Newly inaugurated Governor Steve Beshear in his first annual address tonight said that despite what he describes as financially demanding times, raising taxes during his term would be a last resort. Beshear - a Democrat - said the state faces what he called an unprecedented budgetary shortfall - sparked by a downturn in the housing market, rising oil prices and an erosion in spending power. Beshear - the states 61st chief executive - said he would try to solve the states budget problems by tightening the fiscal belt. He vowed to make state government run more efficiently and to cut expenses where ever possible Beshear also pledged to improve the states infrastructure to enable Kentucky to better compete in the global economy. He said Kentucky boasts an abundance of human and other natural resources - in particular energy - that makes it an attractive place to do business. Beshear said his goals include promoting the state on the industry front.