FRANKFORT — Gov. Steve Beshear, Lt. Gov. Daniel Mongiardo and five of the governor’s senior staff will take “voluntary” and “symbolic” 10 percent pay cuts next year in the face of a $456 million state revenue shortfall.

Beshear, who makes $124,383, said the entire savings are just under $100,000 (actually about $86,000) and constitute a symbolic action which “will not substantially reduce our shortfall.” The reduction will trim his salary to $111,945 and Mongiardo’s to $91,437. Their salaries are set by the constitution but court decisions allow them to grow according to inflation.

“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. “We believe we should not ask of others what we are not willing to do ourselves.”

Also volunteering for 10 percent pay cuts are Beshear’s Secretary of the Cabinet Larry Hayes, Chief of Staff Adam Edelen, Deputy Chief of Staff Vince Gabbert, General Counsel Ellen Hesen, and Communications Director Jay Blanton. Beshear said he did not plan to ask cabinet secretaries to follow suit. Most senior staff and cabinet secretaries actually are paid more than the governor.

The salary reductions will become effective Jan. 1 and will be calculated against 2009 salary levels. For now, it covers only the calendar year 2009.

Beshear plans to announce his plan to cover a $456 million revenue shortfall for the current year by the end of the week after first meeting with legislative leaders and getting their reactions. That includes Senate President David Williams, R-Burkesville, with whom the governor has tangled in his first year over legislative and political disagreements.

Beshear said he’d talked informally with Williams trying to set up a meeting to discuss the meeting but had not yet met face to face to discuss the budget problems.

“I want to share the kinds of options that are out there with legislators and get their input before we finalize a plan,” Beshear said. “But we’re going to be finalizing that plan this week.”

Beshear has asked all agencies of the executive branch to indicate how they would manage a 4 percent funding reduction for the final six months of the fiscal year. Prosecutors are talking about employee furloughs, some constitutional offices are considering personnel reductions, and school districts are looking at emptying contingency funds, laying off classified and maybe some non-tenured teachers and administrators.

Beshear said his plan will include “what we think is the best solution for the entire $456 million shortfall,” but he would not say whether that will specifically include a call to raise the cigarette tax. He said whatever plan he announces this week will be “a beginning point” in discussions with lawmakers about how to cover the shortfall.

But he will not ask state employees to take an across-the-board 10 percent pay cut, he said, although he repeated his oft-used phrase that “all options are on the table.” The plan will account for Medicaid, he said, which is suffering from a growing deficit as enrollment has increased by more than 3,000 a month over the past few months.

He repeatedly said “we are all in this together.” He said, “Survival is the name of the game. And next year, in all likelihood, will be even more challenging than this year.”

RONNIE ELLIS writes for CNHI News Service and is based in Frankfort. He can be reached by e-mail at rellis@cnhi.com.



BOX INFO:

Current and reduced salaries as of Jan. 1, 2009:

Gov. Steve Beshear - $124,383; $111,945

Lt. Gov. Daniel Mongiardo - $101,596; $91,437

Cabinet Secretary Larry Hayes - $136,500; $122,872

Chief of Staff Adam Edelen - $130,000; $117,000

Deputy Chief of Staff Vince Gabbert - $126,000; $113,400

General Counsel Ellen Hesen - $133,350; $120,000

Communications Director Jay Blanton - $125,000; $112,500



* Source: Governor's Communications Office