Kentucky’s General Fund receipts rose in May
Published 8:00 am Wednesday, June 15, 2022
FRANKFORT – Kentucky’s General Fund receipts rose slightly in May compared to a year ago, while the Road Fund experienced a slight decrease, the Office of State Budget Director reported on Friday.
May’s General Fund receipts were 0.9 percent higher than in May of last year, an increase of $10.6 million. Total revenues for the month were $1,234.3 million, compared to $1,223.7 million during May 2021. This means receipts have now grown 14.8 percent for the first eleven months of fiscal year 22, which closes out on June 30.
Among the major tax categories, sales and gross receipts increased while the income (both personal and business), property and miscellaneous taxes all fell. The 14.8 percent year-to-date growth rate more than doubles the 7.2 percent budgeted growth rate for the current fiscal year.
State Budget Director John Hicks noted that May’s growth rate is more accurately viewed when you factor in the 34.9 percent surge in April, considering the tax filing deadline was extended to May last year and returned to its customary April date in 2022.
“When combining April and May, total General Fund growth for the two-month period was 18.8 percent, and for individual income tax receipts it was 35.7 percent,” Hicks said. “The recent growth in the individual income tax has been extraordinary, reflecting both improved employment and increases in personal income. The sales tax grew 6.5 percent in May, and 11.1 percent year-to-date. Combined collections in the sales and individual income taxes grew 20.9 percent in April and May and accounted for 80.1 percent of the General Fund receipts during that period.”
On the other hand, Road Fund receipts decreased 0.2 percent in May, with collections of $148.6 million. Rises in license and privilege and nontax receipts partially offset the modest declines in motor fuels and motor vehicle usage tax receipts.
Year-to-date collections have increased 2.1 percent. The official Road Fund revenue estimate calls for a 2.3 percent increase in revenues for the fiscal year. Based on year-to-date tax collections, revenues must grow 4.5 percent in June to meet the estimate.
Among the accounts, motor fuels fell 3.1 percent, but are up 4.0 percent for the year. Motor vehicle usage revenue decreased 0.9 percent, while license and privilege receipts rose 4.3 percent.