Mon December 21, 2009
KY's Revised Estimates
By Tony McVeigh
Frankfort, KY – Kentucky's Consensus Forecasting Group meets in Frankfort this afternoon. The panel of economic experts makes predictions on state revenue collections, for the governor and legislative leaders. Chairman Larry Lynch tells Tony McVeigh the economy's showing signs of life, but businesses are still hoarding barrels of cash.
"They're sitting on the sidelines, not putting it to work. What do you think it would take to get them in the game?' Their animal spirits will have to improve! They have to start getting optimistic and then they'll decide that it's better to invest in expansion, rather than just hoard it - you know, stock it up."
The consensus group is already predicting a $161 million state revenue shortfall in the current fiscal year, and a $1.2 billion deficit next biennium. Today, the panel will decide if it wants to adjust those figures before the legislature convenes next month.