Total revenue for month $709M
FRANKFORT, Ky. (March 10, 2017) — The Office of State Budget Director reported today that February’s General Fund receipts in February rose 5.9 percent compared to February of last year, an increase of $39.4 million. Total revenues for the month were $709 million, compared to $669.6 million during February 2016. Receipts have now grown 2.8 percent for the first eight months of FY17.
The official Consensus Forecasting Group estimate calls for 2.7 percent revenue growth for the entire fiscal year. To meet the official revenue estimate, receipts must grow 2.4 percent over the last four months of the fiscal year.
Road Fund receipts for February totaled $120.2 million, a 0.3 percent decrease compared to February 2016 levels. Year-to-date receipts for FY17 have grown 1.6 percent.
State Budget Director John Chilton noted that the increase in General Fund revenue was a pleasant surprise given the continued weakness of sales tax receipts.
“After a robust first quarter in which sales tax receipts increased 4.2 percent, collections have been negative for four of the last five months, including February,” he said. “Weakness in the sales tax puts additional pressure on the other major revenue sources to perform, like the income and property taxes. The individual income tax,corporation income tax and LLET combined for growth of $33.9 million, making February a positive month in spite of the poor performance in the sales tax. We will continue to monitor progress in all revenue sources as we close the final four months of the fiscal year.”
Among the major accounts:
- Sales and use tax receipts decreased 0.7 percent for the month but have grown 0.7 percent year-to-date.
- Corporation income tax receipts increased $7.8 million in February and have grown $45.9 million for the year.
- Individual income tax collections grew 5.8 percent in February and have grown 4.3 percent though the first eight months of FY17.
- Property tax collections grew 1.4 percent for the month and have increased 3.1 percent year-to-date.
- Cigarette tax receipts rose 7.5 percent for the month but have decreased 3.5 percent year-to-date.
- Coal severance tax receipts increased 15.1 percent but are down 23.5 percent through the first eight months of the fiscal year.
Road Fund receipts declined 0.3 percent in February 2017 with collections of $120.2 million but have increased 1.6 percent for the year. Motor fuels and motor vehicle usage tax receipts both posted modest gains for the month but those increases were offset by declines in the remaining accounts.
The official Road Fund revenue estimate call for revenues to decline 1.7 percent for the fiscal year. Based on year-to-date tax collections, revenues can fall 8.1 percent for the remainder of FY17 and still meet the estimate. Among the accounts, motor fuels rose 2.0 percent. Motor vehicle usage revenue increased 4.2 percent, and license and privilege receipts declined 9.6 percent.