Fri July 19, 2013
Kentucky Officials Report $70 Million General Fund Surplus
Kentucky officials say the state finished last fiscal year with a $70 million surplus.
Budget director Jane Driskell says the General Fund surplus is the result of slowed spending by government agencies that have been forced to deal with smaller budgets.
Last year, the state cut most agencies by over 8 percent.
Driskell says there was also a small increase in revenue in the amount of $40 million.
But she warns rising costs will continue to be an issue this fiscal year and last year’s budget cuts remain in place. Diskell further says Kentucky’s large pension and Medicaid obligations could be a problem.
Around $45 million surplus dollars will be used to cover necessary government expenses this fiscal year and $25 million will go into the state’s rainy day fund.
The surplus is less than 1 percent of this fiscal-year’s budget.