Sunday, November 02, 2008
Kentucky Expected To Have Nearly $ 300 Million Shortfall for Current Fiscal Year.
Against the backdrop of a projected shortfall of nearly $300 million this budget year, Gov. Steve Beshear today said he would develop a plan over the next several weeks to create a “leaner, stronger and more focused” government to “survive this economic crisis.”
Beshear told reporters this afternoon that internal economic estimates project a revenue shortfall of nearly $294 million in the General Fund in the fiscal year that ends June 30, 2009. That shortfall represents 3.3 percent of expected budget revenues. Revenues for the state Road Fund are projected to be nearly $71 million less than expected, a 5.3 percent shortfall.
“This is a serious shortfall,” Gov. Beshear said, “and it will require action. But, considering the extreme volatility of our economy, that action must be neither rushed nor rash. We are going to act decisively, but in a measured and strategic way.”
To that end, Gov. Beshear outlined a three-point action plan that his administration will undertake over the next several weeks, including:
Asking the Consensus Forecasting Group to formalize the revenue projections for the current fiscal year, which ends June 30, 2009.
After the forecasting group finalizes projections, formulating a plan to address the shortfall, which will include spending cuts and may include revenue measures.
Meeting with Kentuckians, interest groups and legislators across the state to discuss the depths of the financial problem and his plan to address it.
“Families across Kentucky are making their budgets as lean as possible,” Gov. Beshear said. “They are eating in instead of eating out, lowering the thermostat, combining trips to save fuel and even putting off visits to the doctor.
“In state government, we must do likewise. We must intensify efforts to find cost-efficiencies in state spending,” a hallmark of the Beshear administration since taking office last December.
Those efficiency measures already enacted include an executive branch that is the smallest in 20 years. There are 4,000 fewer full-time executive branch employees than five years ago and almost 2,000 fewer than last December. In fact, Gov. Beshear said that, as of last month, his administration had more than 460 fewer non-merit employees than his predecessor.
In addition, most state agencies reduced spending by 3 percent in the last fiscal year and many faced additional cuts this year, including up to 12 percent in initial reductions and an additional 4.5 percent required to meet legislative mandates.
Gov. Beshear said today that further spending cuts are inevitable, and he told cabinet secretaries today in a special meeting to begin preparing for that likelihood.
“I believe, together, we can emerge from this tumultuous time stronger,” Gov. Beshear said. “We can create a state government that is leaner, more flexible, more nimble and more focused on critical services. This will require bold, steady leadership and a cooperative, bi-partisan effort.
“My message to Kentuckians is this: Like you, state government faces some severe economic challenges. And like you, we are going to meet these challenges head on – with steady, strategic decisions, with boldness and with full intention of fulfilling our obligations to you. Together, we can – and we will – get through this.”
Beshear told reporters this afternoon that internal economic estimates project a revenue shortfall of nearly $294 million in the General Fund in the fiscal year that ends June 30, 2009. That shortfall represents 3.3 percent of expected budget revenues. Revenues for the state Road Fund are projected to be nearly $71 million less than expected, a 5.3 percent shortfall.
“This is a serious shortfall,” Gov. Beshear said, “and it will require action. But, considering the extreme volatility of our economy, that action must be neither rushed nor rash. We are going to act decisively, but in a measured and strategic way.”
To that end, Gov. Beshear outlined a three-point action plan that his administration will undertake over the next several weeks, including:
Asking the Consensus Forecasting Group to formalize the revenue projections for the current fiscal year, which ends June 30, 2009.
After the forecasting group finalizes projections, formulating a plan to address the shortfall, which will include spending cuts and may include revenue measures.
Meeting with Kentuckians, interest groups and legislators across the state to discuss the depths of the financial problem and his plan to address it.
“Families across Kentucky are making their budgets as lean as possible,” Gov. Beshear said. “They are eating in instead of eating out, lowering the thermostat, combining trips to save fuel and even putting off visits to the doctor.
“In state government, we must do likewise. We must intensify efforts to find cost-efficiencies in state spending,” a hallmark of the Beshear administration since taking office last December.
Those efficiency measures already enacted include an executive branch that is the smallest in 20 years. There are 4,000 fewer full-time executive branch employees than five years ago and almost 2,000 fewer than last December. In fact, Gov. Beshear said that, as of last month, his administration had more than 460 fewer non-merit employees than his predecessor.
In addition, most state agencies reduced spending by 3 percent in the last fiscal year and many faced additional cuts this year, including up to 12 percent in initial reductions and an additional 4.5 percent required to meet legislative mandates.
Gov. Beshear said today that further spending cuts are inevitable, and he told cabinet secretaries today in a special meeting to begin preparing for that likelihood.
“I believe, together, we can emerge from this tumultuous time stronger,” Gov. Beshear said. “We can create a state government that is leaner, more flexible, more nimble and more focused on critical services. This will require bold, steady leadership and a cooperative, bi-partisan effort.
“My message to Kentuckians is this: Like you, state government faces some severe economic challenges. And like you, we are going to meet these challenges head on – with steady, strategic decisions, with boldness and with full intention of fulfilling our obligations to you. Together, we can – and we will – get through this.”
# posted by Joe Kinzer @ 7:21 AM 
