Mon June 29, 2009
Governor Talks of Budget Cuts
By Tony McVeigh
Frankfort, KY – Kentucky Gov. Steve Beshear says it likely will be mid-July before he knows how much to cut the state budget to make sure it's balanced by July 2010. The last year of the current biennium begins Wednesday.
"I don't think anybody expects the economy in the fiscal year we're about to enter to be significantly better than has been forecast. So, we're not anticipating greater than expected revenues. And we're going to have to budget and operate on the basis of those official revenue estimates."
Beshear says upcoming spending cuts will probably exceed two-point-six percent because lawmakers approved some new tax breaks in the recent special session. One of the breaks waives state income taxes for active duty military personnel, effective January 1st. That will cost the state about 18-million dollars a year.