Daily Independent (Ashland, KY)

Editorials

March 12, 2010

Frankfort games — 03/14/10

Funding of projects should be based on needs, not politics

With Kentucky continuing to struggle to balance its budget and being forced to make cuts in virtually every program, a strong case can be made that this is a fiscally foolish time for the state to be borrowing $2.2 billion to finance schools, water and sewer projects and highways.

House Minority Leader Jeff Hoover, R-Jamestown, is right when he says the $17.5 billion budget approved by the House burdens future Kentucky taxpayers with payments on money borrowed to finance projects in 2010-12.

On the other hand, a case also can be made on the need to continue to improve Kentucky’s infrastructure to be in a better position to attract new jobs and new investments when the economy does improve. In addition, the projects being financed by the budget will create thousands of badly needed new construction jobs in the state.

However, whether one thinks borrowing $2.2 billion is foolish or wise, the decision on what projects will be funded with that money should be based on need and not how one voted in the House.

But Speaker of House Greg Stumbo made it clear that legislators who did not vote for the bill, suspending for two years a tax break for businesses, or for the budget bill would not get any projects in their districts. In effect, that eliminated Republicans from getting projects for their district, regardless of how badly they were needed. Even projects deemed “critical” by the Kentucky Transportation Cabinet were not funded because they were in a GOP district.

Stumbo has a perfectly logical explanation for his power play: Without the revenue enhancements, the budget could not be balanced and the capital projects could not be funded.

Stumbo said legislators knew in advance that projects in their district would not be funded if they voted against the revenue plan. “That was their choice — they made that choice,” he said.

However, every Kentucky taxpayer will be paying off the debt to finance those projects — not just those who live in districts with Democratic legislators. Democratic, Republican and independent voters in Republican districts are being denied important projects. Many of those districts also have high unemployment and could use the temporary jobs created by construction projects. House leaders say the projects will boost the state’s economy, and they will — but only in those districts with Democratic legislators.

Call us naive, but we think a priority should be placed on every capital project in the state and that priority should be determined by need, not politics. By letting politics determine what gets funded, legislators are assuring that the money is not being spent as wisely as it should be.

Of course, what the House did is not the final chapter. The budget now goes to the Senate, and based on the House vote, the budget approved by the GOP-controlled Senate will be quite different than the one approved by the Democrat-controlled House. It would be premature for those with projects funded by the House budget to think that money is a sure thing.

House Minority Leader Jeff Hoover, R-Jamestown, is right when he says the $17.5 billion budget approved by the House burdens future Kentucky taxpayers with payments on money borrowed to finance projects in 2010-12.

On the other hand, a case also can be made on the need to continue to improve Kentucky’s infrastructure to be in a better position to attract new jobs and new investments when the economy does improve. In addition, the projects being financed by the budget will create thousands of badly needed new construction jobs in the state.

However, whether one thinks borrowing $2.2 billion is foolish or wise, the decision on what projects will be funded with that money should be based on need and not how one voted in the House.

But Speaker of House Greg Stumbo made it clear that legislators who did not vote for the bill, suspending for two years a tax break for businesses, or for the budget bill would not get any projects in their districts. In effect, that eliminated Republicans from getting projects for their district, regardless of how badly they were needed. Even projects deemed “critical” by the Kentucky Transportation Cabinet were not funded because they were in a GOP district.

Stumbo has a perfectly logical explanation for his power play: Without the revenue enhancements, the budget could not be balanced and the capital projects could not be funded.

Stumbo said legislators knew in advance that projects in their district would not be funded if they voted against the revenue plan. “That was their choice — they made that choice,” he said.

However, every Kentucky taxpayer will be paying off the debt to finance those projects — not just those who live in districts with Democratic legislators. Democratic, Republican and independent voters in Republican districts are being denied important projects. Many of those districts also have high unemployment and could use the temporary jobs created by construction projects. House leaders say the projects will boost the state’s economy, and they will — but only in those districts with Democratic legislators.

Call us naive, but we think a priority should be placed on every capital project in the state and that priority should be determined by need, not politics. By letting politics determine what gets funded, legislators are assuring that the money is not being spent as wisely as it should be.

Of course, what the House did is not the final chapter. The budget now goes to the Senate, and based on the House vote, the budget approved by the GOP-controlled Senate will be quite different than the one approved by the Democrat-controlled House. It would be premature for those with projects funded by the House budget to think that money is a sure thing.

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