Forecast: Kentucky Revenues Plummeting

From Kentucky Public Radio’s Tony McVeigh

More bad economic news out of Frankfort, as a panel of economic experts revises downward, the revenue estimates on which Kentucky’s budget is based.

The Consensus Forecasting Group believes the state could be facing a $456 million deficit this fiscal year, which is worse than the $294 million predicted by Governor Beshear. Lawrence Lynch chairs the forecasting group.

“Consumer confidence declining. Retail sales declining. Unemployment rising. New claims for unemployment insurance rising. I mean, none of the news has been good.”

Governor Beshear is considering calling a special session in early January to address the projected shortfall, but is meeting some resistance from Senate President David Williams.

Williams tells Kentucky Public Radio he understands the seriousness of the situation, and agrees it must be addressed, but he’s not sure it will require a special session.