By Tom Latek
Kentucky Today
The State Budget Director’s Office released data from November that shows both the General Fund and Road Fund in Kentucky continuing to see strong growth compared to the previous year.
State Budget Director John Hicks reported that General Fund receipts rose 16.3 % in November compared to last year.
Total revenues for the month were $1.17 billion, the third consecutive month in which revenues have surpassed one billion dollars.
“Most of the major revenue accounts in the General Fund showed well in November, collectively posting an increase of $163.1 million over last November,” Hicks said.
“Sales tax receipts have grown by double-digit percentages for four straight months. Individual income taxes, particularly from wage withholding, continue to be strong, and corporate profits are driving significant increases in business tax receipts. Kentucky’s economy is showing solid momentum leading into the next biennial budget process.”
Receipts have now risen 17.3% for the first five months of the fiscal year, significantly higher than budgeted estimates. General Fund revenues can fall 1.3 % over the final seven months of FY22 and still reach the unofficial, preliminary revenue estimate issued by the Consensus Forecasting Group of $13.56 billion.
It’s a similar story for the Road Fund, although not in the double-digit growth range. Receipts for November totaled $134.1 million, a 4.8 percent increase from November 2020 levels.
Year-to-date Road Fund receipts have increased 3.1 percent. Based on collections through the first five months, Road Fund receipts can fall 5.5 percent over the balance of the fiscal year and still meet the official FY22 estimate of $1.6 billion.
Hicks added, “The Consensus Forecasting Group meets on Dec. 17 to render official estimates that will be used in the preparation of the upcoming 2022-2024 biennial budget.”
The state’s current fiscal year runs from July 1, 2021, to June 30, 2022.