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Beshear says Condition of State is "not acceptable"
Beshear Says Condition of State is not Acceptable

In his first State of the Commonwealth address, Gov. Steve Beshear declared Kentucky's condition "not acceptable."
"It is my duty and my responsibility to inform you that we have some tough times ahead," Beshear said. "The revenue outlook is grim."
Despite the adversity Kentucky faces, Beshear said he remains optimistic about the state's future.
He pledged bold action to overcome an "unprecedented budgetary shortfall," but said no tax increases are needed.
"It is not a time for whining or 'woe is us' – it is a time for leadership, bold action and temporary cost cutting," he said.
Lawmakers must cobble together a two-year state budget in coming months that spends less money than the current budget.
Beshear puts the revenue gap at more than $500 million, although leading lawmakers say that number is likely to shrink in coming months.
Beshear's 23-minute speech was long on generalities and short on specifics.
For example, he said "re-engineering Kentucky's economy from within" must be one of the state's highest priorities, but he didn't detail any specific actions he would take to make that happen.
He was interrupted by applause about 20 times.
MORE TO COME
- John Stamper
SPEECH HIGHLIGHTS
• "Raising taxes is and will continue to be a last resort as long as I'm Governor. So, that leaves cutting government spending. We can wring more efficiency out of state government and I intend to do just that. It's common sense, but it will require some painful sacrifices. I intend to be a fiscally responsible steward of this government."
• "Our people also lack trust in their government, and it is critical that trust and credibility be restored if we're to accomplish anything else. That's why I announced just last week a comprehensive ethics package that includes a Constitutional amendment to limit a Governor's power to pardon."
• "The days of fretting about how we are doing against border states are long over and a waste of time. Something has to change. The ramifications are huge and will help determine how successful Kentucky becomes in the future. Therefore, re-engineering Kentucky's economy from within must be among the highest priorities."
• "Unless we get our financial house in order and chart a new course, Kentucky stands little chance of succeeding in this new economy."
• "Whether you're a state employee or an average citizen, if you have an idea, please contact us. No idea is too big or too small if it will help to make our government work better."
• "This crisis can indeed be a positive turning point for Kentucky. Let me make one thing clear... the status quo is not an option and it is not one my administration will tolerate."
REACTION
• House Speaker Jody Richards, D-Bowling Green: “I think this speech tonight was one to lay out his hopes and dreams and his vision for our commonwealth –- to really say where we are, and that’s what he did,” Richards said. “I think he did a good job of assessing the state of the commonwealth. On the 29th, when he comes back and talks about the budget, I’m sure that we will here lots of specifics about how he intends to deal with the economy.”
• House budget chairman Harry Moberly, D-Richmond: Moberly said he was pleased with Beshear's "call for bipartisanship" and his plan for the state's economy. "He signaled a new direction in economic development that I think is very important and that is more emphasis on the new economy, more innovation," Moberly said. "He made a good, general and accurate speech about the state of the Commonwealth and making changes in the way we do business...I was very pleased with the speech."
• University of Kentucky President Lee Todd: Todd said he and others wanted to work with Beshear to come up with solutions to offset a possible 12 percent budget cut for fiscal year 2008-09. "We've already said that those cuts that are being discussed are too deep," Todd said. "We've got research we think can help impact this decision and we'd like to get that information to him."
• Democratic Rep. David Watkins of Henderson, who is sponsoring a bill to raise the cigarette tax in Kentucky, said he saw wiggle room in Beshear’s pledge to only consider raising taxes as a last resort. “When we look at all aspects of this, it’s better to raise taxes on those who are causing ill health in our commonwealth than it is to tax our college students and to put an undue burden on the local communities if they have their school funds cut,” Watkins said.
• Sen. Dan Kelly, R-Springfield, said he wasn’t bothered by Beshear’s lack of specificity and found common ground in the governor’s message. “The things he talked about wanting to focus on is what we want to focus on, which is how we educate our children so that we can compete in the emerging world economy,” Kelly said. “We’re very interested in that in the Senate and we think we have some sound proposals.” Kelly said "we all understand that the details will be coming very soon."

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