From Kentucky Public Radio’s Tony McVeigh
With Kentucky’s unemployment rate soaring, citizens’ income and spending have been reduced. The proof is in sagging state sales tax and individual income tax collections.
On June 30th, the state ended fiscal 2009 with a balanced budget, but in July, revenue receipts for the first month of fiscal 2010 were off four percent. Road fund receipts for July were down eight percent.
It’s not a good sign, but there’s still time to recover. General Fund receipts can fall one-point-three percent for the remainder of the fiscal year and still meet the official revenue estimate.
The Consensus Forecasting Group, a panel of economic experts that advises the executive and legislative branches of government, meets Wednesday to begin discussing the estimates for the current fiscal year and planning estimates for the next four fiscal years.
The budget will be the dominant issue when the 2010 General Assembly convenes in January for a 60-day session.