Post by Bonnie on Jul 16, 2014 16:59:48 GMT -5
Beshear snatches surplus money and taps 'rainy day' fund to deal with $90.9 million shortfall
BY JACK BRAMMER
jbrammer@herald-leader.comJuly 16, 2014 Updated 23 minutes ago
Beshear snatches surplus money and taps 'rainy day' fund to deal with $90.9 million shortfall 23 minutes ago
FRANKFORT — Gov. Steve Beshear took steps Wednesday to deal with a $90.9 million budget shortfall in the fiscal year that ended June 30.
In his budget reduction order, Beshear snatched surpluses and unspent money from a variety of state agencies and transferred $21.2 million from the state's $98.2 million "rainy day" fund, which is set aside for emergencies.
Beshear, who now has managed 14 budget shortfalls totaling nearly $1.7 billion since he took office in 2007, did not raid "carry forward" funds that are budgeted for spending in fiscal year 2015, which began July 1.
"We were somewhat limited in our approach to fill this budget hole given it occurred at the end of the 2014 fiscal year," Beshear said in a news release. "But as in previous reductions, two goals guided our decisions — to take steps to make government as efficient and as lean as possible, and to protect as best we can the core services that offer help and hope to our people and represent important long-term investments in Kentucky's future: education, health care and public safety."
The Kentucky Constitutional requires a balanced budget at the end of each fiscal year.
The state budget office announced the $90.9 million shortfall last week after General Fund revenue for fiscal year 2014 came in 1 percent less than official revenue estimates. The General Fund pays for most state programs.
To deal with the shortfall, Beshear's order transfers $50 million from various state agency funds that produced more revenue than budgeted.
"The use of fund transfers is a valuable tool in how we manage and balance the overall budget of the commonwealth, and one that keeps us from making deeper cuts to state agencies," Beshear said.
He noted a recent ruling by the Kentucky Supreme Court that upheld the constitutionality of taking money from funds that produce revenue for specific purposes, such as fixing leaky underground gas tanks or operating the state's health benefits exchange.
Another $15 million will come from unspent General Fund appropriations, he said.
Beshear also reduced General Fund appropriations for the operating budgets of several executive branch agencies, including constitutional offices such as the attorney general and secretary of state.
Additionally, $1.5 million will come from reductions in the judicial branch budget and $287,600 will come from cuts in the legislative branch.
Beshear also signed a budget reduction order for the Road Fund to fill a $22.2 million shortfall.
"No budgeted road projects will be negatively impacted by this necessary balancing action," Beshear said.
The two budget reduction documents can be viewed at www.osbd.ky.gov.
Read more here: www.kentucky.com/2014/07/16/3339300/beshear-snatches-surplus-money.html?sp=%2F99%2F322%2F&ihp=1#storylink=cpy
BY JACK BRAMMER
jbrammer@herald-leader.comJuly 16, 2014 Updated 23 minutes ago
Beshear snatches surplus money and taps 'rainy day' fund to deal with $90.9 million shortfall 23 minutes ago
FRANKFORT — Gov. Steve Beshear took steps Wednesday to deal with a $90.9 million budget shortfall in the fiscal year that ended June 30.
In his budget reduction order, Beshear snatched surpluses and unspent money from a variety of state agencies and transferred $21.2 million from the state's $98.2 million "rainy day" fund, which is set aside for emergencies.
Beshear, who now has managed 14 budget shortfalls totaling nearly $1.7 billion since he took office in 2007, did not raid "carry forward" funds that are budgeted for spending in fiscal year 2015, which began July 1.
"We were somewhat limited in our approach to fill this budget hole given it occurred at the end of the 2014 fiscal year," Beshear said in a news release. "But as in previous reductions, two goals guided our decisions — to take steps to make government as efficient and as lean as possible, and to protect as best we can the core services that offer help and hope to our people and represent important long-term investments in Kentucky's future: education, health care and public safety."
The Kentucky Constitutional requires a balanced budget at the end of each fiscal year.
The state budget office announced the $90.9 million shortfall last week after General Fund revenue for fiscal year 2014 came in 1 percent less than official revenue estimates. The General Fund pays for most state programs.
To deal with the shortfall, Beshear's order transfers $50 million from various state agency funds that produced more revenue than budgeted.
"The use of fund transfers is a valuable tool in how we manage and balance the overall budget of the commonwealth, and one that keeps us from making deeper cuts to state agencies," Beshear said.
He noted a recent ruling by the Kentucky Supreme Court that upheld the constitutionality of taking money from funds that produce revenue for specific purposes, such as fixing leaky underground gas tanks or operating the state's health benefits exchange.
Another $15 million will come from unspent General Fund appropriations, he said.
Beshear also reduced General Fund appropriations for the operating budgets of several executive branch agencies, including constitutional offices such as the attorney general and secretary of state.
Additionally, $1.5 million will come from reductions in the judicial branch budget and $287,600 will come from cuts in the legislative branch.
Beshear also signed a budget reduction order for the Road Fund to fill a $22.2 million shortfall.
"No budgeted road projects will be negatively impacted by this necessary balancing action," Beshear said.
The two budget reduction documents can be viewed at www.osbd.ky.gov.
Read more here: www.kentucky.com/2014/07/16/3339300/beshear-snatches-surplus-money.html?sp=%2F99%2F322%2F&ihp=1#storylink=cpy