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(2009-07-13)
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State Budget Director Mary Lassiter isn't yet ready to say how much money the new round of budget cuts will save the state. Agencies receiving her letter have until July 22 to respond.
Photo courtesy Commonwealth of Kentucky (Click image to enlarge)
(CLICK ARROW ON BAR ABOVE TO HEAR TONY'S REPORT)
In a letter mailed Friday and obtained by Kentucky Public Radio, State Budget Director Mary Lassiter is warning of possible budget cuts of 3% to 4% this fiscal year. That's higher than the 2.6% cuts in Gov. Steve Beshear's budget-balancing plan approved by state lawmakers last month. Secretary of State Trey Grayson got one of the letters.
"It'll be tight," Grayson told Kentucky Public Radio. "We're a very personnel driven office and so whenever we get these cuts, we have to figure out how when can provide savings without cutting salaries or laying people off."
Lassiter's letter indicates larger cuts may be necessary because tax credits approved by lawmakers during the June special session will further reduce state revenue receipts. For one thing, lawmakers waived state income taxes for active duty military personnel effective January 1. That's a loss of around $18 million a year. © Copyright 2012, WEKU
