As the fiscal year comes to a close, Kentucky Governor Steve Beshear says it’s too soon to say if spending cuts will be needed to balance the state budget.
State officials predicted earlier this month a shortfall “significantly larger” than the $28 million projected in April. Beshear told WKU Public Radio that one area in particular is contributing to the shortfall.
"The income tax is not coming in as high as projected. We're looking at that to see if there's any particular reasons to address in the future, but we won't know a lot of that for another few weeks," said Beshear.
The income tax, which is Kentucky’s largest source of revenue, has grown by one-half percent this year. State officials expected it to grow by 2.4 percent.
Tapping into the state’s rainy day fund, which currently has about $100 million, is one option under consideration for balancing the budget.