Published: November 19, 2008 05:28 pm      

Beshear asks county officials for help with lawmakers on budget crisis

Hints that cuts won't be enough

LEXINGTON — Gov. Steve Beshear painted a “dire” state budget picture Wednesday to local county officials meeting in Lexington, but promised to find ways through efficient government to continue delivering services.

“But, friends, cuts may not be enough,” Beshear told the general session of the Kentucky Association of Counties (KACo). “We cannot morally pull back on critical services you and I provide to our people.”

The governor was referring to a projected $300 million shortfall in revenues this fiscal year, which began July 1. And that number is expected to grow when the Consensus Forecasting Group, a group of independent economists which provides revenue estimates to state government, meets Friday to offer its estimates.

Beshear wouldn’t say after his speech if he thought the number might grow to $400 million or more, but he said, “It’s not going to be good, whatever it is.”

Beshear called on county officials to help. He said after he receives the forecast he’ll put together a “measured and strategic” budget plan and travel the state explaining it to the public. Part of that, he said, is making “government as lean and efficient as we can” but it’s also explaining the government can’t back away from commitments to education, health and human services, public safety and services to the elderly.

“The Kentucky public and the Kentucky legislature need a complete picture of our situation,” Beshear said. “They need to know the true impact, the true consequences of all our options we have in dealing with the economic process we’re going through.”

He said he was not making “an unabated appeal for higher taxes. It’s a plea for information, a plea for the truth, but also a plea for honest and frank discussion of what the effects of the various options will have on us,” Beshear said. “I have absolutely no intention whatsoever of retreating from or surrendering from the mission of government” to improve the quality of life for all in Kentucky.

He then called on the officials to tell their legislators what they face in their local communities and how additional cuts in services will affect their communities.

“I can’t do it alone,” Beshear said. “I need your help. I need the legislature’s help. I need the public’s help.”

But local officials have their own problems. Whitley County Judge-Executive Pat White said he didn’t know how many of his counterparts are willing to join the governor in asking for more revenue. They have their own problems, he said.

Carter County Judge-Executive Charles Wallace said things are tough in his county. Some of his constituents work at AK Steel in Ashland which is laying off 650 employees.

“It’s tough right now and (the economy) is going to affect us,” Wallace said. “But our biggest problem is our jail.”

Wallace said Carter County has allocated $1 million from its general fund to subsidize jail operations. The Kentucky County Judge-Executives Association and 110 counties have sued the state seeking more funding for housing state inmates before they’re sentenced.

Beshear understands counties are focused on jail costs. But he couldn’t promise any immediate help.

“Obviously, with this economic crisis, with the revenue numbers that seem to be getting worse by the month and with the worst news perhaps ahead, we’re not sure what we’re going to be able to do or when we’re going to be able to do it,” Beshear said. He said he understands their problems, however, “and we’re going to work it every way we can – as we can – to help you relieve that pressure.”

RONNIE ELLIS writes for CNHI News Service and is based in Frankfort. He can be reached by e-mail at rellis@cnhi.com.