By Charles Wolfe
The Associated Press
FRANKFORT - House Speaker Jody Richards said Thursday he would try to persuade Gov. Ernie Fletcher to quickly call the General Assembly back into session to pass a budget.
Kentucky will be without a budget after June 30 unless a new budget is enacted. The House and Senate adjourned April 13 without a budget, deadlocked over Fletcher's demand for changes in the tax code.
Richards, D-Bowling Green, said much has changed since then, primarily a new revenue forecast that was $305 million higher for the upcoming biennium.
The forecast "does take some of the pressure off to do tax reform," Richards told reporters. "Certainly it could wait six months," when the General Assembly would again be in regular session.
Administration officials this week interpreted the forecast differently - as proof of instability in the current tax code.
Fletcher presented a "revenue neutral" tax plan that balanced tax cuts, especially on corporate and individual income, with tax increases on tobacco, alcohol, telephone and television services and hotel rooms. He also wanted to extend the corporate income tax to more types of companies.
The Senate, controlled by Fletcher's Republican allies, incorporated the tax plan into its version of a budget bill. The House, under Democratic control, called it a tax increase and refused to vote on it.
Richards and other House Democratic leaders huddled Thursday at the Capitol to work on a new proposal. The others deferred to Richards, who declined to disclose details but said: "We've made some concessions. I would hope that the other side will make some concessions. ... We have to have compromise if we're going to have a budget."
Fletcher, who planned to be in Washington through today, has said he would not call a special session until there was an agreement between the chambers. And Senate President David Williams said Richards was going to the wrong person.
"The governor is not going to be getting into any negotiations with the House over this. He can make recommendations, but the Senate has to agree to it, too," Williams, R-Burkesville, said in a telephone interview.
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