Gov. Matt Bevin is ordering most state agencies to cut their budgets by 1.3 percent.
On Thursday, Bevin ordered a spending cut of $158 million following a prediction by economists that the state will face a $156 million shortfall in the 2018 fiscal year — Earlier this month, the Consensus Forecasting Group revised the estimate of tax receipts this fiscal year and projected that General Fund revenues will be $156 million less than previously budgeted.
The 1.3 percent cut for the current fiscal year will not apply to certain agencies, including K-12 education along with Kentucky and teacher retirement systems.
State Budget Director John Chilton warns that there could be cuts to education spending next fiscal year unless new revenue is found. Chilton’s office said protecting spending on programs such as public education and corrections will be difficult in the next budget with additional expenses expected, such as pension funding and Medicaid.
The current fiscal year ends on June 30.
(Information from The Associated Press and WYMT.com was used in this article.)
By Ken Howlett, News Director
Contact Ken at ken@k105.com or 270-259-6000
