State’s General Fund receipts increase while Road Fund receipts decline

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FRANKFORT, Ky. (WTVQ)- Over February, the state’s General Fund receipts rose, but the Road Fund receipts declined, according to the Office of State Budget Director.

The Office reports General Fund receipts rose 4.6% compared to February 2020. That’s an increase of $40.2 million. Total revenues for February were $924.2 million, compared to $884 million during February 2020. Overall, receipts have increased 5.6% for the first eight months of the fiscal year.

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According to State Budget Director John Hicks, Road Fund receipts for February were $125.8 million, which is a 2.0% decrease since February 2020. Year-to-date, receipts for fiscal year 21 have increased .3%

“The $600 stimulus check received in January by many Kentucky households clearly resulted in higher consumer spending. Even with that, the sales tax has grown 7.0 percent in the last three months and by 6.5 percent year-to-date. Total revenue growth through the first eight months of FY21 for the General Fund has been 5.6 percent over the prior year, as all of the major taxes are outpacing the revenue estimate assumptions. With the expected new round of federal fiscal stimulus, as well as the revenue growth to date, it is highly likely that there will be a revenue surplus this fiscal year,” Hicks said.

“Among the major accounts:

  • Sales and use tax receipts increased 14.4 percent for the month and have grown 6.5 percent year-to-date.
  • Combined corporation income and LLET tax receipts were $12.1 million more than collected in February 2020. A large increase in corporate declarations offset a decrease in net returns.  For the year, these two revenue sources have increased 26.3 percent.
  • Individual income tax collections fell 0.4 percent in February. Collections have grown 4.0 percent though the first eight months of the year. Net returns and fiduciary collections increased for the month which offset declines in withholding and estimated payments.
  • Property tax collections grew 4.5 percent for the month and have increased 5.5 percent year-to-date.
  • Cigarette tax receipts rose 16.0 percent for the month, partially offsetting a 20.3 percent decline in January. Through the first eight months of FY21, cigarette tax receipts have decreased 0.1 percent.
  • Coal severance tax receipts decreased 13.6 percent in February and are down 11.0 percent through the first eight months of the fiscal year.

Road Fund receipts fell 2.0 percent in February as collections totaled $125.8 million. Total revenue has grown 0.3 percent through the first eight months of FY21.  Motor fuels collections declined for the 11th consecutive month while motor vehicle usage tax receipts saw a small uptick.  The official Road Fund revenue estimate call for revenues to increase 5.8 percent for the fiscal year.  Based on year-to-date tax collections, revenues must increase 18.3 percent for the remainder of the year to meet the official estimate. Last year, Road Fund revenues fell 17.1 percent from March through June. Among the accounts, motor fuels fell 4.0 percent.  Motor vehicle usage revenue grew 1.3 percent, and license and privilege receipts rose 4.3 percent. ”

See February receipts here.
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Veronica Jean Seltzer joins ABC 36 as Anchor/Reporter. On most weekdays, you will see her reporting the news. VJ hails from a small horse farm outside New York City and most recently comes from South Bend, Indiana where she reported for the CBS and Fox affiliates. VJ holds a Master of Science in Journalism degree from Columbia University and a Bachelor of Arts degree from Tufts University. Her passion for journalism runs deep. It began as she studied graffiti as an ancient form of communication in Athens, Greece. While a student journalist in Morocco, she learned her most important journalistic lesson: good stories are about people. VJ loves life in and around Lexington. She feels most at home among horses and a diverse community of fascinating people. She enjoys reporting during the week and on the weekend she strives to bring her neighbors the news that matters most to them. VJ enjoys going to neighborhood events, exploring, horseback riding, skiing, sailing, and good movies. Look for her out and about in the community! VJ invites you to reach out to her with story ideas or just to say hello! Find her on Facebook at Veronica Jean Seltzer ABC 36, tweet her @VJS_ABC36, or email her at VSeltzer@wtvq.com. She looks forward to hearing from you!