The Office of State Budget Director reported that February’s General Fund receipts rose 4.6 percent compared to February of last year, an increase of $40.2 million. Total revenues for the month were $924.2 million, compared to $884.0 million during February 2020. Receipts have now grown 5.6 percent for the first eight months of FY21.
The official revenue estimate calls for 1.4 percent revenue growth for the entire fiscal year. To meet the official revenue estimate, receipts can fall 6.7 percent over the last four months of the fiscal year.
John Hicks
Road Fund receipts for February totaled $125.8 million, a 2.0 percent decrease over February 2020 levels. Year-to-date receipts for FY21 have increased 0.3 percent.
State Budget Director John Hicks noted that the 4.6 percent growth in General Fund receipts in February was based heavily on sales tax receipts which grew by 14.4 percent.
“The $600 stimulus check received in January by many Kentucky households clearly resulted in higher consumer spending. Even with that, the sales tax has grown 7.0 percent in the last three months and by 6.5 percent year-to-date. Total revenue growth through the first eight months of FY21 for the General Fund has been 5.6 percent over the prior year, as all of the major taxes are outpacing the revenue estimate assumptions. With the expected new round of federal fiscal stimulus, as well as the revenue growth to date, it is highly likely that there will be a revenue surplus this fiscal year.”
Among the major accounts:
• Sales and use tax receipts increased 14.4 percent for the month and have grown 6.5 percent year-to-date.
• Combined corporation income and LLET tax receipts were $12.1 million more than collected in February 2020. A large increase in corporate declarations offset a decrease in net returns. For the year, these two revenue sources have increased 26.3 percent.
• Individual income tax collections fell 0.4 percent in February. Collections have grown 4.0 percent though the first eight months of the year. Net returns and fiduciary collections increased for the month which offset declines in withholding and estimated payments.
• Property tax collections grew 4.5 percent for the month and have increased 5.5 percent year-to-date.
• Cigarette tax receipts rose 16.0 percent for the month, partially offsetting a 20.3 percent decline in January. Through the first eight months of FY21, cigarette tax receipts have decreased 0.1 percent.
• Coal severance tax receipts decreased 13.6 percent in February and are down 11.0 percent through the first eight months of the fiscal year.
Road Fund receipts fell 2.0 percent in February as collections totaled $125.8 million. Total revenue has grown 0.3 percent through the first eight months of FY21. Motor fuels collections declined for the 11th consecutive month while motor vehicle usage tax receipts saw a small uptick.
The official Road Fund revenue estimate call for revenues to increase 5.8 percent for the fiscal year. Based on year-to-date tax collections, revenues must increase 18.3 percent for the remainder of the year to meet the official estimate. Last year, Road Fund revenues fell 17.1 percent from March through June. Among the accounts, motor fuels fell 4.0 percent. Motor vehicle usage revenue grew 1.3 percent, and license and privilege receipts rose 4.3 percent.
Office of State Budget Director
