The Office of State Budget Director reported that December’s General Fund receipts rose 2.9 percent compared to December of last year, an increase of $28.4 million.
Total revenues for the month were $1,025.2 million, compared to $996.8 million during December 2015. Receipts have increased 3.3 percent for the first six months of the fiscal year that ends June 30, 2017. Second quarter collections rose 3.3 percent, only slightly lower than the first quarter total of 3.4 percent.
The official FY17 revenue forecast calls for 2.7 percent revenue growth. Revenues would need to grow 2.1 percent for the last six months of the fiscal year to meet the estimate.
Road Fund receipts for December totaled $111.5 million, a 13.4 percent decrease from December 2015 levels. Year-to-date receipts are essentially unchanged for the first six months of FY17. The official revenue estimate projected a 1.7 percent decline for the fiscal year and receipts would need to fall 3.5 percent to meet the estimate.
State Budget Director John Chilton noted that in December the largest accounts helped drive the growth and that collections continue to trend upward on both a monthly and quarterly basis. “It is encouraging to see sales and use, and individual income tax collections rebound from a lackluster November. Sales and use tax collections had declined in each of the past two months while individual income tax receipts grew less than one percent in November. General Fund receipts have increased in five of the six months this fiscal year and been steady in each of the first two quarters, growing 3.4 and 3.3 percent, respectively. Looking at receipts on a quarterly basis, we have had growth in 25 of the past 26 quarters. We will continue to monitor receipts as well as the economic conditions of the Commonwealth.”
Among the major accounts:
— Sales and use tax receipts rose 2.8 percent in December and have increased 1.8 percent for the year.
— Corporation income tax receipts decreased 7.6 percent but are up 19.7 percent for the year.
— Individual income tax collections rose 2.0 percent in December on the strength of estimated payments. Year-to-date collections in this account have increased 4.3 percent.
— Property tax collections fell 7.1 percent but are up 3.7 percent for the year.
— Cigarette tax receipts declined 16.1 percent in December. For the first six months of the year collections have decreased 3.5 percent.
— Coal severance tax receipts decreased 16.8 percent in December and have fallen 30.7 percent for the year.
Road Fund receipts fell 13.4 percent, or $17.3 million, in December due primarily to a timing issue in motor vehicle usage tax collections. Receipts for the month were $111.5 million compared to $128.8 million last December.
Receipts are unchanged through the first six months of the year. Second quarter collections fell 3.6 percent, offsetting the 3.6 percent increase seen in Q1. Official Road Fund estimates call for a decrease in revenues of 1.7 percent for the fiscal year. Based on year-to-date tax collections, revenues can decline 3.5 percent for the remainder of FY17 to meet the estimate.
Chilton noted that while the large decline in motor vehicle usage tax collections was not unexpected, motor fuels receipts were a pleasant surprise. The 8.1 percent increase in this account was the largest since March 2013. Among the accounts, motor fuels receipts rose 8.1 percent in December, and are up 2.2 percent for the first six months. Motor vehicle usage revenue fell 34.1 percent in December and has decreased 1.7 percent year-to-date. License and privilege receipts decreased 30.6 percent for the month and are down 2.2 percent for the year.
The monthly report and more information is available at OSBD.ky.gov.
From State Budget Office Communications