February 22, 2005

Compromise and Cooperation - the House in 2005

Last week was an important one for Kentucky . Governor Fletcher's Tax Modernization Plan was modified and presented to the House. We passed it by a vote of 96-4. Extraordinary!

The preceding weeks were especially busy for the appropriations & revenue subcommittees and the executive branch. The goal was to get it (and the budget) done and hand it over to the Senate by February 18th. We made it under the wire, finishing at just before midnight. The Senate went to work on it Saturday. We don't want any more repeats of 2002 and 2004, when the Assembly adjourned without a budget!
It's not perfect, but much was changed through compromise. Recall that we were faced with the prospect of double taxation of package beer & liquor sales. In fighting this we were victorious, against all odds. The sales tax provision was eliminated, although the wholesale tax was increased from 9% to 11%. Industries accepted this compromise. Thank you to all who sent letters and emails, and made phone calls. I'm here to help, so I took those letters to the governor's staff, and I closed the doors with my House leadership to explain the facts and the unfairness. They listened. It worked.
On cigarettes, the tax was increased from three cents to 29 cents. Again, a compromise. Most wanted it much higher, and some wanted it lower. I wanted no increase at all; not a popular position. Again, it's a fairness issue for me, with a heavy load placed just on the backs of smokers. On the other hand, there are those who argue that the price increase will reduce underage smoking, a worthwhile goal.
There is much to be admired in the modernization plan. Now it will go through the Senate, likely then to conference committee, then back to the floor of each chamber. We'll see what gets added, and that which stays or goes. After that, I'll report other details.

The Budget - Bipartisan Cooperation

As to the budget I'll mention only one detail for now. I like the graduated nature of the income tax. We eliminated all income below the federal poverty level (18,850) for a family of four, decreasing that dollar level for smaller families and individuals. Top earners still pay 6% income tax while that income below 75,000 will be taxed at a lower rate. I believe this plan gives relief to the poor and comfort to the weak and vulnerable. It should get better in later years, as the full benefit of modernization is realized.
I celebrate with you the spirit of cooperation that is prevailing in the State House of Representatives. On Friday night, just before midnight we passed the governor's budget with a vote of 100 - 0. There was great and happy applause; not just because we were all tired and it was late. We were jubilant because we have worked so well together. This is in sharp contrast to previous years, especially the turbulent 2004 session. For a sense of the significance of that night, here are comments from legislative leaders on both sides.
"This is an historic moment for this chamber and for Kentucky ," said Rep. Harry Moberly, D-Richmond. "Leaders of both parties have worked together to craft a budget that improved upon the good work the governor had already done."
Rep. Jeff Hoover, R-Jamestown, said, "I think today is truly an historic day. It's an historic day for this body because we are showing that when we come together, when we work together, when we stick together, we can accomplish great things together."
Now, that's the kind of language I love hearing in our General Assembly! Here are my remarks, prepared for the same night. "I'm grateful for the extraordinary cooperation between the members and leaders of this House. And so, to the Power that I trust has brought this about I give thanks, and pray that it may continue in and between both bodies of this Assembly."