Wednesday, February 02, 2000
Patton outlines cuts if tax increase fails
BY MARK R. CHELLGREN
The Associated Press
FRANKFORT — For about a week, Gov. Paul Patton has been telling legislators about the benefits in his tax-and-budget proposal. This week, Mr. Patton started outlining what bad things will happen if they don't go along.
Mr. Patton told the House Appropriations and Revenue Committee on Tuesday that he tried to cut from his budget the $140 million a year that would have to be eliminated without the tax increases he has proposed.
“It was pretty ugly,” Mr. Patton said.
The committee will be the first formal legislative group that tackles the budget, and Mr. Patton began Tuesday to frame the debate.
Mr. Patton said basic state government functions, from mandated employee salary increases to health insurance costs, prison population increases and others, will eat up all but $118 million of the state's expected revenue in
the coming fiscal year. He then said promises and commitments made by previous sessions of the General Assembly, from expansions of the scholarship program for high-achieving high school students to cost-of-living increases for retired teachers, would leave only $10 million in remaining funds.
On top of that, Mr. Patton said initiatives from his administration and others, such as research matching funds for universities and additional state police officers add up to a $210 million shortfall without his tax plan.
“I didn't want to propose an increase in revenue,” Mr. Patton said. “The only alternative is to cut services, primarily education.”
Mr. Patton said the matter can probably be put off for another two-year budget. But he said the problems only compound. “Two years from now, the problems will be worse and the decisions will be harder.”
Legislators, who got the full story on the budget plan only last week, were still wary.
“I do think there's a lot of selling yet to do on this proposal,” said Rep. Danny Ford, R-Mount Vernon, the Republican floor leader in the House.
Mr. Patton's fellow Democrats were more supportive, but far short of embracing.
“I thought he better defined it,” said House Speaker Pro Tem Larry Clark, D-Louisville.
Mr. Patton repeated his notion that his entire package must hang together or it will fall apart. But the 7-cent increase in the gas tax Mr. Patton wants is a little tougher for him to tie into cuts in education he says will occur without a General Fund tax increase.
The gas tax goes into the Road Fund, which for the most part is dedicated to transportation issues, though a big part also goes into the state police budget for its highway patrol duties. No gas tax money goes into education or prisons, but Mr. Patton said without it the state's ability to sell bonds to finance other parts of state government will suffer.
The tax changes he has proposed include numerous cuts — such as paring many off the income tax rolls and eliminating the state property tax on vehicles — as well as increases. Mr. Patton said more than half of the tax increases would fall on businesses, while wealthy people would also bear a larger burden.
“Taxes will always be tough,” Mr. Patton told legislators. “But we're not proposing a major tax increase.”
City plans big bash to unveil fountain
Critics detail OEPA claims
Reds, Bengals benefit Bedinghaus
County to make private decision official
Lebanon bank out $68K in flimflam
Smarter cars and roads may soon add safety
Driver owns up to plowing into Oktoberfest crowd
Evidence disputed in Sheppard case
Reeve TV ad causes a stir
Zoo names new chief of education
Ban on youth smoking stalls
Bunning: Help burley farmers
Equity in pay bill has enemies
Patton outlines cuts if tax increase fails
Queen City's moments to shine reflected in book
Sidney Poitier humbled by profile
GET TO IT
Getting married? Be in our 'Love Story'
Taft's Big Pig first out of the pen
Historical society throws party
Lakota aims to identify gifted kids
Mason asked to ease thirst for water from aquifer
Monroe sets forth what-if school plan
Need to license trades debated
Nephew drops insanity plea
new subdivisions OK'd
NKU plans black history events
NORTHERN KY. NOTEBOOK
Slaying victim had big plans for life
TRISTATE DIGEST
