The Governor's office also issued this press release regarding the speech:
Beshear urges shared unity, purpose to resolve budget crisis
FRANKFORT, Ky. – In the wake of massive, statewide recovery efforts from the devastation of last week’s winter storm, Governor Steve Beshear tonight called for unity and a sense of shared purpose in tackling the state’s $456 million budget shortfall in his second State of the Commonwealth address.
To combat that shortfall, Gov. Beshear urged support for a plan that includes a significant increase in the tax on tobacco products as well as another $150 million in additional spending cuts. The governor pointed out that Kentucky’s tax on cigarettes is currently the fourth lowest in the nation, while the state also ranks first in the number of smoking related deaths each year, which adds hundreds of millions of dollars in health-care costs.
“There comes a point—if we slash too deep and without regard to the devastating impacts of those reductions—when we jeopardize state government’s ability to expand our intellect and capacity to reach out to the needy,” said Gov. Beshear. “This is why my proposal, even while cutting spending further, clearly articulates priorities for investment.”
Since taking office, Beshear has already reduced spending by more than $430 million dollars, shrinking the state workforce by 2,000 employees and using cost-effectiveness and efficiency efforts to reduce day-to-day spending within the Executive Branch.
Additionally, the Governor introduced several initiatives for the legislature to consider during this session and in the coming months, including:Economic Development: increasing job-creation incentives and support for small businesses, making Kentucky better equipped to compete in the 21st Century economy.
Energy: positioning Kentucky to become a national leader on energy by aggressively exploring new methods of energy production and renewables as well as revisiting the statewide ban on nuclear power.
Education: bringing together leaders from both the public and private sector, along with key legislators, to review the Kentucky Education Reform Act. The governor also announced his intention to announce a task force on early childhood education next week.
The Governor also spoke to the administration’s successes thus far, including working with the legislature to reform an outdated pension system, increasing accessibility to the KCHIP program for thousands of uninsured Kentucky children, reforming the Transportation Cabinet and partnering with the federal government to help provide heating assistance to those in need during winter months.
“We cannot control the global economy, we cannot choose the economic conditions in which we serve, but we can define the manner in which we lead,” said Gov. Beshear. “We can’t pick the moment, but we can help to shape and define it. Our state motto says it succinctly: ‘United we stand, divided we fall.’ ”
