FRANKFORT, Ky. (AP) - Some experts are warning that a recently announced shortfall in revenues raises the risk that spending cuts will be needed to balance the 2014-2016 state budget.
Kentucky Center on Economic Policy Director Jason Bailey told The Courier-Journal that a shortfall in one year "has a kind of a domino effect on the next years." He says revenue would have to increase more than expected and that's unlikely to happen.
Gov. Steven Beshear's administration announced this month that a significant shortfall is expected when the fiscal year ends June 30.
Budget Director Jane Driskell says Beshear has several sources of funding that he could use to balance this year's budget without making cuts. She says the bigger concern is that revenues must increase more than expected for the budget to balance next year.
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