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Friday, April 9, 2004

Budget talks remain stalled


Neither side budges on governor's tax proposal

By Joe Biesk
The Associated Press

FRANKFORT - Prospects for state lawmakers to agree on a final budget plan during this legislative session were left uncertain Thursday as House and Senate budgeteers recessed their joint committee indefinitely.

For a second day in a row, lawmakers were deadlocked along partisan lines over whether they would deal with Gov. Ernie Fletcher's proposed tax plan during budget negotiations or separately. Essentially, they are at odds over which subject to hammer out first: the governor's tax plan or the state's two-year spending plan.

Senate Republicans, who passed a budget bill that includes Fletcher's tax proposal, want it included in any budget negotiations. They maintain the House budget bill would not be balanced without changing the state's tax code.

House Democrats want the two issues handled separately. They maintain it's not imperative they change the state's tax structure to have a balanced budget.

"I think they can do a better job of agreeing and organizing things at my son's preschool than this," said Rep. Harry Moberly of Richmond, the House appropriations chairman. "Since we have reached, I think, good agreement on the things we are going to discuss, let's figure out a way to get into that discussion that suits everybody."

Still, representatives of both chambers had not budged from their initial stance when the committee started on Wednesday. Conferees had yet to discuss any particular aspects of the budget.

That prompted Senate Republicans to propose that members of the budget conference committee agree that they couldn't agree and adjourn. The proposal by Senate Majority Leader Dan Kelly was rejected.

Lawmakers instead recessed without setting a time for their return.

House Democrats said leaving the committee's work undone would increase the likelihood of a political stalemate that could leave Kentucky without a final spending plan for the fiscal year that begins July 1.

Lawmakers bickered over whom to fault for the impasse as each side pointed the finger at the other.

Senate Republicans could not trust the House to engage in further tax talks once they agreed on a budget, Williams said. He also criticized Democrats for not suggesting an alternative to the governor's tax plan.

"You can't vote on political platitudes, and that's all they've provided at this table," Williams said. "They've provided no alternatives whatsoever."

House Democrats have maintained it is not necessary to resolve the tax proposal before negotiating a budget, but Senate Republicans disagree.

Rep. Joe Barrows said the Republican proposal was a "prescription for no budget."

This would not be the first time lawmakers failed to pass a state budget. The General Assembly was unsuccessful in passing one during the 2002 session.

Barrows said if the Legislature failed again, damage to public perception of the institution would be even greater.

"It was a mistake then," Barrows said. "It would be a bigger mistake now."




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