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Kentucky Gov. Steve Beshear is not ruling out state employee layoffs. The state faces a nearly $500 million budget deficit and Gov. Beshear is strongly indicating he will ask legislators to approve a cigarette tax increase in January.

 

Beshear said Tuesday During a taping of ICN6’s On The Record public affairs program, Beshear said “We’ve got a real problem.” Beshear says they need to find reductions where they can and reduce the state's spending.

 

Beshear said he would put out his deficit-reduction plan by the end of this week. He spent part of Tuesday briefing House and Senate leaders on the plan. That plan could include layoffs.

Beshear was unable to get a 70-cent increase through the legislature this year. An increase of that size would raise an estimated $135 million a year.

Most Northern Kentucky lawmakers say they are likely to vote against a cigarette tax increase during the 2009 General Assembly session.

 

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