UPDATE @ 6pm
FRANKFORT, Ky. (AP) - Kentucky lawmakers have given final approval to a plan to erase a $1 billion budget shortfall brought on by the ailing economy.

Both the House and Senate approved a bill on Wednesday that applies some $740 million in federal economic stimulus money to the state budget. The remainder of the shortfall would be handled largely through a 2.6 percent cut to government agencies.

Gov. Steve Beshear is reviewing the bill. Kentucky lawmakers wrapped up the General Assembly's special session on Wednesday.

Leaders in both the House and Senate say the legislature is expected to vote on a plan to balance Kentucky's expected $1 billion budget deficit in the coming fiscal year.

Lawmakers also say they're close to agreements on a plan to offer new economic development tax breaks and to create an agency that would oversee construction of new Ohio River bridges.

he budget plan mirror's Gov. Steve Beshear's proposal to use more than $740 million in federal stimulus money and cuts most government agencies by 2.6 percent.

A plan to allow video gambling machines at Kentucky's race tracks stalled in the Senate budget committee earlier this week.