General Fund receipts increased 1.2 percent in August

Road Fund receipts fell 0.1 percent

FRANKFORT, Ky. (Sept. 10, 2014) — State Budget Director Jane Driskell reported today that General Fund receipts increased 1.2 percent in August compared to last year. Total revenues for the month were $671.9 million, compared to $663.7 million during August 2013. So far this fiscal year (FY15), General Fund receipts have increased 1.7 percent. The official revenue estimate for FY15 calls for revenue to increase 3.6 percent compared to FY14 actual receipts. Based on August results, General Fund revenues need to grow 3.9 percent for the remainder of the fiscal year to meet the official estimate.

Despite the low rate of nominal growth, Driskell said there were some encouraging undertones reflected in the monthly numbers.

“I am pleased to see two solid performances from our largest revenue sources, the individual income tax and year-to-date sales tax revenues,” she said. “On the income tax side, growth in withholding payments (payroll taxes) grew 9.7 percent, following growth of 6.5 percent in July. The growth rate on sales tax receipts was only 1.1 percent for the month, but 4.4 percent year to date.”

“September corporate income receipts will be a more appropriate barometer, as it is the first month in FY15 where estimated quarterly payments are due,” she said. “We’ll be in a better position to reexamine the fiscal year projections once the first quarter is complete.”

Among the major General Fund accounts:

• Individual income taxes increased 9.0 percent almost entirely due to withholding payments. Collections year-to-date are up 7.5 percent.
• Sales tax revenues rose 1.1 percent and have increased 4.4 percent through the first two months of the fiscal year.
• Corporation income tax collections declined $11.4 million as both declarations and net returns posted declines. Year-to-date receipts have fallen 98.8 percent. Three of the previous four fiscal years have reflected negative corporate income receipts for August.
• Cigarette taxes fell 0.3 percent but have grown 0.9 percent for the year.
• Property taxes grew 30.3 percent (timing issues) but have decreased 7.0 for the fiscal year.
• Coal severance tax collections increased 5.9 percent in August but are down 4.9 percent through the first two months of the year.
• Lottery revenues grew 6.3 percent on the basis of a $17.0 million dividend payment.

Road Fund revenue fell (slightly) in August with revenues of $141.1 million. The official Road Fund revenue estimate calls for a 0.9 percent decline in receipts for the entire fiscal year (FY15). Based on year-to-date collections, revenues can decrease 1.5 percent for the remainder of the fiscal year and still meet the estimate.

Among the accounts:

• Motor fuels fell 0.7 percent in August but have increased 0.9 percent for the year.
• Motor vehicle usage collections decreased 0.9 percent for the month but have grown 0.2 percent for the first two months of the fiscal year.
• License and privilege tax fell 4.4 percent.
• Nontax receipts increased $2.4 million and are up $2.1 million for the fiscal year.