Budget director: Kentucky likely to avoid shortfall

FRANKFORT, Ky. (AP) — Kentucky’s tax collections had another strong month in March, a sign the state is likely to avoid another budget shortfall.

State officials predicted revenues would increase by 3.6 percent in the budget year that ends June 30. With just three months left, state revenues have grown 4.1 percent. State Budget Director Jane Driskell said the prospects of hitting the official forecast are solid.

Kentucky ended the 2014 budget year with a $90 million shortfall.

The largest increase in March came from individual income tax collections, which rose 18.7 percent from last year. Corporate income tax collections grew 12.7 percent.

State gas tax collections fell slightly in March giving the road fund a 0.1 percent growth for the year. But state officials planned for an overall drop of 0.9 percent.