FRANKFORT, KY (August 10, 2015) – Kentucky’s General Fund receipts for July, the first month of Fiscal Year 2016, totaled $733.8 million, a 4.0 percent increase compared to July 2014, State Budget Director Jane Driskell said today.
The official revenue estimate for FY16 calls for revenue to rise 1.0 percent compared to FY15 actual receipts. Based on July’s results, General Fund revenues need to increase 0.8 percent for the remainder of the fiscal year to meet the official estimate.
State Budget Director Driskell noted that she is pleased with July collections. “We are very pleased that the first month of the fiscal year maintained the same momentum that produced $165 million in unbudgeted revenues in FY15. This month’s sales and use tax collections grew at a higher than expected rate and helped offset declines in other accounts. Nevertheless, the sales tax acts as a barometer of current economic conditions, such as consumer sentiment, disposable income, and future prospects of gainful employment. This is a continued sign that the underlying economy is moving in a positive direction.”
Among the major accounts:
- Individual income tax receipts rose 1.1 percent.
- Sales tax revenues grew 8.6 percent.
- Corporation income tax collections rose 48.2 percent.
- Cigarette tax collections rose 10.6 percent.
- Property tax receipts fell 16.8 percent.
- Coal severance tax revenues declined 12.2 percent.
- Lottery revenues increased 3.0 percent.
Road Fund revenues for July totaled $127.6 million, an increase of 1.8 percent compared to last July, Driskell said. The modest growth in receipts was expected.
“A timing issue helped bump up motor vehicle usage tax receipts while motor fuels tax collections declined at the pace we expected.”
The official Road Fund revenue estimate for FY16 calls for revenue to increase 2.1 percent compared to FY15 actual receipts. Based on the first month’s receipts, revenues must increase 2.1 percent for the rest of the fiscal year to meet budgeted levels.
Among the major Road Fund categories:
- Motor fuels tax receipts fell 13.2 percent.
- Motor vehicle usage tax increased 25.3 percent.
- License and privilege taxes grew 11.2 percent.
The Consensus Forecasting Group will meet later this month to begin the process of establishing revenue estimates for the next biennium.