Kentucky’s Office of State Budget Director on Tuesday reported May’s General Fund receipts fell 5.0 percent.
Total revenues for the month were $1,088.9 million, compared to $1,146.0 million during May 2023. Receipts have now grown 2.9 percent for the first 11 months of FY24. The official estimate of $15,554.5 million corresponds to growth of 2.7 percent over FY23 totals. With one month remaining in FY24, collections need to increase 0.2 percent in June to meet the estimate.
The individual income tax declined with collections $100 million less than last May. Most of the decline was the result of an accounting correction from prior months. Without the correction, General Fund receipts would have grown 2.5 percent. Individual income tax withholding fell only 6.3 percent despite the 11.1 percentage reduction in the tax rate in 2024.
“Growth in receipts is expected to slow given the reduction in the individual income tax rate from 4.5 to 4 percent, and the long string of high sales tax growth,” said State Budget Director John Hicks. “May’s sales tax receipts grew at a subdued pace of 0.3 percent. The remaining 25 percent of the General Fund accounts collectively posted growth of $41.8 million, or 16.7 percent. We are still on pace to meet the official revenue estimate for FY24.”
Among the major accounts:
• Sales and use tax receipts increased by 0.3 percent. Collections have grown 4.6 percent year-to-date.
• Individual income tax collections were down 23.0 percent, or $100.5 million. Receipts have decreased 0.8 percent through the first 11 months of FY24.
• Corporation income and LLET tax receipts grew 85.9 percent on a small base and have grown 0.9 percent year-to-date. For the month, combined receipts were $57.3 million.
• Property tax collections grew 28.5 percent in May on collections of $34.4 million. The revenue growth was spread fairly evenly among all accounts. Year-to-date receipts are up 4.1 percent.
• Cigarette tax receipts fell 33.1 percent in May. Receipts have decreased 8.7 percent through the first 11 months of FY24.
• Coal severance tax receipts fell 28.6 percent to $6.1 million. Collections have decreased 20.2 percent through the first 11 months of the fiscal year.
• Interest income from investments posted receipts of $30.2 million, the highest month of interest income ever posted.
Road Fund receipts rose 3.2 percent in May with collections of $170.6 million. Year-to-date collections have increased 7.2 percent. Among the accounts, motor fuels revenue rose 9.2 percent while motor vehicle usage collections fell 2.0 percent.
The official Road Fund revenue estimate calls for a 7.3 percent increase in revenues for the fiscal year. Based on year-to-date tax collections, revenues must increase 8.8 percent in June to meet the estimate.
To review the report, visit osbd.ky.gov.
Office of State Budget Director