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General Fund receipts for July 2017 up from a year ago

In News, State by OC Monitor Staff

FRANKFORT, Ky. — State Budget Director John Chilton announced this week Kentucky’s General Fund receipts for July, the first month of Fiscal Year 2018, totaled $792.8 million, a 3.1 percent increase compared to July 2016 receipts.

The official revenue estimate for FY18 calls for revenue to grow 3.8 percent compared to FY17 actual receipts. Based on July’s receipts, General Fund revenues need to increase 3.8 percent for the rest of the fiscal year to meet the official estimate.

State Budget Director Chilton noted while it is only the first month of the fiscal year, receipts are beginning to rebound from the 1.3 percent growth in FY17.

“We shouldn’t read too much into a single month of data, but I am pleased to see General Fund growth in excess of three percent. Receipts were weak in the fiscal year that ended last month, so that gives us concern about FY18. The Consensus Forecasting Group will meet this week to begin the process of determining official revenue estimates for the two-year period FY18-FY20. As always, we will continue to check receipts as well as the economic conditions of the Commonwealth.”

Among the major accounts:

  • Individual income tax receipts rose 2.3 percent.
  • Sales tax revenues grew 0.6 percent but FY17 collections were inflated by accelerated payments of $10 million to $15 million.
  • Corporation income tax collections declined 1.1 percent.
  • LLET receipts grew $8.3 million.
  • Cigarette tax collections fell 17.7 percent in July.
  • Property tax receipts grew 14.3 percent.
  • Coal severance tax revenues rose 22.7 percent.
  • Lottery revenues were unchanged.

Road Fund revenues for July totaled $112.2 million, a 7.9 percent decline compared to last July. The official Road Fund revenue estimate for FY18 calls for revenue to decline 2.0 percent compared to FY17 actual receipts. Based on the first month’s receipts, revenues can fall 1.5 percent for the rest of the fiscal year and still meet budgeted levels.

Among the major Road Fund categories:

  • Motor fuels tax receipts fell 1.2 percent.
  • Motor vehicle usage tax decreased 15.7 percent.
  • License and privilege taxes fell 18.8 percent.

Additional information is available here:https://osbd.ky.gov/Pages/default.aspx

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