FRANKFORT, Ky. — The Office of State Budget Director reported that General Fund receipts rose 6.1% in September with revenues of $1.57 billion. Collections for the month exceeded last September’s total by $90.4 million. It is the 13th consecutive month of General Fund receipts over $1 billion.
So far this fiscal year (FY24), the General Fund has grown 6.9%. Based on September’s results, General Fund revenues can decline 2.4% for the remainder of the fiscal year and still meet the official estimate. The Consensus Forecasting process began in September with preliminary estimates and will issue final, official revenue estimates for Fiscal Years 2024-2026 in December.
Among the major accounts:
- Individual income taxes grew 20.8% in September on the strength of the new pass-through entity tax, which had revenues of $146.5 million. Individual income tax collections were $34.3 million less than last year, excluding these funds. With the income tax rate reduction from 5 to 4.%, payroll withholding receipts still increased by 3.2%.
- Sales tax revenues grew 6.1% in September and have increased 5.% in the first quarter. The positive growth in the first quarter of FY24 marks the 13th consecutive quarter in which sales taxes have grown.
- Corporation income and LLET tax receipts fell 17.1% for the month and are down 4.4% in the first quarter of the fiscal year.
- Cigarette taxes fell 9.6% in September and have declined 7.3% for the first three months of the fiscal year.
- Property taxes grew 10.7% in September and have increased 4.1% for the year.
- Coal severance tax receipts fell 8.5% in September but have grown 2.% year-to-date.
- Lottery revenues rose 3.7% in September and are up 4.0% for the year.
- Income on investments posted receipts of $24.5 million in September and $68.8 million in the first quarter of FY24.
Road Fund receipts grew 11.2% in September as motor fuels taxes increased 20.2%. September Road Fund collections were $154.8 million; year-to-date collections have grown 10.2%. Based on year-to-date collections, revenues can fall 8.7% for the remainder of the fiscal year to meet the budgeted estimate.
Among the accounts:
- Motor fuel receipts grew 20.2% in September. Collections in this account have increased 14.0% for the year.
- Motor vehicle usage collections rose 1.6% for the month. Year-to-date collections are up 3.4%.
- License and privilege taxes fell 8.0% in September. For the first three months of the fiscal year, receipts have increased by 8.3%.
- Nontax receipts rose $1.5 million to $3.0 million in September. For the year, collections are $4.0 million less.
