Wed July 27, 2005
Governor Sets Aside Surplus Money
Frankfort, KY – Governor Fletcher plans to set aside nearly half of the state's expected $214 million budget surplus for the rainy day fund to take care of future spending needs.
Fletcher said Wednesday that decisions on what to do with the remaining $124 million will have to wait. But he noted the options mandated by the general assembly are to cover the burgeoning Medicaid deficit, teacher salaries and other elementary and secondary education assistance.
Most of the surplus is due to much higher than expected tax receipts for the fiscal year that ended June 3rd, which were $195 million more than projected.
Budget director Brad Cowgill said he wants to get a better handle on revenue projections for the current fiscal year before making recommendations on spending the surplus.
Fletcher said putting about $90 million more into the budget reserve will bring it up to the maximum now allowed by the legislature.