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Kentucky forecasts $305M budget shortfall due to lower taxes and tariff uncertainty, but no service cuts expected.
Kentucky economists reduced the state's revenue forecast by 2%, creating a $305 million shortfall for the fiscal year starting July 1, due to lower tax receipts and uncertainty over federal tariffs.
The Consensus Forecasting Group made the adjustment after a meeting at the Capitol Annex.
Despite the shortfall, state officials say services will not be cut, as the "rainy day" fund is projected to hold about $3.7 billion by year-end, ensuring budget stability.
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Kentucky pronostica un déficit presupuestario de $305M debido a impuestos más bajos e incertidumbre arancelaria, pero no se esperan recortes de servicios.