Local governments could feel the sting from the $500 million budget shortfall that has already meant prisoners being set free, the threat of tax increases, cuts in education and the potential for laying off public employees.
Though both Franklin County and Frankfort city governments are in far better fiscal condition than the state, the state's problem could trickle down.
Franklin County officials have expressed concerns about releasing prisoners, which could drain $150,600 from county funds. Meanwhile the city could see a significant plunge in revenues if the state workforce is reduced.
Gov. Paul Patton has talked about reducing the state payroll by about 1,000 employees, preferably through attrition or retirement. More recently he even talked about the possibility of additional layoffs reaching up to 1,900 workers.
For Frankfort, where many state employees reside, that means a reduction in revenue from the 1.75 percent payroll taxes.
For more on this story, see today's State Journal.