A nonprofit publication of the Kentucky Center for Public Service Journalism

Senate passes a budget, which now goes to a conference committee; big differences to resolve


By Tom Latek
Kentucky Today

The Kentucky Senate approved its version of the state budget for the executive, legislative and Judicial branches of government Tuesday evening, clearing the way for a conference committee to be named to iron out the differences between the two chambers.
 
Most of the discussion centered on House Bill 200, the executive branch budget – easily the largest – and its accompanying revenue measure, HB 366.


The Senate rejected the House’s plan to create new taxes on tobacco products and prescription opiates to boost school spending that was expected to create $500 million in tax increases. The chamber had little appetite for a piecemeal tax plan, according to Senate Budget Committee Chairman Christian McDaniel, R-Taylor Mill.

The Senate votes for House Bill 200 on Tuesday night. The Senate’s version of the state budget was approved. (Kentucky Today/Tom Latek)


Another provision mandates schools control entrances electronically instead of having a greeter, which has been an option until now.  The Senate also encouraged the hiring of more school resource officers by offering incentives to schools to bring on retired officers and active KSP troopers. They would exempt schools from having to make contributions to the retirement system for them.
   

The bill cuts funding from the House version to operate the Access to Justice program, which aids the poor, veterans and the elderly.

It adds language requiring retired teachers’ single coverage health insurance be calculated the same way as the current year, with any shortfalls made up by the trust fund, which stands at nearly $1 billion.


“This ensures that retired teacher health benefits will not be affected by this budget,” said McDaniel, whose statement drew applause from teachers in the committee room.


The Senate also funded transportation expenses at local school districts which was uncovered in Gov. Matt Bevin’s plan.


McDaniel said much of state government would have the 6.25 percent spending cut that Bevin recommended and he said that includes the state’s universities.



HB 200 passed 26-11, largely along party lines, while HB 366 drew more Republican defectors, winning approval, 23-15.


The legislative branch budget, HB 204, saw the Senate remove any legislative pension funding, moving it to the Kentucky Employee Retirement System, which has the largest unfunded liability.  It drew little comment and cleared the chamber, 35-3.


Changes to the judicial branch budget included the removal of money to renovate the Supreme Court chambers and capital projects, such as new courthouses.


Since required contributions to the County Employee Retirement System are less than anticipated – $8.6 million over the next two years – that will go toward salary increases for judges and circuit clerks.  The committee also left in House language allowing the Supreme Court to raise fees to fund pay increases for non-elected court personnel.


“What we are doing is trying to focus on investing in the obligations that we currently have and address things like the pay issues inside the court and others, rather than focus on renovations and new construction,” McDaniel said.


But Supreme Court Justice Daniel J. Venters expressed concerns about the changes made to the House version.  

“The Senate has increased to $12 million, a fund transfer from the judicial branch,” he said, noting it is twice the amount proposed in the House version. 


“The loss of that money over and above what the House set it at, will seriously hamper the ability of our court system to give raises to our most needy employees, deputy clerks throughout the Commonwealth, many of whom are earning insufficient wages,” Venters said.


“Even though we can raise court filing fees to help compensate that, our ability to fund pay raises is going to be severely hampered, according to our accounting people.”


The judicial branch bill won 26-12 approval.


Senate President Robert Stivers, R-Manchester, said they are preparing for negotiations with the House in a conference committee.


“It will take a little time to get a compare and contrast document, so individuals can look at it,” he told reporters after the Senate adjourned on Tuesday.  “That’ll probably take a day or two. Hopefully we’ll be able to go into conference on Friday.”


Friday and Monday are recess days built into the legislative calendar so lawmakers can work without using one of the 60-legislative days established by the Constitution.


“This allows us to form a conference committee to start working on the budget,” Stivers said.  “Individuals would be able to go through the bills, have communications between the House, the Senate and the Governor, to see what things are out there that we really need to pass in the last few days.”


The last scheduled day for the 2018 session is Friday, April 13, but lawmakers still have one day they can use, due to a snow day taken back in January.  The last day they could meet under the Kentucky Constitution is Saturday, April 14.
 


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