Published: June 05, 2009 02:00 pm      

Budget, slots make for busy week in Frankfort

Frankfort, Ky. — FRANKFORT, Ky. – It was a busy week in Frankfort.



Gov. Steve Beshear issued the expected call for a special session beginning June 15 and revealed a plan to deal with a projected $996 million revenue shortfall. That was after Senate President David Williams, R-Burkesville, contended the shortfall was really only about $129 million. That’s a hefty difference. Beshear’s figure is based on the difference between the 2010 budget and what is expected to come in during a terrible economy. Williams’ is based on the 2009 amended budget.



But the real difference may lie in political calculations by both men. Beshear wants legislative buy-in to yet another scaled down budget that doesn’t make many constituents and interest groups happy. Williams would rather Beshear take the responsibility, and if the lower figure applies, Beshear could make the reductions without legislative action. Beshear avoided that with his call for a special session.



Meanwhile lawmakers, lobbyists and reporters all waited to see if Beshear would include a measure to allow video lottery terminals at horse tracks. The questions were how many votes the measure could garner in the House and whether it had any chance in the Senate where it’s opposed by Williams. Estimates of vote counts in the House varied widely – from 35 to 60. Last week, some of the House leadership tried to gauge support and apparently weren’t encouraged, although supporters of the legislation – and some opponents – said they assumed House Speaker Greg Stumbo, D-Prestonsburg, could push it through.



Williams and others concluded from Beshear’s original omission of the question on his call that he must not have the votes to pass it in the House. As late as Thursday, after Beshear subsequently added gambling to the call, Williams contended there aren’t enough votes in the lower chamber. But others drew precisely the opposite conclusion: Beshear wouldn’t have put it on the agenda if he didn’t think it could pass.



Everyone seems to agree on one thing – although there are some competing data – the horse industry is in trouble. But Williams says there’s a better way to boost purses and breeders’ incentives than gambling, offering a plan for a 10 percent tax surcharge on lottery tickets, using some sales taxes on horse products, and taxing out of state betting on Kentucky races to boost purses and incentives. Beshear and spokesmen for Stumbo say allowing the VLTs at tracks is the only workable, available option to help the industry.



There’s debate about whether the measure requires a constitutional amendment. At least one previous attorney general said it does, one (Stumbo) said it doesn’t. Either way, the absence of the referendum provision makes the vote more difficult for some lawmakers who could use polls showing the public wants to decide the issue themselves to provide political cover. And without the provision, any gambling measure which passes will face certain court challenge. And there will be lawmakers from some parts of the state who vote for it who will face certain opposition in the next election. There’s considerable political risk for Beshear as well.



Beshear is forcing the issue. He said Thursday it’s time to vote up or down. Beshear wouldn’t say if its defeat would settle the question, equivocating that it would depend on the closeness of the vote and other factors. But now lawmakers – at least in the House but also in the Senate if the House passes it – will have to take a stand.



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