By Ronnie Ellis
CNHI News Service
FRANKFORT, Ky.
March 07, 2008 01:48 pm
—
It took a while, perhaps too long to work. It was harshly criticized by members of his party who said it can’t pass. But Gov. Steve Beshear Thursday stepped up and offered to lead.
He called for a 70-cent increase in the cigarette tax.
The move surprised House Democratic leaders, angering them. Rep. Harry Moberly, D-Richmond, said Beshear needs to understand the legislature is an equal branch of government and “we aren’t going to be ambushed like we were (Thursday).”
They weren’t pleased Beshear said their own budget plan contains “funny money.” Republicans accused Beshear of breaking a campaign promise. In fairness, Beshear never made an absolute promise not to raise taxes, saying Kentuckians are taxed too much “at this time” or raising taxes is a “last resort.” Thursday, he said that “we have arrived at that stage” where Kentucky either surrenders progress – or its leaders lead.
He chose to lead. He’ll have a tough time getting alternately partisan and nervous lawmakers to follow. Initial lawmaker reaction was downright hostile. Both Democrats and Republicans said it couldn’t pass.
Rep. Jim Wayne, D-Louisville, who unlike many of his colleagues isn’t afraid of facts or of pointing them out, made a salient observation:
“We’ve got what, 45 (House members) without an opponent? If we can’t do it now, when can we do it?”
Wayne actually spoke about the House plan to raise the cigarette tax by 25 cents, before Beshear surprised lawmakers with his more ambitious proposal. But his question is just as pertinent to Beshear’s 70-cent increase as the House’s less ambitious proposal.
Beshear did something else when he told reporters it is time to raise the cigarette tax by an amount which will generate significant revenue and incidentally have an impact on the state’s high smoking rates. He exposed some myths and guises.
First is the budget legerdemain lawmakers and previous governors have engaged in bi-annually for years. Moving money around in an over-extended budget, creative accounting that anticipates more revenue than is realistic, and borrowing against the future to pay today’s recurring expenses. As he put it, lawmakers every two years devise a budget which is ultimately unsustainable, then “go home smiling, leaving me as governor to begin writing cold checks to the state’s children.” But Beshear’s proposal relies on borrowing too.
He also exposed the lack of support for his remedy to the state’s economic ills – a casino gambling amendment. If the budgets lawmakers offer contain funny money, then offering taxpayers gambling instead of taxes is easy money. Easy money usually has inconvenient and unpleasant costs and some lawmakers aren’t eager to embrace gambling.
Beshear wants to force Republicans in the Senate off the sidelines so they’ll have to reveal their real priorities – pandering to anti-tax sentiment for political advantage or facing up to the state’s needs. Don’t expect many of them to step up. We’ll hear a lot of talk about tightening our belts and living within our means. They’ll have company from some Democrats in both chambers. Some were saying Friday morning the late proposal from Beshear increases chances the legislature will end the regular session with no budget – requiring a special session before July 1 to pass a constitutionally required budget.
Then there are the voters and taxpayers. Because while politicians sometimes spend money wastefully on pork projects, that’s what their constituents demand. Politicians, while not often courageous, are rarely stupid. They know the public wants a lot from government – they just don’t want to pay for it.
Asked if his proposal will damage him politically, Beshear didn’t hesitate: “If it does, it does.” He’s offered to lead. But who will follow?
Ronnie Ellis writes for CNHI News Service and is based in Frankfort, Ky. He may be contacted by email at rellis@cnhi.com.
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