By Roy York

Higher education may not be under the governor’s budget knife as heavily as some predicted.

In his budget address to the Kentucky General Assembly on Tuesday, Gov. Steve Beshear proposed a series of budget cuts to save money, but he was optimistic about the state’s future and said higher education “must be our highest priority.”

Beshear’s plan shields Kentucky universities from cuts in the first year of the two-year budget and limits them to a 2 percent cut in 2011-12. This would keep state allocations to UK at $310 million for the 2010-11 fiscal year.

The reductions in 2011 will come in response to the loss of federal stimulus money. If additional revenue from the federal government becomes available, Beshear said restoring cuts to postsecondary schools is one of his top priorities of his plan after funding a 1 percent pay increase for teachers and state employees.

“We really appreciate that the governor has made higher education one of his top priorities,” said UK spokesman Jimmy Stanton. “But it’s far too early to draw any conclusions.

Postsecondary education in Kentucky has sustained annual budget reductions since 2001, and UK has responded with hiring and wage freezes, tuition increases and internal budget changes.

Even with a shrinking state budget, if all goes according to Beshear’s plan, the Kentucky Educational Excellence Scholarship program would be fully funded, and money would continue to be given to UK to build a science research facility to further UK’s top-20 goals.

The governor’s balanced budget relies on the passing of expanded gaming legislation that could raise approximately $780 million through revenue from video lottery terminals.

“Gaming revenue is the only practical option to begin funding long-term priorities with recurring revenue,” Beshear said.

According to a news release, without expanded gaming legislation, agencies, including secondary education, could see cuts of up to 12 percent in 2010-11 and 34 percent in 2011-12.

“Cuts of this magnitude would undoubtedly lead to mass layoffs and would inflict devastating damage on literally hundreds of critical services to communities and individuals around the Commonwealth, such as prenatal care, water permits, air quality inspections, social workers and fire inspections of public facilities like day-care centers and schools,” Beshear said.

UK is not making any plans yet.

“It’s important to keep in mind that there are hundreds of steps in the budget process, and this is step one,” Stanton said.