Citing a continuing slump in state revenue collections and uncertain months ahead, Governor Henry and legislative leaders today warned state agency heads that their monthly revenue allocations would continue to be cut by five percent for the remainder of the fiscal year.
The governor, House Speaker Chris Benge and Senate President Pro Tempore Glenn Coffee had hoped to see improvement in September revenues, a historically strong collection period, but when the data was reported in October, totals again fell short of the monthly allocation and estimate.
Because of that news and continued concern about the months to come, the governor and legislative leaders said the five-percent reductions will have to continue.
“With no immediate signs of revenue improvement on the horizon, we think it is best to inform agencies that the five-percent cut will continue so they can plan their budgets accordingly,” said Henry. “When the regular legislative session convenes in February, we will have a better picture of the overall revenue outlook and more tools available to address the shortfall. We know the cuts will cause additional hardship for agencies and programs, but given the short-term fiscal outlook, there are no good options available.”
Mike McCarville runs The McCarville Report Online here