Kentucky Governor Steve Beshear has announced that he will infuse the state’s rainy day fund with $82.5 million, raising the fund’s balance to $209.4 million, the highest it’s been since 2008.
The cash comes from $165.4 million in excess revenue generated in the last fiscal year. The rest of the surplus went to pay necessary government expenses like corrections, fire suppression and disasters.
Beshear applauded the state for increasing revenues “the old fashioned way” by growing the economy instead of raising taxes.
“Finishing this fiscal year with a significant surplus better positions our next governor to build on our successes in energizing our economy and improving life for our families for generations to come," Beshear stated in a news conference Tuesday.
Despite the state’s progress, Kentucky is still in the midst of a pension crisis in which the main retirement fund for state workers, Kentucky Retirement Systems, only has 22 percent of the money it needs to make future payments, and the teacher pension system is 54 percent unfunded.
