Kentucky’s “rainy day fund” received an $82.5 million boost today, increasing the fund balance to $209.4 million.
The $82.5 million in surplus is the product of a 5.3 percent increase in General Fund revenues for Fiscal Year 2015 from growth in individual income and sales taxes and business tax receipts, according to a press release from Gov. Steve Beshear’s office.
Beshear announced last week that the state ended fiscal year 2015 with $165.4 million in excess revenues when General Fund receipts grew more than 5 percent (see KyForward story here). The amount of excess revenues exceeded budgetary projections, making the current fiscal year (2016) budget structurally balanced for the first time since 2006, the release stated.
After taking out fiscal year 2015 necessary government expense, the $165.4 million in excess revenues resulted in a $139.1 million General Fund surplus. After adjustments for current fiscal year necessary government expense, the remaining $82.5 million was designated for the rainy day fund, know as the Budget Reserve Trust Fund.
The balance of the fund was $63.4 million, but grew to $209.4 million with the infusion of the $82.5 million in surplus and the addition of $63.5 million captured from House Bill 510 during the most recent legislative session.
The Budget Reserve Trust Fund is used by state leaders as a resource during difficult fiscal times.