Governor Warns House Budget Could Cause Layoffs

FRANKFORT, Ky. (AP) - Gov. Steve Beshear says the budget
approved by the House this week would likely force spending cuts
and perhaps layoffs.

The governor said Thursday he's still pushing his plan to
bolster the state's 30-cent-per-pack cigarette tax by 70 cents. He
wants to use part of that revenue to borrow money to help the state
through the next two years.

House lawmakers approved a nearly $19 billion, two-year state
spending plan that includes a 25-cent-per-pack increase in the
cigarette tax. The spending plan will next be taken up by the

Beshear said the spending plan assumes unrealistic savings and
pushes excessive debt payments into the future. He said layoffs
would be a possibility, but added that he wants to try to avoid
such a scenario.

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