Overcame $1 billion shortfall
* Protects SEEK, postsecondary schools, Medicaid and PVAs.
* Uses $740 million in federal stimulus dollars.
* Boosts funding for prosecutors/public defenders and parks.
* Protects full holiday pay for state workers.
Created Kentucky ’s own economic stimulus plan
* Exempts active-duty military pay from state income tax. This will reward those who serve, and make Kentucky a more attractive place to live for military families.
* Updates Kentucky ’s tax incentives and makes it easier for homegrown companies to qualify if they are looking to expand.
* For one year, this gives new-car owners credit for value of trade-in, something more than 40 states already do; this runs from this September through Aug. 2010. Prior to this, new vehicle owners paid the 6 percent tax on the full price of the vehicle, regardless of how much they actually paid when factoring in their trade-in. This has a $25 million cap.
* Encourages homeowners to buy newly built homes over the next year, beginning in late July. This complements a federal incentive program for first-time buyers, and it should clear out a backlog of new homes that are currently empty. It, too, has a $25 million cap.
* Kentucky Speedway owners will be eligible for incentives to help pay for a track expansion, but only if the track lands a NASCAR Sprint Cup race; these incentives require the hiring of Kentucky workers. There is also language that should lure the Breeders’ Cup horse race to Kentucky more often. It will be at Churchill Downs in 2010.
* This law also clears the way for a next-generation battery plant in Hardin Co. that could employ up to 2,000 people and make Kentucky a focal point in this new industry.
* There are also new film/television incentives designed to bring more Hollywood productions to the Commonwealth.
* Increases the cap for the Historic Preservation Program from $3 million to $5 million.
Authorized new projects
* Legislators established a funding plan for Louisville bridges and other “mega” projects like the proposed I-69 bridge in Henderson . This approach allows for local input.
* Jefferson Community and Technical College can now use up to $10.5 million of its own money to buy Wayside Christian Mission building that had been the former Hotel Louisville. The University of Kentucky , meanwhile, is authorized to use private money for a Commonwealth Stadium update and a new baseball stadium. UK is also given authority to continue funding its hospital expansion.
VLTs (aka slots)
* The House stood up for the $4 billion signature horse industry and its 100,000 jobs.
* The House plan would have authorized more than $1 billion in new schools. That includes $689 million for elementary and secondary schools and more than $474 million for new postsecondary facilities and equipment.
* The plan would also have given a supplement to local schools’ capital funds, the first increase in this particular per-pupil expenditure in at least 50 years. This would have helped fund additional tens of millions of dollars in new construction.