Road Fund receipts decreased 5.9 percent
FRANKFORT, Ky. (June 10, 2016) – The Office of State Budget Director reported today
that May’s General Fund receipts fell 7.5 percent compared to May of last year, a decrease of $57.3
million. Total revenues for the month were $705.8 million, compared to $763.1 million during May
2015.
Receipts have now grown 3.9 percent for the first eleven months of fiscal year 2016.
The official budget estimate calls for 3.2 percent revenue growth for the fiscal year that ends
June 30. To meet the estimate, June receipts can be 2.9 percent less than June 2015.
State Budget Director John Chilton noted that even though receipts declined in May,
revenues are on track to meet the budgeted estimate.
“Monthly revenue collections were hampered
by declines in several accounts, some expected and some not. Coal severance, insurance premiums
taxes, and the LLET tax all continued their year-long declines. On the other hand, in May individual
income tax collections fell by 14.8 percent or $49.4 million. This was only the second month in
FY16 in which receipts in this account did not increase compared to FY15 levels. Offsetting these
declines, May sales and use tax revenues increased more than four percent which is slightly less than
their year-to-date level. With one month remaining in the fiscal year, we will meet budgeted
revenue levels provided collections do not decline more than 2.9 percent compared to June 2015
levels.”
Among the major accounts:
• Sales and use tax receipts increased 4.1 percent for the month and have grown 6.3 percent year-to-date.
• Corporation income tax receipts grew by $600,000 in May and have grown 9.3 percent for the year.
• Individual income tax collections fell 14.8 percent in May due primarily to declines in withholding and balances on net returns. Receipts have grown 5.6 percent through the first eleven months of FY16.
• Property tax collections decreased 0.5 percent in May but have grown 2.8 percent year-to-date.
• Cigarette tax receipts declined 3.9 percent in May but have grown 0.8 percent year-to-date.
• Coal severance tax receipts fell 48.4 percent in May to a record low of $7.4 million.
Collections have fallen 32.2 percent through the first eleven months of the fiscal year. Road Fund receipts fell 5.9 percent in May 2016 with collections of $118.6 million. Year-todate collections have declined 4.0 percent. The official Road Fund revenue estimate calls for a 5.3 percent decrease in revenues for the fiscal year. Based on year-to-date tax collections, revenues can fall as much as 20.4 percent in June and the revenue estimate will be achieved. The most recent internal revenue estimate predicted revenues will decline 4.3 percent for the year. Among the accounts, motor fuel taxes rose 2.3 percent, motor vehicle usage revenue fell 22.6 percent, and license and privilege receipts grew 4.1 percent.
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