Ky. Budget Chairman Rules Out Tax Hike Next Year

ROGER ALFORD

FRANKFORT, Ky. (AP) — Tax increases won't be an option for shoring up Kentucky's shrinking budget, a leading lawmaker said Monday.

House Appropriations and Revenue Committee Chairman Rick Rand said all 100 House seats and 19 of 38 Senate seats will be up for election next year, making tax increases of any kind unlikely.

"Those are the political realities," said Rand, a Democratic from Bedford. "At a time when businesses and families are hurting, it's awfully difficult to raise taxes on them."

State Budget Director Mary Lassiter warned Friday that most state agencies could face additional 6 percent budget cuts this year to help offset an additional expected $161 million revenue shortfall. That's on top of $800 million already slashed from the state budget because of revenue declines attributed to the ailing economy.

Lassiter sent letters to the heads of most government agencies Friday alerting them that additional budget cuts were coming.

Gov. Steve Beshear's administration intends to try to shield some state programs from cuts, including Medicaid, public schools, universities, community colleges and the teacher retirement system.