General Fund receipts increased 5.2%
FRANKFORT, Ky. (May 10, 2016) — The Office of State Budget Director (OSBD) reported today that April’s General Fund receipts set an all-time high, surpassing the $1 billion mark for the third time in the past 13 months. Collections grew 5.2 percent compared to April of last year, an increase of $53.4 million. Total revenues for the month were $1,077.1 million, compared to $1,023.7 million received during April 2014. Receipts have now grown 5.0 percent for the first ten months of FY16.
The official enacted budget calls for 3.2 percent revenue growth for the entire fiscal year. To meet the official revenue estimate, receipts can decrease 4.9 percent over the last two months of the fiscal year. Economists in OSBD recently released an interim revenue estimate in which they called for revenues to grow 4.3 percent in FY16.
The majority of the revenue growth was centered in two accounts and that a portion of the increase was influenced by a timing issue, said State Budget Director John Chilton. “Sales and use and individual income tax collections combined to increase by $66.5 million for the month. However, as much as $15 million to $20 million of the individual income tax growth is a result of more deliberation in the processing of refunds by the Department of Revenue. The increase in processing time was due to additional security and fraud analysis to protect taxpayers. On the opposite side of the ledger, license and privilege, natural resources and miscellaneous taxes all declined. We will closely monitor the revenue situation over the final two months of the fiscal year.”
Among the major accounts:
- Sales and use tax receipts increased 8.3 percent for the month and have grown 6.5 percent year-to-date.
- Corporation income tax receipts grew $6.4 million and have increased 9.1 percent for the year. Declaration receipts improved but were partially offset by lower balances on net returns.
- Individual income tax collections rose 7.9 percent in April and have grown 7.6 percent though the first ten months of FY16. Growth in this account was driven almost entirely by withholding collections. Fiduciary and net returns declined while estimated payments grew by less than 1.0 percent.
- Property tax collections rose $2.4 million and are up 3.0 percent year-to-date.
- Cigarette tax receipts declined 12.6 percent but are up 1.3 percent year-to-date.
- Coal severance tax receipts continued to plummet, falling 43.1 percent for the month. Through the first ten months of the fiscal year, collections are down $46.9 million compared to last year.
- Road Fund receipts grew 13.3 percent in April with collections of $130.4 million, an increase of $15.2 million compared to last April. Year-to-date collection now stand at -3.8 percent.
April marks the first month this year that both motor fuels and motor vehicle usage tax receipts increased in the same month. The official Road Fund revenue estimate calls for revenues to decline 5.3 percent for the fiscal year. The recently released interim revenue estimate calls for Road Fund revenues to end the year at -4.3 percent. Based on year-to-date tax collections, revenues can fall 13.0 percent for the remainder of the year to meet the official estimate. Among the accounts, motor fuels grew 7.6 percent, the first monthly increase since January 2015. Motor vehicle usage revenue increased 32.0 percent and license and privilege receipts decreased 4.8 percent.