By Tom Loftus

Kentucky Lantern

State government general revenues will fall $305 million short of hitting budgeted expectations in the fiscal year that began July 1, according to a forecast made Tuesday by the group of economists charged with making state government revenue forecasts.

During a nearly four-hour meeting at the Capitol Annex, the Consensus Forecasting Group agreed on a new projection. The adjustment reduces by about 2% projected annual revenue of more than $15 billion in the state’s 2025-26 budget.

Kentucky’s budget situation is such that a $305 million shortfall presents no cause for alarming spending cuts. (The state’s so-called “rainy day” fund which exists to cover revenue downturns, is expected to have a balance of about $3.7 billion at the end of this fiscal year.)

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