Kentucky's Republican governor has signed an order to close a $152.2 million hole in the state's budget. The fiscal year ended June 30. State officials collected $138.5 million less in taxes than they had projected. A few other things raised the shortfall to $152.2 million, including a budget veto.
Kentucky's constitution requires the state to have a balanced budget. Friday, Gov. Matt Bevin signed an order that cut spending across most state agencies and transferred excess money from various restricted accounts. The order did not dip into the state's reserves.
Bevin said the shortfall highlights the need for lawmakers to overhaul the state's tax code and public pension systems. Bevin has said he will call a special session of the state legislature to address those two issues later this year.