Getting your Trinity Audio player ready...

KENTUCKY TODAY

The Office of State Budget Director reported on Friday that October’s General Fund and Road Fund receipts continue to show increases over a year ago, putting both in good shape four months into the 2024 fiscal year.

General Fund receipts rose 1.9%, or $23.2 million, over last year’s total. Revenues for the month were $1,236.8 million, compared to $1,213.6 million collected in October 2022. This marks the 14th straight month of General Fund receipts in excess of $1 billion.

Receipts have increased 5.6% for the first four months of the fiscal year, and can decline 2.9% over the final eight months of FY24 to achieve the official revenue estimate of $15,117.7 million.

Revenue growth in the sales and gross receipts, property taxes and nontax collections overcame declines in individual income tax revenues.

State Budget Director John Hicks remarked :“The changes Kentucky has made to the individual income tax continue to greatly influence monthly receipts patterns. Total income tax receipts fell $49.8 million. Part of that decline was a drop-off in withholding receipts due to the tax rate reduction. Lower collections in net returns and declarations, associated with the refundable credit created by the pass-through entity tax, were a second reason. The sales tax grew by 9.0% in October, once again showing that the Kentucky consumer is confident in the direction of the economy.”

Road Fund receipts rose 7.9% in October, as both motor fuels and motor vehicle usage tax receipts posted strong gains.  License and privilege revenues fell 5.9% in October but are up 4.3% for the year. Nontax receipts grew 65.3 percent, or $1.1 million, for the month and have grown 70.9 percent for the year.

Year-to-date collections have risen 9.6% compared to the previous year. Based on year-to-date collections, Road Fund receipts can fall 10.6% and still meet the official FY24 revenue estimate of $1,680.9 million.