The Office of State Budget Director reported today that May’s General Fund receipts fell 4.9 percent compared to May of last year, a decrease of $36.5 million. Total revenues for the month were $703.1 million, compared to $739.6 million during May 2017. General Fund receipts have now grown 3.4 percent for the first eleven months of FY18.
The official budget estimate calls for 2.3 percent revenue growth for the entire fiscal year. To meet the estimate, receipts can decline 7.6 percent in the final month of the fiscal year. The most recent internal revenue estimate predicts revenues will grow 3.4 percent for the year.
State Budget Director John Chilton noted that with the exception of the sales and gross receipts taxes, receipts were weak across the board. “General Fund receipts in May softened considerably following the 6.3 percent increase in General Fund receipts in April. This reduction was due to the correction of an April accounting error and declines in license and privilege, natural resources, income and property tax collections for the month. The individual income tax fell sharply due to increased refund activity despite the withholding component of the individual income tax rising 6.3 percent during May. With a single month remaining in the fiscal year, revenues are on track to exceed the official budgeted estimate but are in line with the most recent internal forecast.”
Among the major accounts:
- Sales and use tax receipts increased 1.5 percent for the month and have grown 3.0 percent year-to-date.
- Corporation income tax receipts rose $9.3 million in May and have grown 15.6 percent for the year.
- Individual income tax collections fell 11.1 percent in May due primarily to an April accounting error and increased refund activity. Receipts have now grown 3.9 percent though the first eleven months of FY18.
- While the preponderance of property tax collections occurred earlier in the fiscal year, property tax collections decreased 15.8 percent in May but have grown 2.9 percent year-to-date.
- Cigarette tax receipts rose 0.5 percent in May but have fallen 5.1 percent year-to-date.
- Coal severance tax receipts fell 20.2 percent in May to an all-time low of $6.1 million. Collections have declined 11.8 percent through the first eleven months of the fiscal year.
Road Fund receipts fell 2.3 percent in May 2018 with collections of $135.6 million. Year-to-date collections of $1.38 billion are essentially flat, having fallen 0.1 percent so far this year. The official Road Fund revenue estimate calls for a 0.3 percent decrease in revenues for the fiscal year. Based on year-to-date tax collections, Road Fund revenues can decline 2.5 percent in June and still meet the estimate. The most recent internal revenue estimate predicted revenues would decrease 0.8 percent for the year. Among the accounts, motor fuels taxes grew 0.4 percent and have grown 0.4 percent for the year. Motor vehicle usage tax revenue grew 1.1 percent, while license and privilege receipts fell 10.9 percent.
Additional information is available here :https://osbd.ky.gov/Pages/default.aspx