State’s revenue picture worsens
Gov. Steve Beshear
FRANKFORT – With more bad financial news for the state, Gov. Steve Beshear is asking an independent group of economists to present to him by the end of the month its projections on the state’s dismal revenue picture.
The Consensus Forecasting Group is to meet May 18 and 29 to predict the budget shortfall for the new fiscal year that begins July 1 and revenue receipts for the following two fiscal years , the Beshear administration said Monday.
Beshear’s request was made as state budget director Mary Lassiter reported that the state’s General Fund, which pays for most programs, took in 12.1 percent less last month than in April 2008.
Total revenues for the month were $826.7 million, compared to $940.6 million during April 2008.
Through the first 10 months of this fiscal year, receipts are down 1.6 percent. Through the first nine months of the fiscal year, receipts were flat compared to a year earlier.
Beshear said earlier this month that the shortfall for the next fiscal year could exceed $1 billion.
In a statement Monday, the Democratic governor said “April’s challenging revenues reinforce the need to bring in the independent Consensus Forecasting Group for an official estimate of the shortfall for the coming year. We anticipate an official estimate by the end of May.
Beshear pledged to work with legislative leaders to address the budget shortfall “in a way that is responsible and sensitive to future budgetary challenges in an extremely volatile economy.”
“I am confident that working together we can successfully address our budget shortfall in a way that emphasizes living within our means, while protecting the priorities we share in education, health care and public safety.”
House Speaker Greg Stumbo, D-Prestonsburg, said the latest budget numbers “are no surprise, but they are further proof that the next fiscal year is going to be the toughest one we’ve faced in decades.”
Stumbo added that “now is not the time to raise taxes on Kentucky families. There are other ways to raise revenue. Our goal remains to continue protecting K-12 education and human services from drastic reductions.”
Stumbo has been touting more state revenue by allowing video lottery terminals at the tracks. Senate President David Williams, R-Burkesville, has voiced opposition to higher taxes and expanded gambling, saying the budget shortfall is “manageable” and that Beshear should handle any necessary cuts.
Williams, an attorney, was in a trial Monday and was not immediately available for comment.
Senate budget chairman Charlie Borders, R-Grayson, said no one expected this April’s revenue figures to be as robust as last year’s.
“I believe that we should wait and see what the Consensus Forecasting Group has to say and go from there,” he said.
But Borders said he sees no sentiment to raise taxes and “no sentiment in at least one chamber to base Kentucky’s future on gambling.”
It might be possible, he said, to address any budget shortfall with cuts and federal stimulus dollars.
–Jack Brammer
Filed Under: Featured • State Budget • State Government • Steve Beshear
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Do I hear tax reform?
Maybe David Williams should take Beshear’s lead and take a 10% cut in salary.
Legalize Marijuana and industrial hemp and we can avoid this shortfall. It will also help the Kentucky farmers. Seems simple to me. Prhibition makes criminals rich.
maybe beshear should eliminate the 100 or so 75 plus jobs that unqualified but overpaid (even more than fletcher paid) staff because they are connected like chuck geveden, adam chief of staff boy, and others.
To Chuck:
I agree with you. However, as Governor, Beshear has the privilgege to fill those positions and I am not sure that any governor, Rep or Dem, would give up that privilege. We can complain all day about it, but they will simply say they haven’t filled all the positions, blah, blah, blah.
But the leaders in the Senate and House could set the example and cut some non-merits from their staff too.
Taxpayer Citizens are getting hit by drug charges on a rate faster than the Pig Flu. Legalize Marijuana, and Hemp, and all other drugs; regulate it and tax it. Get this business above ground, in the light of day, instead in the dark underworld that is organized crime, which the Police are a part of.
Cliff Notes..If my friends don’t get casinos we’re all going to die.
Beshear has the privilgege to fill those positions and I am not sure that any governor, Rep or Dem, would give up that privilege. We can complain all day about it, but they will simply say they haven’t filled all the positions, blah, blah, blah.
This post is a winner! Love the tips and everything you suggest. Thanks
what entice you to post an article. This article was extremely interesting, especially since I was searching for thoughts on this subject last Thursday.