Friday, November 07, 2008

Beshear's rift with GOP Senate could imperil revenue plan

This from Ryan Alessi at H-L:
Gov. Steve Beshear said Thursday he will move forward with plans to generate more state revenue, but those efforts would have to clear a solidly Republican state Senate with whom Beshear has an increasingly frigid relationship.

Atop Beshear's list of options to erase a projected $300 million budget shortfall is a potential increase in the state's 30-cent-a-pack tax on cigarettes. Beshear has suggested a special legislative session to address that or other measures, but any firm plan will come after Thanksgiving when key revenue projections have been released.

"At that point, I need to put together a proposed plan, and then I want to take that plan out to the people of this state to get some feedback. I want to discuss it with legislators to get their feedback," he said Thursday. "So realistically, we're looking at after Christmas or after the first of the year to be in a position to take any kind of
official action."

But Republican Senate President David Williams has repeatedly balked at the idea of raising any taxes, including on cigarettes.

Emboldening his stance are the results of Tuesday's election, in which Republicans turned back Beshear and the Democrats' bids to take over three GOP-controlled Senate seats...

...Williams said, he's not convinced that the state's financial problems are dire enough to require tax increases...

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