Kentucky's state agencies will cut 1% from their budgets to help avoid a $113 million shortfall.
State Budget Director John Chilton ordered the cuts in a letter sent to state cabinet secretaries last week. The letter is in response to economists' projection that the state will not collect enough money in taxes to cover its expenses by the end of the fiscal year on June 30.
Chilton said in the letter he was discussing with Governor Matt Bevin "about any official actions that should be taken to address the budget shortfall."
Next year could be just as bad. Chilton said cabinet secretaries should plan for more cuts because state economists are now predicting "a similar shortfall" for the 2018 fiscal year.