Budget chief: Ky. closed fiscal year with surplus

FRANKFORT, Ky. (AP) -- Financial ledgers show Kentucky finished last year with a $70.6 million surplus.

Budget Director Jane Driskell said Friday the General Fund surplus was the result of slowed spending by government agencies and a small bump in revenue.

Driskell warned that the coming fiscal year will be another austere one because revenue growth isn't keeping pace with rising costs.

Of the surplus, Driskell said $45 million will be used to cover necessary government expenses this fiscal year and $25.6 million will go into the state's Budget Reserve Trust Fund, often referred to as the rainy day fund.

Driskell said the Road Fund had a $17.7 million surplus.