State agency heads were warned two weeks ago by state budget director John Hicks that there was a lot of uncertainty about how much state revenue will fall in the coming months.
Hicks instructed the state agencies to submit plans by last Friday
that would cut their spending by 12.5 percent for the remainder of the fiscal
year which ends June 30th Hicks said all executive
branch agencies will be affected by the cuts.
Also, a freeze on hiring and discretionary spending was put
in place unless they are a necessary response to the COVID-19 pandemic.
Locally, State Senator Max Wise and State Representative Jeff
Hoover both say a special session could very well take place next
month. Kentucky law requires budget modifications if state revenues
drop more than 5% in a given fiscal year.
The state’s consensus forecasting group is scheduled to meet on
May 22nd, according to Wise and Hoover, and if projected revenues
fall below 5% as is anticipated, a special session of the General Assembly is
likely for some time in June.