Budget chairman says hang-up on state spending plan is finding $30 mil. to replace PVA scheme

03/06/2014 09:01 AM

The biggest change from Gov. Steve Beshear’s proposed budget that the House will make is stripping out an assumption that county Property Valuation Administrators can place fees on special taxing districts like libraries and health departments, the budget chairman said Thursday.

The ripple effect of that move though, is that lawmakers would have to move around $15 million for each of the two years in the biennial budget. Beshear’s proposal had assumed the PVAs could collect fees from those library districts and health departments, and it relied on that money to provide to other programs and agencies.

But libraries and health departments have argued to lawmakers that they can’t afford such fees.

House Budget Chairman Rick Rand,D-Bedford, said the House Democratic leaders are looking at scooping money from other accounts of state agencies. And he said they might scale back some of the governor’s priorities but wouldn’t say what that is.

But he said the PVAs would “be made whole” and get enough state funding to cover their operations, which assess the value of properties for tax purposes so that tax income can be used to pay for school districts and special districts like libraries and health departments.

The House Appropriations and Revenue Committee is expected to take up the budget bill on Tuesday, Rand said.

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