Road Fund receipts rose 6.2 percent
FRANKFORT, Ky. (Jan. 10, 2013) — General Fund receipts rose 4.9 percent in December compared to December of 2011, an increase of $44.4 million, the Office of State Budget Director reported today.
Total revenues for the month were $945.8 million, compared to $901.4 million during December 2011. Receipts have increased 3.8 percent for the first six months of the fiscal year that ends June 30, 2013 (FY13).
The official revenue forecast for FY13 calls for 2.4 percent revenue growth. General Fund revenues would need to grow 1 percent during the remaining six months of the fiscal year to meet the estimate. State Budget Director Mary Lassiter noted that while it may appear that receipts are slightly ahead of projections, the General Fund has yet to reestablish a consistent pattern of growth following the recession.
“We are pleased that the General Fund is on track to achieve budgeted revenue levels,” she said. “However, sales and use tax receipts, which typically act as a barometer of the underlying economic conditions, continue to perform poorly, having increased only 0.1 percent through the first half of the fiscal year.”
The weakness in the core taxes is being partially masked by the receipts from the Tax Amnesty Program, as well as favorable timing on the property taxes year-to-date. December receipts, like November collections, were buoyed by one-time Tax Amnesty receipts.
Among the major accounts:
♦ Sales and use tax receipts increased 1.7 percent in December and have increased 0.1 percent for the year.
♦ Corporation income tax receipts fell 11.6 percent but are up 4.4 percent for the year. The LLET tax, however, grew by 23.5 percent, and have grown 24.5 percent for the year.
♦ Individual income tax collections rose 10.1 percent in December. Year-to-date collections in this account have increased 4.9 percent.
♦ Property tax collections rose 12.1 percent and are up 25.2 percent for the year.
♦ Cigarette tax receipts were flat in December. Collections for the first six months are down 4.2 percent.
♦ Coal severance tax receipts decreased 18.7 percent in December and have fallen 24.0 percent for the year.
Road Fund receipts for December totaled $116.2 million, a 6.2 percent increase from December 2011 levels. Year-to-date receipts have increased 3.4 percent for the first six months of FY13. The official revenue estimate projected 3.9 percent growth for the fiscal year. Based on year-to-date tax collections, revenues need to increase 4.3 percent for the remainder of FY13 to meet the estimate.
Growth in the Road Fund’s primary revenue sources has been erratic through the first half of the fiscal year, Lassiter noted.
“Motor fuels tax receipts continued a recent pattern of volatility. Strong growth of 9.6 percent in July was followed by weak collections in August and a decline in September,” she said. “October saw receipts at the top of another peak, with an increase of 16.2 percent. However collections plunged in November and December, increasing only 6.4 and 1.8 percent respectively.”
Among the accounts, motor fuels tax receipts rose 1.8 percent in December, and are up 5.3 percent for the first six months. Motor vehicle usage tax revenues grew 7.2 percent in December, and have increased 2.6 percent for the first six months of the year.
License and privilege receipts grew 33.0 percent for the month, but have decreased 5.0 percent for the year.