FRANKFORT, Ky. (AP) – Kentucky taxpayers could face a budget shortfall of more than $200 million.
State economists issued their first planning estimates for the current fiscal year on Friday. The Consensus Forecasting Group chose the most pessimistic of the three options they were presented, citing the partisan rancor in Congress as making it difficult to predict federal tax policy.
The official estimate calls for the state to collect roughly $10.8 billion in taxes for the fiscal year that ends June 30, 2018. However, economists signaled Friday they expect the state to collect about $10.6 billion in taxes. The official estimate won’t be finalized until December.
Kentucky finished the most recent fiscal year with a $138 million shortfall. Republican Gov. Matt Bevin has called for an overhaul of the state’s tax code.
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