A nonprofit publication of the Kentucky Center for Public Service Journalism

Forecasting group predicts $456M budget shortfall for state, due to COVID but also delayed tax filings

By Tom Latek Kentucky Today The Consensus Forecasting Group has painted a bleak outlook for state revenue during the remainder of the 2020 Fiscal Year that ends June 30, but not quite as bad as predicted earlier this spring. 
The group, which is made up mostly of economists from the state’s universities, met via teleconference last week in Frankfort and predicted general fund revenue would total...

KLC estimates a collective budget shortfall of $85 million for Kentucky’s cities due to coronavirus

Kentucky cities are facing an estimated collective budget shortfall of $85 million in Fiscal Year 2020 as a result of lost tax, utility, and other revenues due to COVID-19. A Kentucky League of Cities (KLC) study conducted last week shows many municipalities will be forced to take drastic action to make up the deficit if Congress does not act to provide direct financial assistance to local governments...

Kentucky facing budget shortfall of nearly $500 million due to conditions caused by pandemic

By Tom Latek Kentucky Today A report issued Thursday by the state budget director’s office shows a potential general fund revenue shortfall of $318.7 to $495.7 million for the 2020 fiscal year that ends June 30, due to conditions caused by the coronavirus. In the Quarterly Economic and Revenue Report for the third quarter of fiscal year 2020, state Budget Director John Hicks said, “The revenue...

Economists’ panel says state will face a budget shortfall of $155 million, less than originally forecast

By Tom Latek Kentucky Today Kentucky taxpayers are looking at a shortfall of more than $155 million after a panel of state economists revised the state’s official revenue forecast Friday. The panel predicted a smaller deficit because Kentucky collected more tax money than it had expected in the past three months. In August, the Consensus Forecasting Group issued a preliminary estimate predicting...

Bevin asks state agencies for 17 percent budget cuts to cover anticipated $200 million shortfall

By Tom Latek Kentucky Today Gov. Matt Bevin on Friday asked most state agencies to cut their budgets by 17 percent in anticipation of the ongoing budget crisis. John Chilton, Bevin’s budget director, sent a letter to all Constitutional officers, cabinet secretaries and the heads of the legislative and judicial branches on Friday. The cuts are necessary to deal with a $200 million shortfall projected...

Gov. Bevin signs order closing $152 million budget shortfall, ‘conservative spending plans’ necessary

By Tom Latek Kentucky Today Gov. Matt Bevin has taken steps to eliminate a $152 million shortfall, an action necessitated by a constitutional requirement that Kentucky never finish a fiscal year without the budget being balanced. “This year’s budget shortfall validates the need for conservative spending plans and it dramatically underscores the critical need for fixing Kentucky’s broken...

Bevin ‘planning for every scenario’ with projected budget deficit of up to $133 million looming

By Tom Latek Kentucky Today FRANKFORT – Gov. Matt Bevin said Thursday he is planning for every scenario when it comes to a possible state budget deficit for the fiscal year that ends on June 30. Budget Director John Hilton is currently projecting a $133 million shortfall that he blames on lower-than-expected income tax and sales tax collections. “Sadly, this is what I inherited,” Bevin said....