Kentucky governor takes actions to balance state budget | News | Kentucky Roofing Contractors Association

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Kentucky governor takes actions to balance state budget

On Dec. 11, Gov. Steve Beshear (D-Ky.) proposed a plan that would raise Kentucky's cigarette tax and implement three-day furloughs for all state workers to help balance the state budget, according to The Courier-Journal. Kentucky currently faces a $456 million revenue shortage, which is a 5.1 percent shortfall for the 2008-09 fiscal year.

Beshear's plan includes raising the 30-cent-per-pack cigarette tax to $1, doubling the tax rate on other tobacco products, and 4 percent cuts to most state programs, which already have seen budget cuts once or twice this year. The plan also furloughs all state workers for three days, saving $8 million.

The plan has a total of $147.1 million in spending cuts. The tobacco tax increase would generate $81.5 million for the current fiscal year, and $40.6 million in other funds would be transferred to the General Fund.

Beshear plans to present the proposal to the legislature and hopes for a special session in January to pass the proposal. He presented a cigarette tax proposal earlier this year during the regular legislative session, and it was not successful. The tax is a provision that must be passed by the General Assembly before it can be enacted.

12/19/2008