Gov. Steve Beshear's budget proposal for a special session of the legislature starting on June 15 may not include expanded gaming to help offset a near $1 billion budget shortfall
In his call to the legislature to convene in special session, the governor proposed combining $200 million in spending cuts with $741.7 million in stimulus money to offset a $1,083,000,000 shortfall and increased expenditures since the budget was passed. While expanded gaming was not included in the governor's initial proposal, Beshear does have authority to amend the call for the special session once it has begun if conditions change and legislators want to consider other options, gaming among them.
Without expanded gaming on the call for the special session the legislature cannot consider a bill to allow video slot machines at Kentucky race tracks. It has been reported that there were not enough votes to pass an expanded gaming measure, which would have dealt a major blow to the administration if included on the call and not passed. Racing and thoroughbred advocates put on a hard press to get expanded gaming included to help boost the industry in the state, warning that breeders are threatening to move operations to states offering larger purses based on revenues from expanded gaming.
In addition to cutting $200 million in spending Beshear is says the state will save $10.6 million by eliminating three paid vacation days for state workers making less than $50,000 and five paid vacation days for those making more than $50,000. In a release from his office, Beshear said that will help avert massive layoffs of state workers. Beshear also plans $113 million in savings by restructuring some of the state's debt, and $18.5 million by stepping up tax collection efforts.
Untouched in this budget proposal is the SEEK formula for funding primary and secondary education, postsecondary institutions, KET, funding for student financial aid, funding for teachers' retirement, health insurance for teachers and state employees, Medicaid, mental health services, state police, funding to local jails, funding for corrections, funding for prosecutors, funding for public advocates, economic development funding and state parks.