2010 Extraordinary Session Ends

Posted: Tuesday, June 01, 2010
Blog: Legislative Update

During the 2010 "special session" last week your AGC of Kentucky Government Affairs Team was successful in lobbying for nearly $500 million in new bonding for among other items state funded construction projects including Category 5 schools along with an acceleration of the Job Creation Tax credit.

Funding for the state's schools most in need of replacement (Category 5) was solved after considerable discussion and negotiations thus clearing the way for passage of the state budget. Under the final plan, the state will match funding for local school districts that levy a "second nickel," or 5 cents per $100 in property value.

The accelerated tax credit will enable small business employers to use 2009 as the base year of employment for applying for tax credits for the 2010 Tax year.  Eligible AGC of Kentucky members with 50 or fewer employees can receive the tax credit of up to $25,000 for hiring one new employee in 2010 along with a capital investment of at least $5,000.

The Tax credit acceleration along with passage of House Bill 5, Unemployment Insurance legislation saving Kentucky employers nearly $700 million were the top legislative priorities of the AGC of Kentucky and our allies in the KY Small Business Caucus during the "special session".

A very special thank you to Senate Appropriations & Revenue Committee Chair Bob Leeper, I-Paducah who met with a delegation of Small Business Caucus members including a representative from AGC of Kentucky and agreed to sponsor an amendment to the budget bill. Rep. Tanya Pullin D-South Shore efforts in the House were also instrumental in our success. Thanks also to all the legislators who voted for HB-5, sponsored by House Speaker Pro Tempore Larry Clark, D-Okolona. 

The two-year, $17.1 billion spending plan House Bill 1 reached the governor's desk following final legislative passage at the conclusion of day five of the "special session", staving off a threatened government shutdown on July 1.


The plan includes no new taxes and includes new general fund bonding of $437 million.

Also headed to the governor is House Bill 2, the revenue package needed to pay for the two-year budget. Among the provisions added to by the Senate were tax incentives aimed at benefiting rural and low-income communities through business investment and philanthropy.

Another amendment to HB 2 directs coal severance money into a scholarship program aimed at drawing pharmacy students into coal counties. The program is similar to those aimed at bringing badly needed doctors into the rural Kentucky, with each year of service offsetting a year of school loans. Students who decide not to fulfill their end of the contract would be required to pay back the loans. Students from coal counties would be given preference for the scholarships.

The session continued into the Memorial Day weekend with legislators meeting on Saturday May 30th to finalize the state "road plan". Soon after the final passage of the road plan, a press release was issued touting among other projects the inclusion of $62.5 million for Kentucky’s share of a new bridge across the Ohio River between Milton, Ky., and Madison, Ind.

The new bridge was one of dozens of projects in the $4.45 billion road project legislation which the General Assembly ultimately passed during the 6 day "special session".

The Transportation Cabinet’s operations budget of about $5 billion and the two-year road plan were the last two major pieces of legislation still in play that the legislature hoped to approve on Saturday.


Following it's passage the House and Senate adjourned "sine die" at approximately 11 pm Saturday evening and sent the legislation on to the Governor for his signature.

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Budget Address this Week

Posted: Tuesday, January 19, 2010
Blog: Competitive Edge

When a major bill makes its way to either chamber's floor for a vote in the session's early days, it's a sure sign the bill has uncommonly deep support in that chamber. House Bill 176 became the first piece of legislation to reach the governor's desk this year, as the Senate and House cooperated and fast-tracked the bill. Time was of the essence: A Jan. 19 deadline loomed for state education officials to apply for federal Race to the Top funds, up to $200 million or more that can be used toward improving state middle and high schools. HB 176 also qualifies Kentucky for $45 million in other federal funds to turn around low-performing schools. This money is sorely needed, as will be demonstrated when the Governor deliver's his budget address on Tuesday when the General Assembly returns from the Martin Luther King holiday. The administration has said very little about their budget proposal other than it will contain significant cuts to major programs in order to deal with a projected $1.4 billion deficit over the biennium in the General Fund. Governor Beshear has said he will try to protect the main source of funds for elementary and secondary education, the SEEK formula, and try to limit cuts to key human services. Any cuts in state programs, will be in addition to multiple rounds of cuts in the base funding for most programs that have been made the last year and a half. While some believe government can stand a little more belt-tightening, we think these cuts will begin to be more noticeable to the average Kentuckian. These cuts seem almost a certainty without some new source of state revenue or tax increases. Speaker Stumbo announced this week that he would like to see the General Assembly explore a more consumption based tax system, meaning more reliance on a sales tax. He is advocating looking at the current sales tax exemptions and the possibility of taxing services which are currently excluded from the sales tax. He has also mentioned a possible repeal of the corporate income tax. President Williams has indicated he would favor a more consumption based system as well, but will be very cautious to avoid raising taxes. Governor Beshear has said tax reform of any kind usually translates into tax increases and he doesn't favor any "look" at changing the tax system in the middle of a recession. During the 2010 session AGC of Kentucky will track nearly 1,000 bills and resolutions which may impact our members interests and we will continue to provide the best legislative representation for the commercial construction industry in the Commonwealth. To view the bills we are tracking see below.

Legislation_to_Watch

Other Legislation of Note

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