A half-billion-dollar shortfall in the state budget could dash hopes for state money for Northern Kentucky projects awaiting General Assembly funding.

        Gov. Paul Patton is floating lawmakers a notion rare in Kentucky: that no money be spent on construction projects next year. Mr. Patton, a Democrat, contends that with a $533 million revenue shortfall in the General Fund, the state can't afford to spend on new projects.

        But even with the state in financial straits, Northern Kentucky lawmakers and local officials remain optimistic that at least some money, possibly through new debt, will be available for projects when the General Assembly convenes in early January.

        House Majority Caucus Chairman Jim Callahan, D-Wilder, said he and Rep. Jon Draud, R-Crestview Hills, will continue to push for money to build a $45 million, 6,500-seat arena at Northern Kentucky University.

        Mr. Callahan, a member of the House budget committee and a strong Patton ally, said if bonds are sold to pay for the project the legislature would have to come up with only 10 percent of the cost initially.

        Lowering the cost further would be the fees from corporate naming rights for the arena, which Mr. Callahan thinks could fetch as much as $4.5 million.

        “Obviously at this point, the revenue picture does not look good,” Mr. Callahan said Thursday. “But I still have hopes that we'll get something because we have the only university in the state that does not have an arena.”

        The city of Covington is also looking for bond money for the infrastructure and other startup costs for Riverfront West, a $300 million office, retail, residential and park space project the city wants to build along the Ohio riverfront.

        “We're not asking for cash, which is one pot of money,” said Covington Assistant City Manager Tom Steidel. “We're looking to raise money through the sale of bonds.”

        The city could ask for $5 million or more, depending on whether any office tenants sign on by the time the legislature decides on funding. That probably won't happen until the state budget is passed late in the session.

        Less optimistic are backers of a proposed $6 million museum at Big Bone Lick State Park in Boone County. The state has previously allocated $1 million for the project.

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