Deficit Reduction

By Tony McVeigh

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.

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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.