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Governor issues stern warning about budget

He says he's ready to partially shutdown state government.

Kentucky Governor Steve Beshear outlined Wednesday morning how different state agencies could close if lawmakers don't pass a new state budget by July 1.

The governor says Kentucky State Police, state parks, the Cabinet for Economic Development, and public universities would be among the things affected if a new budget isn't passed.

A state government shutdown would also affect jobs.

The governor has told Cabinet secretaries to begin planning for a partial shutdown, in case lawmakers don't meet the deadline.

Governor Beshear says unlike the past when governors can simply keep operations going, if a budget hasn't been passed, a recent decision from the Kentucky Supreme Court has now taken away his power to do that.

If a budget isn't passed by July 1, the Kentucky Supreme Court will not allow the Treasury Department to write checks to specific agencies.

"This is going to be a horrible budget, no matter what," Governor Beshear said. "Because we are having to cut another $1.5 billion out of it, and the General Assembly is unwilling to create new recurring revenue."

As far as how many jobs could be lost if no budget agreement is reached, the governor only said it would be a significant amount of the 33,000 state employees.

A special session is now being planned because of the budget. Although no specific date has been set, Governor Beshear says it will happen in May.


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