Wednesday, March 12, 2008
Kentucky House Revenue Appropriations Committee Passes Spending Plan. Cigarette Tax Increase Included
The House Appropriations and Revenue Committee passed a state Executive Branch budget bill today that would rely on an $800 million revenue package to meet the state's education, health services and other needs over the next two years.
"We can't get to the budget--as we currently have it--unless we pass this revenue measure," said committee chairman Rep. Harry Moberly, D-Richmond, the sponsor of the budget bill, House Bill 406. The revenue package is part of HB 262, sponsored by Rep. Jim Wayne, D-Louisville, which also passed the committee today.
Approximately $470 million of the new revenue would come from restructuring the state's General Fund debt and reducing the state workforce through attrition, according Moberly. The balance, he said, would come from tax changes--including a 25 cent increase in the cigarette tax, an increase in the state tax on other tobacco products and applying the state sales tax to select services like air charters and armored cars.
Several agencies would benefit from the enhanced budget proposal including state universities, which faced 12 percent budget cuts in the next biennium under Gov. Steve Beshear's proposed budget. Approximately $126 million in each year of the biennium would go to universities to restore their base operating budgets, said Moberly.
"If they don't get their base restored, they'll be hard pressed to serve the students they're serving now," he said.
Courtesy : Kentucky General Assembly Website
"We can't get to the budget--as we currently have it--unless we pass this revenue measure," said committee chairman Rep. Harry Moberly, D-Richmond, the sponsor of the budget bill, House Bill 406. The revenue package is part of HB 262, sponsored by Rep. Jim Wayne, D-Louisville, which also passed the committee today.
Approximately $470 million of the new revenue would come from restructuring the state's General Fund debt and reducing the state workforce through attrition, according Moberly. The balance, he said, would come from tax changes--including a 25 cent increase in the cigarette tax, an increase in the state tax on other tobacco products and applying the state sales tax to select services like air charters and armored cars.
Several agencies would benefit from the enhanced budget proposal including state universities, which faced 12 percent budget cuts in the next biennium under Gov. Steve Beshear's proposed budget. Approximately $126 million in each year of the biennium would go to universities to restore their base operating budgets, said Moberly.
"If they don't get their base restored, they'll be hard pressed to serve the students they're serving now," he said.
Courtesy : Kentucky General Assembly Website
# posted by Joe Kinzer @ 10:54 PM 
