State Budget Director John Hicks has reported that General Fund receipts increased 7.7 percent in August compared to last year, as total revenues for the month were $1,107.7 million, compared to $1,028.2 million during August 2024.
August collections were aided by increases in the three largest taxes, individual income, sales and use, and the major business taxes.
Hicks said, “August General Fund receipts rebounded nicely from the 12.7 percent drop in July. A second consecutive month of strong withholding collections, with year-to-date growth of 12.6 percent, underscores the improvement in Kentucky wages and salaries. Strong wage and salary growth in FY26 has provided the necessary disposable income to reinvigorate the sales tax, which grew only 0.3 percent in FY25 but is up 4.1 percent through the first two months of FY26.”
The official estimate for General Fund revenues in FY26 reflects a decline of 0.3 percent compared to FY25. Receipts would need to grow 0.3 percent during the remainder of the fiscal year to achieve that estimate. The Consensus Forecasting Group (CFG) will meet next week at the request of Hicks, to officially revise the FY26 revenue estimate in addition to reaching a consensus on the preliminary revenue estimates for Fiscal Years 2027 and 2028.
Road Fund receipts for August totaled $157.9 million, a decrease of 3.9 percent from August 2024 levels. Through the first two months of the fiscal year, collections in this fund have grown 0.4 percent. The official Road Fund revenue estimate calls for a 1.4 percent increase in receipts for FY26.
Based on year-to-date collections, revenues must grow 1.6 percent for the remainder of the fiscal year to meet the current official estimate, which will also be officially revised when the CFG meets next week.
Kentucky Today