2:32 am
Fri December 5, 2008

Deficit Reduction

Frankfort, KY – In coming days, Kentucky Governor Steve Beshear will be assessing plans from state agencies on ways they can cut their spending by four-percent. We get the latest from Kentucky Public Radio's Tony McVeigh.


Spending reduction proposals from state agencies and universities are pouring in to the governor's budget office. Governor Beshear will use the information to craft a plan for addressing a projected 456-million dollar revenue shortfall. After that, he will take his plan to the people.

"I want to get out in some locations and reach as broadly as I can our people to explain to them what our situation is. And then, show them some of the options that we've got." Earlier this year, Beshear pushed for a 70-cent increase in the state's cigarette tax, but he's not yet saying if that will be part of his deficit-reduction plan. It's estimated the tax would generate more than 200-million dollars a year for the state. The governor has made it clear he does not favor issuing bonds to address the deficit.