The governor claims Kentucky's cut in services to balance the budget is hurting average Kentuckians and "they're open to the idea of raising some kind of new revenue." Beshear tried and failed to get a 70 cents per pack increase in the cigarette tax passed by the legislature earlier this year. Kentucky's cigarette tax of 30 cents per pack is the third lowest in the country. Beshear wouldn't say whether he'll request another 70 cent hike during the 2009 session of the legislature.

Beshear also made another pitch for casinos. The governor made an impassioned plea for the horse industry, saying the industry IS hurting in Kentucky. Beshear says without some financial help and boost in purses, the horse industry could lose thousands of jobs because horsemen are going to other states whose purses and tracks are getting a boost from casino revenue. Here's my story.