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May 11, 2009

The Original Budget and Adjustments

OK, probably overkill on background, but we have written

A Short Summary of the 2008 Budget
The 2008 Surplus and Spending the Reserves
The Prediction of the $456 Million Shortfall
Governor Beshear's and the Legislature's Responses to the $456 Million Shortfall
and
2009 Revenues through the First Three Quarters

Here are the numbers from the original budget again:

Revenues
2008	2009	2010
$8.633	$8.824	$9.096
(in billions)

Reserves
2008	2009	2010
$289	$236	$225
(in millions)

Total Resources
2008	2009	2010
$9.793	$9.604	$9.653
(in billions)

Executive Branch Appropriations
2008	2009	2010
$9.131	$9.012	$9.267
(in billions)

Total Appropriations
2008	2009	2010
$9.458	$9.331	$9.619
(in billions)

Reserves and Carryover
2008	2009	2010
$335	$273	$34
(in millions)

Here are the adjustments we have noted since then:

• 2008 ended with a $22.7 million surplus, half of which was spent and half of which ($11.3 million) was applied to the reserves

• The Consensus Forecasting Group reduced revenue expectations by $394 million

• Governor Beshear called the $394 million reduction in revenues a $456 million shortfall, suggesting he planned to spend an additional $50 million above the baseline in the 2008 budget.

• Governor Beshear promised and claims to have made $147 million in cuts.

• If Governor Beshear really did increase his baseline spending from the 2008 budget by $50 million, then his $147 million in cuts are actually only a $97 million reduction.

• The General Assembly passed tax increases which are estimated to bring in $56 million for FY 2009

• The General Assembly provided an additional $250 million in spending flexibility for Governor Beshear for FY 2009, but using any of that authority would create a deficit for 2010.

• Revenues for the first three quarters of FY 2009 have matched pace with FY 2008, meaning revenues would exceed the CFG estimate by $234 million.

Now let's look ahead...

Posted by Andy Hightower on May 11, 2009 5:23 PM | Permalink | E-mail this page

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