Legislative Report #05-26

Report 05-26
July 29, 2005

BUDGET NEGOTIATORS MAKING PROGRESS

Reports indicate that the leaders of the Senate and House have reached or are near agreement on several important areas in the proposed state budget. There were apparent breakthroughs this week regarding appropriations for the public schools and activities funded under the Medicaid program.

There are issues concerning new tax revenues that remain to be resolved. Earlier this week, Speaker Jim Black indicated that he thought it would be difficult for the House to support a cigarette tax increase of more than $.25 per pack. The House version of the budget contains the $.25 tax increase. The Senate budget includes a $.35 increase.

Rumors of possible adjournment dates began circulating this week. Some of the more optimistic suggest that a budget conference report could be presented and adopted as early as next week with adjournment coming by August 19.

COMMITTEE ACTIVITY

General Assembly committee meetings remain limited to accommodate the ongoing budget negotiations. There were no bills relating to retirement issues discussed in committee during this week.