FRANKFORT, Ky. — Gov. Andy Beshear highlighted record-breaking fiscal performance and continued economic momentum in a Team Kentucky Update, touting a budget surplus that exceeded expectations and major strides in job creation across the state.

Kentucky ended its fiscal year with a $320 million budget surplus, marking the seventh consecutive year the state recorded such a surplus. The news represents a significant turnaround from earlier projections of a $156 million shortfall that prompted budget reductions across state agencies.

"This is great news for our economy, and it also presents our General Assembly with an opportunity, now that we have more financial resources, to address some of the budget cuts," Beshear said. "Our goal is to help Kentucky families, and we can do that by turning this good news and turning it into something great."

The surplus stems largely from stronger-than-expected tax revenues. Sales and use tax receipts were 6.4 percent higher than fiscal year 2025 levels on growth of $375.3 million, while individual income tax receipts rose 4.6 percent despite a rate reduction from 4 percent to 3.5 percent that took effect in January 2026.

On the economic development front, the governor highlighted continued momentum with 2026 marking the best first four months for economic investment of any year in Kentucky history, with more than $7 billion in announced and approved investment. Since taking office in December 2019, Beshear has announced more than 1,300 private-sector new-location and expansion projects totaling over $50 billion in announced investments, creating more than 70,000 jobs.

The Team Kentucky Update also addressed other state initiatives, including recovery efforts in Eastern Kentucky, mental health rankings, sports betting updates and site development projects intended to position Kentucky communities for future investment and job creation.