FRANKFORT, KY (AP) — Kentucky Gov. Andy Beshear says the state appears to have avoided a budget shortfall in the recently ended fiscal year. But he said Wednesday the outlook remains dire for the next year without another infusion of federal assistance.
The state faced a projected budget shortfall exceeding $450 million for the fiscal year that ended June 30 as the COVID-19 outbreak damaged the economy.
But spending cuts by state agencies, combined with stronger-than-expected revenue collections, solidified the state’s financial situation.
When the books are closed on the just-ended fiscal year, Beshear predicted it will show a surplus.