Tuesday, December 29, 2009
Kentucky Budget Outlook Gloomy
KENTUCKY....
Governor Steve Beshear says, over the next two years, Kentucky could be facing a budget shortfall of more than $1.5 billion. Beshear sent a letter to legislators Tuesday saying the state is facing a challenge much greater than many anticipated. Estimates have relied on official projections for state revenue over the two-year budget period as compared with current year spending, which is propped up by nearly $800 million in federal stimulus funds, but they failed to take into account an array of rising costs such as debt service and Medicaid obligations. Beshear estimated that, with the obligatory added expenses of paying debt on bonds already issued and Medicaid included, the size of the budget shortfall stands at $556.2 million in 2010-11 and $890.2 million in 2011-12, putting the shortage at $1.446 billion over two years, roughly $400 million more than the official estimate released last week.
Governor Steve Beshear says, over the next two years, Kentucky could be facing a budget shortfall of more than $1.5 billion. Beshear sent a letter to legislators Tuesday saying the state is facing a challenge much greater than many anticipated. Estimates have relied on official projections for state revenue over the two-year budget period as compared with current year spending, which is propped up by nearly $800 million in federal stimulus funds, but they failed to take into account an array of rising costs such as debt service and Medicaid obligations. Beshear estimated that, with the obligatory added expenses of paying debt on bonds already issued and Medicaid included, the size of the budget shortfall stands at $556.2 million in 2010-11 and $890.2 million in 2011-12, putting the shortage at $1.446 billion over two years, roughly $400 million more than the official estimate released last week.
# posted by Homer Owens @ 9:25 PM 
