How Kentucky’s budget shortfall compares to other states

Gov. Steve Beshear‘s plan for closing Kentucky’s $456.1 million budget gap this fiscal year comes as other states grapple with similar outfall from the slumping economy and lagging tax revenues. header_logo

According to Pamela Prah with Stateline.org, states are looking to close combined budget gaps of $97 billion over the next two years. 

From Prah’s article – 

Arizona is expecting a budget gap in 2010 that will exceed 24 percent of its general fund budget. Other states expecting huge budget holes include: New York (20 percent), California (18 percent), Wisconsin (17.2 percent), Minnesota (14.7) and Kansas (14.5 percent), according to the (National Conference of State Legislatures) report.
 
“This is bad,” said Sujit CanagaRetna, senior fiscal analyst for the Council of State Governments. “2001 is going to look like a walk in the park compared to this,” he said, referring to the national recession earlier this decade that forced states to close $264 billion in budget gaps over five years

Prah’s article is based in part on a report issued last week by the National Conference of State Legislatures that found states have already taken steps to close $40 billion in budget gaps so far this fiscal year.

For a closer look at what Kentucky and other states are dealing with, visit an interactive map developed by the Conference that looks at how a state’s expected budget shortfall relates to its entire budget and how tax revenues are faring. 

According to the Conference, Kentucky’s shortfall amounts to 5.1 percent of its total budget for the current fiscal year, and with collections in three main tax categories – sales, personal income and corporate income – coming in lower than expected.

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