State Revenue Shortfall Worries Business Sector
Steps are being taken to deal with a 90 million dollar state revenue shortfall. Governor Steve Beshear announced a budget reduction plan Wednesday.
Kentucky Chamber of Commerce President Dave Adkisson says the current situation is proof the state economy is not running at peak performance. He says unlike the jobs lost during the national recession, many newly created jobs are lower wage positions. "One of the fastest growing, matter of fact, the fastest growing occupational category in the last quarter or two has been in the area of temporary employment agency. And I think that shows that companies are being very cautious," said Adkisson.
Adkisson says employers remain unconvinced about the future economy so many are staffing with temporary workers. He says health care reforms still present challenges and new banking regulations raise questions about borrowing for business interests.
Adkisson adds, revenue forecasting economists have a difficult job. But, he says this revenue situation is causing some in the business community to give pause. "What it portends for the future has everyone a little nervous because the next two year budget was built on the assumptions of our current economy. So, we'll start out with some difficulty here," added Adkisson.
During his tenure, Governor Beshear has now implemented 14 separate budget reductions totaling almost one point seven billion dollars.