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Kentucky Governor calls special session to seek a budget compromise

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May 18, 2010

FRANKFORT, Kentucky: Kentucky Gov. Steve Beshear has called for a special legislative session to begin May 24 in order to reach a budget compromise. The current year's legislative session adjourned April 15 without passing an executive branch budget and Beshear has warned of dire consequences if one is not passed soon.[1]

On May 12 Beshear announced a $17 billion two-year budget proposal which has initially received positive reviews from top lawmakers. The proposal adds no new taxes and has a 3.5% spending cut the first year and 4.5% cut the second, with an exemption for public education.[2]

If a budget compromise does not come before July 1, it would be the first time in Kentucky's history. Beshear has warned lawmakers that if June 1 passes without a budget, the state would lose over $100 million in savings from a debt restructuring plan, and if June 30th passes, there will be a partial government shutdown.

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