In September, economists with the state's Consensus Forecasting Group cut their projections for annual revenue by 2%, or about $305 million.
We're still calling for a shortfall compared to the enacted budget, but we're $142.9 million better off budget-wise than we were.Greg Harkenrider, Office of the State Budget Director
But following two months of declines, better-than-anticipated totals in November prompted Gov. Andy Beshear to reconvene the group to reassess the state's economic standing for the current fiscal year, ending in 2026.
Juggling state and national financial indicators, members of the group had questions about the value of the new data and noted that consumer sentiment is currently at its lowest level in more than three years.
Given scenarios ranging from pessimistic to optimistic, the group ultimately selected a middle-of-the-road estimate.
Greg Harkenrider with the Office of the State Budget Director said the decision presents a slightly rosier picture.
"We're still calling for a shortfall compared to the enacted budget, but we're $142.9 million better off budget-wise than we were," he said, laying out the implications of the forecaster's new projections.
Gov. Beshear has cited tariffs and the reduction in the state income tax as reasons for the shortfall.