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The first few weeks of the 2008 General Assembly Session has set a fast pace. Already over 400 pieces of legislation have been introduced. The primary challenge for the Legislature will be the creation and passage of a balanced budget. The projections by the administration and economic forecasters expect a budgetary shortfall in excess of $400 Million. Governor Beshear has already ordered hiring freezes and warned agencies and universities to prepare for possible cuts in excess of 10%. While the administration and leadership of both chambers have indicated that they will not propose new taxes, business owners should beware of the loss of exemptions from current taxes.
We urge KFIA members to contact their legislators and make clear to them the need to maintain budget dollars for the Division of Forestry. The recent cut of 3% will eliminate 22 positions within the Division of Forestry and a cut of 12% will eliminate 59 positions and close both nurseries in the state that provided over 2 million seedlings for planting in Kentucky last year. The Governor will release his budget later in January with specific cuts but legislators need to be made aware of the need to keep our state Nurseries and adequate funding for the Division of Forestry to assist landowners with managing their forests and fighting forest fires.
The following bills are being worked on by KFIA:
House Bill 38 - Would create a Small Business Economic Development Tax Credit program for those businesses with fewer than 150 employees. The bill would allow a tax credit of up to $25,000 for those businesses that added at least one full time position and invested a minimum of $5,000 in capital expenditures. The credit could be carried forward for three years. The total amount of credits allowed would be $5 million. The bill was introduced by Rep. Tanya Pullin and Rep. Scott Brinkman and has been referred to the Appropriations & Revenue Committee.
House Bill 98 Creates new sections of KRS Chapter 247 to define agricultural facilities, products and equipment to impose penalties for agro-terrorism that would include replacement costs. KFIA is working with bill sponsor Representative Mike Denham (Mason/Fleming Counties) to insure that timber and logging equipment is included in the bill. This will increase protections for the wood industry when dealing with criminal acts designed to stop legal harvesting. The bill has been assigned to the House Judiciary Committee.
House Bill 282 Posed an eminent danger to employers. Under current Workers Compensation law, an employee exchanges his right to sue over workplace injury in exchange for unquestioned coverage of health and lost wages benefits. This bill would have suspended the exclusive remedy of workers compensation and negate the current system. Employers would have to continue to pay for Workers Compensation insurance, but would also be at risk for huge punitive lawsuits. Without the exclusive remedy system, workers compensation insurance is virtually useless to an employer. This bill has been withdrawn by the sponsor due to pressure from small business.
Legislative updates will be sent out via broadcast email and fax to keep members posted on legislative issue. If you have not been receiving legislative news please contact the office and make sure we have your current email address or fax number. Information will also be posted on the KFIA website at www.kfia.org |
