Wed August 10, 2011
Business and the Economy

Fiscal Year Looks Good for State's Coffers

Kentucky's General Fund tax receipts for July, the first month of fiscal year 2012, were more than $638 million, a 6.9 percent increase compared to July 2010 figures.  "Kentucky has seen a strengthening of General Fund revenue collections for the past five quarters and the Commonwealth’s economic recovery is continuing into the new fiscal year," state Budget Director Mary Lassiter said in a press release Wednesday. “The Consensus Forecasting Group last week affirmed that revenue growth is ahead of pace by predicting that General Fund receipts will exceed the budgeted levels by $192.0 million,” she said. “While we are cautiously optimistic about the revenue outlook, we still have a challenge ahead to balance the budget this fiscal year.”

Among the major accounts:

● Individual income taxes grew 11.5 percent.
● Sales tax revenues were up 6.8 percent, a welcomed increase following a relatively low quarter of growth in the last quarter of FY11.
● Corporation income tax rose $8.4 million.
● Cigarette taxes continued a path of decline with a 10.6 percent dip in July.
● Property taxes fell $12.6 million.
● Coal severance tax revenues increased 18.1 percent.
● Lottery revenues increased 3.4 percent.

Lassiter also announced that Road Fund revenues for July totaled $104.7 million, an increase of 2.3 percent compared to last July.