Road fund receipts fall 6.4 percent
FRANKFORT, Ky. (Nov. 13, 2013) — October’s General Fund receipts fell 0.4 percent compared to last year, State Budget Director Jane Driskell reported Tuesday. Total revenues for the month were $722.5 million, compared to $725.5 million during October 2012. Receipts have increased 2.4 percent for the first four months of the fiscal year, and need to grow 1.6 percent over the final eight months of FY14 to achieve the official revenue estimate of $9,523.9 million.
The major revenue accounts continue to perform well, especially the sales and use tax which increased at a 5.3 percent pace in October and has now grown at a healthy 3.0 percent through the first four months of FY14, Driskell said.
“Despite the small decline in aggregate General Fund revenues in October, the major accounts performed well and revenues are slightly ahead of pace to meet the budgeted total,” she said. “A decline in property tax receipts obscured a very solid month of collections, but our largest revenue sources are well positioned to hit or slightly exceed the official estimates. Property tax receipts always exhibit some volatility in the fall months as a large percentage of total annual receipts are concentrated in a short collection period.”
- Among the major accounts:
- ♦ Corporation income tax receipts increased 4.4 percent in October and have grown 31.1 percent in FY14.
- ♦ Individual income tax collections rose 1.1 percent in October. Receipts are up 2.7 percent for the first four months of FY14.
- ♦ Sales and use tax receipts rose 5.3 percent in October and are up 3.0 for the year. The sales tax has rebounded nicely following a decline in sales tax receipts in FY13.
- ♦ Property tax collections decreased 46.7 percent in October, and are down 25.6 percent year-to-date. The bulk of all property tax receipts accrue between November and January, so we expect these accounts to rebound.
- ♦ Cigarette tax receipts fell 4.8 percent in October and are down 2.8 percent for the first four months of the fiscal year.
- ♦ Coal severance tax receipts increased 5.4 percent but are down 15.5 percent year-to-date. Severance receipts increased for only the second time in the previous 20 months.
- ♦ Lottery revenues grew 12.6 percent in October and are up 3.3 percent for the year.
Road Fund receipts for October totaled $127.2 million, a 6.4 percent decrease from October 2012 levels. Year-to-date Road Fund receipts have grown 6.1 percent. Based on year-to-date collections, Road Fund receipts must increase 4.6 percent to meet the official FY14 estimate of $1,568.2 million.
Motor vehicle usage tax receipts declined 15.6 percent for the month but have grown 5.1 percent year-to-date. Motor fuels taxes decreased 1.3 percent in October and have now grown 7.9 percent for the year.
The October Road Fund decline should be viewed in conjunction with the steep increase in September, Driskell said.
“Motor vehicle usage tax receipts increased 31.3 percent in September because of an additional week of collections, and our expectation was to see a correction in October,” she said. “Road Fund performance has been very solid through the first four months of FY14, but growth in the second half of FY14 will prove more challenging as the tax rate on motor fuels will be adjusted downward by 1.5 cents per gallon beginning in January.”