Friday, October 31, 2008

3 percent Budget Shortfall

This from H-L:
Beshear: Spending cuts needed

FRANKFORT — Kentucky faces a budget shortfall of nearly $300 million that will require spending cuts and possibly new revenue measures, Gov. Steve Beshear said Thursday, calling the state's future "ominous."

At a Capitol news conference, Beshear, who unsuccessfully proposed raising the state's 30-cents-a-pack cigarette tax to $1 earlier this year, said he would develop a plan over the next several weeks to address the shortfall for the current fiscal year, which ends June 30.

"All options are on the table," said the Democratic governor.

He has told members of his Cabinet to prepare for inevitable spending cuts, he said.
If there is a need for lawmakers to act on any part of his plan, Beshear said, it is likely that he would call a special legislative session in January. The General Assembly has a three-week recess between a brief organizational session early in the month and the lawmaking session later...

...The $294 million shortfall is 3.3 percent of expected General Fund revenues...

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