Governor Steve Beshear says even though Kentucky is going through the worst recession it's ever seen, the state budget must be balanced.

The governor made the comments Monday afternoon in Hart County.
State Budget Director Mary Lassiter warned Friday that most state agencies could face additional six-percent budget cuts this year to help offset an additional expected $161-million revenue shortfall.

Speaking on the budget cuts, the governor said during tough times, tough choices have to be made.

"Our tax revenues are still going down and it's going to be some time before we're back on an even keel again," Governor Steve Beshear said.

It's an issue plaguing Kentucky lawmakers.

So to a group of students and staff at Munfordville Elementary Monday, Governor Steve Beshear talked balancing the state budget.

"We're going to do it, just like families are doing it right now. They're tightening their belt, they're doing more with less and they're having to do without some things."

Beshear says unemployment is still high in the state.

And with no one able to pay taxes, there's no tax revenue.

While it's likely cuts to state agencies could be made the governor says his priorities are clear.

"It's investing in education for our kids, it's maintaining our health care safety net and it's protecting the public safety," the governor said.

Governor Beshear continues to push slots at racetracks as a way to boost revenue in the state.

It's a plan that he says if not acted upon could put 100,000 horse industry jobs in danger.

"These are a 100,000 Kentuckians just like you and me who are working hard every day to put food on the table, a roof on their head and send their kids to school."

It is however a plan unlikely to garner much attention from many Republican leaders in the upcoming legislative session.

"If we can change enough minds in the Senate or change enough the minds of enough senators either one, then hopefully the subject can come up."

A leading lawmaker says tax increases won't be an option for shoring up Kentucky's shrinking budget.

House Appropriations and Revenue Committee Chairman Rick Rand said Monday 100 House seats and 19 of 38 Senate seats will be up for election next year, making tax increases of any kind unlikely.