UPDATED AT 7:45 P.M.
By Beth Musgrave and Jack Brammer – firstname.lastname@example.org
FRANKFORT — Gov. Steve Beshear vetoed 19 provisions in the state budget lawmakers approved late last week, including a provision that would cut the salary of Economic Development Secretary Larry Hayes by more than $120,000 a year.
The governor also vetoed provisions that would protect federally-funded state employees from being furloughed and deleted the legislature’s mandated changes to the state employees’ health insurance plan.
Senate President David Williams, R-Burkesville, and House Speaker Greg Stumbo, D-Prestonsburg, said they needed time to review the vetoes before commenting on them. Lawmakers do not have the ability to override Beshear’s vetoes since the General Assembly adjourned its special legislative session to approve the budget on May 29.
In general, Beshear said his line-item vetoes were necessary because the provisions restricted his ability to implement spending cuts mandated by the two-year spending plan, which calls for cuts of 3.5 percent in the first year and 4.5 percent in the second year for most state agencies. Without those cuts, the state faced a projected shortfall of nearly $1.5 billion over the next two years.
“My administration must have maximum flexibility to manage state government through these extremely difficult times, while continuing to provide essential services to our people,” he said in a news release.
By Beth Musgrave – email@example.com
FRANKFORT — A little-noticed provision in the state House’s proposed budget would nearly cut in half the $250,000 salary of the state’s chief economic development officer.
The House on Wednesday passed a two-year, $17.5 billion budget that included a host of cost-saving provisions, including cutting the amount spent on service contracts by more than $100 million and saving $5 million by axing 120 political appointees over the next two years.
But deep in the budget is another provision that would cap the salary of Larry Hayes, the secretary of the Economic Development Cabinet. Hayes, who makes $250,000 a year according to the state’s transparency Web site, is the highest paid cabinet secretary.
The House budget says the Economic Development Secretary’s salary should not surpass the governor’s salary of $127,885.
Both Hayes and Beshear took 10 percent pay cuts this year.
FRANKFORT — Gov. Steve Beshear, first lady Jane Beshear and Economic Development Secretary Larry Hayes will leave Saturday for a seven-day trade mission to Japan and China.
The trip will mark the second visit by the governor to Japan and his first visit to China as governor.
“Our national and state economy continues to face significant challenges, even as we are seeing important glimmers of hope,” Beshear said in a statement.
“I will go wherever I need to go – whether it’s around the block or around the globe – to aggressively court and recruit high-paying jobs to Kentucky, the kind of jobs that will accelerate our economic recovery.”
FRANKFORT – Gov. Steve Beshear appointed Cabinet Secretary Larry Hayes to be secretary of the state Economic Development Cabinet at $250,000 a year and named state budget director Mary Lassiter to replace Hayes as cabinet secretary.
Lassiter also will retain the position of budget director and make about $150,000 a year.
Beshear announced the personnel moves in news releases from his office.