Gov. Beshear met with House Democratic leaders, and all parties appear as if they are on the same page.
“It’s the best meeting we’ve had with the governor,” said Speaker Pro Tem Larry Clark, D-Okolona.
One of the things they want to get passed is a proposal to allow casino gambling in Kentucky.
Beshear and Rep. Jody Richards, D-Bowling Green, said they are “doing a hard head count” to see how many votes they can secure for a version pushed by Richards which would allow nine casinos with up to five at race tracks.
The horse industry, and Beshear, once considered restricting the five licenses for racing associations. But Beshear said this week his “guess is that the Speaker’s gambling amendment will be the one we’ll coalesce around and try to move it forward.”
There are 50-some votes now in the House for the amendment. A constitutional amendment requires 60 votes in the House to pass and Richards said he’d like to have at least 62 or 63 votes.
House Minority Leader Jeff Hoover, R-Jamestown, this week said that won’t happen for a while.
“There are a number of Democrats who would probably rather say no but can hopefully be persuaded to step up and make a difficult vote because of the revenue condition in this state,” Beshear said.
The House Democrats’ alternative to steep budget cuts in the absence of casino gambling revenue is to increase the cigarette tax by 25 cents – Beshear would like to increase it 70 cents. But the House passed only a 25-cent increase – and that by the minimum number of votes.
Senate President David Williams, R-Burkesville, has said he thinks there is little or no sentiment in that chamber to increase taxes -- so gambling expansion is the only way forward.
The chairman of the Senate Appropriations and Revenue Committee, Charlie Borders, R-Grayson, seconded that emotion.
The Senate has passed pension reform legislation, which would require an additional $40 million or so from the General Fund over the House plan and budget. It also passed a bill to exempt active duty military personnel from Kentucky income taxes which is estimated to cost the General Fund about $17 to $18 million. Richards said the House supports the military tax bill, but “we can’t find the money.”
Clark and Richards both said, however, there are some things in the Senate pension reform which they like.
“There are some parts we’d like to keep and some we can give on,” Richards said of the House plan. Clark said the House agrees with some parts of the Senate plan. Neither provided any specifics.
Some are predicting the legislature will not be able to agree to a budget and is likely to return for a special session to pass a budget for the next fiscal period, which begins July 1.
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