LEGISLATIVE ANALYSIS- June 2000 Feature Article
by Richard Adkins

Looking Back, Looking Forward
Governor Paul Patton and Senate President David Williams answer questions about legislation, the economy and the budget battle

What specific piece of legislation (passed or failed to pass) do you feel will, or would have, benefited Kentuckians the most and in what ways?

Patton: Without a doubt, the Early Childhood Development Proposal was the most important piece of legislation considered by this General Assembly. It provided for an entirely new approach to ensure that future benefits and programs for children would be made available. Our children are indeed our future and this legislation reflected the level of concern we have for their well-being.

Williams: One of the most significant pieces of legislation to pass this session was Senate Bill 1, the Adult Education and Literacy Bill. One obvious shortcoming in our economic potential is the number of adults who are not adequately prepared to succeed in life. With approximately 40 percent of adults in our state functionally illiterate, it's important to empower more Kentuckians with the skills and education needed to prosper. SB 1 focuses on those who have been left behind and will hopefully create a culture of learning for all Kentuckians.

On the flip side, one of the disappointments of this session was the defeat of Senate Bill 290, which would have permitted voluntary cleanup and recycling of former industrial property and related sites known as brownfields. SB 290 contained a provision that prevents the state from suing or seeking further enforcement against a property owner who voluntarily cleans up a site to the satisfaction of the Cabinet for Natural Resources. It also created a timetable for the state to approve a property owner's plans to clean up the site and to inspect the site after the cleanup is completed. It appears that SB 290 was passed in the Senate but never received a vote in the House.

From your perspective, do you consider this session of the General Assembly to have largely been a "success" or a "failure" and why?

Patton: This session was successful because we presented a well-thought out and comprehensive plan to guide Kentucky into the new millennium. Even though the House was initially apprehensive about our call for new "revenue enhancements" and tax reform proposals, they eventually came around to the view that most of our plan, as submitted, was indeed what was best for the Commonwealth.

Williams: I certainly consider this session a success. Several major legislative initiatives that will promote prosperity for Kentuckians and lead to a higher quality of life were passed and signed into law. The only people who disagree are some editorial board writers at the two major state newspapers, who apparently aren't happy because the Senate refused to enact massive tax increases that would have endangered our economic competitiveness, branding us as a high tax state. I've already mentioned the Adult Education and Literacy Bill, but the Senate also passed a bill that will deliver safe drinking water to all Kentuckians, one that expands the Early Literacy Program for children struggling to read, a bill that encompasses the Insurance Commissioner's recommendations on reforming our health insurance laws, workers' compensation reform that increases benefits for the truly injured worker, smoking cessation legislation, the list goes on and on.

Who really won the "Budget Battle" and please state specifically, why?

Patton: I feel that the Senate GOP Leadership did not fully analyze what they were proposing before the actual cutting of our budget proposals began. The first time most of the Republican members really looked at the proposals up close was when the budget was being debated in Conference Committee.
I say this because the budget that finally passed both chambers was little different from the comprehensive plan we originally proposed. I am uncertain on the exact numbers, but if my memory serves me, the final budget that passed amounted to about $30 million more in General Fund Expenditures than our original proposal.

Our original tax plan would have made telecommunications businesses in this state more competitive. As passed, the tax plan places a heavier burden on the telephone industry at the expense of others in the telecommunications industry.

We still need a 'gasoline tax' in some form to be able to provide for much-needed highway and infrastructure development projects. This time around it was a case of bad timing. Eventually we will pass some form of this tax.

Williams: The people of the Commonwealth won the budget battle. If not for the Republicans in the Senate, the people of Kentucky would be paying an additional 10 cents per gallon at the gas pumps, a six percent sales tax on repairs to their vehicles and appliances and a seven percent tax on their satellite reception, cable TV, mobile phones, pagers and Internet access. When you consider the Democrats are still trying to argue whether the final budget package was a net tax increase (it actually was a net decrease) when they were earlier clamoring for tax increases in the range of $600-700 million, it's plain to see that Republicans and fiscal conservatives won. You can't tax yourself into prosperity or borrow yourself out of debt. Republicans held the line on both. When Frankfort is fiscally responsible, the people will always win.

Was this session the beginning of a two-party system of government in the Commonwealth? If so, does shared government benefit the average Kentuckian?

Patton: We have had a viable two-party system of government in this state for some time now as evidenced by the makeup of our federal delegation to Congress, which is overwhelmingly Republican. The two-party system is also evident by way of a series of competitive governor's races and local campaigns in recent elections. Democrats have continually fielded the better candidates for state offices over the years, which is why we have had such success at that level.

I believe that I can honestly say that the Patton administration has tried to be as much of a bi-partisan administration as we have ever seen in Kentucky over the years. This was the case even before the GOP took control of the Senate this past year. I have always worked closely with the Republican leadership and appointed Republicans to serve in my administration and I look forward to working with them in that manner again in the future.

Of course, bi-partisanship works for the benefit of all and is a good thing in a democracy. By the same token though, I feel that extreme partisanship on issues is bad and works against the public good. Extreme partisanship has led to polarization on many issues in Washington and I would not like to see that kind of political deadlock come to Frankfort as well. I do not think that sort of situation would benefit the people of Kentucky.

It's important to remember that this session did not begin on a partisan note, but rather turned that way as it developed, with most of the differences being felt on budget and tax issues solely.

Williams: I'm confident in saying that the two-party system has arrived in Frankfort. This past session marked the first time in our state's history when two parties shared the responsibility of governing. This new dynamic proved beneficial to the residents of Kentucky during budget negotiations and during the debate on the need for new taxes. If it continues, you will see a decided shift in public policy away from big state government with centralized control to a smaller, leaner state government with more local decision-making. There's little debate that government functions best when an active two-party system is sharing the responsibility of leadership.

How well will Kentucky's economy perform though the end of this year?

Patton: We expect the state's economy to stay about the same. It will largely reflect the broader national economy, which seems to be fundamentally sound. Global and national pressures on the economy are the two most important factors that can affect the state's individual economic performance. It is important to remember that during the last national economic recession in 1991-92, Kentucky's economy slowed down significantly but never actually posted negative growth figures. Technically speaking, we never went into a recession in economic activity and actually out-performed the national economy overall.

Williams: Based on the reports provided by the Consensus Forecasting Group, Kentucky's economy will continue to grow. Kentucky's personal income is estimated to grow by 5.3 percent, which is slightly below the national average. However, it is estimated that income derived from wages and salaries in Kentucky will outpace the national rate, meaning our residents will continue to enjoy good-paying jobs. It should be noted that it's not unusual for Kentucky to lag behind other states in economic growth. At the same time, Kentucky usually lags behind the rest of the country when the economy takes a downturn. I am very optimistic about Kentucky's future economic growth. Our focus on education at all levels, as well as holding the line on taxes and workers' compensation should assure a continuing competitive advantage for our state.

 

Richard Adkins (richardadkins@lanereport.com) is a staff writer for The Lane Report.

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