Kentucky is facing hard times, and according to University Business it looks like the university of kentucky may share in those hard times - at least over the next year.

At the end of his first month as Kentucky's new governor, Steve Beshear says he is expecting state government in Kentucky to see a budget shortfall this year of $289 million. He's asked University of Kentucky President Lee Todd to cut the school's budget. President Todd today announced a hiring freeze and plans to slash $10 million from the university's budget this year. Half that money will come out of a reserve fund the school has.

At this point it doesn't look like any classes will be cut. But renovation work on two campus buildings will be postponed. The two buildings affected are the Thomas Hunt Morgan Biological Sciences Building and the Chemistry/Physics Building.

The hiring freeze will not apply to the university's hospital.

UK is not the only state institution to feel the pain. State funds for higher education are being reduced by a total of about $34 million.