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Friday, February 13, 2009

Summary of the state of the state address

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Less than a week after devastating snow and ice storms shut down power and cut off drinking water across Kentucky, Gov. Steve Beshear (D) presented his plans for erasing the state’s $456 million budget shortfall while praising relief workers.

In his state of the commonwealth address Feb. 4, Beshear proposed cutting an additional $150 million in spending and pushed for increased taxes on tobacco.

Already this year, the politically split General Assembly has cut spending by more than $430 million, reduced the state workforce by 2,000 employees, cut travel and reduced other administrative costs.  

Meanwhile, Kentucky ranks first nationally in deaths related to smoking, even as its cigarette tax is fourth-lowest in the nation, Beshear said. A higher tobacco tax would not only increase revenue, but decrease the total number of smokers, which could reduce Medicaid costs, he said. 

In spite of the shortfall, the governor proposed targeted initiatives in economic development, nuclear power, low-cost energy availability and prison reform. Without providing many details, he proposed a thorough review of the 1990 Kentucky Education Reform Act, which boosted state funding for education and changed testing protocols.

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