Posted on 06/06/2002 5:12:06 AM PDT by toddst
HERALD-LEADER FRANKFORT BUREAU
FRANKFORT - Gov. Paul Patton told Senate President David Williams yesterday that he sees no reason to spend more time and money on a special legislative session to break the budget impasse unless Republicans change their position on public financing for campaigns for governor.
But Patton also told Wil-liams that the Senate leader's comments on a radio show yesterday and in a letter last week indicated that such an agreement "does not appear likely."
The Democratic governor, in a letter to Williams, a Republican, said he is willing to meet with legislative leaders to discuss the budget, but only if Republicans give up their effort to repeal public financing for campaigns for governor.
Williams had sought a meeting with Patton and House Democratic leaders, but only if Democrats dropped their insistence on public financing.
Williams, an attorney, was in court yesterday and could not be reached for comment.
Patton said he is prepared to operate state government after July 1 without a budget.
State lawmakers were unable to enact a budget during this year's 60-day regular session and the special session because of the disagreement over public financing. Patton and House Democratic leaders say it is needed to limit big money in gubernatorial campaigns. Republicans call it a waste of taxpayers' dollars.
If he has to carry out an emergency spending plan to keep state government from shutting down, Patton said, "I'm certain the issue will immediately go to the courts which will solve the impasse. Then I am sure we can enact a budget in special session and get on with the people's business."
Earlier in the day, Williams said on The Jane Norris Show on WHAS-AM radio in Louisville that he would support Patton's ability to spend money on essential services, including funding for schools and police and fire protection.
But he said Patton could "not spend a dime of taxpayer money" on public financing.
Patton said he would include the program in any emergency plan he set into motion.
"That would be an issue that the courts would have to decide," Patton said when told of Williams' comments.
Williams said Patton "is playing a dangerous game of political chicken with our state's budget."
An emergency budget, if needed, would ignore some state laws that routinely are suspended in legislative bills, Patton said.
One state law requires state workers to receive a 5 percent pay raise each year. But Patton said his budget would only provide 2.7 percent raises, the amount the House and Senate agreed on in their budget versions.
New revenue estimates indicate that the state could experience another $40 million shortfall this year, Williams said. That could lead to a $120 million shortfall in expected money for the next two-year budget, he said.
Patton said he would not know until later this month how much the new shortfall would be. He said he has instructed state agencies to reduce spending as much as possible. If necessary, he added, the state would dip again into its $120 million rainy-day fund.
Meanwhile, House Minority Leader Jeff Hoover, R-Jamestown, said he would recommend public financing if the state would prohibit individuals and businesses from holding state contracts if they donate to a statewide candidate or a state or county political party.
Hoover said he wrote to Patton because "it appears that any prospects of an agreement between the legislative and executive branches ... are diminishing."
Patton's press secretary, Rusty Cheuvront, said the governor has not had time to review Hoover's letter to comment on it.
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