Associated Press

Governor Mitch Daniels has built a national image as a fiscal manager with an eye for detail, but two massive accounting errors that have tilted Indiana's books by more than half-a-billion dollars threaten to tarnish that reputation as the Republican governor prepares to leave office.

A University of Kentucky student from Elizabethtown has been charged with arson, after an overturned car caught fire last week. Authorities say the vehicle was set ablaze in the wake of the Wildcat basketball team's victory over Louisville.

The Associated Press is reporting that Rockcastle County voters have rejected  a packaged liquore proposal, by nearly a 2 to 1 margin. According to WYMT-TV in Hazard, the issue drew a strong voter turnout.

Tobacco companies will be required to report the levels of dangerous chemicals found in chew, cigarettes, and other products under the latest rules designed to tighten regulation of the tobacco industry.  The Associated Press reports that preliminary guidance issued by the Food and Drug Administration marks the first time tobacco firms will be required to report quantities of 20 chemicals associated with lung disease, cancer, and other health problems. 

The Kentucky Senate has approved a two year, $19 billion state budget that includes sharp cuts to most goverment programs and agencies. The plan was approved this afternoon, by a vote of 36 to 1 and will now go the the House of Representatives for consideration.