State’s general fund, road revenues continue to top estimates
FRANKFORT, Ky. (WTVQ) – State Budget Director John Hicks reported today that General Fund receipts rose 35.0 percent in September with revenues of $1,505.7 million, including the deposit of $225 million from a one-time legal settlement with Flutter Entertainment, the parent company of PokerStars.
September collections excluding the settlement rose 14.8 percent over September of 2020.
Thus far in fiscal year 2022 (FY22), the General Fund has grown 20.0 percent, or 12.1 percent adjusting for the settlement.
Through the first quarter of the fiscal year revenue collections continue to exceed the budgeted revenue estimates and the significant growth rate follows a fiscal year when collections rose more than 10 percent.
Road Fund receipts for September totaled $137.6 million and were 5.0 percent above September 2020 levels. For the first three months of the fiscal year, collections have risen 3.5 percent.
Hicks noted that collections were solid across all the major accounts and that the $225.0 million settlement provided an extra one-time boost to the General Fund.
The settlement was a great benefit to the Commonwealth’s finances. Equally positive fiscal news is that all of the General Fund’s major taxes continue their strong performance. September receipts from the corporate income tax was the largest amount collected in one month in the last 15 years reflecting strong corporate profits.
Collectively, the sales tax, individual income tax, and major business taxes have grown 12.7 percent in FY22 – providing a solid platform for overall revenue growth. Kentucky, like many other states, is witnessing some of the strongest overall revenue growth in over a decade.”
Based on September’s results, General Fund revenues can decline 15.7 percent for the remainder of the fiscal year and still meet the budgeted estimate.
The Consensus Forecasting Group is in the process of revising the official revenue estimates with the next meeting scheduled for October 14 before finalizing the estimates in December.
Among the major accounts:
- Individual income taxes grew 7.6 percent in September as withholding, net returns and declarations all increased. Year-to-date collections in this account have grown 6.5 percent.
- Sales tax revenues grew 10.8 percent in September and have increased 9.9 percent in the first three months of the year.
- Corporation income and Limited Liability Entity tax receipts rose 55.8 percent for the month and are up 76.0 percent in the first quarter of the fiscal year. September is typically second to June as the highest month of business tax collections each year. The $222.7 million was the highest in 15 years.
- Cigarette taxes were flat in September but are down 4.4 percent for the first three months of the fiscal year.
- Property taxes grew 29.8 percent in September and have increased 16.5 percent for the year.
- Coal severance tax receipts fell 7.9 percent for the month. Year-to-date collections are 6.1 percent higher than FY21.
- Lottery revenues rose 13.6 percent in September and are up 14.9 percent for the year.
Road Fund receipts grew 5.0 in September with collections of $137.5 million while year-to-date collections have grown 3.5 percent. The official Road Fund revenue estimate calls for a 2.0 percent decrease in receipts for the entire fiscal year (FY22). Based on year-to-date collections, revenues can fall 3.9 percent for the remainder of the fiscal year to meet the estimate.
Among the accounts:
- Motor fuels receipts rose 5.8 percent in September and are up 4.9 percent for the year.
- Motor vehicle usage collections rose 4.8 percent for the month. Year-to-date collections are up 3.8 percent.
- License and privilege taxes fell 3.8 percent in September. For the first three months of the fiscal year, receipts have decreased 3.4 percent.
- Nontax receipts grew 32.6 percent in September and have increased 10.6 percent for the year.