Beshear criticizes budget bill

FRANKFORT The House’s version of the state budget would stymie Kentucky’s efforts to lure and keep companies in the state over the next two years, Gov. Steve Beshear warned Friday.

To help fund a massive school construction program, the bill would remove the Cabinet for Economic Development’s ability to borrow more than $60 million to fund a key economic development program.

“We have grave concerns with any budget that diminishes our efforts to attract and maintain jobs for Kentuckians in the midst of the worst recession in our lifetimes,” Beshear said in a statement to the Herald-Leader.

As part of its $17.5 billion, two-year budget, House leaders are proposing borrowing nearly $2.2 billion for a host of capital projects that they say could generate up to 25,000 jobs. About $685 million of that amount would be used to remodel or replace 65 schools, mostly in Democratic districts.

The House passed the budget Wednesday. It now heads to the Senate, where significant changes are likely.
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