FRANKFORT — State officials warned Friday that most state agencies could face additional 6 percent budget cuts to help offset a projected $161 million revenue shortfall.
Kerri Richardson, spokeswoman for Gov. Steve Beshear, said the administration is now gathering information on the potential impacts of the budget cuts.
State Budget Director Mary Lassiter sent letters to the heads of most government agencies Friday alerting them to potential reductions in funding.
Richardson said the Medicaid program would be shielded from any additional cuts. Public schools, state unversities, community colleges, and the teacher retirement system also are among a short list of agencies and programs that would be spared.
"These are extraordinarily challenging times," Richardson said. "We will get final revenue numbers in mid-December, but we think it is prudent to start planning for cutbacks now."
A panel of state economists predicted last month that the recession would likely cause additional financial woes for state government. That was bad news in a state that has already slashed its budget by some $800 million.
Federal stimulus money has been applied to the state budget to help stave off some budget cuts.
General fund receipts dropped 4 percent in October, prompting Lassiter to release a statement earlier this week warning that the administration was "very concerned" that the state wouldn't bring in enough money to pay for what's been budgeted in the current fiscal year.
October revenues totaled about $652 million, down by some $27 million in October 2008.
Corporate income tax dropped nearly 82 percent last month, while individual income tax collections dipped almost 10 percent. Sales and use tax receipts were down about 4 percent.
Copyright 2009 The Associated Press.
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