Economists Project $219 Million Budget Surplus In Kentucky, But Road Fund In Trouble
State economists have predicted a $219.2 million surplus for the budget year that ends June 30. The Consensus Forecasting Group made the adjustment after looking at strong trends in individual income and sales tax collections, estimating Kentucky's general fund tax collections will grow by 3.2 percent. But they were less optimistic going forward, projecting growth rates of 2.7 percent and 2.8 percent for the following two fiscal years.
The road fund, meanwhile, is expected to come up $129.3 million short this year, a decrease of 6.4 percent from the previous year. However, the fund should rebound in 2017 with a 3.1 percent growth followed by a 4.1 percent growth in 2018.
All of these numbers are preliminary estimates. The group plans to issue its final budget forecast in December.