Governor Ernie Fletcher’s Communications Office
Governor Fletcher Responds to Higher Revenue Forecasts, Wants to Hear "Voice of the People"
FRANKFORT, Ky. – Governor Ernie Fletcher today announced the findings of the Quarterly Economic and Revenue Report from the Office of State Budget Director. The report states that General Fund revenues for the current fiscal year are coming in ahead of projections and are expected to exceed budgeted levels by the end of the fiscal year by 3.4 percent, or approximately $279 million.
The report, which can be found at www.osbd.ky.gov, is required by law and provides highlights of the government’s receipts in the first quarter of Fiscal Year 2007.
Governor Fletcher stated that he was glad to see that the economy, and therefore revenue is growing beyond original expectations.
“Today’s report is good news on several fronts,” Governor Fletcher said. “The increased revenues enhance the Commonwealth’s overall fiscal position, which is good for our credit rating. It creates an opportunity for us to revisit some issues that we were unable to accomplish last year. And it gives us confidence that our tax modernization program is working to make the tax code fairer, more reliable, and is growing the economy.”
Governor Fletcher indicated that he would spend the next two months getting input and feedback from the public, members of his administration, and the Legislature regarding their priorities and the best use of the funds that may be available.
“I want to hear the voice of the people,” Governor Fletcher said. “I have several priority areas which are important for Kentucky’s future, and will be working toward specific proposals in the coming months. I want to know what public’s priorities are and will be creating a forum to gather that input in the coming weeks.
“I am interested in working with the General Assembly in a collaborative way to address issues of common interest. We need to take advantage of the opportunity provided by this new revenue to address our structural imbalance and determine whether the additional projected revenue is sustainable. I believe we need to save some of the money for our rainy day fund to stabilize our bond rating.
“I am interested in revisiting funding for some capital projects that we could not responsibly fund last spring. I am also interested in working to ensure that tuition cost does not impede low-income students from attending college. And I think we need to focus on options that would help ensure the financial stability of our retirement systems.”