Governor Matt Bevin signed a budget reduction order on Friday, July 14, meeting the Constitutional mandate that the Commonwealth of Kentucky end the fiscal year with a balanced budget. General Fund revenue receipts fell short of budgeted amounts by $138.5 million, requiring the action. The Governor’s veto of a portion of the budget bill allowed an additional $5 million in lottery receipts to be dedicated to scholarships and not lapse to the General Fund. In addition, a lower than expected lapse of debt service raised the total resource requirements to meet the shortfall of $152.2 million. Bevin said the shortfall validates the need for conservative spending, adding a solid financial foundation is essential before the Commonwealth can reach its full potential.