FRANKFORT, Ky., (June 11, 2012 – The Office of State Budget Director reported today that May’s General Fund receipts fell 2.3 percent compared to May of last year, a decrease of $17.2 million. Total revenues for the month were $733.1 million, compared to $750.3 million during May 2011. Receipts have now grown 3.2 percent for the first 11 months of FY12.
The enacted budget calls for 2.8 percent revenue growth for the entire fiscal year. To meet the official revenue estimate, receipts can decrease 0.4 percent over the final month of the fiscal year.
Road Fund receipts for May totaled $134.0 million, a 4.7 percent increase over May 2011 levels. Year-to-date receipts for FY12 are up 6.8 percent.
State Budget Director Mary Lassiter observed that despite a second consecutive monthly decline in General Fund revenues, receipts are on track to hit the budgeted estimate.
“The revenue estimates assumed a slowdown in revenue growth this quarter because of the unusually high 9.6 percent growth experienced in the fourth quarter last year. We remain cautiously optimistic that June receipts will bring the full year’s receipts in equal to or slightly higher than the enacted budget numbers.”
Among the major accounts:
• Sales and use tax receipts increased 0.8 percent for the month, and have grown 4.7 percent year-to-date.
• Corporation income tax receipts fell $2.3 million, but have increased 36.2 percent for the year.
• Individual income tax collections declined 3.3 percent in May, and have grown 1.8 percent through the first eleven months of FY12.
• Property tax collections decreased $10.3 million due to timing issues, but have increased 2.7 percent year-to-date.
• Cigarette tax receipts grew 41.0 percent in May, but have declined 2.1 percent year-to-date.
• Coal severance tax receipts fell 15.5 percent in May. Annual growth has subsided to 2.5 percent through the first 11 months of the fiscal year.
• Investment income collections posted a one-time decline of $15.5 million due to a required change in generally accepted accounting principles.
Road Fund receipts grew 4.7 percent in May 2012 with collections of $134.0 million. Year-to-date collections stand at 6.8 percent. The official Road Fund revenue estimate calls for an increase in revenues of 5.5 percent for the fiscal year. Based on year-to-date tax collections, revenues can decline 8.3 percent for the remainder of FY12 and meet the estimate. Among the accounts, motor fuels rose 0.4 percent. Motor vehicle usage revenue increased 7.0 percent, and license and privilege receipts rose 5.9 percent.