Three big things to watch when Kentucky lawmakers return to Frankfort Friday

Kentucky lawmakers will return to Frankfort Friday with two days remaining to put the finishing touches on a chaotic 2018 legislative session. They face several difficult decisions as they conclude a session that began with a sexual harassment scandal and wound down with massive teacher protests as Republican leaders shoved pension reform and tax reform through the legislative process with no public input.

Here are three big things to watch Friday:

Is there time for a tax plan redo?

The GOP-backed tax overhaul has sparked backlash from a variety of business groups since narrowly winning approval in the General Assembly on April 2, even as teacher groups have embraced the plan because the money it generates will help fund education programs.

Governor Matt Bevin, who vetoed the tax and budget bills, suggested Thursday that House and Senate Republicans still have time to come up with a revised version of their tax plan before the legislature adjourns for the year, either Friday or Saturday.

“It may or may not need a special session,” Bevin said on WHAS radio Tuesday. “If there’s still time in two days to get things done that could be at least a step in the right direction better than the one we took.”

Leading lawmakers have not given any public indication they plan to unveil another comprehensive tax reform package, but they have acknowledged that it might be necessary to make minor tweaks in a clean-up bill. Sen. Chris McDaniel, one of the lawmakers responsible for crafting the budget, said with any major piece of legislation there are unintended consequences.

For example, lawmakers mistakenly cut a tax credit used by Toyota and GE Appliances. Lawmakers will try to correct that mistake along other “miscellaneous” changes, McDaniel said.

“I think there are going to be some changes to (the tax bill),” McDaniel said. “I don’t know the full litany of what they will involve.”

Will lawmakers override Bevin’s vetoes?

By quickly passing the tax and budget bills last week, the legislature preserved its ability to consider overriding any veto issued by Bevin.

There appear to be sufficient votes to override the governor’s veto of the budget bill, but the vote count on the tax plan is much closer.

The tax bill passed with 20 votes in the Senate and 51 votes in the House, the minimum number required to overturn a gubernatorial veto. A number of groups, including the Kentucky Education Association and the Kentucky League of Cities, are calling on those Republican lawmakers to stand firm in the face of criticism from many small businesses, such as veterinarians and auto mechanics, who would have to start charging customers the state’s 6 percent sales tax.

One question to consider: Can the KEA pressure any Democrats into supporting an override even though they voted against the bill, which one study said would create an overall tax increase for 95 percent of Kentuckians while cutting taxes for the richest 5 percent of the population?

If Bevin’s vetoes stand, lawmakers would have to somehow pass a new budget and tax plan before midnight Saturday or wait for Bevin to call them back into special session sometime before July 1, when the new fiscal year begins.

How many other bills will lurch across the finish line?

There are several controversial bills that could win final passage before the legislature leaves town. The list of topics includes a crackdown on criminal gangs, taxing pensions, reducing financial incentives for installing solar panels and tax breaks for banks and insurance companies that invest in rural businesses, among others.

This story was originally published April 12, 2018 at 2:03 PM with the headline "Three big things to watch when Kentucky lawmakers return to Frankfort Friday."