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Beshear set to unveil new budget reduction plan as shortfall revised

Kentucky Governor Andy Beshear talks about the gains in the economic growth f the state during the past year in Frankfort, Ky., Wednesday, Dec. 18, 2024. (AP Photo/Timothy D. Easley)
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Kentucky Governor Andy Beshear talks about the gains in the economic growth f the state during the past year in Frankfort, Ky., Wednesday, Dec. 18, 2024. (AP Photo/Timothy D. Easley)

New revenue forecasts suggest Kentucky may not be dealing with as large of a shortfall as initially thought. State leaders are responding differently to the news.

Kentucky was staring down a $305 million revenue shortfall, according to September projections from the state's Consensus Forecasting Group. But with a boost in collections in November, Gov. Andy Beshear had the team take a second look at the numbers.

The latest revision puts the expected shortfall at roughly half as much, or around $156 million.

Beshear said the projection still requires a budget reduction, by Kentucky law, and he plans to roll out the details of his new plan during his regular Thursday briefing.

In the meantime, Senate Budget Committee chair Sen. Chris McDonald, a Republican, released a statement saying the new projections show a forecast that's "far less severe" than the picture originally painted by the governor — one he described as "extremely pessimistic."

McDaniel said the latest projection is more "measured and realistic" and lawmakers will be reviewing the data as they prepare for next year's budget session.