Daily Independent (Ashland, KY)

January 7, 2010

Beshear says state can survive recession with bi-partisanship

By RONNIE ELLIS

FRANKFORT — Facing a “huge deficit,” which he estimates at $1.5 billion over the next two years, Gov. Steve Beshear told lawmakers Wednesday evening he did not become governor “to solve budget problems.”

He then told them how – through bi-partisan cooperation – he and the General Assembly have cut the state budget six times since he took office by a total of $900 million and called on them to work together with him to solve the latest budget crisis.

He listed his accomplishments but provided no specific proposals for meeting the latest shortfall. He never uttered the word gambling, the issue on which he has worked continuously since becoming governor.

His comments weren’t received in entirely a bi-partisan manner, however. Senate President David Williams, R-Burkesville, has complained about Beshear’s efforts to entice Republican senators into lucrative state jobs and then take those seats for Democrats in special elections in order to pass expanded gambling.

“He’s going to have to really re-establish some trust,” after those elections Williams said. “He should put down his hatchet and start trying to work with people.”

House Speaker Greg Stumbo, D-Prestonsburg, saw the governor’s speech in a more positive light but he conceded Beshear hasn’t always enjoyed the best working relationships with lawmakers.

“Gov. Beshear has ruffled some feathers with some members of the General Assembly,” Stumbo said. “He needs to try to correct that.”

House Minority Leader Jeff Hoover, R-Jamestown, however, said he understands Democrats and Republicans battle to win elections but should work together once they’re over.

“I fully expect the governor to campaign for candidates of his party,” Hoover said. He said he thinks the governor has tried to work in a bi-partisan manner – at least in the House – once elections are over.

As he often has, Beshear said there is a time for politics and renewed his intention to fight for Democratic candidates but, as before, he called on members of both parties to put aside partisanship after elections and work together. He said he and lawmakers “developed a mutually respectful relationship which has allowed us to put aside rank partisanship and philosophical differences to focus on what’s important for the future of Kentucky.”

Beshear said he will be back before lawmakers on Jan. 19 with a two-year budget proposal “with stark numbers that leave little room for maneuvering.

“We are facing a huge deficit that will require us to make painful decisions about where we spend money,” Beshear said. “It WILL require sacrifice and restraint.”

But he asked for no specific sacrifice and offered no specific solutions. He said he is confident “we can focus on the future by addressing fundamental problems” and said he refuses “to hunker down and hide, to just wait out this storm and to passively accept the economic situation that others have created for us.”

The nearly 36-minute speech was interrupted by applause several times, but it was often polite rather than enthusiastic. The exceptions were when he praised the efforts of Kentucky’s military personnel on active duty and in dealing with weather disasters in the state and his statement that coal will continue to be mined in Kentucky in “an environmentally safe way.”

Sen. Robin Webb, D-Grayson, liked that line and termed the speech “positive and encouraging.” But she added: “We’re going to hear a grimmer outlook when the budget is presented” on Jan. 19.

Rep. Harry Moberly, D-Richmond, said the speech accurately described the state of the commonwealth but focused on “broad generalities. I think he will give more specifics when he gives his budget address.”

Newly elected Rep. Jill York, R-Grayson, liked Beshear’s emphasis on job creation, the theme of her special election campaign.

Beshear used a major portion of the speech looking backward, extolling his administration’s efforts to create jobs, help families, and “make government lean, efficient and open as possible.”

He said 66 projects have been approved through a revamped tax incentive program for businesses, creating more than a 1,000 jobs – “The list, as you can see,” he said, “goes on and on.” He lauded the location of a research laboratory on automotive battery technology, pointed to infrastructure projects to serve Fort Knox, and said he has closed the Medicaid deficit (largely with federal stimulus help) and added 35,000 children to the Kentucky Children’s Health Insurance Program (K-CHIP) and protected education from funding cuts.

He promised help to smokers seeking to quit through Medicaid, promised to continue to support the coal industry, and cleaned up the Transportation Cabinet. He said he will support legislation to raise the legal age at which students can leave school and a bill to strengthen domestic violence laws.

RONNIE ELLIS writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com. Follow CNHI News Service stories on Twitter at www.twitter.com/cnhifrankfort.