Facing the COVID recession, Beshear must cut $618 million in state spending by June 30 [View all]

Gov. Andy Beshear must slash $457 million from Kentucky’s General Fund and $161 million from its Road Fund for the current fiscal year that ends June 30, a panel of economists said Friday.

The Consensus Forecasting Group said the state’s economy has been wrecked by the COVID-19 pandemic and shutdown of most businesses. With income, corporate, sales and gas tax collection falling, state government faces lean times in the immediate future.

The roughly $11 billion General Fund pays for most state services, including education, health care, environmental protection and public safety. The Consensus Forecasting Group initially considered a plan calling for $377 million in General Fund losses but rejected that because it wasn’t pessimistic enough given current economic conditions.

The General Assembly will need to return to Frankfort for “a short, targeted special session” to help write a budget reduction plan for the Road Fund, Beshear told reporters Friday evening. He did not give a specific time frame.

Read more: https://www.kentucky.com/news/politics-government/article242938091.html