STATE GOVERNMENT FINANCES: 1998


                                                    Amount          Percent            Per
Kentucky                                    (in thousands)     Distribution         capita

Population (thousands)                               3,936                                
Total Revenue                                   15,989,084           100.00       4,061.75
  General revenue                               12,968,961            81.11       3,294.54
    Intergovernmental revenue                    3,602,966            22.53         915.27
    Taxes                                        7,115,149            44.50       1,807.48
      General sales                              1,981,290            12.39         503.31
      Selective sales                            1,276,233             7.98         324.21
      License taxes                                446,730             2.79         113.48
      Individual income tax                      2,418,144            15.12         614.29
      Corporate income tax                         333,666             2.09          84.76
      Other taxes                                  659,086             4.12         167.43
    Current charges                              1,232,995             7.71         313.22
    Miscellaneous general revenue                1,017,851             6.37         258.57
  Utility revenue                                        0             0.00           0.00
  Liquor stores revenue                                  0             0.00           0.00
  Insurance trust revenue                        3,020,123            18.89         767.21
                                                                                          
Total expenditure                               13,541,073           100.00       3,439.88
  Intergovernmental expenditure                  3,006,904            22.21         763.85
  Direct expenditure                            10,534,169            77.79       2,676.02
    Current operation                            7,399,034            54.64       1,879.60
    Capital outlay                               1,161,168             8.58         294.97
    Insurance benefits and repayments            1,249,597             9.23         317.44
    Assistance and subsidies                       297,873             2.20          75.67
    Interest on debt                               426,497             3.15         108.34
Exhibit: Salaries and wages                      2,508,150            18.52         637.15
                                                                                          
Total expenditure                               13,541,073           100.00       3,439.88
  General expenditure                           12,283,555            90.71       3,120.43
    Intergovernmental expenditure                3,006,904            22.21         763.85
    Direct expenditure                           9,276,651            68.51       2,356.57
  General expenditure, by function:                                                       
    Education                                    4,574,047            33.78       1,161.96
    Public welfare                               3,291,011            24.30         836.02
    Hospitals                                      444,045             3.28         112.80
    Health                                         318,865             2.35          81.00
    Highways                                     1,172,164             8.66         297.77
    Police protection                              129,274             0.95          32.84
    Correction                                     304,348             2.25          77.31
    Natural resources                              242,064             1.79          61.49
    Parks and recreation                           106,258             0.78          26.99
    Governmental administration                    500,590             3.70         127.17
    Interest on general debt                       426,497             3.15         108.34
    Other and unallocable                          774,392             5.72         196.72
  Utility expenditure                                7,921             0.06           2.01
  Liquor stores expenditure                              0             0.00           0.00
  Insurance trust expenditure                    1,249,597             9.23         317.44
                                                                                          
  Debt at end of fiscal year                     6,813,880           100.00       1,730.95
                                                                                          
  Cash and security holdings                    28,007,395           100.00       7,114.80