Kentucky reports higher revenues, no budget shortfall expected for 2020 fiscal year

Tax revenues were not as low as anticipated and lottery revenue was up.

FRANKFORT, Ky. — During Governor Andy Beshear’s daily COVID-19 briefing Wednesday, he announced there will be no budget cuts to education, health and public safety. He said does not expect a budget shortfall to close out the 2020 fiscal year.That is an important from the $457 million shortfall expected after a a revised revenue estimate in May.

The tax filing on July 15 turned out better than expected. Revenues were not as low as anticipated and lottery revenue was up. Some cuts to government agencies were also able to help absorb the blow.

While the budget is looking up, the governor said the biggest threat to the budget is COVID-19. He warned that unless masks are worn to prevent the spread, the economy could see new shutdowns.

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There are concerns moving forward in the 2021 fiscal year which began July 1. The governor said the shortfall is expected to be $1.1 billion, and Kentucky could face some of the largest budget cuts in state history.

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