For Immediate Release
November 25, 2002
Contact: Rusty Cheuvront or Terry Sebastian (502) 564-2611 

GOVERNOR DIRECTS AGENCIES TO PREPARE ANALYSES OF IMPACTS OF SPENDING CUTS

Frankfort, KY. – Governor Patton today directed all Cabinets and Executive Branch Agencies of state government to submit an analysis of the effects of a reduction in their budgets of 2.6% for FY 03 and 5.2% for FY 04.  This analysis is to include not only the dollar amounts of the reductions, but also the programmatic implications and consequences of such actions.  These percentage reductions represent the amount of the projected budget shortfall across state government when only debt service is excluded.  

The directive to cabinets was issued following discussions with legislative leadership regarding the severity of the Commonwealth’s fiscal condition and in reaction to the revenue shortfalls projected by the Consensus Forecasting Group. Based upon the Consensus Forecasting Group’s revenue projections, the administration has projected a budget shortfall of approximately $144 million in FY 03 and $365 million in FY 04.   

Last year’s total budget shortfall of $687 million has already resulted in cuts of 2% to post secondary education and 5% to all other state agencies. Only elementary and secondary education was exempted.   Today’s directive applies to all agencies and institutions. 

“I am not recommending that these cuts be made,” said Governor Patton.  “However this information will demonstrate how devastating these cuts will be to many state programs especially education. This information will add to the public debate in the weeks ahead as the executive and legislative branches seek solutions to our current budget crisis.” 

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