FRANKFORT — Kentucky’s General Fund receipts rose slightly in May compared to a year ago, while the Road Fund experienced a slight decrease, the Office of State Budget Director reported on Friday.
May’s General Fund receipts were 0.9% higher than in May of last year, an increase of $10.6 million. Total revenues for the month were $1,234.3 million, compared to $1,223.7 million during May 2021. This means receipts have now grown 14.8% for the first eleven months of fiscal year 22, which closes out on June 30.
Among the major tax categories, sales and gross receipts increased while the income (both personal and business), property and miscellaneous taxes all fell. The 14.8% year-to-date growth rate more than doubles the 7.2% budgeted growth rate for the current fiscal year.
State Budget Director John Hicks noted that May’s growth rate is more accurately viewed when you factor in the 34.9% surge in April, considering the tax filing deadline was extended to May last year and returned to its customary April date in 2022.
“When combining April and May, total General Fund growth for the two-month period was 18.8%, and for individual income tax receipts it was 35.7%,” Hicks said. “The recent growth in the individual income tax has been extraordinary, reflecting both improved employment and increases in personal income. The sales tax grew 6.5% in May, and 11.1% year-to-date. Combined collections in the sales and individual income taxes grew 20.9% in April and May and accounted for 80.1% of the General Fund receipts during that period.”
On the other hand, Road Fund receipts decreased 0.2% in May, with collections of $148.6 million. Rises in license and privilege and nontax receipts partially offset the modest declines in motor fuels and motor vehicle usage tax receipts.
Year-to-date collections have increased 2.1%. The official Road Fund revenue estimate calls for a 2.3% increase in revenues for the fiscal year. Based on year-to-date tax collections, revenues must grow 4.5% in June to meet the estimate.
Among the accounts, motor fuels fell 3.1%, but are up 4.0% for the year. Motor vehicle usage revenue decreased 0.9%, while license and privilege receipts rose 4.3%.