Frankfort, KY – The last year of Kentucky's current biennial budget just got underway and it's off to a sluggish start. Gov. Steve Beshear is reacting to July's disappointing state revenue collections. Kentucky Public Radio's Tony McVeigh reports.
On June 30th, the state ended fiscal 2009 with a balanced budget, but tax collections for July, the first month of fiscal 2010, were down four percent. Road fund revenues were off eight percent. Gov. Beshear was not surprised at the declines. "They were expected, but it just re-emphasizes the serious financial situation that our commonwealth and our country is still in. We are far from being out of woods."
State agencies likely will have to trim spending again this year, but the administration is still assessing the situation. The Consensus Forecasting Group, a panel of economic experts that advises lawmakers and the governor, meets today to study the latest economic indicators.