| Senate Passes State Budget |
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Budget bill approved by Senate
FRANKFORT — A budget plan tighter than the House version passed the Senate on a 36-2 vote Monday, paving the way for a conference committee to work out a compromise measure.
The Senate version of House Bill 406 included none of the revenue measures included in House Bill 262. "The budget we're proposing raises no taxes," said Senate Appropriations and Revenue Committee Chair Charlie Borders. "I think that's extremely important."
While the Senate would augment state coffers based on increased lottery revenue, savings from state worker retirements, and other efficiency measures, there are still several areas where the Senate cut spending from the House plan. Among the savings would be a $500 million bond issue to pay for roads included by the House plan but eliminated by the Senate.
As a result of the spending cuts, the Senate plan would result in the state's debt capacity being 6.27 percent of the budget. "In recent years, I don't ever remember the ratio being that small," said Borders, R-Russell. The governor's budget would have given a debt ratio of 6.34 percent, while the House plan included debt of 6.56 percent, Borders said.
While the governor's budget called for 12 percent cuts to higher education, the Senate was able to restore three-fourths of that funding, resulting in 3 percent reductions. At the same time, the Senate plan would call for full funding for KEES scholarships to make in-state colleges more affordable. Senators also approved $60 million in Bucks for Brains dollars for state universities, the same as the governor's plan but less than the House's $115 million plan.
State community and technical colleges would see $15 million to maintain and operate new facilities, money left out by the House.
Teachers and other state employees would see 1 percent raises each year of the biennium, down from the House plan. Any surpluses that arise from an improved economy however, would first go toward doubling those raises each year.
The Senate plan includes $2 million annually for Operation UNITE, an anti-drug program in eastern Kentucky , while $24 million in savings was projected by removing non-violent state inmates from county jails and finding other means of punishment. In part because of those efforts, Senate Majority Floor Leader Dan Kelly said, the House's $40 million plan to expand the Little Sandy Correctional Center was taken out.
The Senate also concurred in a House plan for a new Eastern State Hospital facility in Lexington .
Military service members would get a refund of their state income tax under the Senate plan.
Senators also approved House Bills 407 and 408, the legislative and judicial branch budgets, respectively. Each passed by a 37-0 vote. While the judicial budget was approved with minor changes, the Senate-approved legislative branch budget was identical to the House plan and is now ready for the governor's signature.
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