State road and bridge projects totaling $4.58 billion is proposed in the 2016-18 state Road Plan approved Tuesday by the Kentucky House.
House Bill 305, sponsored by House Appropriations and Revenue Chair Rep. Rick Rand, D-Bedford, would also reduce what budget experts called “over programming” — or projects included over budget — in the proposed state highway plan from $1.63 billion as proposed by the Executive Branch to $797 million as the proposed House plan.
The bill passed the House by a vote of 56-40.
House Budget Review Subcommittee on Transportation Chair Rep. Leslie Combs, D-Pikeville, described the Road Plan as austere, impacted by a decrease in state Road Fund revenue in recent years.
“The Road Fund has suffered (since 2014) an annual loss of approximately $201.5 million per year. Of that total… $97 million is lost revenue that we would have revenue-shared back with our struggling local governments. And $104.4 million of that would have gone directly into the state (road) construction account which we could have used…on projects in this plan,” said Combs.
The projects in HB 305 would be paid for through the Transportation Cabinet budget found in HB 304, also sponsored by Rand, which passed the House by a vote of 60-38. That bill would also fund administration and operation of the state Transportation Cabinet, state aviation projects, rail projects and other transportation needs across the state.
Some of those voting against the proposed Road Plan questioned why certain projects were excluded from the document. One of those lawmakers was Rep. Brian Linder, R-Dry Ridge, who was told by Combs that the proposed plan omits road improvements leading to the planned Ark Encounter theme park in Grant County because there aren’t “enough available dollars.”
“We can say it’s because (there’s) no money but… at some point, we really need to stop worrying about who’s in control of the House and start recognizing who’s in control of the universe,” said Linder.
State law requires the General Assembly to adopt the last four years of the six-year road plan—which includes the first two years of funded projects found in HB 305—as a joint resolution that has the force of law but is not included in the statutes. That legislation, House Joint Resolution 91, also sponsored by Rand, passed by a vote of 52-43.
Both bills and the resolution now go to the Senate for consideration.
KTRS pension bill clears House, heads to Senate
Legislation that would require the state to fund the Kentucky Teachers’ Retirement System on an actuarially sound basis starting in fiscal year 2017 is on its way to the Senate.
House Bill 1, sponsored by House Speaker Greg Stumbo, D-Prestonsburg, would require state employers to pay 100 percent of the additional contribution rate needed to fund the KTRS pension fund to keep the fund fiscally sound. Stumbo said the bill will help protect the state’s bond rating—which he said has been hurt by underfunding of the pension system—by sending a message to the bond rating agencies.
“We can make a statement as to what our goal is,” he said, with that goal being to fund KTRS to the full actuarially required contribution, or ARC. “I believe that … it will improve our bond rating and thus in the long run cost us less money,” said Stumbo.
Over $1 billion to fully fund the KTRS ARC over the next biennium without any bonding is included in the House state budget plan found in HB 303 as passed by the House last week. That bill is now in before the Senate for its consideration.
Rep. Brad Montell, R-Shelbyville, attempted to amend the bill with provisions that would have phased in the KTRS ARC over four years. That plan would have used around $600 million provided in the budget as proposed by Gov. Matt Bevin to fund the ARC over the next biennium and around $313 million total over the following two fiscal years to fully fund the ARC over four years.
“A four-year phase-in is an acceptable phase-in by all accounts,” said Montell. “We’re preparing every year to be able to better meet the requirements so that in four years we’re fully funding … with recurring revenue.”
Stumbo spoke against the amendment, saying it would “kick the can down the road” for funding of teachers’ retirement.
“The truth of the matter is, it’s up to the next General Assembly to find those dollars,” said Stumbo. “Here’s what it means… it means that we would appropriate $487 million less in fiscal year 2017 and $457 million less in fiscal year 2018 than what the system needs.”
The amendment was defeated on a vote of 44-53.
HB 1 was approved by the House on a vote of 86-11 and goes to the Senate for consideration.
Senate approves REAL ID legislation
The Senate passed a bill Tuesday that would bring Kentucky’s state ID program into compliance with a federal standard that has a fast-approaching deadline. Senate Bill 245, passed by a 26-12 vote, would make REAL ID-compliant state-issued identification available to Kentuckians.
REAL ID is a federal program adopted in 2005 that would come close to establishing a national proof-of-identity program. The Homeland Security program set minimum standards for new, voluntary “enhanced” photo ID cards to include more personal information and anti-counterfeit facets. Participating states are also required to store photos and information, where it could be accessed by law enforcement or other governmental agencies with the proper authorization.
So far, only 23 states have complied with the act, and enforcement has been delayed. Kentucky is one of 27 states to receive an extension as it works to gain compliance.
Initially, the security provisions of REAL ID were to take effect in January. Though access to high-security facilities like military bases and nuclear power plants has already been limited to those without the new ID, other restrictions are still a few years away.
By 2018, flyers from states that are not REAL ID compliant nor have an extension – or those individuals who do not choose to obtain an enhanced ID – will need a second form of identification to fly domestically. By 2020, all flyers will require enhanced identification.
Sponsor Sen. Ernie Harris, R-Crestwood, reviewed the provisions of SB 245, though he said he felt it was hardly needed for a bill that was so well-hashed.
“This is a bill that’s been out there. It’s been discussed for a while,” he said.
Aside from adding the new IDs, SB 245 would also set new procedures for issuing licenses, reaffirming the Kentucky Transportation Cabinet as the issuing body, and would change renewal periods. Kentuckians would only have to renew their licenses every eight years, instead of the current four-year requirement.
Senate committee approves open records measure
A bill aimed at increasing governmental transparency passed favorably out of the Senate Committee on State and Local Government on Tuesday.
House Bill 80, which has already gotten two readings before the full Senate, narrows open records exemptions for private firms providing public services. The bill would require entities offering services traditionally performed by government agencies and receiving at least a quarter of their revenue from taxpayers adhere to the same open records laws as their government counterparts.
Sponsor Rep. Chris Harris, D-Forest Hills, was joined by Kentucky Press Association Executive Director David Thompson testifying in support of HB80. According to Harris, the genesis of the bill was a much-litigated case from his home county.
Utility Management Group, based in Pikeville, operates water and sewer services for the publicly owned Mountain Water District in Pike County. Its revenue is derived from public funds. In 2011, after critical state audit of the water district, local fiscal court officials and media members filed open records requests to review how taxpayer money was being spent to manage the district. UMG denied the requests, leading to a protracted court battle.
The State Court of Appeals ultimately ruled last summer that the company was required to follow Kentucky open records laws.
Senate Majority Floor Leader Damon Thayer, R-Georgetown – who serves on the committee – indicated the Senate will likely move quickly to pass the bill. HB80 passed the House by a 92-0 vote on Feb. 1.
From LRC Public Information