Economists predict $155 million deficit for Kentucky

Economists predict $155 million deficit for Kentucky
Posted at 12:44 PM, Oct 13, 2017
and last updated 2017-10-13 12:44:12-04

FRANKFORT, Ky. (AP) — Kentucky taxpayers can expect a shortfall of more than $155 million after a panel of state economists have revised the state’s official revenue forecast.

In August, the Consensus Forecasting Group issued a preliminary estimate predicting a shortfall of $206.2 million. Republican Gov. Matt Bevin responded by asking for budget cuts of 17.4 percent from most state agencies. The cuts would cover the deficit and replenish the state’s savings account.

The governor can’t order budget cuts unless the official revenue estimate is changed. State economists were expected to do that in December. But the Bevin administration asked the panel to revise the estimate now so they could get an early start on cuts.

The panel predicted a smaller deficit because Kentucky collected more tax money than it had expected in the past three months.