State Budget Director Jane Driskell announced Friday that Kentucky closed the 2012-2013 fiscal year with a General Fund surplus of $70.6 million.

Officials attribute the surplus to slowed spending by cash-strapped state agencies, as well as a small bump in General Fund revenues. Driskell warns, however, that the fiscal year that just began July 1 extends the budget cuts that were in place last year, and state agencies will continue the challenges of delivering services with fewer dollars and higher costs.

Gov. Steve Beshear has reserved $45 million of the surplus to cover necessary government expenses for fiscal year 2014. The remaining $25.6 million will be deposited into the Budget Reserve Trust Fund, the commonwealth’s rainy day fund, increasing its balance to just over $147 million.