House passes budget that includes cigarette tax increase

FRANKFORT, Ky. — Kentucky House lawmakers on Wednesday approved an approximately $18.7 billion, two-year spending blueprint that would be paid for with about $200 million in revenue from a proposed bump in the state’s cigarette tax.

Smokers would pay an extra 25 cents per pack, the state would refinance general fund debt and other services would be taxed under the proposal. Public school teachers, however, would see a pay increase of 4 percent over the next two years under the proposal.

“Considering the times and considering the budget that was sent to us, this is a very good budget,” House Speaker Jody Richards, D-Bowling Green, said to reporters after the vote.

The budget cleared the House on an 84-14 vote and heads to the Senate for consideration.

Still, House lawmakers were narrowly split on a revenue package aimed at closing Kentucky’s projected revenue shortfall of nearly $900 million over the next two years. It cleared the chamber on a 50-45 vote, and also heads to the Senate.

Lawmakers in the Democrat-controlled chamber who favored the revenue plan touted it as a way to offset Gov. Steve Beshear’s proposed cuts to public universities and various government programs.