Published: March 19, 2008 04:26 pm         

Governor, House leaders meet on gambling, budget

But both face high odds for passage

FRANKFORT, Ky. — Time’s running out but House Democrats and Gov. Steve Beshear aren’t giving up on casino gambling or raising more revenue to avoid cuts in education and health and human services.



Beshear met for about an hour with House Democratic leaders Wednesday, and when they emerged, all sounded as if they were on more or less on the same page for the first time in a fractious legislative session.



“It’s the best meeting we’ve had with the governor,” said Speaker Pro Tem Larry Clark, D-Okolona. “He showed some leadership. I thought he was focused on trying to get things off the table.”



One of the things they want to get "off the table" is an amendment to allow casino gambling in Kentucky. Both Beshear and Speaker 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. None of the five would be guaranteed, however.



Clark, the horse industry, and Beshear earlier preferred a version which would have restricted five licenses for racing associations. But Beshear said Wednesday his “guess is that the Speaker’s amendment will be the one we’ll coalesce around and try to move it forward.”



They believe 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 before calling it for a vote.



House Minority Leader Jeff Hoover, R-Jamestown, this week said that won’t happen. And Rep. Danny Ford, R-Mt. Vernon, said he’s not sure there are 50.



“I don’t see it,” Ford said. “From what I hear (Democratic) members say, I don’t think any of them want to sacrifice their political careers for the governor.”



Beshear said he still thinks 60 members can be persuaded.



“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, repeatedly has said he thinks there is little or no sentiment in that chamber to increase taxes. The chairman of the Senate Appropriations and Revenue Committee, Charlie Borders, R-Grayson, seconded that notion Wednesday.



“There will be no bill coming out of the Senate with tax increases,” Borders said.



Beshear said the Senate seems to “want to strip most of the revenue raising measures out of the budget, but they want to spend more money at the same time. Obviously that’s going to be a very difficult thing to do.”



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.



It is unlikely the House and Senate will agree on the budget and the final document will have to be hammered out in a free conference committee of leaders of both chambers and parties. But some aren’t hopeful that can be done.



Hoover is predicting the legislature won’t be able to agree to a budget and is likely to return for a special session to pass a budget for the next biennium which begins July 1.



Ronnie Ellis writes for CNHI News Service and is based in Frankfort, Ky. He may be contacted by email at rellis@cnhi.om.