Gov. Steve Beshear is set to deliver his budget proposal to a joint session of the Kentucky House and Senate. It marks the starting point for months of haggling over a larger pool of state revenues still not expected to meet funding demands.
Leading up to his Tuesday night speech, the governor warned lawmakers face a "tough budget situation," despite the projected upswing in revenue flowing into Kentucky's General Fund in the next two years.
Beshear says the extra revenue will be consumed by big-ticket spending obligations, including shoring up the government pension system.
The governor has said he's willing to propose cuts in parts of state government to free up money for education.
Senate Majority Leader Damon Thayer predicts lawmakers will say "no" to most requests for additional funding.