Wednesday, February 04, 2009

Williams says state needs new revenue

This from C-J:

Senator says cuts in budget also likely

FRANKFORT, Ky. -- Key legislators said yesterday for the first time that new revenue almost certainly will be needed to balance the state budget in the face of a $459 million deficit this fiscal year.

Senate President David Williams, R-Burkesville, said the Senate is looking at the possibility of raising taxes on tobacco products and alcoholic beverages, but he declined to specify the amount of new revenue that might be targeted.

"It appears to me, at this juncture, there will be a need for some revenue," Williams said, adding that lawmakers "want to make sure on tobacco and alcohol (that) we don't place ourselves at a disadvantage and hurt our retail operators."

Williams has said in the past that he would keep all options open in devising a plan to balance the budget. But his comments yesterday marked the first time he has said new revenue will be needed along with spending cuts.

Last year it was the Republican-controlled Senate that ignored proposals for higher cigarette taxes by the House and Gov. Steve Beshear, a Democrat....

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