Lexington, KY – Money has already run dry in Kentucky's "rainy day" fund and cash from the Federal Stimulus is expected to be gone by the next fiscal year.
House Speaker Greg Stumbo believes dipping into the contingency funds of Kentucky's school districts could be one way of dealing with the shortfall ..But Fayette County Schools Superintendent Stu Silberman believes that everyone's going to have to tighten their belts a bit for this next fiscal year and dipping into the school's contingency fund is a gamble .
"Our contingency fund is at about 5 percent and that doesn't even cover a full month's payroll. And what we would like to be able to do is to have some of our payroll be covered in case of a serious budget deficit."
Governor Beshear must present a proposal for the 2010-12 budget to the General Assembly by January 19. He says he has no plans to propose raising taxes.