State Budget Director John Hicks reported today that October’s General Fund receipts declined 0.5 percent compared to last year’s total. Revenues for the month were $1,181.6 million compared to $1,187.9 million collected in October 2024. The official General Fund revenue estimate for FY26 calls for revenue to decline 2.3 percent compared to FY25 actual receipts. Based on receipts through the first four months of FY26, General Fund revenues can decline 2.2 percent for the remainder of the fiscal year and still meet the official estimate.
Regarding October General Fund revenues, Hicks noted that “Sales tax collections continue to improve, growing 14.5 percent in the month of October and 6.5 percent through the first four months of FY26. The individual income tax also remains strong. Withholding collections, comprising 88.2 percent of year-to-date income tax collections, increased 3.0 percent in October and 6.4 percent so far this fiscal year. Major business taxes, which include the corporation income tax and the limited liability entity tax, declined by $118.4 million. The large drop in major business taxes was primarily attributable to the nonrecurring revenues of over $80.0 million received in October of 2024.”
Among the major accounts,
• Sales and use tax receipts grew 14.5 percent in October and are up 6.5 percent for the year.
• Individual income tax collections grew 5.7 percent for the month with collections of $405.1 million. Withholding, declarations and net returns all increased compared to last October. Year-to-date collections have risen 6.9 percent.
• Combined corporation income and LLET tax receipts fell sharply due to a significant drop in declaration payments. Year-to-date, major business taxes have fallen 52.4 percent compared to the first four months of FY25.
• Property tax revenues rose 1.3 percent in October and are down 12.7 percent year-to-date. Due to the cyclical nature of property tax collections, there can be large month-to-month swings early in the collection cycle so not much should be read into a single month’s receipts.
• Cigarette tax receipts rose 14.3 percent in October and are down 3.6 percent for the first four months of the fiscal year.
• Coal severance tax receipts were $5.3 million, 54.8 percent more than last year. Year-to-date receipts have declined 3.6 percent.
• Lottery revenues grew 2.3 percent to $40.9 million in October and have increased 3.2 percent for the year.
• Income on investments was nearly identical to last October, falling by a fractional 0.2 percent.
Road Fund revenues grew 4.9 percent in October. Year-to-date collections have risen 1.3 percent compared to the previous year. Based on year-to-date collections, Road Fund receipts can fall 4.8 percent over the next eight months and still meet the official FY26 revenue estimate of $1,812.2 million. Motor fuels taxes rose 0.8 percent but are down 2.4 percent for the year. Motor vehicle usage tax collections grew 2.5 percent and have increased 3.5 percent through the first four months of the year. License and privilege revenues rose 24.2 percent in October and are up 11.8 percent for the year. Nontax receipts rose 34.4 percent for the month but are down 12.1 percent for the year.
Office of State Budget Director