This view of the budget approved by the Kentucky House of Representatives was provided to
The LoJo by Martha Jane King, who represents Logan and Todd counties in Frankfort.
The House plan overcomes a $1.2 billion deficit, without raising taxes. We are living within our means.
It maintains our commitment to Medicaid, SEEK, and corrections. Public retirement systems
would not be short-changed; 2008’s HB 1 timeline would be maintained.
It does not rely on gaming revenue that never existed.
It does not shortchange future student loans by bonding lottery-based scholarships.
It calls for modest cutbacks of political appointees for all three branches of government, reverting to 2007 levels.
It also calls for 2007 levels of General Fund contract expenses.
Without this plan, across-the-board cuts would be 4.6 percent for first year, 7.9 percent for second.
Reductions rely on four areas:
Six-month extension for Medicaid
This is same assumption made by President Obama’s budget.
Both U.S. House and Senate have included it in separate plans.
Kentucky is not alone: Other states rely on this assumption as well.
Reduce contract expenses
Phased in, with two-thirds of cuts taking place in budget’s second year.
Will protect Kentucky companies doing business with the state.
Separate legislation will seek more info on personal service contracts.
There is need for upgrading billing standards so vendor services can be audited.
A better billing standard will give more accountability and transparency.
Return political appointees to 2007 levels for all state government: 125 fewer jobs in Executive Branch; 15 in Legislative Branch; several dozen in
Judicial Branch.
Retirement/attrition could help cover most of these cutbacks
Slight changes to public health plan
First changes since 2006 calendar year
State would still provide free single coverage, which would be enhanced.
Both family plan options would increase slightly: Employees buying family plans would see less than 5 percent growth in premiums in first year;
less than 2 percent growth in the second.
Return to current law on school days
Addition of two instructional days in 2006 budget and again in 2008 was not codified in law.
Instructional days would be optional, which would give school districts/superintendents more flexibility.
The $800 million in school surplus contingency funds are untouched.
Students will still have more instructional hours than many surrounding states.
Other cost-saving measures
About two percent reductions for postsecondary schools.
$100 million in Medicaid efficiencies (This mirrors proposal by Governor Beshear and is $50 million a year in General Fund dollars.)