Economy
1:25 pm
Wed October 10, 2012

General Fund Receipts for September Increase, but Still Fall Below Pace to Meet Official Estimate

Kentucky's General Fund Receipts increased by 5.3 percent last month, compared to September of last year. However, revenues  for the first quarter still fell below the pace needed to meet the official estimate. Meanwhile, road funds declined 3.9 percent.

Total  General Fund revenues for the month topped 844 million dollars in September, but through the first quarter of this fiscal year, they have grown at only 2.1 percent.  The official revenue estimate calls for revenue growth of 2.4 percent to meet the official estimate. As a result, state officials now say revenues will need to grow 2.5 percent for the remainder of the fiscal year to match the official revenue projections.

"underlying weakness in many categories of sales and gross receipts taxes"

State Budget Director Mary Lassiter says General Fund receipts recovered somewhat after declining in July and growing moderately in August.  She says that growth took place despite “underlying weakness in many categories of sales and gross tax receipts." Sales tax revenues grew 1.2 percent in September, but are still down 1 percent for the first quarter.  Coal severance tax receipts declined 19 percent in September.

Road fund receipts for last month totalled $110.8 million, which is a 3.9 percent decline from September of 2011. Last month marks the second straight month road funds have decreased in Kentucky.