Kentucky Post
November 11
FRANKFORT, Ky. – A state agriculture fund that has been used to fund water and sewer lines among other projects is facing a $9 million shortfall that could threaten the fund over the next few years, state lawmakers heard Tuesday.
Governor’s Office of Agricultural Policy (GOAP) Executive Director Roger Thomas told the Interim Joint Committee on Agriculture that money for state projects provided by the Agricultural Development Fund--financed by Kentucky’s share of a 1998 national tobacco settlement--is facing a $3 million shortfall in 2011 and $6 million shortfall in 2012. The deficit is due to prior commitments, debt service on projects like water and sewer lines and "other things that have been funded and paid for by the Agriculture Development Fund," Thomas said.
"That’s very troubling…for all of Kentucky, in my opinion," he said, adding he is hopeful the biennial budget passed during the upcoming 2010 Regular Session by state lawmakers will allow the fund to survive.
Thomas said most of the state-level funds provided by the ADF, which also funds county-level projects, go toward debt service on projects in most cases. Of $184 million in new debt service paid by the ADF in 2008, for example, Thomas said $150 million was for water and sewer projects. More needs to be done to protect those state funds, he explained.
"I think the state funds, the long-term investments, yes, the larger investments, will be the investments that change Kentucky agriculture over time," Thomas said.
Rep. Tom McKee, D-Cynthiana, who is Co-Chair of the committee, said it will be challenging for lawmakers to address the issue next session.
"Really, what I think has happened is the funding mechanism that we’ve used for other things has finally caught up with us," said McKee, adding that some things have to be changed.
Committee Co-Chair Sen. David Givens, R-Greensburg, also was concerned. "The trajectory is we’re going to continue on the path we’re headed on and we’re going to end up negative," he said. He asked Thomas about any threat to ADF moneys for county-level projects -- projects that some lawmakers say are more popular than state-level projects.
Thomas said Gov. Steve Beshear remains supportive of the ADF, and "…these are challenging times for everyone, so I appreciate that."
Rep. James Comer, R-Tompkinsville, said he is hopeful that ADF moneys can be protected as 2010 Regular Session budget talks evolve.
"We all know the importance of water and sewer projects but hopefully, if we do water and sewer projects, I just hope we stick together as a committee in a bipartisan way and not take any more money from the Agriculture Development Fund," he said.
The committee spent most of the meeting listening to legislative proposals for the 2010 Regular Session from different state agencies, universities and organizations including the GOAP, Kentucky Department of Agriculture, University of Kentucky, Kentucky State University, Kentucky Farm Bureau, Kentucky Agricultural Council and Murray State University.
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