Kentucky Closes Out Fiscal Year With Surplus
FRANKFORT, Ky. - State Budget Director Jane Driskell announced Friday Kentucky state government will wrap up the 2012-13 fiscal year in the black. Thanks to reigned-in spending by cash-strapped state agencies and a small bump in General Fund revenues, the state will close out the year with a surplus of just over $70M.
In a release from the Governor's office, Driskell warns, however, that last year’s budget cuts will extend into the new fiscal year that began July 1st, which will keep the pressure on agencies to deliver despite rising costs.
State General Fund revenues exceeded analysts’ expectations, increasing by 2.8 percent, or $40M. Meanwhile, lower spending accounted for $30M of the surplus. Gov. Beshear has reserved $45 million of the surplus to cover necessary government expenses for the next fiscal year. The remaining $25.6 million will bolster the state’s rainy day fund.