State revenues, road funds remain on record pace
General fund up 16.2%, road up 4.8%
FRANKFORT, Ky. (WTVQ) – The state’s General Fund receipts rose 16.2 percent in November compared to last year, state Budget Director John Hicks reported Friday.
Total revenues for the month were $1.17 billion, the third consecutive month in which revenues have surpassed $1 billion.
Receipts have now risen 17.3 percent for the first five months of the fiscal year, significantly higher than budgeted estimates. General Fund revenues can fall 1.3 percent over the final seven months of FY22 and still reach the unofficial, preliminary revenue estimate issued by the Consensus Forecasting Group of $13.56 billion. The FY22 General Fund estimate will be revised officially in December.
Hicks noted that General Fund revenues continue to exceed expectations and that November marks the fourth consecutive month of double digit growth.
“Most of the major revenue accounts in the General Fund showed well in November, collectively posting an increase of $163.1 million over last November. Sales tax receipts have grown by double-digit percentages for four straight months. Individual income taxes, particularly from wage withholding, continue to be strong, and corporate profits are driving significant increases in business tax receipts. Kentucky’s economy is showing solid momentum leading into the next biennial budget process. The Consensus Forecasting Group meets on December 17 to render official estimates that will be used in the preparation of the upcoming 2022-2024 biennial budget,” Hicks explained.
Among the major accounts:
- Corporation income and Limited Liability Entity Tax (LLET) tax receipts rose 31.8 percent to $23.9 million in November. Receipts year-to-date have increased 61.7 percent.
- Individual income tax collections grew 13.5 percent in November as withholding increased 11.6 percent. Through the first five months of FY22, receipts in this tax have increased 9.0 percent.
- Sales and use tax receipts increased 14.1 percent in November. Year-to-date, this account has grown 12.0 percent.
- Property tax collections rose 27.8 percent for the month and are up 18.0 percent year-to-date.
- Cigarette tax receipts fell 19.4 percent in November and are down 6.6 percent for the first five months of the fiscal year.
- Coal severance tax receipts declined 24.8 percent in November but are up 2.6 percent year-to-date.
- Lottery revenues grew 13.6 percent to $25.0 million for the month and are up 11.6 percent for the year.
Road Fund receipts for November totaled $134.1 million, a 4.8 percent increase from November 2020 levels. Year-to-date Road Fund receipts have increased 3.1 percent. Based on collections through the first five months, Road Fund receipts can fall 5.5 percent over the balance of the fiscal year and still meet the official FY22 estimate of $1,609.2 million.
Motor fuels tax receipts grew 2.1 percent in November and are up 3.5 percent for the year. Motor vehicle usage tax collections rose 8.3 percent in November and have grown 3.1 percent through the first five months of the fiscal year. License and privilege receipts grew 12.7 percent for the month and have risen 4.4 percent for the year.