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Governor, other top officials to take pay cut

It's a symbol, governor says

The Courier-Journal

By Tom Loftus.(JavaScript must be enabled to view this email address) • December 9, 2008

photo

Gov. Steve Beshear

(2008 file photo by Michael Hayman, The Courier-Journal)

FRANKFORT, Ky. -- Gov. Steve Beshear announced yesterday that he, Lt. Gov. Daniel Mongiardo and five top officials in his administration will take 10 percent pay cuts as a small step toward balancing the state budget.

"I fully realize that this action will not substantially reduce our shortfall," Beshear said at a press conference. "Nevertheless, the lieutenant governor and I feel strongly, as the top two elected officials in this state, that we have an obligation to personally share in the sacrifices that will, and must, be made."

Beshear said that when he and Mongiardo decided to take pay cuts, five top staff members volunteered to do the same. They are executive cabinet secretary Larry Hayes, chief of staff Adam Edelen, deputy chief of staff Vince Gabbert, general counsel Ellen Hesen and communications director Jay Blanton.

The cuts will take effect Jan. 1 and will save about $87,660 in 2009, according to salary totals released later by the governor's office.

Beshear said that later this week he will release his proposal for balancing the current fiscal year's budget in the face of a projected $456 million revenue shortfall. And he repeated that any plan to cover such a large deficit is bound to be painful.

"This plan will require sacrifice by everyone," he said.

He said he plans to get input from legislative leaders in the next few days before releasing his proposal to erase the shortfall, plus a funding crisis in the Medicaid program.

He said he had not decided if his plan will call for any tax increases, such as a boost in the state's 30-cent-per-pack cigarette tax.

Senate President David Williams, R-Burkesville, made it clear yesterday how he feels about Beshear's salary cut and any possible proposal to raise revenue.

"If he is truly empathetic with Kentuckians' financial situation," Williams said of Beshear in a statement, "perhaps a more appropriate response would be to join me in holding the line on taxes."

House Speaker Jody Richards, D-Bowling Green, could not be reached for comment.

Lee Jackson, president of the Kentucky Association of State Employees, applauded Beshear's action. "It sends a signal that he is taking the economic downturn seriously and is willing to start at the top in addressing it," Jackson said.

Jackson said he does not know if Beshear's plan will call for layoffs of state workers.

Beshear said he did not press cabinet secretaries or other top officials to take salary cuts. He said many cabinet secretaries already took pay cuts to join his administration and all have important responsibilities in the administration.

Asked if he thought some might consider the move a publicity stunt, Beshear said, "It's obvious that this is not going to substantially affect the shortfall. But it's a symbol. And it's a symbol by the chief executive of this state that he understands what our people are going through."

Reporter Tom Loftus can be reached at (502) 875-5136.