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Gov. Beshear: Budget shortfall no longer predicted this fiscal year

Posted at 11:08 PM, Jul 22, 2020

FRANKFORT, Ky. (LEX 18) — Gov. Andy Beshear says a budget shortfall is no longer predicted this fiscal year, but the state still faces potentially historic budget cuts for the next fiscal year.

A $457 million shortfall had previously been predicted for the current fiscal year, but on Wednesday, Gov. Beshear said thanks to higher than expected tax revenue and cuts made by executive branch cabinets, the state is expected to finish the fiscal year in the black.

No cuts will need to be made to things like education, health or public safety, he said.

However, the state still faces potentially historic budget cuts for the next fiscal year, according to Beshear

"Our fourth quarter general revenues, April through June, have declined by almost 8 percent," he said. "That's the worst fiscal quarter since the great recession."

Gov. Beshear has called on national leaders in congress to either pass additional funding to aid state budgets or allow previously approved CARES Act funding to be used for budget relief.

"Who pays when we don't have the funds we need? It's those that need us the most. At a time when we're trying to get our kids back in school and at a time where we need to be healthier than ever. It's not the time to have cuts in those areas," Gov. Beshear said.