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Cautious Optimism for Kentucky's financial status

By Rebecca Feldhaus/KPR

Frankfort, KY – These are the worst of times. That's Kentucky Budget Director Mary Lassiter's general assessment of the recent economy. But Lassiter told lawmakers in Frankfort, Kentucky is weathering the financial storm much better than many other states.

"We have not made deep cuts to education. We have not had mass layoffs. We have not had to have IOU's. We're just, you know - we are relatively better off."

And Lassiter is seeing encouraging signs in the economy. Kentucky's unemployment rate slightly declined last month, and revenue and road fund receipts are up. The state also ended the last budget cycle with money in the bank, with the help of budget cuts and federal stimulus dollars.