Monday, November 16, 2009
Kentucky Lawmakers Say Tax Hikes Unlikely
Monday, advocates and lawmakers arrived at the Kentucky Capitol in hopes of heading off possible cuts to a variety of government programs and services. Governmental leaders, including Attorney General Jack Conway, briefed lawmakers on the impact of additional budget cuts. State criminal prosecutors spoke before a budget committee concerning their already strained finances, while AARP members rallied in the House chamber for protection for the elderly. If the state keeps spending at its current rate of $9.1 billion a year, there could be as much as a $1 billion shortfall for the next two years. Last week, Governor Steve Beshear announced he's not ready to rule out any solution, including another increase in cigarette tax, although the tax is unlikely to be approved during the upcoming legislative session. Health care advocates say Kentucky could save millions of dollars in health care costs by raising the tax to $1, but several lawmakers say it's not likely to happen now. Beshear says he plans to spare Medicaid and education. House Appropriations and Revenue Committee Chairman Rick Rand, along with several lawmakers, say, with 100 House seats and 19 of the 38 Senate seats up for election next year, making tax increases of any kind is unlikely. Rand says the state is going to have to grow its way out because he doesn't think it can tax its way out.