Kentucky Center for Economic Policy: A State Budget for an Affordable Kentucky: Preview of the 2026–2028 Budget of the Commonwealth

The Kentucky General Assembly will perform its most important job — crafting a two-year state budget that funds education, health, social services and other critical needs. But unlike recent years, when pandemic-era stimulus created robust revenue growth, lawmakers are now facing a serious budget crunch due to the loss of federal funds, a weakening economy and falling revenue because of state income tax cuts.

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