Timing is Everything

This from C-J:

Kentucky's budget director resigning

FRANKFORT, Ky. — State Budget Director Mary Lassiter said this morning that she will step down from her job at the end of this month.Lassiter, 46, of Midway, has worked for state government nearly 25 years. And like many state employees, she is retiring this year because certain retirement benefits for veteran state workers will be cut significantly on Jan. 1.

“I’m a good example of a person who started work for state government very young and am eligible for retirement,” she said in an interview this morning.Lassiter said that between April and the end of September, 1,371 executive branch employees in non-hazardous job classifications had retired.Lassiter will be stepping down at a time when turmoil in the national economy has caused state revenues to slump, raising the possibility of a revenue shortfall later this year...

State says No Mid-Year Budget Cuts

If the state wanted to allay fears of a rumored mid-year budget cut taking the words "for now" out of the message would help. Leaving the possibility open does little to build confidence. But given the larger fiscal picture in Amereica right now...who can say anything with certainty?

But it's only a rumor - right up to the point where it isn't a rumor any more.

Between now and March when the final SEEK calculations are determined there is certain to be uncertainty.

This from Brad Hughes at KSBA:

Rumors about mid-year SEEK cut just that for now - rumors

Press reports that some school officials are worried about a possible mid-year reduction in SEEK funding are puzzling the Kentucky Department of Education’s top budget manager.

“We don’t know any basis for that rumor that’s there. I’ve asked our folks and no one has communicated that to anyone,” said Dr. Larry Stinson, associate commissioner of the department’s Office of District Support Services.

“Often, people go to a meeting and someone offers, ‘I wouldn’t be surprised if there was a shortfall. The economy’s down, state revenues are going to be down, and they are probably going to cut it.’ Folks take that to be reality or an informed opinion, and they’re going with it,” he said.

At least for the time being, the official word from Frankfort runs to the contrary. State Budget Director Mary Lassiter last week told legislators that state revenues were up in August. And in a meeting with Gov. Beshear’s budget staff that same week, “nothing was mentioned at all about there being any concerns (about SEEK),” Stinson said....

And the hits just keep on comin'

The Pol Watchers blog is reporting that we may not have seen the full extent of the upcoming budget cuts just yet.

State budget outlook worsens

State tax receipts dipped nearly 6 percent in December, raising the likelihood that the state's budget shortfall will grow larger.

Tax revenues have dropped 0.4 percent year-to-date, State Budget Director Mary Lassiter said in a news release. The current revenue forecast calls for General Fund tax receipts to grow 0.8 percent this fiscal year, which ends June 30. To meet that forecast, tax revenues will have to grow by 2 percent for the rest of the year. If that doesn't happen, the state's projected $117.5 million revenue shortfall will grow larger...

Higher Ed Stung by Ugly Budgetary Prospects

This from the Herald-Leader.

Report: State department told to

prepare "worst case" budgets

LEXINGTON, Ky. --Public universities and community colleges, along with other state agencies, could face major budget cuts in the next fiscal year.

State Budget Director Mary Lassiter and interim President Brad Cowgill of the Council on Postsecondary Education said Gov. Steve Beshear's administration is warning that state agencies may have up to 12 percent less money beginning July 1.

That reduction would be in addition to a 3 percent cutback now under way for the last half of the state's current fiscal year.

Education leaders warn that such cuts may lead to major tuition increases, reduced or eliminated programs, and layoffs...

This morning EKU President Doug Whitlock lamented such a "worst case scenairo" in an Email to the campus. "...The prospect of losing as much as 15 percent of our state support from one year to the next is daunting," Whitlock wrote. "I will not pretend for one moment that this would not have an impact on our programs and services and the way we do business...that would be disengenuous and you would know it..."

Whitlock called for the immediate freezing of all vacancies and for departments to employ the highest level of scrutiny on those positions...while "we continue to hope for the best and to prepare for the worst."

"The objective of this process in almost all cases will be a net reduction of filled positions," Whitlock said.