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State Seal Commonwealth of Kentucky Governor Ernie Fletcher’s Communications Office
Governor Ernie Fletcher Submits 3rd Quarter Spending Plan
Press Release Date:  December 29, 2004
Contact:  Doug Hogan
Jeannie Lausche
Carla Blanton

Frankfort, KY:  The Office of Governor Ernie Fletcher today announced the 3rd Quarter Public Services Continuation Plan to continue the necessary services provided by state government.

The 3rd quarter plan is an extension of the 2nd quarter plan and will be effective from Jan. 1, 2005, through March 31, 2005, or until the Legislature enacts a budget.

“This plan will allow the citizens of the Commonwealth to continue receiving the necessary services of this government – services that protect and enhance our safety and quality of our daily lives,” Governor Ernie Fletcher said. “It is essential to the welfare of all Kentuckians that I be permitted to fulfill my duty to execute the laws of the Commonwealth.

“To move Kentucky forward by creating opportunity and economic growth for a brighter future, it is imperative that the Legislature pass a budget for 2005 and 2006.”       

The plan is being implemented to continue government operations in the absence of a legislatively enacted budget.

It contains a limited number of adjustments, including:

  • $40 million to the Medicaid program, which, combined with the federal matching funds of $91 million, will support $131 million in total Medicaid expenditures and partially offset the current year Medicaid shortfall; 
  • $5.5 million for Corrections to support a significant increase in the number of inmates in county jails. 

The other major difference from prior spending plans is the result of the passage of House Bill 1 during the Special Session in October.

The Legislature appropriated funds for school and state employees’ health insurance and salaries, all salary and related fringe benefits for executive branch agencies, a cost-of-living adjustment for retired teachers, and funding for SEEK. As a result, those funds are not included in the continuation plan. 

The plan is comprised of an executive order authorizing Finance and Administration Secretary Robbie Rudolph to provide further payments of the Commonwealth’s financial obligations within the limits outlined in the plan.

A judge’s ruling earlier this month stated that the Governor’s Public Services Continuation Plan should stay in effect through the entire fiscal year, which ends June 30, 2005, unless the Legislature enacts a budget beforehand.

This is the third continuation plan submitted by the Fletcher Administration. The entire plan is online at




Last updated: Thursday, June 02, 2005