Beshear Plugs $91 Million Budget Shortfall
Kentucky Governor Steve Beshear has signed an order to cover a $91 deficit in the state's $9.5 billion state budget.
State officials announced the shortfall last week following sluggish collections on state income taxes. Beshear's order cuts $3 million in state spending. He made up the rest by transferring money from other sources, including $21.2 million from the state's reserves. State officials said they had few options to make up the deficit because the shortfall came at the end of the fiscal year when most of the money had already been spent.
Beshear's order also dealt with a $22.1 million shortfall in the state's road fund, with just $300,000 in cuts to construction projects.
This was the 14th budget reduction Beshear has implemented since taking office in 2007.