Pointing to strong tax collections, state budget officials say Kentucky will likely avoid another budget shortfall.
Revenues are expected to increase more than three percent in the budget year that ends June 30. The state ended the 2014 budget year $90 million shortfall.
While the revenue picture this year is much brighter, House Speaker Pro Tem Jody Richards of Bowling Green says there are a lot of pent up needs.
"We've not be able to fund public education properly and we certainly haven't been able to fund our universities properly," Richards tells WKU Public Radio. "The retirement systems are very challenging."
Starting in 2017, the state must also start contributing to the cost of expanding Medicaid under the federal health care law.
Despite more revenue, Richards says it will be difficult to balance all the needs as lawmakers form a new two-year budget next session.
