Governor-Elect Steve Beshear has started reviewing the state's financial situation and he's predicting tight times ahead.
Currently, the state is operating on an $18.1-billion, two-year budget that expires in June.
The General Assembly meets in session again this January.
Its primary focus will be to craft a new, two-year spending plan for Kentucky.
On Nov. 19, Beshear met with his transition team which is assessing Governor Ernie Fletcher's outgoing administration.
Beshear takes office Dec. 11.