Thoughts on a taxing session, as budget cuts are felt

Today's column:

FRANKFORT — This and that, the lazy, hazy, crazy days of summer edition:

As Gov. Steve Beshear toured the state in recent weeks, he continued to tout his proposals to raise the cigarette tax 70 cents a pack and to let voters decide whether Kentucky needs casino gambling and the hundreds of millions of dollars in additional revenue that would come with it.

He has plenty of reason to keep making that pitch. The two-year budget that went into effect July 1 underfunds a variety of critical services and is shakily balanced at best.

It could come unbalanced very quickly for a variety of reasons, starting with the economy. If it continues its downward trend, the revenue estimates used to craft this budget could prove excessively rosy.

Already, the assumed savings from the predicted mass retirement of state workers looks overly optimistic.

If the wads of chewing gum holding this budget together do start to come unglued in the next few months, or if the impact of the deep cuts in services prove so painful that even the Republican-controlled Senate recognizes the need for more revenue (yeah, I know, that’s unlikely), a special legislative session after the November election might be the most practical way to deal with the cigarette tax issue.

It takes a super majority (60 percent of the members of each chamber) to pass a revenue-raising measure in a 30-day short session of the General Assembly, such as the one coming up in 2009. No such super majority would be required in a special session.

On the other hand, a constitutional amendment on gambling might have a better chance in 2009 than it did this year (or will have in 2010) simply because dealing with it in an odd year puts some distance between lawmakers’ votes on the issue and the time they face re-election.

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In Northern Kentucky last week, one impact of those deep cuts in services was the release of two men accused of violent felonies.

A story by Kevin Kelly on the Kentucky Enquirer’s nky.com Web site said Campbell District Judge Gregory Popovich released the two to illustrate the consequences of a $2.3 million cut in funding for the Department of Public Advocacy that has made it difficult for the agency to hire private lawyers in cases where public defenders would have a conflict representing co-defendants.

“I am releasing someone charged with attempted murder in a drug deal, a drug war where the other person allegedly started the war,” Popovich was quoted as saying. “I’m releasing them into our streets. Please be careful. Hope that nobody else gets hurt. But remember the fight is between the public advocacy office and the state Senate who don’t seem to care enough to protect us. They should put that stuff aside and protect us.”

Wonder how many Democrats challenging incumbent Republican senators will repeatedly remind voters of this incident over the next couple of months?

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Am I the only cynic who believes the recent decline in oil and gas prices is the oil industry’s attempt to influence the November election by reducing the pain somewhat so Americans will feel less anger toward a Republican administration?

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6 Responses to “Thoughts on a taxing session, as budget cuts are felt”


  1. 1 Bill Adkins August 20, 2008 at 7:28 pm

    Are you “the only cynic who believes the recent decline in oil and gas prices is the oil industry’s attempt to influence the November election by reducing the pain somewhat so Americans will feel less anger toward a Republican administration?”

    No - and am I the only one who believes the oil industry did the same thing in 2000 (i.e., Enron in California) to influence that year’s election towards the Republicans?

  2. 2 Also a Cynic August 20, 2008 at 7:50 pm

    Regarding the decline in gas prices I absolutely agree. The frenzy pushing up prices would have eventually stopped but the timing of when it did is more than a little suspicious. Rake in the billions then coast, hoping Americans have short memory.

  3. 3 Jim Anderson Stivers August 21, 2008 at 9:14 am

    LDK,

    Your speculation about Middle East Oil certainly has merit, but we will never know the truth.

    The fact is people are actually suffering economic decline, due to the rising price of everything, including oil.

    And, the Arabs can see the hand writing on the wall . . . if they lift their veil.
    Alternative energy is on the way, maybe not soon, but eventually it will happen. Then watch the oil prices fall.

    And, to lower the price, at this time certainly raises the question and concern.

    Saw a bumper sticker the other day.

    ‘SOMEWHERE IN TEXAS . . . THERE IS AN IDIOT MISSING!”

    Jim Anderson Stivers

  4. 4 ldk August 21, 2008 at 1:50 pm

    Glad to know I’m not the only cynic around. Of course, I really didn’t think I was.

    ldk

  5. 5 SOSG August 22, 2008 at 6:52 am

    I believe you are entirely correct on the oil prices. They will probably continue to drop a little more each week between now and November. Of course, they are saying consumption is down which is why the prices are dropping. That could be true since we are all broke and can’t afford to go anywhere.

  6. 6 ldk August 22, 2008 at 9:18 am

    SOSG,

    Watch the prices go back up after Nov. 4.

    ldk

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About

Larry Dale Keeling, a columnist for the Lexington Herald-Leader, has spent most of his 35-plus years in journalism reporting on or writing editorials and columns about Kentucky’s politics and political issues. He now brings his experience and expertise on those topics to the KyKurmudgeon blog.