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Wednesday, June 16, 2004

Fletcher, Democrats talk


Subject is passing budget as new fiscal year looms

By Charles Wolfe
The Associated Press

FRANKFORT - Two Democratic legislators who loom large in negotiations for a state budget talked Tuesday with Gov. Ernie Fletcher about enacting a plan before the new fiscal year begins July 1.

"We still believe that is top priority," Rep. Rocky Adkins, the House majority leader, said afterward.

Time is running short, Adkins said. "That's the reason I was glad the governor did call and ... talk about the shortness of time, the amount of time we have to get a budget in place."

The meeting included Rep. Harry Moberly, chairman of the House appropriations committee, and the governor's chief of staff, Daniel Groves. Fletcher also talked by telephone late Monday with House Speaker Jody Richards, Groves said in a news conference Tuesday.

Adkins said linkage of a budget and tax code was not specifically discussed Tuesday, but that House Democrats are working on a "detailed plan."

"We have left (linkage) until we come with the details of the plan," he said. "We talked about the big picture of a budget and a tax plan and how we get to the middle of the road on that."

Yet to be determined was whether Fletcher was closer to calling the General Assembly back to Frankfort to pass a budget - something the House and Senate failed to do before adjourning in April.

The Senate, controlled by Fletcher's fellow Republicans, included his tax plan in its budget version. Democrats who control the House declined to take it up.

Richards wants passage of a budget as soon as possible and deferral of the tax issue until the 2005 General Assembly. Fletcher still wants quick action on taxes. He presented a "revenue neutral" plan during the 2004 legislative session that would have raised some taxes and cut others.

Fletcher has said the current tax system is unreliable, evidenced by four straight years of state budget cuts because revenues fell short of projections.

He proposed reducing income tax rates, especially on corporations, but extending the income tax to more types of corporations.

Fletcher also proposed raising taxes on tobacco, alcohol and communications services, including cell phone calls and satellite television.




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