Revenues up in April, but likely not enough to avert deficit
FRANKFORT, Ky. (AP) – A modest growth in Kentucky’s April tax collections likely won’t be enough to stop a predicted $113.2 million shortfall when the budget year ends June 30.
State officials announced tax collections grew 1.7 percent in April compared with last year. It’s the seventh time tax collections have grown during the first 10 months of the fiscal year.
But state economists had expected the state would have more money by now. The legislature based the state’s spending plan on that prediction.
Tax collections will have to grow by nearly 10 percent over the next two months to avoid a shortfall.
If there is a shortfall, Republican Gov. Matt Bevin could order budget cuts or use money from the state’s reserve fund to make up the difference.
Copyright 2017 The Associated Press.