Beshear outlines budget proposal - Business First of Louisville:

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Beshear has called a special session of the Kentucky General scheduled to startJune 15, to create a budgeg for the state. The current fiscal year ends June 30. Beshear’a plan calls for $200 million in cuts and the useof $742 milliobn in federal stimulus funds, primarily for educationn and Medicaid, the governor’ s office said in a news release. Beshear’s proposer budget would preservethe per-pupi l amount the state spends on It also funds higher education at the same levelsa as the fiscal 2009 “I’ll say it again and again. We cannot move forwardr if we take significant steps backward in spending in our Beshear said inthe release.
Besheatr also proposed maintaining current funding levelsx forthe state’s Medicaid program, mentalp health services, state police, local economic development programs and veterans’ programs. The budget woulsd increase fundingfor prosecutors, public defenders and corrections. It also woulx provide the Kentucky Department of Revenue additional fundinv to bolsterits tax-collection efforts, something that is projected to brinbg Kentucky an additional $18.5 million. The budget also would providre increased funding for the statseparks system.
Many departments face cuts, fewer paid holidayds To offset some of thespending increases, Beshear proposed cuttinbg spending within other state agenciez by 2.6 percent in fiscal 2010. The which are projected to amounft toabout $200 million, are in additionj to $600 million in spending cuts over the past 18 according to the news release. “This will not be easy to Beshear said inthe release. “Many of our departmentsw and agencies have had theif spending cut in the current and previouebudget cycle, so many are already operatin g in a lean manner. They will have to cut even more. How they do that will be an ongoing process.
” Beshear proposed eliminatingy three paid holidays for state workers makingy lessthan $50,000 a year and five holidays for employeesa making $50,000 or more. Elimination of paid holidays is projectefd to save the stateabout $10.6 Beshear said he also will work with Kentucky Transportation Cabiner officials to determine how to deal with a projectec $239 million shortfall in the state’s road fund. The governort also estimated that the state can saveabout $113 millionb by restructuring debt.