Gov. Andy Beshear told reporters Thursday that his budget director will be convening a group in mid-September to take another look at both the state's general fund and road fund — and he expects the projections won't be quite as rosy.
"First, federal tariffs and the uncertainty surrounding these tariffs are directly impacting our spending and our economic activity," he reported. "Second, the cut to the income tax rate is going to cost the commonwealth $359 million dollars for this fiscal year."
That reduction in the income tax was one that Beshear supported, along with the caveat that future decreases could cause budget problems for the state. Republican leaders have said they hope to eventually eliminate the income tax altogether.
The revised revenue projections will arrive ahead of an upcoming budget session starting in January.