2008 Woodie Awards
State Government
House and Senate pass state budget, universities get 3 percent funding cut
Emily Wuchner
Issue date: 4/4/08 Section: News
The Kentucky House and Senate worked into late Wednesday night to pass the state budget that includes 3 percent cuts for universities and is now awaiting Gov. Steve Beshear's signature.
The newly proposed budget, a $19 billion spending plan, will aid with the $900 million revenue shortfall during the next two fiscal years. The budget included raising more than $300 million in new revenue over the next two years through sources including restructuring some state debt, an additional $14 million from the lottery and capitalizing on retiring state employees. People convicted of nonviolent and nonsexual felonies could be released to home incarceration if he or she has less than six months of jail-time left to serve. The governor's proposed amendment for the legalization of casinos and raising the cigarette tax did not pass.
Legislatures had to reach an agreement by Wednesday night to maintain the authority to override possible vetoes by Beshear. The House and Senate adjourned until April 14.
In February, when Beshear announced the state will have a $900 million revenue shortfall because of low tax revenue and rising costs in governmental expenses, he proposed a two-year spending plan that would cut 12 percent from universities' budgets.
On March 13 the House approved its version of the budget, which would eliminate the proposed 12 percent cut imposed on universities state-wide. The proposal called for an increased tax on cigarettes, raising the cost 25 cents per pack, to help generate needed revenue. This would also increase taxes on other tobacco products and business services. The total amount of additional revenue would have been about $95 million.
On March 24, however, the Senate passed its version which did not include any additional taxes. The Senate proposed 3 percent cuts from universities, restoring 9 percent of the governor's originally proposed cut and called for the release of about 2,000 nonviolent and nonsexual felony offenders that could save the state nearly $50 million in the next two years.
The newly proposed budget, a $19 billion spending plan, will aid with the $900 million revenue shortfall during the next two fiscal years. The budget included raising more than $300 million in new revenue over the next two years through sources including restructuring some state debt, an additional $14 million from the lottery and capitalizing on retiring state employees. People convicted of nonviolent and nonsexual felonies could be released to home incarceration if he or she has less than six months of jail-time left to serve. The governor's proposed amendment for the legalization of casinos and raising the cigarette tax did not pass.
Legislatures had to reach an agreement by Wednesday night to maintain the authority to override possible vetoes by Beshear. The House and Senate adjourned until April 14.
In February, when Beshear announced the state will have a $900 million revenue shortfall because of low tax revenue and rising costs in governmental expenses, he proposed a two-year spending plan that would cut 12 percent from universities' budgets.
On March 13 the House approved its version of the budget, which would eliminate the proposed 12 percent cut imposed on universities state-wide. The proposal called for an increased tax on cigarettes, raising the cost 25 cents per pack, to help generate needed revenue. This would also increase taxes on other tobacco products and business services. The total amount of additional revenue would have been about $95 million.
On March 24, however, the Senate passed its version which did not include any additional taxes. The Senate proposed 3 percent cuts from universities, restoring 9 percent of the governor's originally proposed cut and called for the release of about 2,000 nonviolent and nonsexual felony offenders that could save the state nearly $50 million in the next two years.
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