The Office of the State Budget Director (OSBD) and the Governor’s Office for Policy and Management (GOPM) have indicated that the FY 2010 4% Budget Reduction Plan will be implemented.Governor Beshear's explanation was,
The Kentucky Department of Education’s (KDE’s) plan for the P-12 budget reduction, which will total $13,863,100, proposes that program-area reductions be made from the Flexible Focus Funds. KDE operations also will sustain a 4% cut.
Though I proposed 2.6 percent cuts to most state agencies during the special legislative session in June, as many of you know, two new programs that will result in reduced tax receipts were legislatively enacted, along with some additional spending. Those additions have exacerbated the shortfall and resulted in the need for us to make additional spending reductions this fiscal year....
However, I will continue to maintain my commitment this budget year to protect critical education programs from cuts. If Kentucky is going to have a chance at succeeding in the modern world, we cannot back away from investing in our future, our children. That is why, despite these very difficult economic times, I will not cut SEEK, the basic K-12 funding formula for schools, funding for health insurance for public employees and teachers, the Kentucky Teachers Retirement System, higher education or adult education.