The Richmond Register

State News

December 20, 2013

Moderate state revenue growth seen next two years

Still won’t keep up with expenses

FRANKFORT — State government will see moderate growth in revenues over the next two years, according to the group of outside economists who develop the projections, but not quite as much as they’d hoped when they last looked at the numbers in October.

The Consensus Forecasting Group – independent economists who advise the General Assembly on expected revenues before each budget cycle – said Thursday it expects the state General Fund to grow by 2.6 percent in each of the next two years.

That works out to about $246.2 million more next year than what is budgeted for the current year, which ends on June 30, 2014, and about $252.3 million more the following year.

That assumes total revenues for the General Fund of $9.79 billion next year and $10.04 billion in fiscal year 2016.

But the growth isn’t expected to keep up with demands, according to the governor’s budget office. Lawmakers have committed to putting at least $100 million new dollars into the employee pension fund while the teachers’ pension fund is looking for $400 million more next year.

On top of that, the current budget was balanced by using some non-recurring funds which will have to be replaced with new money in the next two-year budget. Medicaid costs also are expected to grow.

Lawmakers convene on Jan. 7 for the biennial exercise in crafting a state spending plan for the next two years, and they do so after having cut $1.6 billion from the budget in the past six. That has left public schools, universities and nearly every cabinet, state agency and department asking for more money next year.

Gov. Steve Beshear said earlier this week he wants to boost funding for education which has remained flat for five years.

Some of the revenue growth is attributable to tax changes made in the last session of the legislature rather than economic growth – about $100 million of the new revenue comes from those changes.

Text Only
State News
  • Healthcare signup in state extended

    While the national health exchange established by the Affordable Care Act — known to some as Obamacare — suffered glitches, crashes and delays, the Kentucky-run exchange, Kynect, often was cited as a national model.
    Nevertheless, those in Kentucky who didn’t sign up before the March 31 deadline will have a second chance to enroll.

    April 3, 2014

  • House sends $20.3 million budget to Senate

    It took four hours and it won’t last long in its present form when it reaches the Republican-controlled state Senate, but the House passed a $20.3 billion, two-year budget late Thursday on largely, but not entirely, party lines.

    March 13, 2014

  • Right-to-work bill dies in House panel

    The sponsor of a right-to-work law in Kentucky knew it had no chance of passing a House committee Thursday.

    March 13, 2014

  • Feds deny giving OK to selenium standards

    When lawmakers wrestled last year with new standards for releasing selenium into streams by coal mines and industry, they were assured by state officials the proposals were based on sound science and approved by U.S. Fish and Wildlife Service officials.

    March 7, 2014

  • Senate panel OKs trial use of cannabis oil

    Rita Wooten and her husband Ricky face an excruciating choice: watch their 4-year-old son suffer from repeated seizures — or violate the law in order to help him.

    February 26, 2014

  • Two honored for work with sexually abused

    It’s Erica Brown Myers’ job to help those who have been victimized by sexual abuse. But helping others can take a toll on the helper as well as the victim.

    February 26, 2014

  • Paul asks Senate for help in 2016 quandary

    Republican U.S. Sen. Rand Paul last week asked Republican state senators to try to repeal a Kentucky law that bars anyone from appearing on the same ballot for more than one office.

    February 24, 2014

  • Republican party split on display in Cave City

    Splits in the Kentucky Republican Party were subtly on display here Saturday evening – if you knew what to watch.

    Around 400 gathered at the Cave City Convention Center for the annual Barren County Lincoln Day Dinner but this one was different from past dinners.

    February 24, 2014

  • Comer positioning with gubernatorial politicking

    The roughly 400 Republicans at Saturday night’s Barren County Lincoln Day Dinner here were primarily focused on the U.S. Senate race and Republican hopes to take over the state House of Representatives this fall.

    February 24, 2014

  • Scales of justice.jpg UPDATED: Kentucky must recognize same-sex marriage, judge rules

    A federal judge has ruled Kentucky’s ban on recognizing same-sex marriages performed in other states violates the U.S. Constitution.

    February 12, 2014 1 Photo 1 Story

AP Video
Raw: Greeks Celebrate Easter With "Rocket War" Police Question Captain, Crew on Ferry Disaster Raw: Orthodox Christians Observe Easter Rite Ceremony Marks 19th Anniversary of OKC Bombing Raw: Four French Journalists Freed From Syria Raw: Massive 7.2 Earthquake Rocks Mexico Captain of Sunken SKorean Ferry Arrested Raw: Fire Destroys 3 N.J. Beachfront Homes Raw: Pope Presides Over Good Friday Mass Raw: Space X Launches to Space Station Superheroes Descend on Capitol Mall Man Charged in Kansas City Highway Shootings Obama Awards Navy Football Trophy Anti-semitic Leaflets Posted in Eastern Ukraine Raw: Magnitude-7.2 Earthquake Shakes Mexico City Ceremony at MIT Remembers One of Boston's Finest Raw: Students Hurt in Colo. School Bus Crash Raw: Church Tries for Record With Chalk Jesus Raw: Faithful Celebrate Good Friday Worldwide Deadly Avalanche Sweeps Slopes of Mount Everest
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Poll

Should Richmond rezone the southwest corner of Main Street and Tates Creek Avenue to B-1 (Neighborhood Business) with restrictions to allow construction of a financial services office?

Yes
No
     View Results