Wednesday, February 02, 2005

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Fletcher: "We must pass tax modernization"

Governor Ernie Fletcher threw down the gauntlet to House Democrats tonight, calling on them to rise above the "timid status quo" and take on a "courageous course" by passing his tax modernization plan with the state budget this month.

Fletcher offered Democrats a couple of outs: he offered to keep the budget and tax plans separate -- a key sticking point last year -- and distinctly offered the choice of passing the budget without the tax plan, but characterized that option as a missed opportunity.

"This budget (without the tax plan) will allow us to continue government services, but it is not the vibrant vision we share for Kentucky," Fletcher said.

House Budget Chairman Harry Moberly (D-Richmond) and Speaker Jody Richards set the stage for budget brinksmanship by complaining about not having enough time to look at the Governor's proposal, most of which has been available publicly for almost a year.

Moberly's complaints were generic: "I don't think it's a budget that will move Kentucky forward," he said. "I think we need a greater vision."

Budget constraints like ever-increasing Medicaid spending, prison funding, and Kentucky's powerful state employee benefits lobby take much of the negotiation out of this session's budget talks. Also, the political imperative for some kind of agreement is intense on every side. So the likelihood of some kind of middle-of-the-road compromise is very strong. It will be interesting to see who wins the image war. Who will leave Frankfort in March with momentum for the 2006 political battles? Check out Kentucky Progress every day for the latest analysis. Your feedback is greatly encouraged.