FRANKFORT — Even before a committee approved the Senate version of a state budget this week, Republican staff members called it a “provision to pay teachers, not politicians.”

        But as budget negotiations began with the House on Thursday, Democrats said the Senate GOP plan provides far less than promised.

        The Senate budget provides no more salary money than the House plan for teachers, counselors or school administrators, said Rep. Harry Moberly, D-Richmond, chairman of the House Appropriations and Revenue Committee.

Three-inch-high stacks of budget papers get a thumbing-through at a House-Senate session Thursday in Frankfort. Sen. Dick Roeding, R-Lakeside Park, is seated at far right. (Associated Press photo) | ZOOM |

        And the Senate plan provides only a 1.6 percent pay raise in fiscal 2003, the first year of the budget. While teachers and administrators would get a 2.7 percent pay raise in 2004, the Senate plan includes no pay raise for classified personnel, such as cafeteria workers, janitors and bus drivers.

        “It will not pay for any increase in the second year,” Mr. Moberly said. “We think this area needs some discussion.”

        Senators had no response as budget negotiations opened Thursday with a highlight of differences between the two budget approaches. Staff members went through each of the differences contained in a 3-inch pile of documents that outline how to spend $15 billion in state tax receipts in the next two years.

        The Senate had eliminated the public financing program for political campaigns in its budget and boasted in a news release from Republicans that it had a budget to “pay teachers, not politicians.”

        The proposal to eliminate the partial public financing system for gubernatorial elections is likely to be a huge sticking point. Senate Republicans say the program could cost far more than the $9 million included in the House budget and potentially as much as $35 million.

        House Democratic leaders, including presumptive gubernatorial candidate Jody Richards, now the House speaker, say public financing is a priority item.

        The Senate also took a different approach on long-term state debt, authorizing $70 million more in debt than the House budget or the one initially proposed by Gov. Paul Patton. Bonds would be sold to finance such varied items as animal shelters and water and sewer lines.

        Differences between the two sides will be worked out against a deadline for a scheduled Tuesday departure for the legislature. The session will recess until April 15 to allow Mr. Patton time to consider and possibly veto bills. The legislature returns on April 15 to consider any vetoes.

        But the two sides met publicly for less than two hours Thursday before abruptly adjourning, making a weekend session a near-certainty. No agreements on even the most minor differences were reached.

        House majority floor leader Greg Stumbo said it was possible the budget might not be ready until April 15, which would give Patton a chance to veto parts of it without the legislature having a chance to override.

        The budget, though, doesn't just spend money. It is also used to make policy decisions. For example, the Senate version includes a provision that would prevent the attorney general from being able to inspect financial records of the Economic Development Cabinet on incentive programs. The Kentucky Supreme Court ruled recently that the attorney general had the right to inspect such documents.

        Budget negotiators, faced with difficult choices and little money, may be searching for more. Mr. Moberly said the House and Senate may agree on a few modest tax proposals that could mean more money.

        Proposals such as ensuring that companies organized as limited liability organizations pay their share of corporate taxes, and possibly some minor tinkering with property tax calculations, could pass political muster because Republican leaders have decreed they would not constitute tax increases.

        Many GOP senators have signed pledges they will not vote for tax increases.

        Although it could mean the most money, a property tax change is also the most sensitive. Mr. Moberly said House members shied away from the idea of a freeze on the state property tax rate, but might be amenable to a change in the calculation that would be covered by the existing cap of a 4 percent annual increase.

        “That's probably the one that has the most political problems, is the property tax,” Mr. Moberly said.

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