Senate panel approves $75 million worth of new water and sewer projects

FRANKFORT -- Despite a lean state budget, the Senate Appropriations and Revenue Committee unanimously approved $75 million worth of new water and sewer projects Tuesday evening.

The additional projects are in addition to $150 million the legislature approved earlier this month in the state budget bill.

The new projects are to be funded with $75 million in bonds. About $25 million of that is for projects in coal counties that will be paid for using coal severance funds. The debt for the $50 million for projects in non-coal counties will be paid from tobacco settlement funds, said Senate President David Williams, R-Burkesville.

There remains some confusion over the funding for that $50 million in bonds. House leaders have said they thought the annual debt payments would come out of the General Fund, which covers a range of education, health care and government services.

Rep. Rob Wilkey, D-Scottsville, said Tuesday evening they still weren't sure about that funding and would have to clear it up in a meeting later with Gov. Steve Beshear.

"That's what we're going to be talking to the governor about," he said.

Senate budget chairman Charlie Borders, R-Grayson, said the additional projects are needed for various communities and will create jobs.

"We should have water and sewer infrastructure investments every budget," Borders said.

Even though the economy is not good, Borders said, "down times are the most critical time to do this."

The additional projects are in House Bill 608. Another bill, House Bill 514, was approved by Borders' committee to authorize them.

The bills now go to the Senate for its consideration. They also need approval from the House to be sent to the governor for his consideration.

If they are sent to the governor, he can sign them into law with his signature, let them become law without his signature or veto them.

If Beshear vetoes any or all of them, the legislature will not have the opportunity for overrides since the 2008 General Assembly ends at midnight.

- Jack Brammer and Ryan Alessi