Budget Negotiations Continue

{Frankfort, Kentucky}...House and Senate budget negotiators agreed Tuesday to allow the state to book savings generated by lower-than-expected interest rates, but the two sides locked horns on some issues, such as requiring Governor Steve Beshear to cut an additional $98 million from the state's contracts. Senate President David Williams, R-Burkesville, said Senate Republicans believe the state spends between $400 million and $500 million on private contracts for such things as lawyers, architects and other professionals, and the Senate believes the administration can make the cuts. Democratic House leaders expressed reservations, saying some agencies have cut more than 35 percent of their spending over the past four years. House Speaker Greg Stumbo, D-Prestonsburg, said the House was not opposed to some limitations on the number of contracts but it has concerns that little information is available about the effects of cutting contract spending. House and Senate leaders did not address a scholarship program for eastern Kentucky students that was included in the House budget but not the Senate budget.