Governor: State budget should balance this fiscal year without further cuts
FRANKFORT, Ky. (WTVQ) – Governor Andy Beshear on Wednesday reported his administration anticipates balancing the current fiscal year 2021 budget with no further cuts to state agencies or to the state’s Road Fund.
The governor based the prediction on the recently released Quarterly Economic and Review Report issued by the Office of the State Budget Director.
To see the report, click here.
Governor Beshear also says he anticipates finishing fiscal year 2021 on June 30, 2021, with more than $460 million in the Budget Reserve Trust Fund, or Rainy Day Fund. If that happens, it would be the highest total in that fund in state history, according to the governor.
The governor says a number of factors helped in balancing the budget, including better-than-expected revenue collections through the first four months, which has been supported by federal COVID-19 relief payments to Kentucky businesses and individuals, as well as the substantial investment in health care spending in response to the pandemic.
The governor says additional flexibility in the use of CARES Act money and an assumption that Kentucky’s economic circumstances will stay aligned with the U.S. economy through June 2021, also contributed to balancing the budget.