From Robert.Weber LRC Ky. Govt.

[Chuck]

FRANKFORT -- Tax reform legislation that sponsors say would bring in
more than $500 million in new revenue while taking at least 250,000
Kentuckians off the state income tax rolls was discussed by members of
the House budget committee today.

House Bills 276 and 277, sponsored by Rep. Jim Wayne, D-Louisville, are
the result of research by Wayne and groups working with him including
the Kentucky Council of Churches, Kentucky Youth Advocates and
Kentuckians for the Commonwealth. Wayne told members of the House
Appropriations and Revenue Committee that the bills will create a fair
tax system that raises more money than Governor Fletcher's current tax
plan.

Corporate taxes contributed 10 percent to the state's General Fund in
1990 but now contribute only 6 percent, Wayne said. He said HB 276, his
corporate tax bill, would close corporate income tax
loopholes--including the exemption of limited liability companies--to
draw more revenue. It would also allow companies that pay an alternate
"business enterprise tax" to credit that tax toward any corporate income
tax owed.

HB 277, an individual income tax bill, would take the tax burden from
Kentucky's working poor and distribute the burden among wealthier
taxpayers. The legislation would do three things: It would remove about
250,000 people off the state income tax rolls, replace the state's
low-income tax credit with an earned-income tax credit that is 20
percent of the federal credit, and tax personal income at a separate,
graduated rate for every $20,000 in income over $30,000. The first
$30,000 of a person's income would be taxed at 5 percent, 1 percent less
than the current rate.

Wayne said someone making more than $100,000 per year would be taxed at
5 percent for the first $30,000, 6 percent for the next $20,000 (up to
$50,000), 7 percent for the next $20,000, 8 percent for the next $20,000
to $30,000 and 9 percent for all income over $100,000. He said 44
percent of Kentuckians would pay fewer taxes and 29 percent would pay
more under HB 277.

"That doesn't mean everyone who makes more than $100,000 will be taxed
at 9 percent," explained Wayne. It means the amount earned over $100,000
would be taxed at 9 percent, he said.

Wayne said Kentucky's tax structure has left the state's school system
$740 million in need, caused a $4 million shortfall in the public
defender system and held base funding for mental health services at the
same level since 1990.

"The problem, of course is that we're responsible," said Wayne. "It's
important for us to face that fact."

No vote was taken today on Wayne's bills.

[mark]

......here's part of the above post I read:

Corporate taxes contributed 10 percent to the state's General Fund in
1990 but now contribute only 6 percent, Wayne said. He said HB 276, his
corporate tax bill, would close corporate income tax
loopholes--including the exemption of limited liability companies--to
draw more revenue.

The main drawback to that plan is..........when the corporate taxes goes from 6% back up to 10%, the business simply passes that cost on to us, the taxpayer.

Meaning?? Prices goes up.

The simplier solution is cut the spending across the board & raise NO taxes................see ya Mark

[Chuck]

FRANKFORT - Small businesses' premiums for employee health insurance
could be reduced under a bill approved today by the House Banking &
Insurance Committee.

House Bill 278, sponsored by Reps. Tommy Thompson, D-Owensboro, and
Brandon Smith, R-Hazard, is a two-pronged approach aimed at helping
small business owners.

"We have seen many of the small businesses dropping their health care
coverage altogether" due to high costs, said Mark Birdwhistell, the
state's Undersecretary for Health.

"They want to do right by their employees, but they're really suffering
right now," Smith said.

One major part of the plan would create a Small Business Access Program
to relieve the burden of small businesses' health care costs. With such
a small pool, one employee with a devastating or lingering illness can
drive up costs for the entire group, Thompson said. Business with 2-10
enrolled employees would be eligible for the program, which would
subsidize their premiums to keep them low. The program would be funded
in part by a 0.5 percent surcharge on all insurers.

A second aspect of the plan would allow businesses with less than 50
enrolled employees to offer health plans without state-required benefits
that have been added in recent years. The plans would still be required
to cover diabetes and hospice care, however.

In other action, the committee also approved HB 63, sponsored by Rep.
Ron Crimm, R-Louisville, which would fine a driver operating without car
insurance, regardless of the vehicle's ownership. The offender could
face a fine of at least $500 and/or up to 90 days in jail. The current
law does not apply to the driver if he or she does not own the vehicle.

Both bills will now be forwarded to the House for the entire chamber's
consideration.

[Chuck]

FRANKFORT - Public financing for gubernatorial campaigns would be
permanently eliminated under a measure passed today by the Senate State
& Local Government Committee.

SB 112, sponsored by Sen. Damon Thayer, R-Georgetown, would eliminate
the system approved by lawmakers in 1992 to partially finance
gubernatorial races with public funds and limit spending by candidates.
The 1995 race was the only one conducted under the system, at a cost of
$7 million. No candidate for governor chose to use the system in 1999.
In 2003, lawmakers didn't include funding for the public financing
system in the state budget, but the statutes that lay out the framework
of the system remain on the books to this day.

"I am philosophically opposed to using taxpayer dollars to fund yard
signs, bumper stickers and TV commercials," Thayer said.

"This is not a Republican or a Democratic issue," said Sen. Ed Worley,
D-Richmond. "The people of this commonwealth genuinely do not want their
money going for this sort of purpose."

Kentucky Secretary of State Trey Grayson agreed, noting that the public
funds spent on the 1995 campaign could have paid the salaries for 162
new teachers instead.

"Furthermore, it didn't work," Grayson said. "Campaign money will find a
way. In 1995 the money went to the political parties instead of the
campaigns."

Sen. Tom Jensen, R-London, who was a House member when public financing
became law, said he opposed it then and now because "it hinders the
person who isn't a well-known politician. They may have the right
message, but the public money isn't enough to get the message out
there."

Disagreements over public financing of campaigns led to an impasse over
the 2002 budget plan.

The bill now moves to the full Senate for its consideration

[Chuck]

FRANKFORT -- Legislation that could eventually help hundreds of
Kentuckians needing organ and tissue transplants passed the House of
Representatives today.

House Joint Resolution 21, sponsored by Rep. Steve Nunn, R-Glasgow,
would put Kentucky a step closer toward having an electronic organ and
tissue donor registry by creating a temporary state work group to design
it. The group would recommend legislation, regulations and
implementation strategy to the governor and legislative leaders by Nov.
30.

Rep. Mary Lou Marzian, D-Louisville, a supporter of the legislation and
a transplant nurse, said a registry could save many lives.

"We have over 700 folks on a transplant list waiting for organ in
Kentucky," she said. "This is an important first step."

The only way potential organ and tissue donors are identified in
Kentucky now is if they sign the back of their driver's license or a
donor card, Nunn said. A statewide registry would ensure that a donor's
wishes are known and give health care providers quick access to critical
donor information, according to his resolution.

Organ and tissue donor registries are currently used in 31 states and
seven other states are establishing registries, the resolution says. HJR
21 passed 97-0 and now goes to the Senate.

[Chuck]

FRANKFORT - A new program to increase student achievement in math and
reading would be implemented under a bill approved today by the House
Education Committee.

House Bill 93, sponsored by Rep. Harry Moberly, D-Richmond, would create
a committee to study math intervention strategies. Another of the
committee's duties would be to create a professional development program
which would in turn train teachers to mentor other educators in their
local schools.

"There are no simple intervention strategies for math," Moberly said.
"That's why it is so important to start a program that will allow
individual teachers to work with one another to devise creative
solutions to this issue."

The program would also fund a grant program for diagnostic and
intervention services in math. "This bill concentrates on math because
of the low math scores on CATS," Moberly said. Part of the fund would be
used to fund university research into professional development services.
Teacher training has been identified as one of the key elements in
continuing achievement in Kentucky schools.

The bill also incorporates aspects of the "Read to Achieve" plan
proposed by the governor and passed by the Senate earlier this week.
That bill provides largely the same type of training for reading coaches
and mentors as the math provisions of HB 93.

The bill will now be forwarded to the House for the chamber's
consideration.