General State Fund, road revenues continue to exceed estimates
FRANKFORT, Ky. (WTVQ) – State Budget Director John Hicks today announced that General Fund revenues increased 35.0% in September with revenues of $ 1,505.7 million. dollars, including the $ 225 million deposit from a one-time legal settlement with Flutter Entertainment, the parent company. from PokerStars.
September collections excluding settlement increased 14.8% from September 2020.
So far in fiscal year 2022 (FY22), the general fund has grown by 20.0%, or 12.1% after adjusting for settlement.
In the first quarter of the fiscal year, tax revenue continues to exceed budgeted revenue estimates and the significant growth rate follows a fiscal year where revenue grew by more than 10%.
Road Fund revenue for September totaled $ 137.6 million and was 5.0% above September 2020 levels. For the first three months of the fiscal year, collections increased 3.5%.
Hicks noted that collections were strong across all major accounts and that the $ 225.0 million settlement provided an additional boost to the general fund.
The settlement has been of great benefit to the finances of the Commonwealth of Nations. Equally positive tax news is that all major General Fund taxes continue to perform well. September’s corporate tax revenue was the highest amount collected in a month in the past 15 years, reflecting strong corporate profits.
Collectively, sales tax, personal income tax and major business taxes rose 12.7% in fiscal 22, providing a solid platform for overall revenue growth. Kentucky, like many other states, has experienced one of the strongest overall income growths in more than a decade. “
Based on the September results, General Fund revenues may decline by 15.7% for the remainder of the year while remaining within the budget estimate.
The Consensus Forecasting Group is revising the official revenue estimates with the next meeting scheduled for October 14 before finalizing the estimates in December.
Among the major accounts:
- Personal income tax rose 7.6% in September, as withholding taxes, net returns and returns all increased. Since the start of the year, collections in this account have increased by 6.5%.
- Sales tax revenue increased 10.8% in September and 9.9% in the first three months of the year.
- Tax revenues from corporations and limited liability entities increased 55.8% for the month and 76.0% in the first quarter of the year. September is generally the second month of June as the highest collecting month for business taxes each year. The amount of $ 222.7 million was the highest in 15 years.
- Cigarette taxes were flat in September, but are down 4.4% for the first three months of the year.
- Property taxes rose 29.8% in September and 16.5% for the year.
- Coal severance tax revenue fell 7.9% for the month. Year-to-date collections are 6.1 percent higher than in FY21.
- Lottery revenues increased 13.6% in September and 14.9% for the year.
Road Fund revenue rose 5.0 in September with collections of $ 137.5 million, while year-to-date collections have increased 3.5 percent. The official Road Fund revenue estimate projects a 2.0 percent decrease in revenue for the full year (FY22). Based on collections since the start of the year, revenue may drop 3.9% for the remainder of the year to meet the estimate.
Among the accounts:
- Fuel revenues increased 5.8% in September and 4.9% for the year.
- Motor vehicle use collections were up 4.8 percent for the month. Since the start of the year, collections are up 3.8%.
- Taxes on licenses and privileges fell 3.8% in September. For the first three months of the year, revenue declined 3.4%.
- Non-tax revenue increased 32.6 percent in September and 10.6 percent for the year.