State budget receipts remain on uptick
Published 1:46 pm Friday, July 15, 2022
More good news on Kentucky government revenue, as the State Budget Director’s Office has reported both the General Fund and Road Fund saw more growth last month, compared to 2021.
February’s General Fund receipts rose 4.7% compared to February of last year, with collections of $967.5 million, the largest February total on record. Receipts have now grown 14.2% during the first eight months of Fiscal Year 2022.
The official Consensus Forecasting Group estimate calls for 7.5% revenue growth for the entire fiscal year, which ends June 30. This means receipts can fall 3.8% over the last four months of the fiscal year, and still meet the official revenue estimate.
State Budget Director John Hicks noted the withholding component of the individual income tax continues to show strength, indicating wage and employment growth in Kentucky.
“Withholding collections rose 11.0% in February and have grown by double-digit percentages in four of the last five months,” he said. “The strength in withholding is a direct result of growing wage and employment growth. Year-to-date growth in withholding is 8.8%. Employment and wage growth provides Kentucky households with the resources to purchase goods and services, as indicated by the 12.6 percent surge in the sales and use tax through the first eight months of the fiscal year. All of the major tax categories posted growth in February.”
Road Fund receipts grew 4.5 percent in February as collections totaled $131.4 million. Total revenue has grown 3.4 percent through the first eight months of FY22.
Motor fuels collections were essentially flat, presumably due to the increase in pump prices. Motor vehicle usage tax receipts from the sale of vehicles had their largest percent increase of the fiscal year, 16.7 percent.
The official Road Fund revenue estimate call for revenues to increase 2.3 percent for the fiscal year. Based on year-to-date tax collections, revenues must increase 0.3 percent for the remaining four months of the year to meet the official estimate.