FRANKFORT — Gov. Paul Patton will call a special General Assembly session on Monday to pass a budget but said he would like an agreement on a state spending plan beforehand.

        The state's General Assembly failed to pass a budget for the next two years during its regular session, which concluded Monday.Lawmakers are legally bound to pass a budget to cover the next two fiscal years.

        The issues of biggest impact in Northern Kentucky in the budget are the language that would allow Newport on the Levee developers an extension to a tax break, allowing them to move forward with a $30 million Phase 2 of the entertainment complex and the issue of how salary increases for certain jobs in public schools will be handled.

        But the issue keeping the sides from reaching a budget agreement is funding of campaigns and elections.

        Mr. Patton said the differences between the House and Senate over campaign finance and public financing of gubernatorial elections does not appear to be great.

        Some legislators, though, said fundamental differences remain and a middle ground may be hard to find.

        “It appears to be at this point that one side will have to give because all of the possible compromises have been discussed and none have been accepted,” said Rep. Harry Moberly, D-Richmond, the chairman of the House Appropriations and Revenue Committee.

        When budget negotiations broke down last Friday, the Senate agreed to retain public financing, but cap expenditures at $9 million. The House rejected that position, arguing that provisions had to be made in case large fields of candidates depleted the fund.

        Mr. Patton said Senate acceptance of public financing was the prime hurdle. “Since you got to that point, I think you're talking about details and I believe people of good faith can work out the details,” Mr. Patton said.

        Sen. Richie Sanders, R-Franklin, the chairman of the Senate budget panel, said he would have preferred a longer time before getting thrown into a special session.

        “Have a little time off and let people reflect and see if there could be some type of a compromise,” Mr. Sanders said. “I would prefer to wait later.”

        Patton appeared to back off of statement last week that he would propose what amounted to a take it or leave it budget in a special session. Legislators had argued that a governor did not have the authority to so closely tailor a special session agenda to prevent any departure from a proposal.

        The Kentucky Constitution gives the governor sole authority to call a special session and set its agenda. The legislature, though, can adjourn at any time.

        Patton reiterated his position that he would veto any budget that does not include a public financing system and money to pay for it.

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