Thursday, April 15, 2010

Sine Die - No Budget

Sine Die - No Budget

The Kentucky General Assembly adjourned the 2010 Regular Session Sine Die on Thursday evening bringing the legislative session to a close. Unfortunately, the members left town knowing that they will likely be back for a special session in the near future to deal with unfinished business in regards to the state budget.

The legislature failed to pass a budget this legislative session after weeks of negotiations between House and Senate Leaders. The House and Senate made a final run at a budget compromise the last two legislative days by discussing a 1 year continuation budget. Ultimately, no agreement was reached.

Based on past rulings by the courts, the Governor has very little latitude to spend money in the event that the legislature doesn't pass a budget. Only "essential" government services like K-12 education can be funded without a budget. Thus it is likely that the Governor will call the General Assembly back into session to pass a budget before the end of the fiscal year on June 30 when the current budget would expire and non-essential services would be shuttered.

We will continue to dissect the legislature's work this session and the political dynamics of the budget situation and keep you updated.

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