state budget


Kentucky collected less tax money in May, but the decrease was likely not enough to endanger the state's budget projections.

Kentucky's chief budget officer said the state is more likely to avoid a shortfall after solid growth in tax collections through the first six months of the fiscal year.

State officials say Kentucky's 2015 budget is off to a good start.

The state collected more than $705 million in taxes and fees in July. That's 2.2 percent more than the state collected in July 2013.

Pablo Alcala / Lexington Herald Leader

Democratic Gov. Steve Beshear has signed an order to plug a $91 million hole in Kentucky's $9.5 billion state budget.

State officials announced the shortfall last week following sluggish collections on state income taxes. Beshear's order Wednesday cuts just $3 million in state spending. Beshear made up the rest by transferring money from other sources, including $21.2 million from the state's reserves.

State officials said they had few options to make up the deficit because the shortfall came at the end of the fiscal year when most of the money had already been spent.