Debt Limit Clears Senate Committee

{Frankfort, Kentucky}...A proposal that would set a debt limit on state spending cleared the Senate State and Local Government Committee Wednesday by a vote of 7-1. The sole "no" vote, Senator Walter Blevins, D-Morehead, said the measure could hamper creating jobs by limiting debt. If approved, the state could not spend more than 6 percent of the revenue to the General Fund each year to pay debt on bonds it has issued. If the state exceeds the 6 percent level, the General Assembly could not authorize new debt until the debt level falls below 6 percent. Exceptions would be allowed if the governor declared an emergency due to a major threat to public safety and four-fifths of the members in the Senate and in the House authorize higher debt. The measure would not take effect until 2014.