Frankfort, Ky. – State Budget Director Jane Driskell reported today that General Fund receipts increased 7.6 percent in August compared to last year. Total revenues for the month were $722.9 million, compared to $672.0 million during August 2014, an increase of $50.9 million. So far this fiscal year (FY16), state tax receipts have increased 5.7 percent.
“The 7.6 percent growth – combined with strong growth in July – means Kentucky has seen 5.7 percent growth in receipts in the first two months of the fiscal year,” Kentucky Gov. Steve Beshear said. “That follows a 5.3 percent growth in revenues in the fiscal year that ended June 30, which enabled Kentucky to make an $82.5 million deposit in the state’s so-called Rainy Day fund.
“This growth in receipts is the result of aggressive efforts to attract economic development and strong fiscal management of the state’s budget, two priorities of mine that have helped Kentucky recover from the recession. Our plan is working,” Beshear added.
Driskell noted that strong growth in sales and use and individual income taxes helped offset declines in other accounts.
“Sales and use and individual income tax receipts both grew over 10 percent for the month. Together they accounted for an increase $64.7 million over August 2014 collections, whereas the General Fund total growth was $50.9 million. Gains in the largest two General Fund accounts offset large declines in coal severance and miscellaneous tax receipts. Coal severance tax collections for the month totaled $11.2 million, the second smallest monthly collection total in the past 10 years.”
To meet the official revenue estimate for FY16 an increase of 1.0 percent over FY15 actual receipts is needed. Based on year-to-date collections, General Fund revenues need to grow 0.3 percent for the remainder of the fiscal year to meet the official estimate.
Among the major accounts:
- Individual income taxes increased 12.0 percent almost entirely due to withholding payments. Withholding collections grew 12.1 percent. Collections year-to-date are up 6.7 percent.
- Sales tax revenues rose 10.8 percent and have increased 9.7 percent through the first two months of the fiscal year.
- Corporation income tax collections increased $500,000 as an $8 million increase in declarations was almost completely offset by a decline in net returns. Year-to-date receipts have grown by $6.3 million.
- Cigarette taxes fell 8.4 percent but have grown 0.8 percent for the year.
- Property taxes increased 13.1 percent and have grown 4.4 percent for the fiscal year.
- Coal severance tax collections decreased 33.9 percent in August and are down 23.7 percent through the first two months of the fiscal year.
- Lottery revenues grew 5.9 percent to $18.0 million.
Road Fund receipts for August totaled $133.5 million, a decrease of 5.4 percent from August 2014 levels. Motor vehicle usage tax collections increased 28.8 percent due to timing issues but motor fuels tax collections declined by 17.4 percent. To meet the official Road Fund revenue estimate for FY16 an increase of 2.1 percent over FY 15 actual receipts is needed. Based on year-to- date collections, Road Fund revenues need to grow 2.9 percent for the remainder of the fiscal year to meet the official estimate.
Among the accounts:
- Motor fuels fell 17.4 percent in August and have decreased 15.4 percent for the year.
- Motor vehicle usage collections increased 28.8 percent for the month and have grown 27.0 percent for the first two months of the fiscal year. Timing issues have affected receipts in this account for each of the first two months of the fiscal year. Adjusting for the impact of timing issues, receipts to-date reflect an increase of 5 to 6 percent.
- License and privilege tax fell 10.2 percent.
- Nontax receipts decreased $2.0 million and are down $600,000 for the year.