Frankfort, KY – In a letter mailed last Friday and obtained by Kentucky Public Radio, State Budget Director Mary Lassiter is warning of possible budget cuts of three-to-four percent this fiscal year. That's higher than the two-point-six percent cuts in Gov. Steve Beshear's budget-balancing plan approved by state lawmakers last month. Secretary of State Trey Grayson got one of the letters. "It'll be tight. We're a very personnel driven office and so whenever we get these cuts, we have to figure out how when can provide savings without cutting salaries or laying people off."
Lassiter's letter indicates larger cuts may be necessary because tax credits approved by lawmakers during the June special session will further reduce state revenue receipts. For one thing, lawmakers waived state income taxes for active duty military personnel effective January 1st. That's a loss of around 18-million dollars a year.