FRANKFORT, Ky. (KT) - General fund receipts took a big nose-dive last month, but state budget officials remain upbeat that the final month of the fiscal year will end on a positive note.
According to figures released by the Office of State Budget Director John Chilton, 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 11 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.
Chilton noted the May drop in general fund receipts followed a 6.3 percent increase 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.”
The Road Fund saw receipts fall 2.3 percent last month, collecting $135.6 million. Year to date, revenue has dropped 0.1 percent to $1.38 billion. The official estimate calls for a 0.3 percent decrease in revenues for the fiscal year, so receipts can fall 2.5 percent in June, and still meet the forecast.
The most recent internal revenue estimate for the road fund had predicted a 0.8 percent drop for the year.