Louisville, Ky. (WHAS11) - Governor Matt Bevin is ordering most state agencies to cut their budgets by 1.3 percent to meet a shortfall.
This comes after economists estimated the state will face a $156 million shortfall in the 2018 fiscal year.
Gov. Bevin previously proposed cuts of more than 17 percent this year. The cuts are less because the order can't be used to replenish the state's Rainy Day Fund.
The cuts do not include certain agencies like public education and Kentucky and teacher retirement systems.
If new revenue is not found, there could be cuts to education spending next fiscal year.