House Passes Revenue Package, Some Funding Cuts Restored

A much altered HB 262 was passed in the House yesterday to raise revenue for the House budget proposal, which also passed the House yesterday. 

HB 262 raises about $800 million over the next two years.  It includes two provisions that KFTC is supportive of: increasing the cigarette tax by 25 cents, and expanding the sales tax to a few (a very few) selected services (armored car services, chartered flights, commercial linen services exempting hospitals and nursing homes, commercial janitorial services, and security services).   There are also provisions that are one-shot deals that, the House projects, will claim revenue for the budget: claiming the salaries of state employees that are expected to retire to take advantage of a benefits package that expires at the end of the year, and restructuring the state's debt. 

Several legislators explained their yes votes as being difficult to cast, but impossible not to cast.  Rep. Jimmie Lee said, "None of us up here likes taxes... We're all kind of squirming in our seats.  I have two opponents, one in the primary and one in the general election in the fall.  But if I had to not cast this vote for our children, for Meals on Wheels, and for our future, I wouldn't want to come back."  Rep. Siler agreed, saying, "I'm one of those people squirming in their seat.  I've only told people that I'd make the right vote.  If I don't come back because of my vote, it won't be the first time...I can't make a vote that's going to get rid of Meals on Wheels, because I have people in my district who need it...I'm going to quite squirming and do what is right.  I vote yes."  Rep. Wayne validated these legislators' concerns, and their votes.  "There's going to be a political fallout for the people who vote for this plan, and the way to offset that is for the public to rally in support this tax bill and in support of funding these important programs." 

We are proud of these legislators that did the right thing in voting for these revenue reforms.  That said, we agree with Rep. Wayne and Rep. Moberly's assessment of the budget and revenue proposals.  Rep. Wayne said, "It’s not perfect—I would have chosen the original—but we need the public to understand that we need to rally together to support this tax bill to avoid tragedy.â€  Rep. Moberly said of the proposal, "I would have preferred more recurring revenues, and I’m for a 70-cent increase in the cigarette tax, myself, but we have to have something that will pass.  If we don’t pass this, the effect on the commonwealth will be devastating.  We will slip backwards very quickly, and I can’t do that to our children and our future.â€  

And when the revenue and budget bills hit the House floor yesterday, several legislators from both parties agreed, enough to pass both bills to the Senate.  (Several didn't, including several Democrats:  Royce Adams, Will Coursey, Bob Damron, Milward Dedman, Jeff Greer, Dennis Horlander, Dennis Keene, Rick Nelson, Sannie Overly, Dottie Sims, John Tilley, Ron Weston, and Susan Westrom.  Shame on them.  At this point, as the members of the A and R committee pointed out, a "no" vote for revenue is a "no" vote for people, and a "no" vote to Meals on Wheels, up-to-date textbooks, access to college educations...The list goes on and on.)

KFTC appreciates that the Appropriations and Revenue Committee started with HB 262, thereby orienting the process in fairness and adequacy; it shows the committee's commitment to the principles behind the original HB 262.  And together with HB 566, which couples a state EITC with a restored state estate tax, versions of three of our four tax justice priorities have been at play on the House floor this session, and a version of one is in the Senate.  This is all good news.

More good news?  You can still act to support these bills.  HB 566 would credit money back to more than 350,000 low-income working families.  It's still on the House floor.  Call your representative and ask them to co-sponsor that bill.  The budget and revenue bills are in the Senate, so put a call in to your senator and ask them to vote for investments in our children and our future.  The number for both is 1-800-372-7181.