Stumbo: Kentucky Revenue Could Fall Nearly $1 Billion Short of What is Needed in 2015

Dec 23, 2013

Kentucky House Speaker Greg Stumbo
Kentucky House Speaker Greg Stumbo
Credit Kentucky LRC

Kentucky’s budget priorities for 2015 could require nearly $1 billion in revenue that the  state doesn’t have.

House Speaker Greg Stumbo told a group of business leaders earlier this month that the cost of  funding priority issues like education, public employee raises and more could total an estimated $800 million.

“It would probably be more of a number like $700 to $800 million--and some would argue larger than that. It just depends upon how big a bite of the apple you want to take, but I don’t think we can do that.”

Stumbo says the recession is the driving force behind the shortfall, and Kentucky’s economic growth rate will return to pre-recession levels in about two to three years in the absence of tax reform.

Gov. Steve Beshear will submit his budget proposal to the General Assembly next month.