2017 Interim Record

2017 Interim LEGISLATIVE Volume 30, No. 9 December 2017 * Read online at www.lrc.ky.gov/legislation.htm RECORD New state Constitutional officers revenue share legislative wish lists estimates by Jim Hannah LRC Public Information project slow FRANKFORT – A panel of state lawmakers recently got a better idea of the legislation some of Kentucky’s statewide constitutional officers growth will advocate for during the upcoming regular by Rebecca Hanchett session. LRC Public Information “We have a couple of things percolating,” Kentucky Auditor of Public Accounts Mike FRANKFORT---State revenue projections Harmon said while testifying before the Inter- for this fiscal year and the next two fall a bit im Joint Committee on State Government on short of earlier expectations made in October. Nov. 29. “I’ll let you peek under the hood, as it Official state General Fund revenue esti- were, at a few things we are working on.” mates issued on Dec. 15 by the Consensus Fore- He said the legislature could help Ken- casting Group (CFG) project that state revenues tucky’s 120 counties by passing a bill modeled will grow by $287.5 million in fiscal year 2019 after an Ohio law that allows for an occasional, and $284.15 million in 2020. Less growth total- less-expensive audit of counties with a history ing $240.57 million is expected this fiscal year, of sound financial recordkeeping. leaving the state with a predicted $156.1 million Another piece of suggested legislation from shortfall in the current year. Harmon would close a loophole he said his of- Total General Fund revenues estimated by fice found that allows cities to receive state road the CFG for fiscal years 2018 through 2020 are Rep. Phil Moffett, R-Louisville, asks a question funds even if they haven’t completed a yearly during the Nov. 29 meeting of the Interim Joint $10.7 billion in fiscal year 2018, $11 billion in audit. Committee on State Government. fiscal year 2019, and $11.29 billion in fiscal year Kentucky State Treasurer Allison Ball said 2020. her No. 1 legislative priority is reform of Ken- Predictions were made by the CFG pan- tucky’s unclaimed property law. Part of her getting people’s property back to them,” Ball el based on information provided by the firm office’s duties is to handle unclaimed proper- Global Insight, a world market research and eco- said. “It is good for the economy because it is ty such as uncashed payroll checks, inactive their money and they now can do what they nomic forecasting organization. It is based on stocks, dividends and savings accounts Global Insight’s “control,” or moderate, forecast want to with it.” Ball said her office returned $25 million in Ball said additional legislation is needed, for the next two years even though that forecast unclaimed property last year. She attributed the projects $0.5 million in less General Fund reve- however, to deal with 21st-century creations figure, in part, to going out and identifying en- such as gift cards and Bitcoins. nue for Kentucky over the next two years than tities such as school boards and nonprofits that Global’s “pessimistic forecast” estimates prelim- Kentucky Department of Agriculture Gen- normally wouldn’t think to check to see if they eral Counsel Joseph Bilby said his department inarily accepted by the CFG two months ago. have unclaimed property. “I’m a big believer in property rights and Continued on page 2 Continued on page 3 THE KENTUCKY GENERAL ASSEMBLY 1 Farmers given credit for state soil, water improvements by Rebecca Hanchett ration of pasture and hay land—especially in LRC Public Information drought years, most recently in 2012—are among projects funded in past years. FRANKFORT—Farmers deserve at least “They are the original environmentalists,” some of the credit for reducing pollutants in Richardson said of Kentucky’s farmers. “They Kentucky’s water supply, the co-chair of a state want to pass their land along, they want to pass legislative committee says. their waters along, and they want it to be better Tobacco Settlement Agreement Fund than when they got it.” Oversight Committee Co-Chair Rep. Myron Richardson said 1,845 applications for cost Dossett, R-Pembroke, praised farmers for help- share assistance totaling over $14 million were ing to lower the amount of so-called nutrient submitted this fiscal year, with 1,201 of those ap- pollutants like nitrogen and phosphorus in Ken- plications approved. tucky’s water following a presentation by the The Division of Conservation’s state cost Kentucky Division of Conservation before the share program has received 52,000 applications committee on Dec. 6. for assistance from farmers since 1994, she said, Dossett pointed to the division’s own state- with over 17,948 applications approved totaling ments that less nitrogen and phosphorus is be- over $155 million in assistance. ing detected in Kentucky’s waterways. Nitrogen The agency also provides environmental Sen. Robin Webb, D-Grayson, comments on and phosphorus are common ingredients in fer- grants to the state’s 121 conservation districts, conservation issues during the Dec. 6 meeting tilizer, which is commonly used to grow crops. she said, and assists landowners who need help of the statutory Tobacco Settlement Agreement “I see it so many times just in my home complying with state Division of Water proto- Fund Oversight Committee. area. Our farmers … they don’t work all the way cols. This fiscal year, at least 136 environmental down into the creek banks,” to help prevent pol- grants were approved, said Richardson. decrease,” said Richardson. “We are working to- lutants from leaching into creeks and streams, “Districts are able to come up with unique ward a couple of different avenues to address that said Dossett. “We owe them a debt of gratitude programs for things such as soil testing, metal re- loss of technical assistance” from the NRCS. One for helping on that.” cycling—maybe it’s cover crops, river clean-ups, solution may come from the National Associa- Division of Conservation Director Kimber- whatever becomes a local issue in your commu- tion of Conservation Districts or NACD, which ly Richardson agreed with Dossett that farmers nity” using the grants, said Richardson. She em- Richardson said is offering technical assistance and landowners play a big role in protecting the phasized that the grants fund local priorities, not grants. state’s soil and water. She said $147.2 million has state or federal mandates. “We have one application in for that, and gone into the agency’s state cost share program When asked by Sen. Robin Webb, that looks to be some guaranteed funding,” said to help farmers and landowners improve soil D-Grayson, about federal funds for state conser- Richardson. and water quality on Kentucky land since 1994. vation programs, Richardson said her agency ex- Kentucky has a conservation district for Of that total, $126.5 million has come from pects federal cuts as does the Natural Resources each of the state’s 120 counties, with Logan Kentucky’s tobacco settlement agreement funds. Conservation Service or NRCS, a federal agency County divided into two districts. Each district Stream crossings that protect water from that provides technical assistance to her agency. is governed by a local board of supervisors elect- equipment and livestock, fencing, and resto- “I think we’re going to be in general seeing a ed by local voters. Forecast, from page 1 “So the control for December (2017) is worse prediction on data showing a future decline in uct) is also reflected in the forecast, compared to than the October forecast by half a million dol- commercial real estate prices and consumer re- zero growth assumed for fiscal year 2019 by the lars,” said state Deputy Executive Director for actions to fiscal conditions. pessimistic forecast. Financial Analysis Greg Harkenrider. “We’ve had 102 continuous months of Revenue estimates for the state Road Fund, The CFG decided not to accept the pessi- growth,” said Jones. “Nineteen more months and which pays for road construction and mainte- mistic forecast, with particular concern given to this makes it the longest expansion ever.” nance in the state, were also issued on Dec. 15 by its prediction of another short-term recession The forecast chosen by the CFG for the next the CFG. Revenue losses in the Road Fund are in fiscal year 2019. Deputy Executive Director budget cycle shows a better picture including a expected this fiscal year with growth of less than Michael Jones of the Governor’s Office for Pol- significant increase in housing starts, said Jones. a percentage point projected for fiscal years 2019 icy and Research said Global Insight based the Growth in the real GDP (gross domestic prod- and 2020. 2 2017 Interim LEGISLATIVE RECORD Cities, counties share 2018 platforms by Rebecca Hanchett LRC Public Information FRANKFORT—Kentucky cities and counties need more revenue, their representatives told state lawmakers on Nov. 29. They also want Being able to fund to protect pensions earned by their workers, pensions and “safe, clean they say. Being able to fund pensions and “safe, clean and economically healthy and economically healthy communities” requires more flexibility than cities now have, said communities” requires Jonathan Steiner, the executive director of the more flexibility than cities Kentucky League of Cities (KLC) who told the Interim Joint Committee on Local Government now have, said Jonathan that cities want more autonomy. “Local elected officials need a way to miti- Steiner, the executive gate these changes to ensure they can continue director of the Kentucky to meet their obligation,” said Steiner. “They’re seeking more control over their local pensions, League of Cities (KLC).

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