Kentucky Governor Steve Beshear says tougher times are ahead for the state’s fiscal health.
Beshear spoke Thursday to the Rotary Club of Louisville, and said his administration has had to cut $600-million from the state’s budget in a year and a half because of the recession and even though they’ve re-vamped the budget a few times to take falling tax revenues into account, it still isn’t balanced.
“That imbalance will require some tough choices,” says Beshear. “Choices about revenue and spending. Choices about programs and services. And those choices aren’t going to be easy.”
And while there are signs the economy is recovering, Beshear says it’ll be still longer before employment picks up and tax revenues increase.
While the state continues to look for ways to cut spending, Beshear says there aren’t many options.
“Our reserve funds are basically gone,” says Beshear. “We have used those in working our way through this recession.”
Beshear says the General Assembly will have to pass another two-year budget in its upcoming session at the beginning of next year, and spending will have to be cut further still.