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State Seal Commonwealth of Kentucky Governor Ernie Fletcher’s Communications Office
Governor Ernie Fletcher Unveils Public Services Continuation Plan
Press Release Date:  June 28, 2004

Doug Hogan
Jeannie Lausche
Jason Keller


Governor Fletcher’s Plan focuses on education, economic development

Frankfort, KY:   Governor Ernie Fletcher today unveiled his Public Services Continuation Plan to maintain the operation of state government in the absence of a legislatively enacted budget.   The executive order, signed today by the governor, extends from July 1st to September 30th, 2004.  While the plan authorizes state government expenditures for the quarter, annual planning estimates are provided for state agencies.  The continuation plan also takes into account higher revenue forecasts recently projected by the Consensus Forecasting Group.

The plan is built on a foundation of fiscal integrity which will provide for the needs of the government on an interim basis until the General Assembly enacts a biennial budget.

"As governor, I have the responsibility to ensure the continuity of public services for every Kentucky family,” stated Governor Fletcher. “This plan is a sound public policy document to keep state government operating in the absence of a state budget,"

The Public Services Continuation Plan addresses priority issues of education, economic development, public safety and health and human services.   These priority areas; as well as the overall plan; is based on the budget the governor proposed earlier this year.  Under the plan:

  • Pay raises for all state employees and teachers will be at 2%
  • $23 million will be added to the SEEK formula to help fund the 2% pay raises in schools and to increase the per pupil funding level to $3,222
  • An additional $10 million is going to KERA strands and local school district grant programs; more money for libraries, scholarships, and educational enrichment programs like Governor’s Scholars is also included
  • An additional $20 million will be given to the state’s public universities 
  • $5.5 million will be provided to cash fund the Warren County Technology Center of KCTCS, a project committed to by the governor and House Speaker Jody Richards, to facilitate training of employees for a new plant, which will employ 1,100 Kentuckians
  • $5 million in cash will go toward the Capital Construction Contingency Fund
  • $70,000 is added for international trade efforts
  • $2.5 million in cash is used to fund economic development bond projects planned for bond funding in a legislatively enacted budget
  • $5 million one-time general fund dollars will be given to the Medicaid program

“The spending and resource priorities in my plan reflect my commitment to improving the quality of life for every family in Kentucky,” said Governor Fletcher.  “A state government shutdown would be disastrous to the commonwealth.  The Public Services Continuation Plan maximizes our potential in these uncertain times and maintains government services.”




Last updated: Thursday, June 02, 2005