For Immediate Release
Tuesday, Oct. 15, 2002
Contact: Terry Sebastian at (502) 564-2611 or Jim Ramsey 564-7300 

Patton asks budget director to convene ‘forecasting group’

FRANKFORT, Ky. -- Governor Paul Patton today asked the State Budget Director to convene the Consensus Forecasting Group to review the revenue estimate that is the basis for the 2003 Spending Plan.  

“Based upon a review and analysis of first quarter receipts, the Consensus Forecasting Group should meet to review the national and state economies and the revenue outlook,” Patton said.   

Governor Patton said the Consensus Forecasting Group will be asked to estimate not only the current fiscal year, FY03, but also the second year of the biennium, FY04, and that he will make a special request to the group to provide “planning estimates” for the next biennium, FY05-FY06. 

“The Consensus Forecasting Group will assess the national and state economies and provide us with an estimate of revenues for this year and next, and provide us planning estimates for the next biennium,” he said. “The Office of State Budget Director will begin the process of identifying the cost of continuing to provide the same government services that we are providing today for the next biennium.” 

Kentucky has experienced a severe national economic slowdown that has resulted in budget cuts in FY01 and FY02, and a revenue shortfall is expected in the current fiscal year, Patton said.  

“We have managed to maintain a balanced budget by implementing process and management efficiencies and through the use of one-time funds. Few programs have experienced significant programmatic cuts, but it will be difficult for us to avoid future program cuts if we experience new revenue shortfalls,” he said. “We have, also, been concerned with the structural imbalance between our recurring revenues and recurring expenditures.  

“Asking the Consensus Forecasting Group to do a long-term planning estimate and the Office of State Budget Director to estimate the continuing cost of operating government at today’s level will allow an assessment of our structural imbalance and provide us with information on how to deal with the continued weakness in the national economy.” 

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