This from Governor Beshear via Ky Pachy:
...In Kentucky, we are dealing with inherited numbers so dire that were we to allow it, they could cast a deep, dark cloud over this Commonwealth for an immeasurable period.But dark clouds are for the weak, the timid, the narrow thinkers and those unwilling to roll up their sleeves to work smarter, harder and more efficiently.
This night we do not shrink from the task. Rather, we accept this challenge to lead!
This night we unveil a budget that – albeit austere to the point of pain – will once and for all start us on a path toward financial stability.Based on projected revenues for the next two years, our spending plan is logical, well-reasoned and strategic...
...Though limited, such actions can lead to real achievements. As Ralph Waldo Emerson penned, “The creation of a thousand forests is in one acorn.” Let's take a look at some of the acorns in this proposed budget.
FIRST, K-12 EDUCATION.
My commitment to the education of children in elementary and secondary schools remains steadfast. K-12 education is our highest priority, as it should be.
Our founding fathers said exactly that when they constitutionally mandated an adequate system of education for children.Without providing our children a proper foundation at the elementary and secondary levels, the role of colleges and universities is diminished because of remedial requirements placed upon them.
So, while most of the rest of government will have to make do with significantly less, this budget provides the funding to maintain the SEEK base per pupil guarantee for the next two years. I fully recognize that protecting the education of our children by sparing SEEK from cuts has serious consequences elsewhere, since it represents thirty-three percent of the General Fund.
But it is the right choice.
Furthermore, although we cannot do all that I would like in the field of early childhood education and development, we must take steps forward. To begin that process, I will create an early education and care coordination committee. This committee will bring all providers – the public school sector, the private sector and Head Start – to the table to increase service efficiency, reduce duplication and produce common standards of practice.As conditions improve, we must expand the availability of early care and education to more Kentucky children.
HIGHER EDUCATION.In postsecondary education, I am deeply disturbed by the agonizing position in which we find ourselves. I strongly believe in the missions and goals of our colleges and universities, and I regret offering a budget with reductions in this area.
But given severely limited resources, the fact that I have recommended no reduction in the formula which funds K-12 education, and the fact that we must provide for the basic health and human needs of the most vulnerable in our society, we will simply be unable to maintain the current level of increased spending for institutional operating budgets.
I have been warned about the easy option of large tuition increases. I urge all of the presidents and boards of our universities to scrutinize their own operational costs, as the rest of government has to do. And I know that they will because it is the time for all of us to discover greater management efficiency and cost containment.
But I also believe that in spite of the necessity of reductions, this budget provides ways to continue the momentum begun by the 1997 higher education reform effort.
In this budget:I recommend that the need-based student financial aid programs be held harmless from budget cuts.
In addition, I recommend funding of the Kentucky National Guard tuition award program. The men and women serving our nation and our Commonwealth deserve
no less.
What we also can do at this time is address some of the capital needs of our universities – both human capital and bricks and mortar needs – in helping meet 20 20 goals of excellence.
I recommend a sixty million dollar bond authorization for a new round of “Bucks for Brains.” This program has attracted and retained some of the brightest faculty and research teams in the nation. In times like these, we simply must invest in the future.
I recommend restoration and funding of all previous vetoed bond projects that have not moved forward. These had the support of both the House and Senate in 2006. Many are on the campuses of our state universities. There should be no debate about moving forward now.
In addition, I recommend that the General Assembly authorize all of the agency bond projects requested by the universities for this biennium. As you know, these projects require no debt service from the state. Rather, such bonds are paid for by the universities' own revenues. By authorizing all such requested projects, the universities will have the flexibility they need to choose the ones most important to them. As you will see when you review my entire recommended capital construction budget, we can authorize all such projects and still remain within our debt capacity policy.
We also must address two university projects that won't cost additional general funds. Murray State University needs authorization to finish its Chemistry Building with funds previously authorized.
The University of Louisville requires authority to spend private funds to renovate Papa John's Cardinal Stadium. I recommend language which will allow both projects to proceed.
My friends, if and when additional resources become available, higher education should be a top priority for new funds...
...In the area of honoring prior commitments, I recommend the following:
We should issue one hundred million dollars in bonds for the School Facilities Construction Commission. The initial Offers of Assistance for these projects were authorized in the 2006-2008 budget. Prior promises to our school districts have been made, and they should be honored.
I also recommend that we authorize an additional 100-million dollars in offers of assistance over the next biennium. We must provide adequate facilities in which our children can be educated...
...Another area we must address is our public pension systems. They have large unfunded liabilities. This problem did not appear overnight, and Kentucky cannot and will not solve it overnight – particularly through some large infusion of cash. Again, right now, there is no cash!
What we can do now is address the increasing costs. These programs are not sustainable at current levels. Therefore, I will offer a specific proposal on pension reform in the coming weeks and I look forward to working with you as we resolve this critical problem...
No comments:
Post a Comment