State Tax Collections Drop
Frankfort, KY – The first drop in state tax collections in over two years could force state agencies to cut back on spending later this year.
Tax revenues fell 6.6% in April compared to the same period a year ago. It's the first time tax revenues have slipped in two years.
While state budget sirector Brad Cowgill says he expectes the revenue to rebound over the next few months, he says state agencies would have to "restrain spending" if revenues fall short of their goal.
In order to make up for the dip in April, Cowgill said tax revenues would have to rise nearly 11% in May and June if the state wants to be an track to reach the projected state growth rate of 7.7% by the end of the year.