LEGISLATIVE UPDATE: January 29, 2007

by State Representative Addia Wuchner

2007 General Assembly Reconvenes Next Week

Greetings!  The Kentucky General Assembly will reconvene next Tuesday with a considerable amount of the people's business to accomplish.  Last week I referenced this week's column as Part II on revenue surplus and '07 Session legislative priorities. Joining me for column is Boone County 's newest State Representative Sal Santoro.

As far as priorities during this short session, you will see our continued focus on education, Boone County schools' funding inequities, children's health, and issues that have the greatest impact on our economy and growth potential.

This is not a biannual budgetary year.  With that being said, the economy has been good, employment in Kentucky is up, the price of coal is up, and the stars have aligned over the Bluegrass . Whatever the contributing factors, we are projected to behold over $270 million more than anticipated in the State coffers.  State Budget Director Brad Cowgill just announced last Friday that the Consensus Forecasting Group (CFG) has revised its official revenue estimate for the current biennium, predicting that General Fund revenues will exceed the previous forecast by some $401 million. Compared to the situation of the Commonwealth just over three years ago, we are emerging from some desperate times.

It is anticipated that we will revisit the 2006 Budget briefly to reinsert legislatively approved but vetoed projects.  While we are not in favor of tampering with the budget, we hope a bipartisan bicameral effort can achieve a balance.  The question remains, can we open Pandora's Golden Treasure Chest and only reinsert the vetoed projects?  Can we curtail our spending temptations and exercise restraint with all the possibilities looming before us?

The complexities of budget surplus news, what to do with all those projected millions, and the multitude of dream projects, and possibilities are complex issues. We believe temperance and prudence must be exercised in the face of such temptation. Kentucky 's needs abound, but we must keep in mind that funding imbalances do currently exist. The State has debt. For instance, over a period of years, the State has not met the actuarial recommendations for State employees' and teachers' pension funds.  County and city employees' pension funds, now part of the state system, are reaching crisis proportions, considering the rising cost of healthcare insurance.

You may find our thoughts a bit too practical but, suppose you won the lottery or suddenly found yourself with significant financial blessings, and you had outstanding obligations associated with accumulated debt.  You would direct a portion of your new found wealth to address any existing debt, right? We support this same practical wisdom as we address our State's debt and resources. As stewards of your tax dollars, we believe it is imperative that we address outstanding obligations first.

The solutions for Kentucky 's future are complex. Again, practical wisdom demands investing in education and in local economies where the State is experiencing the greatest growth and potential returns.  We believe Northern Kentucky is one of the greatest investment opportunities for the Commonwealth.  Not only because we represent the region but, evidence demonstrates that our economic engine benefits the entire state.  Like investment banking or the stock market, you seek to invest where you will experience the highest rate of return. The challenge, breaking down long held perceptions and reworking outdated funding formulas that currently transfer disproportional sums of revenue generated in Boone County and Northern Kentucky to other parts of the State.

So what about the projected budget surplus?  We advocate reducing the state's indebtedness and shoring up the pension fund. Yet there are individuals around the State with wish lists in hand, waiting for the funding fairy to visit.  If the funding fairy throws prudence and practical wisdom aside or discovers a way to achieve multiple objectives, addressing the pension system, applying monies to reduce outstanding debt, and perhaps adding dollars to the rainy day fund, AND taking the “spend a little” approach … We will be pushing to the front of the line shouting Boone County !  Hello, remember us, the economic engine!  Hello, look North, we are the revenue generator, growth potential, job and wealth creator for the Commonwealth!  We could use at least one more school, preferably an elementary school,  and we could use funds for Mall Road !!!

As of today, 270 bills and 41 resolutions have been filed in the House and 72 bills and 29 resolutions have been filled in the Senate. During the session, we look forward to keeping you abreast of impending legislative issues.

As always, do not hesitate to contact either of us through the legislative message line 800-372-7181 or Representative Wuchner, home office 859-525-6698 and email addia.wuchner @lrc.ky.gov, Representative Santoro - home 859-371-8840 or email sal.santoro@lrc.ky.gov.