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Channel: KCEP | Kentucky Center for Economic Policy
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Fund Transfers Can Harm Needed Programs and Result in Higher Costs

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With deep budget shortfalls and very modest revenue growth predicted in the coming biennium, the Governor has put forward $371 million in fund transfers as a way to help balance the 2014-16 state budget. Although transfers have become commonplace, the state should not consistently rely on funds intended for other uses to patch systemic revenue problems. Fund transfers can harm needed programs, raise fees and taxes and result in higher state costs in the future.

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