Proposed Budget - Fiscal Year 2023-2024
On January 13, Kentucky Governor Andy Beshear released a proposed budget for fiscal years 2023 and 2024. The budget recommends general fund spending of $15.4 billion in fiscal 2023, an increase of 19.95 percent over fiscal 2022, and $14.7 billion in fiscal 2024, a decrease of 4.7 percent from fiscal 2023. The consensus revenue estimate for the general fund in fiscal 2023 is $14.09 billion, an increase of 2.1 percent over fiscal 2022, and in fiscal 2024 is $14.68 billion, an increase of 4.3 percent over fiscal 2023. Including beginning balances and other adjustments, general fund resources are projected at $15.69 billion in fiscal 2023 and $14.7 billion in fiscal 2024. The largest categories of general fund appropriations are education (39.6 percent), Medicaid (14.9 percent), criminal justice system (11.0 percent), and postsecondary education (9.3 percent). The current balance of the Budget Reserve Trust Fund is a little over $1.5 billion, the largest dollar amount ever and the highest ratio of balance to the enacted fiscal 2022 revenue estimate at 12.5 percent. The proposed budget provides $250 million in a direct appropriation in fiscal 2023, which would bring the balance to $1.76 billion or 12.5 percent of the fiscal 2023 estimated revenues. The budget also notes that recurring spending in both fiscal years is less than recurring revenues, with recurring revenues exceeding recurring spending by 4.5 percent in fiscal 2024.