By Tom Latek
Kentucky Today
Kentucky’s General Fund receipts have continued to see significant growth through the first four months of the 2027 Fiscal Year (FY 27), however, the same cannot be said for the state’s Road Fund.
The Office of State Budget Director reported Wednesday October’s General Fund receipts rose 10.5 percent, or $123.7 million, compared to last year’s total. Revenues for the month were $1,305.3 million compared to $1,181.6 million collected in October 2025.
Receipts have grown 12.2 percent in the first four months of the fiscal year and must increase 2.9 percent over the final eight months of FY27 to reach the official revenue estimate of $16,894.0 million. To meet the original budgeted estimate of $15,896.1 million, revenues could decline by 6.2 percent during the remaining eight months of the fiscal year.
Five of the eight major tax accounts posted October increases. The same five accounts have grown year-to-date. October was a continuation of recent General Fund trends plus an especially large monthly gain of $100.3 million in the major business taxes, a combination of the corporation income tax and the limited liability entity tax.
State Budget Director John Hicks said, “General Fund revenue growth has been strong this fiscal year with double-digit increases in three of the first four months. The major business taxes and the sales and use tax accounted for most of the monthly revenue increase in October with growth of $132.0 million. Year-to-date collections in the General Fund are consistent with the revenue flows contemplated by the Consensus Forecasting Group when formulating the September 2026 revised official estimates.”
Meanwhile, Road Fund revenues fell 3.1 percent in October. Year-to-date collections are down 4.8 percent compared to the previous year. Based on year-to-date collections, Road Fund receipts must increase 3.8 percent over the next eight months to meet the official FY27 revenue estimate.