Legislative leaders in Frankfort say budget negotiations have broken down, putting a two-year spending plan in jeopardy.
Members of the House and Senate budget conference committee said Thursday they were unable to reach a deal. They have met privately for several days trying to reach a compromise in time for the legislature to approve the deal on Friday.
House Democrats insist they will not allow budget cuts for education. Senate Republicans say the cuts are needed to help pay down the state's more than $30 billion pension debt.
Lawmakers could still pass a budget by April 15.
Democratic House Speaker Greg Stumbo said the only way he would agree to that is if Republican Gov. Matt Bevin pledges not to veto parts of the budget.
During a news conference on Thursday, Bevin played down concerns that the stalemate would last, saying the impasse is part of the negotiations.