percent of all prisoners are in for some drug-related offense.

 

Worley said the program could make a difference in the lives of many Kentuckians, because drugs touch the lives of nearly every family in some form. “I’ve seen what intensive drug treatment programs can do.” He said. “It does work.”

 

The bill passed 34-1.

 

The Senate also passed SB 5, sponsored by Sen. Ray Jones, D-Pikeville, which would ban any amount of a controlled substance in the blood while driving. The proposal would make it easier for law enforcement to convict drivers who are under the influence of drugs. Taking a prescription medication as directed would be allowed under the bill.

 

SB 5 also lowers the blood alcohol content at which DUI penalties are doubled. While the bill would maintain the current DUI level at 0.08 BAC, the penalties would be doubled at a BAC of 0.15, down from the current 0.18.

 

Both bills now head to the House for its consideration.

 

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Jan. 9, 2009

 

LEGISLATIVE WEEK IN REVIEW

 

FRANKFORT -- Change, continuity and uncertainty – with those three words hanging in the air, the 2009 session of the General Assembly recessed today until Feb. 3, having disposed of the first organizational portion of this year's 'short' session in four days, with 26 more on tap and a hard February and March devoted to actual lawmaking awaiting.

 

Change: After a record 14 years under the Speakership of Rep. Jody Richards, D-Bowling Green, the House of Representatives elected veteran lawmaker and longtime majority floor leader Rep. Greg Stumbo, D-Prestonsburg, to the Speaker's job.

 

Continuity: The Senate re-elected Sen. David L. Williams, R-Burkesville, to its top job of President, along with the rest of the incumbent majority leadership. All returning Senate committee chairs kept their positions. 

 

Uncertainty: The state budget is in a deep hole. Gov. Steve Beshear has warned that this year's revenues will fall nearly a half-billion dollars short of projections. He's floated a raft of ideas to close the gap: An increase in the state cigarette tax by 70 cents, to a dollar a pack; drawing down the state's 'rainy day' budget reserve; across-the-board agency cuts; and limited furloughs of state employees.

 

How the Legislature deals with this financial challenge in the face of a nationwide recession may largely define this session's legacy.

 

While almost all agree that belt-tightening and governmental efficiency are first on the list of fixes, proposed new sources of state revenue -- including not just Beshear's tobacco-tax hike, but expanded gambling in the form of video lottery terminals at Kentucky racetracks, a proposal that gained new currency in the House this week -- face uncertain prospects.

 

With a $456-million budget shortfall projected in this fiscal year alone, some urgency has been expressed that action be taken quickly, perhaps in a special session between now and the regular session's reconvening in February. Prospects for that, however, appear dim, given that no consensus has yet emerged for dealing with the complex and economically uncertain realities confronting lawmakers.  

 

Legislative leaders have said, however, that budget meetings and discussions will begin next week, in hopes that a plan can be ready or close to ready when the full Legislature returns next month.

 

Still, this week's action focused on the nuts-and-bolts of the Legislature organizing itself. In the House, joining 25-year veteran Stumbo in leadership was longtime Speaker Pro Tem Larry Clark, D-Louisville, who is now in his ninth term in that chamberwide job.

 

Among Democrats, incumbent Majority Floor Leader Rocky Adkins, D-Sandy Hook, was re-elected without opposition to the top party post. Rep. Bob Damron, D-Nicholasville, got the nod as caucus chairman, replacing Rep. Charlie Hoffman, D-Georgetown.  Rep. John Will Stacy, D-West Liberty, was named majority whip, succeeding the retired Rep. Rob Wilkey, D-Scottsville.

 

The only change in House Republican leadership was the election of Rep. David Floyd, R-Bardstown, to succeed Rep. Stan Lee, R-Lexington, as minority whip. Incumbent Minority Floor Leader Jeff Hoover, R-Jamestown, and incumbent Minority Caucus Chairman Bob DeWeese, R-Louisville, were reelected in their respective leadership roles.

 

In the Senate, rejoining Williams in the top elected posts will be Sen. Katie Kratz Stine, R-Southgate, who was re-elected to her job as Senate president pro tem.

 

In addition, the majority Republicans re-elected Sen. Dan Kelly of Springfield as their floor leader, Sen. Dan Seum of Fairdale as caucus chair, and Sen. Carroll Gibson of Leitchfield as whip.

 

The minority Democrats re-elected Sen. Ed Worley of Richmond as their floor leader and Sen. Johnny Ray Turner of Drift as caucus chair, while one new member of their leadership team, Sen. Jerry Rhoads of Madisonville, will serve as minority whip.

 

As mentioned, all returning Senate committee chairs retained their jobs, with one wrinkle because an additional committee was created this year: The former Senate Agriculture and Natural Resources Committee has been split. Freshman Sen. David Givens, R-Greenburg, will chair the newly created Agriculture Committee, while Sen. Tom Jensen, R-London -- who headed the broader panel last session -- will lead the new Natural Resources and Energy Committee.

 

In the House, one notable committee change was the appointment of Rep. Rick Rand, D-Bedford, to chair the powerful Appropriations and Revenue Committee. He replaces longtime A&R Chair Rep. Harry Moberly, D-Richmond. as head of that key budget-writing panel.

 

Citizens can stay informed of legislative action on bills of interest by logging onto the Legislative Research Commission website at www.lrc.ky.gov or by calling the LRC toll-free Bill Status Line at 866-840-2835. To find out when a committee meeting is scheduled, they can check the website or call the LRC toll-free Meeting Information Line at 800-633-9650.

 

Comments directed to a particular legislator should go through the toll-free Legislative Message Line at 800-372-7181.

 

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January 8, 2009

 

 

Revised math standards needed, Senate panel says

 

FRANKFORT — The Kentucky Department of Education needs to revise math standards so teachers and students can more deeply explore fundamental concepts, the Senate Education Committee said today.

 

Members of the panel unanimously approved Senate Joint Resolution 19, sponsored by Senate Majority Floor Leader Dan Kelly, R-Springfield, and committee chair Sen. Ken Winters, R-Murray, which would direct KDE to revise standards and the state tests that measure students’ progress in math.

 

“This is a case where we need to master the basics,” said Sen. Charlie Borders, R-Russell.

 

Kelly cited a report that called current math teaching “a mile wide and an inch deep,” with teachers hurriedly covering material on end-of-year tests rather than focusing on the core concepts that serve as stepping stones to education in higher grade levels.

 

Alice Gabbard, Director of Diagnostic Intervention for the Kentucky Center for Mathematics, noted that 40 percent of the state’s college freshmen are not ready for college-level math courses. Winters noted that with tuition costs increasing rapidly, the economic effect on Kentucky families is directly impacted by P-12 math skills, because those students must take remedial courses that do not gain them credit toward their degree.

 

Both Gabbard and Warren County Schools Superintendent Dale Brown said that more narrowly defined standards would help teachers as well as students. “Concise standards will allow teachers to have more efficient practices that would be have a longer-lasting effect,” Gabbard said.

 

Brown, whose district has made an effort to emphasize core standards even within the current state curriculum, said “standards need to be higher, clearer, and fewer.”

 

Such standards, which would consider the findings of the National Council of Teachers of Mathematics and other groups, are already in use in some other parts of the world, such as Singapore and Hong Kong, where achievement is high on international comparisons, Kelly said.

 

The resolution now moves to the full Senate for its consideration.

 

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