General Fund receipts have increased 2.3% this year
FRANKFORT, Ky. (Sept. 9, 2016) — State Budget Director John Chilton reported today that General Fund receipts decreased 0.2 percent in August of this year compared to August 2015. Total revenues for the month were $721.4 million, compared to $722.9 million during August 2015. So far this fiscal year (FY17), General Fund receipts have increased 2.3 percent.
“August revenues were nearly flat following 4.8 percent growth in July. During the span between May 1 to Aug. 31, total General Fund collections have fallen compared to the same summer months last year,” Chilton said. “While we still seem to be on pace to hit the budgeted revenue target for FY17, the recent revenue slowdown confirms the need for cautious spending and diligent management of resources.”
The official revenue estimate for FY17 calls for revenue to increase 2.7 percent compared to FY16 actual receipts. Based on the August results, General Fund revenues need to grow 2.7 percent for the remainder of the fiscal year to meet the official estimate.
Among the major accounts:
- Individual income taxes decreased 2.8 percent due to a 4.0 percent decline withholding payments. The remaining three components of the tax, declarations, net returns and fiduciary, all showed modest increases.
- Sales tax revenues rose 1.7 percent and have increased 2.5 percent through the first two months of the fiscal year.
- Corporation income tax collections increased $1.2 million as declaration payments were almost completely offset by a decline in net refunds. Year-to-date receipts have grown by $7.6 million.
- Cigarette taxes grew 5.5 percent but have fallen 2.5 percent for the year.
- Property taxes decreased 6.6 percent but have grown 8.0 percent for the fiscal year. (Most property tax collections are concentrated later in the fiscal year.
- Coal severance tax collections improved relative to July when collections were at an all- time low of $6.9 million. Receipts in August fell 24.6 percent and are down 36.5 percent through the first two months of the fiscal year.
- Lottery revenues grew 2.8 percent to $18.5 million.
Road Fund revenue grew 4.3 percent in August with revenues of $139.2 million. Motor vehicle usage tax collections and motor fuels receipts together were essentially flat, increasing only $100,000 for the month. The increase in revenues came from motor vehicle license and weight distance collections. The increases offset timing issues from July. The official Road Fund revenue estimate calls for a 1.7 percent decrease in receipts for the entire fiscal year (FY17). Based on year- to-date collections, revenues can decline 2.1 percent for the remainder of the fiscal year to meet the estimate.
Among the accounts:
- Motor fuels fell 0.4 percent in August but have increased 0.7 percent for the year.
- Motor vehicle usage collections increased 0.8 percent for the month but have declined 4.0 percent for the first two months of the fiscal year.
- License and privilege tax grew 21.6 percent.
- Nontax receipts increased $1.0 million and are down $100,000 for the year.