State agencies asked to plan for deeper budget cuts

We saw this one coming; from Bluegrass Politics:

FRANKFORT — State agencies have been asked to prepare worst-case-scenario budgets for the current fiscal year in order to close a projected $456 million General Fund shortfall.

Gov. Steve Beshear has asked lawmakers to solve the shortfall with a combination of cuts, furloughs and a 70-cent-per-pack cigarette tax increase, but lawmakers remain reticent to raise taxes.

House and Senate leaders now want to know how state agencies would absorb the entire $456 million shortfall if the state had no new revenue, Beshear said Monday.

By law, the state has to balance its budget. When the state’s revenues do not meet projections, the legislature must either cut funding or find additional money through taxes or fees.

“We are working with the legislature on looking at different scenarios to solve this budget crisis,” Beshear said.

Education Department spokeswoman Lisa Gross said Monday afternoon that the new reductions could translate to a 6.7 percent cut in her agency....