>> Bill: GOVERNOR BESHEAR LAYS

OUT HIS $23 BILLION STATE BUDGET

PROPOSAL.

HE WANTS TO STOP CUTS, GIVE SOME

RAISES, AND HIRE MORE SOCIAL

WORKERS.

LEGISLATIVE LEADERS REACT AND

PRESS FOR DETAILS.

THE SENATE PRESIDENT SAYS THE

BUDGET SPEECH CONTAIN PUPPY DOGS

AND RAINBOWS.

IS A SPORTS BETTING BILL GOING

TO PASS?

THE STATE AGRICULTURE

COMMISSIONER SAYS THE HEMP

INDUSTRY FACES BUREAUCRATIC

PARALYSIS.

AS WE WATCH FOR A GROUNDHOG,

FEBRUARY COMES IN WARMER.

"COMMENT" IS NEXT ON KET.

BE GOOD EVENING.

I'M BILL BRYANT.

AND WE WELCOME YOU TO "COMMENT

ON KENTUCKY," A LOOK BACK AT THE

WEEK'S NEWS IN ITS

COMMONWEALTH.

AND THE GUESTS ON OUR PANEL OF

WORKING KENTUCKY JOURNALISTS

TONIGHT ARE ARE:

MARCUS GREEN, REPORTER FOR WDRB

IN LOUISVILLE.

DEBORAH YETTER REPORTER FOR TO

COURIER-JOURNAL.

AND JOHN CHEVES REPORTER FOR THE

ELECTRICS HERD LEADER.

ALSO TONIGHT LEADERS IN THE

STATE HOUSE PUT A PRIORITY ON

EASING THE TRANSITION FROM

PUBLIC ASSISTANCE TO THE

WORKFORCE.

AND IN WASHINGTON THE

IMPEACHMENT TRIAL CONTINUES.

KENTUCKY SENATOR MITCH

McCONNELL TRYING TO STEER TO

IT A QUICK CONCLUSION.

BUT FIRST GOVERNOR BESHEAR

UNVEILED HIS BUDGET PROPOSAL FOR

KENTUCKY FOR THE NEXT TWO

YEARS.

HE SAYS THE STATE IS THE IN A

POSITION TO END YEARS OF CUTS IN

SEVERAL AREAS.

>> THE LAST 14 YEARS OF CUTS DID

NOT SIMPLY CUT THE FAT.

THEY WENT DEEP INTO THE BONE

YEAR AFTER YEAR AFTER YEAR.

TONIGHT I'M PROUD TO REPORT THAT

I AM SUBMITTING A BUDGET THAT

ENDS THESE 14 YEARS OF PAINFUL

CUTS.

[APPLAUSE]

YES, WE HAVE STRUCTURED A

BALANCED, RESPONSIBLE BUDGET

THAT MAKES NO NEW CUTS TO OUR

GENERAL FUND.

[APPLAUSE]

>> Bill: SO THE GOVERNOR SAYS

KENTUCKY IS POSITIONED TO PAY

TEACHERS MORE AND STATE

EMPLOYEES AS WELL, TO END CUTS

TO PUBLIC EDUCATION, TO HIRE

HUNDREDS OF SOCIAL WORKERS.

LET'S TALK ABOUT HIS PROPOSAL,

JOHN.

>> John: WELL, YES, THIS WAS

THE FIRST BUDGET WE HAVE SEEN IN

A GOOD NUMBER OF YEARS, AS THE

GOVERNOR SAID, THAT DIDN'T LOOK

ENTIRELY LIKE AN AUSTERITY

BUDGET.

THEY DIDN'T HAVE CUTS ACROSS THE

BOARD TO A LOT OF CABINETS.

IT DIDN'T ZERO OUT VARIOUS

AGENCIES OUTSIDE OF GOVERNMENT

THAT RELIED ON STATE FUNDING.

HE RAISED OVER THE TWO YEARS

ABOUT $1.5 BILLION FROM EITHER

NATURALLY OCCURRING REVENUE JUST

COMING IN FROM NEW TAX

COLLECTIONS OR FROM NEW REVENUE

SOURCES OR FROM FUND TRANSFERS,

SWEEPING ACCOUNTS THAT WERE

MEANT FOR ONE THING BUT NOW

THEY'RE GOING TO GO INTO THE

GENERAL FUND.

>> Deborah: WHICH IS A TIME

HONORED PRACTICE I SHOULD POINT

OUT.

>> John: TIME HONOR PRACTICE

IN FRANKFORT.

SORRY, YOUR CHECKING ACCOUNT WAS

JUST IS IT SITTING THERE AND WE

NEEDED IT.

WE HAVE PLANS FOR IT.

MAYBE YOU'LL GET IT BACK NEXT

TIME.

THAT'S HOW IT GOES.

AS YOU MENTIONED, FOR STATE

EMPLOYEES, FOR EXAMPLE, THESE

ARE PEOPLE THAT FOR MOST OF THE

LAST DECADE HAVE NOT SEEN A PAY

RAISE, AND THE COST OF LIVING

HAS GONE UP, AND BETWEEN THE

STAGNANT WAGES AND THE FACT THAT

FOR NEWLY HIRED STATE WORKERS

YOU DON'T GET A PENSION ANYMORE,

WORKING FOR KENTUCKY STATE

GOVERNMENT DOESN'T LOOK VERY

ATTRACTIVE AND SO HE'S OFFERED

THEM A 1% PAY RAISE FOR EACH OF

THE NEXT TWO YEARS WHICH REALLY

ISN'T GOING TO KEEP UP WITH THE

COST OF LIVING STILL.

AND IT'S WORTH POINTING OUT, AND

THIS ISN'T MEANT TO BE A KNOCK

ON THE GOVERNOR BUT A 1%

INCREASE, A 1% INCREASE FOR

HIGHER ED, A 1% INCREASE FOR

SCHOOLS, NEXT YEAR THE FEDERAL

GOVERNMENT ESTIMATES THAT

INFLATION WILL BE ABOUT 2.1%, SO

THESE VERY MODEST INCREASES.

IN SPENDING PROBABLY WON'T EVEN

KEEP UP WITH THE COST OF

LIVING.

>> Bill: DID HE SEEM TO WANT

TO CROSS THE THRESHOLD OF BEING

ABLE TO SAY THE CUTTS ENDED.

>> John: EXACTLY, A 1%

INCREASE IS BETTER THAN LOSING

MONEY, AND A LOT OF THESE PLACES

HAVE BEEN LITERALLY LOSING MONEY

SO IT'S BENEFICIAL THE

PROVERBIAL PUNCH IN THE MOST.

>> Deborah: YEAR AFTER YEAR

WHEN THE BUDGET TAME QAIM

THROUGH THERE WOULD BE A

PERCENTAGE IS OF CUTS TO

AGENCIES FOR MANY AGENCY.

THIS HAS BEEN GOING ON FOR MAY

NUMBER OF YEARS NOW.

>> Josie Raymond: IN HIGHER

ED, POST-SECONDARY, HIGHER

EDUCATION THEY WERE HOPING FOR A

6% INCREASE FOR FUNDING FOR

COLLEGES AND UNIVERSITIES ONE

YEAR AND AN 8% INCREASE THE NEXT

YEAR, AND I WAS AT A HOUSE

SUBCOMMITTEE BUDGET HEARING

WHERE HIGHER EDUCATION LEADERS

WERE SAYING STILL OUR FINGERS

ARE CROSSED AS THE BUDGET WORKS

ITS WAY THROUGH.

MAYBE THEY'RE NOT GOING TO 6 AND

8 PERCENT INCREASE BUT STILL DO

BETTER THAN 1%.

>> Marcus: THIS BUDGET

PROPOSAL ALLOWS THE GOVERNOR TO

KEEP A PAWN PROMISE THAT HE MADE

TO GIVE TEACHERS A RAISE.

NOW IT SHOULD BE NOTED THAT THE

$2,000 RAISE IS ACTUALLY MORE

LIKE A BONUS.

IT WOULD BE A ONE-TIME BONUS IN

FISCAL 2021 BUT IT DOES ALLOW

HIM TO KEEP AT LEAST ONE OF THE

PROMISES HE MADE ON THE CAMPAIGN

TRAIL.

>> Bill: I'M CURIOUS ABOUT

THAT BECAUSE I HEARD THAT.

IT IS IN THE FIRST YEAR OF THE

BUDGET AND NOT THE SECOND OR

DOESN'T RECUR?

>> Marcus: I BELIEVE IT'S A

ONE-TIME, A ONE-TIME BONUS.

>> Deborah: YOU MAINTAIN

DOESN'T GO INTO THEIR BASE

SALARY AND STAY THERE?

I WASN'T AWARE OF THAT.

>> Marcus: I'M NOT REALLY

SURE.

>> Bill: I HAD HEARD THAT.

WHICH IT HAS BEEN AN INTERESTING

WEEK TO SORT ALL OF THIS OUT,

RIGHT?

I MEAN, IT'S A COMPLICATED

DOCUMENT, OBVIOUSLY.

>> Deborah: THEY DIDN'T HAVE

MUCH TIME TO GET IT TOGETHER.

>> Bill: I INTERVIEWED THE

GOVENOR TODAY, AND SHE HAD AT

THIS POINT THERE'S UGLIES

CONSULTATION GOING NOW BETWEEN

HIS ADMINISTRATION AND THE

LEGISLATIVE LEADERS.

AS WE ALL KNOW, THERE WAS SOME

CRITICISM BY LEGISLATIVE

LEADERSHIP ABOUT THEM FINING OUT

WHEN THE PUBLIC DID ABOUT THE

BUDGET PROPOSAL.

>> Deborah: BUT IT WAS A

BIPARTISAN SNUB.

HE DIDN'T INFORM DEMOCRATIC

LEADERS EITHER/OR THE

REPUBLICANS.

THEY ALL COMPLAINED THAT HE DID

GIVE THE PRESS A BRIEFING IN

ADVANCE.

I WOULD SAY THE RESPONSE FROM

THE LEADERSHIP, THE REPUBLICAN

LEADERSHIP IN THE HOUSE AND

SENATE WAS LUKEWARM.

THEY JUST APPEARED POLITE BUT

UNENTHUSED ABOUT SOME OF HIS

PROPOSALS AND THOUGHT THEY WERE

OVERLY AMBITIOUS AND DID

COMPLAIN ABOUT THE TRANSFERS

THAT IT RELIES ON TO SOME

EXTENT.

>> Bill: LET'S HEAR JUST A

LITTLE BIT MORE ABOUT THAT.

REPUBLICANS EXPRESSED

FRUSTRATION THAT THEY DIDN'T

KNOW MUCH ABOUT THE GOVERNOR'S

SPENDING PLAN UNTIL AFTER

REPORTERS DID AND AFTER THE

SPEECH WAS GIVEN.

THEY QUESTIONED SOME OF THE

NUMBERS AND KET'S RENEE SHAW GOT

REACTION FROM SPEAKER OSBORNE

AND SENATE PRESIDENT STIVERS.

>> WELL APPARENTLY WE ARE MORE

FLUSH WITH CASH THAN WE POSSIBLY

IMAGINED WE WERE COMING INTO IT,

BUT, LOOK AT THIS POINT IN TIME

I BELIEVE THAT IT'S -- IT'S NOW

TIME TO GET DOWN TO WORK, AND

TRULY DIG INTO THESE NUMBERS,

TRY TO FIGURE OUT EXACTLY WHAT

HE HAS JUST PROMISED.

>> THIS WAS ALL PUPPIES DOGS AND

RAINBOWS -- PIP DOGS AND

RAINBOWS BUT IT IS NOW TYPE AND

ONE OF THE THINGS THAT CAUGHT MY

EYE IS HE'S GOING TO USE

ONE-TIME DOLLARS FROM

SETTLEMENTS TO BOLSTER THIS

BUDGET.

HOW MUCH IS THAT?

THAT'S A STRUCTURAL IMBALANCE

USING ONE-TIME DOLLARS TO FIRE

RECURRING EXPENSES.

>> Bill: ALL RIGHT.

THERE'S SOME FRANKFORT TERMS

FLOWING OUT THERE.

STRUCTURAL IMBALANCE AND FUND

TRANSFERS.

>> John: THERE'S A LITTLE BIT

OF DISINGENUOUS TALK THERE.

SENATOR STIVERS IS RIGHT THAT

IT'S STRUCTURALLY IMBALANCED

WHEN IT'S A NOT RECURRING.

ON THE OTHER HAND THEY ADO

THAT.

SENATE AND HOUSE SIGNED OFF FOR

IT FOR GOVERNOR BEVIN FROM THEIR

OWN PARTY AND GOVERNOR STEVE

BESHEAR BEFORE.

THERE'S SEVERAL HUNDRED DOLLARS,

AGAIN, IN FUND TRANSFERS AND

OTHER MONEY THEY GRABBED IN

GOVERNOR BESHEAR'S BUDGET.

THERE WAS TWICE THAT, MORE THAN

$600 MILLION IN FUND TRANSFERS

IN EACH OF GOVERNOR BEVIN'S

BUDGETS WHICH THE LEGISLATURE

SIGNED OFF ON.

SO IF YOU THINK FUND TRANSFERS

ARE A BAD IDEA, THIS IS ONLY

HALF AS BAD OF AN IDEA AS THEY

WERE UNDER GOVERNOR BEVIN.

>> Bill: IS THE FUND TRANSFER

ANY MORE COMPLICATED THAN IF

THERE IS A $100,000 ALLOCATION

ON A LINE AND $50,000 WAS SPENT,

THAT THE OTHER $50,000 IS --

>> John: WE'VE GOT SOMETHING

CALLED THE PETROLEUM STORAGE

TANK REMOVAL FUND, AND I MAY

HAVE IT A LITTLE BIT WRONG BUT

THESE ARE THE UNDERGROUND GAS

TANKS A GAS STATIONS.

THEY LEAK LEAD, BENZENE, THE

OTHER TOXIC ELSE CHEMICAL INTO

THE ENVIRONMENT.

WE'VE GOT GET RID OF THEM.

PROPERTY OWNERS ASKED FOR MONEY

FROM THE STATE TO CLEAN UP THE

SOIL.

IT'S A SERIOUS ENVIRONMENTAL

PROBLEM AND WE'VE GOT A BIG I

POT OF MONEY TO DO IT.

EVERY BUDGET CYCLE WE RAID THAT

FUND TO BALANCE THE GENERAL

FUND, AND THIS IS A REAL THING

BECAUSE THAT MONEY WAS SUPPOSED

TO GO FOR ENVIRONMENTAL

CLEANUP.

BUT THE MONEY WAS SITTING THERE,

AND SO WE USED IT TO BALANCE THE

BUDGET, TO DO GOOD STUFF FOR

SCHOOLS, DO GOOD STUFF FOR

PARKS, DO STUFF FOR PRISONS THAT

E. THAT WE NEED TO DO.

WAS THE MONEY JUST SITTING

THERE?

YES.

DID IT HAVE ANOTHER PURPOSE THAT

WE WANTED TO ADDRESS?

YES.

AND YOU MULTIPLY THAT BY DOZENS

OF BANKING ACCOUNTS THROUGHOUT

STATE AGENCIES AND THOSE ARE

FUND TRANSFERS.

>> Bill: LET'S TALK ABOUT THE

EVER REVENUE.

THERE WOULD BE IN THE BESHEAR

BUDGET AN INCREASE OH CIGARETTE

TAXES.

>> Deborah: YES, HE'S

PROPOSING A 10 CHRISTIANITY PACK

INCREASE ON CIGARETTES, WHICH IS

PRETTY MODEST.

IT WENT UP 50 CENTS TWO YEARS

AGO, I BELIEVE.

THE ADVOCATES HAD ARGUED FOR A

DOLLAR A PACK SAYING THAT WOULD

DISCOURAGE SPOKE SMOKING AND

BRING IN MORE REVENUE P THEY

SPLIT THE DIFFERENCE AND GOT 50

CENTS CENTS A PACK.

HE'S ALSO PROPOSING A TAX ON

VAPING PRODUCTS SOMEWHAT LESS

THAN WHAT REPRESENTATIVE JEREME

MILLER OF LOUISVILLE HAS

SUGGESTED.

AND ADVOCATES ARE REALLY,

REALLY, REALLY, THEN WANT A

VAPING TAX BECAUSE THEY SAY THIS

WILL DISCOURAGE YOUTHS FROM THIS

EXPLOSION OF VAPING AMONG YOUTHS

WHO ARE NOW GETTING ADDICTED TO

NICOTINE BECAUSE THAT'S PRODUCTS

ARE FARRELL FAIRLY CHEAP AND

EASILY ACCESSIBLE.

SO.

THERE IS NO EXCISE TAX ON THEM

NOW.

THAT ESCAPED THE BUDGET SOMEHOW

LAST TIME AROUND.

SO THEY WANT TO ADD THAT AND

THAT WOULD BRING IN MORE

REVENUE.

>> Bill: SPORTS BETTING IS

PART OF THE REVENUE SIDE, AND

ONE SOURCE TOLD ME TODAY THAT

SUPPORTERS ARE STILL TRYING TO

LINE UP REPUBLICAN VOTES IN THE

HOUSE TO TRY TO GET THAT PASSED

ALONG WITH SOME DEMOCRATS.

IS THAT GOING TO GET THROUGH

BOTH CHAMBERS?

>> Marcus: THAT IS ONE OF THE

BIGGEST QUESTIONS OF THIS

SESSION SO FAR, IS WHAT ARE THE

PROSPECTS FOR THIS SPORTS

GAMBLING BILL.

IT SAILED OUT OF COMMITTEE BUT

JUST THIS WEEK THE FAMILY

FOUNDATION DECLARED THE BILL IN

TROUBLE, AND THERE IS A QUESTION

ABOUT WHETHER OR NOT IT DOES

HAVE LEGS GOING FORWARD, AND THE

GOVERNOR IS COUNTING THAT

REVENUE AS PART OF HIS REVENUE

PLAN FOR THIS BUDGET.

HE'S COUNTING SOME THINGS THAT

HE KNOWS HE HAS SOME REPUBLICAN

SUPPORT FOR.

AT LEAST REPUBLICANS SUPPORT

SPORTS BETTING.

CAN IT MAKE IT OUT OF HOUSE BUT

ALSO THE SENATE.

>> John: THE BUDGET DEPENDS ON

SPORTS GAMBLING PASSING.

THE BUDGET DEPENDS ON THE HIGHER

TAX ON LIMITED LIABILITY

ENTITIES.

I MEAN, IF THE LEGISLATURE

DOESN'T GO ALONG WITH SOME OF

THESE INCREASES OR MEW SOURCES

OF REVENUE THEN WHAT DOESN'T

GETS PAID FOR?

>> Bill: IT'S NOTABLE HE DID

NOT PREDICATE HIS PLAN ON ANY

MONEY FROM CASINOS.

>> Deborah: HE WAS VERY CLEAR

ABOUT THAT.

HE STRONGLY EMPLOYEES HAVE IN

CASINOS.

HE THINKS WE'RE LOOKING MONEY

OUT OF STATE.

IT WOULD BRING A LOT OF MONEY

BACK TO KENTUCKY.

THE SENATE DECLARED IT DEAD ON

ARRIVAL SO HE'S NOT PROPOSING IT

FOR NOW.

>> Bill: THE GOVERNOR DID

INCLUDE THE HIRING OF 350 NEW

SOCIAL WORKERS WHO WOULD COME IN

TO HANDLE A HEAVY CASELOAD.

IS THAT THE REASON -- I MEAN, IS

BURN-OUT THE REASON WE HAVE SUCH

DIFFICULTY APPARENTLY IN FILLING

THOSE POSITIONS?

>> Deborah: I THINK THAT'S THE

NUMBER ONE REASON.

WHEN OF GOVERNOR BEVIN AND HIS

ADMINISTRATION DID GET A LITTLE

MORE MONEY IN FOR RAISES FOR

STATE SOCIAL WORKERS, BUT WHEN I

TALKED TO THEM LAST YEAR FOR

SOME WORK I DID, THEY

INDICATED -- I MEAN, SOME OF

THEM ARE CARRYING CASE LOADS OF

40, 50, 60 FAMILIES OF CHILD

ABUSE AND NEGLECT CASES.

THE RECOMMENDED LEVEL IS 17 PER

WORKER.

THE STATE CLAIMS IT IS AVERAGE

IS 19, BUT MANY OF THESE WORKERS

TELL ME THAT THE REAL NUMBERS OF

WAY OVER THAT DEPENDING ON WHERE

YOU WORK AND WHAT THE

SITUATION'S LYING LINING IN YOUR

COMMUNITY AND THEY'RE EXHAUSTED

AND BURNED OUT.

I HAVE TALKED TO WORKERS WHO

WERE LEFT FOR WORK IN THE

PRIVATE SECTOR.

THE IN THE PAST HEAD OF SOCIAL

SERVICES HEAD UNDER BEVIN SAID

IT'S A REVOLVING DOOR.

>> Bill: HOW LONG WOULD IT

TAKE TO IDENTIFY AND HIRE AND

TRAIN 350 NEW SOCIAL WORKERS?

>> Deborah: I THINK THAT WOULD

TAKE PROBABLY A COUPLE OF

YEARS.

IT TAKES MONTHS TO GET THE

GET THEM TO THE POINT WHERE

THEY'RE ABLE TO CARRY CASELOADS

AND THEN YOU HAVE TO ASSUME

YOU'RE NOT LOSING OTHERS AS FAST

AS YOU BRING THE NEW ONES IN.

>> Bill: THE GOVERNOR COULD

NOT CRAFT A BUDGET PROPOSAL

WITHOUT ADDING MORE MONEY FOR

CORRECTIONS WITH THAT LARGE

PRISON POPULATION WE HAVE.

WE CALLED THAT A MORAL ISSUE.

>> JENNIFER:

>> John: HE SAYS THE GOVERNOR

HAD ALREADY WARNED US A COUPLE

WEEKS AGO THAT HE'S GOING TO

HAVE TO ADD MORE THAN

$100 MILLION JUST IN THE NEXT

TWO AND A HALF YEARS TO DEAL

WITH THE RISING INCARCERATED

POPULATION.

WE GOT ABOUT 24,000 PEOPLE

BEHIND BARS.

AND WE'VE GOT SOME OLDER

CRUMBLING STATE PRISONS.

WE'VE GOT TWO PRIVATE PRISONS

UNDER LEASE CONTRACT WITH THE

STATE.

THE GOVERNOR WOULD LOVE TO

SHRINK THAT INMATE POPULATION.

WE CAN SAVE $12 MILLION FOR

EVERY 1,000 FEWER INMATES WE

HAVE, BUT IT'S NOT UP TO HIM.

HE DOESN'T GET TO FILE A BILL IN

THE GENERAL ASSEMBLY, SO ANY LAW

THAT WE WOULD PASS THAT WOULD

SOMEHOW LOOK LIKE CRIMINAL

JUSTICE REFORM THAT WOULD

INCARCERATE FEWER PEOPLE, THAT'S

GOING TO BE UP TO THE GENERAL

ASSEMBLY.

I MEAN, ALL HE CAN DO IS KIND OF

PUSH IT, USE THE BULLY PULPIT,

AND AGAIN WE'RE STILL WAITING,

YOU KNOW, WE DIDN'T SEE ANYTHING

RIGHT NOW THAT LOOKS LIKE

CRIMINAL JUSTICE REFORM COMING

OUT OF OF THE LEGISLATURE AT

THIS POINT.

>> Deborah: IT WOULD BE A

SIGNIFICANT RESTRUCTURING THINGS

LOOK THE PAROLE SYSTEM, THE

PENAL CODE, THE REENTRY, ALL OF

THAT.

IT WOULD TAKE A MAJOR OVERHAUL.

THERE DOESN'T SEEM TO BE THE

WILL FOR THAT.

>> John: IT WOULD.

THIS ISN'T SOMETHING YOU DO A

DAY 30 OF THE 60-DAY SESSION.

THIS IS WHAT YOU DO THE SPRING

BEFORE.

YOU GET EVERYBODY COMFORTABLE

AND GET THEM ONBOARD AND

CONVINCE THEM ALL HECK ISN'T

GOING TO BREAK LOOSE IF YOU GET

SMARTER ABOUT HOW YOU HANDLE

INCARCERATION.

JUST A WAY OF EXAMPLE, BY THE

WAY, THE THE DEPARTMENT OF

CORRECTIONS SENT OUTS A NEWS

RELEASE THIS EVENING SAYING IT'S

GOING TO SHUT DOWN THE BELL

COUNTY JAIL BECAUSE THEIR SMOKE

REMOVAL SYSTEM IS UNSAFE, IT'S A

FIRE SAFETY THING, AND WE LOOKED

UP THE NUMBERS OUT OF CURIOSITY,

IT'S A 59 BED JAIL THAT'S GOT

ABOUT 130-SOMETHING PEOPLE

PEOPLE.

IT'S 200% OF CAPACITY AND IT'S

HOLDINGS STATE INMATES SERVING

FELONY TIME.

THESE PEOPLE ARE DOING YEARS IN

THE BELL COUNTY JAIL WHICH HAS

TWO AND A HALF TIMES AS MANY

PEOPLE IN IT THAT'S GOING ON ALL

OVER THE STATE OF KENTUCKY.

GOVERNOR BESHEAR IS POWERLESS TO

STOP IT.

>> Bill: WE TALKED ABOUT 1%

INCREASE IN FUNDING FOR HIGHER

EDUCATION BUT THE REGIONAL

UNIVERSITIES AND THESE

QUASI-GOVERNMENTAL AGENCIES ALL

FACE PENSION SITUATIONS AND BIG

DECISIONS RIGHT NOW AND SOME BIG

NUMBERS THAT THEY'RE TRYING TO

WORK WITH.

>> Deborah: YOU'RE TALKING

ABOUT EVERYTHING FROM A MAJOR

REGIONAL UNIVERSITIES ON DOWN TO

LIKE THE INDIVIDUAL DOMESTIC

VIOLENCE SHELTERS AND THE

COMMUNITY MENTAL HEALTH

AGENCIES.

OFF THEM DON'T HAVE A MAGIC WAY

TO GO OUT AND RAISE MONEY.

THEY RELY ON THEIR STATE MONEY,

WHATEVER THEY CAN BILL FOR

SERVICES.

>> John: THEY WERE LOOKING A

JUMP FROM 49% OF THEIR PAYROLL

AS A PENSION CONTRIBUTION RATE

TO 93% CAN WHEN CHARITABLE

ORGANIZATIONS A LOT OF COUNTY

HEALTH DEPARTMENTS SAID WE'RE

GOING TO HAVE TO CLOSE.

WE'RE ALREADY CURRENT SERIOUS

JOBS.

SO GOVERNOR BESHEAR TRIED TO

OFFER THEM A COMPROMISE IN HIS

BUDGET.

HE SAID, I'LL CAP, STINNED

SEVEN-DAY FORECAST YOU JUMPING

FROM 49% TO 93%, I'LL MEET YOU

HALFWAY.

I'LL CAUGHT UP 67% OF YOUR

PAYROLL WHICH IS STILL VERY

HEFTY, AND I'LL THROW IN A

LITTLE EXTRA.

SO KENTUCKY RETIREMENT SYSTEMS

WON'T GET THE 93% BUT IT WILL

GET THE 84 CONTRIBUTION RATE.

IT'S A LOT OF NUMBERS.

I KNOW IT'S COMPLICATED.

ESSENTIALLY I WILL SUBSIDIZE THE

REGIONAL UNIVERSITIES AND THESE

COUNTY DEPARTMENTS, THESE OTHER

SO-CALLED QUASI-USUALLY

GOVERNMENTAL ENTITIES.

THAT'S MY WAY OF HELPING YOU.

THE DOWNSIDE AS WE DISCOVERED

THURSDAY, THE KENTUCKY

RETIREMENT SYSTEM'S DIRECTOR

TESTIFIED AND SAID THAT MEANS

WE'RE GOING TO BE SHORT TENS OF

MILLIONS OF DOLLARS THAT WE WERE

EXPECTING.

THAT MEANS YOU'RE NOT MAKING THE

FULL PENSION PAYMENT YOU SAID

WERE YOU MAKING.

THE GOVERNOR'S OFFICE HEMMED AND

HUD WITH US WHEN HE ASKED HIM.

THAT'S RIGHT.

WE'LL BE $25 MILLION SHORT A

YEAR OVER THE NEXT TWO YEARS,

$50 MILLION TOTAL.

>> Bill: BUT ALSO MINUTES OUT

HE'S PUTTING MORE MONEY INTO

IT.

>> John: YEAH, IT'S BETTER

THAN IT WAS THIS YEAR.

SO IT'S $50 MILLION SHORT OVER

TWO YEARS, BUT IN THE GOVERNOR'S

DEFENSE, IF WE ASK THESE QUASIS

TO GIVE EVERYTHING, SOME OF THEM

ARE JUST GOING TO COLLAPSE, SO

THIS IS A NO-WIN SCENARIO.

>> Bill: TRANSPORTATION.

MARCUS, ISSUES WERE MENTIONED.

WERE THEY CONFRONTED HEAD-ON

UNDER THE GOVERNOR'S PLAN?

>> Marcus: WELL, THE GOVERNOR

DID RELEASE HIS HIGHWAY PLAN.

THIS IS THE MAIN ROAD SPENDING

DOCUMENT.

IT NOW IS GOING TO GO INTO THE

LEGISLATURE FOR THEIR TAKE AND

ULTIMATELY CRAFT SOMETHING THAT

WILL GOVERNING HOW THE NEXT

COUPLE OF YEARS GO.

BUT THE BIG QUESTION, I THINK,

FROM A LOT OF PEOPLE IS WHAT IS

GOING TO HAPPEN WITH THE GAS TAX

AND WHETHER OR NOT THE

LEGISLATURE OR THE GOVERNOR WILL

COME OUT IN SUPPORT OF RAISING

THE GAS TAX AND DOING OTHER

TYPES OF TRANSPORTATION

MODERNIZATIONS, AS IT'S CALLED,

CHANGING THE MAIN FORMULA THAT

ADDRESSES HOW RURAL AND URBAN

AREAS GET THEIR FUNDING.

THE GOVERNOR'S NOT COME OUT AND

TAKEN A POSITION ON THE GAS TAX,

AND I THINK THE ELEPHANT IN THE

ROOM RIGHT NOW IS A BILL, SENATE

BILL 4 WHICH IS A BILL THAT

WOULD OVERHAUL HOW THE GOVERNOR

APPOINTS A TRANSPORTATION

SECRETARY.

THIS IS BALE SPONSORED BY

SENATOR STIVERS AND

SENATOR ERNIE HARRIS,

SENATOR JIMMY HIGDON.

THIS BILL WOULD ESSENTIALLY

CREATE A BOARD CALLED THE

TRANSPORTATION BOARD, AND THAT

BOARD WOULD PRODUCE NOMINATIONS

AND THE GOVERNOR WOULD HAVE TO

CHOOSE AMONG THOSE NOMINEES WHO

THE TRANSPORTATION SECRETARY

WOULD BE, AND THAT BOARD WOULD

ALSO HAVE CONTROL OVER THE FIRST

DRAFT OF THE HIGHWAY PLAN.

SO ALL OF THESE THINGS ARE GOING

TO HAVE TO PLAY OUT.

WE'LL HAVE TO SEE WHERE THIS

BILL GOES, BUT THE GOVERNOR'S

PLAN AS IT STANDS REALLY

EMPHASIZE HEADS RURAL ROADS, I.

EMPHASIZES GUARDRAILS AND STATE

OF REPAIRS, THE MOUNTAIN

EXPANSION IN EASTERN KENTUCKY

AND PROVIDES MONEY FOR THE I69

BRIDGE BETWEEN COMMANDERS

EVANSVILLE, INDIANA, TO CONTINUE

ALONG.

IT DOESN'T FUND IT BUT IT ALLOWS

IT TO CONTINUE TOWARDS

ULTIMATELY A FINANCING PLAN

THAT'LL ALLOW THAT PROJECT TO

MOVE FORWARD.

>> Bill: AND AS MUCH AS WANT

HAD TO PLAN TRANSPORTATION

PROJECTS THINGSING HAPPEN.

CELLULAR EARLIER THIS WEEK WE

DIDN'T KNOW WHEN THE I275 BARGE

WAS STRUCK BY A BARGE ON THE

WHOA RIVER WHAT EXPENSE WILL

BE.

FORTUNATELY THAT WAS MINIMAL.

BUT WE HAD THE SITUATION IN

LOUISVILLE A LITTLE BAG, THE

FERRY BRIDGE.

YOU CAN HAVE AN EARTHQUAKE

SITUATION.

TRANSPORTATION COSTS CAN QUICKLY

RISE.

>> Marcus: RIGHT.

AND AGAINST THAT BACKDROP IS A

MAJOR NEW CHANGE THIS FISCAL

YEAR WHICH IS KENTUCKY HAS LOST

WHAT ARE CALLED TOLL CREDITS.

THIS ISN'T REAL MONEY BUT THIS

IS MONEY THAT THE STATE'S BEEN

ABLE TO USE AS A MATCH FOR

FEDERAL PROJECTS IN THE PAST,

AND THAT MONEY HAS FINALLY

DRAPED.

KENTUCKY'S A LAMONT HAS DRAPED.

NOW KENTUCKY IS GOING OVER USE

STAGNANT FEDERAL DOLLARS FOR ITS

MATCH.

>> Bill: ARE WE GOING TO MAKE

THE ON THE REAL IDs BY THIS

NEW DEADLINE OF THIS YEAR?

>> Marcus: I ONLY GET THAT

QUESTION ABOUT 500 TIMES A DAY,

SO RIGHT NOW THE STATE DOES HAVE

TO GET IT DONE BY OCTOBER THE

1st AND THE TRANSPORTATION

CABINET IS OVERSEEING THAT

ROLL-OUT.

I DON'T KNOW WHEN JEFFERSON

COUNTY IS GOING TO GET THEIRS.

>> Bill: LET'S TALK ABOUT SOME