Revenue supporting Kentucky’s general fund rose 7.1% in December compared to the same month a year ago, an increase of $55.9 million.
Total revenues were $843.6 million, compared to $787.6 million in December 2009. Revenue has increased 5.4% in the first six months of fiscal 2011, according to budget director Mary Lassiter.
The fiscal 2011 budget called for 4.2% revenue growth, Lassiter said, noting that revenues need to grow by 3% for the last six months of the fiscal year to meet the official revenue estimate. Weak collections last year coupled with stronger holiday spending contributed to the strong revenue growth, she said.
“In December 2009, receipts were $71 million lower than in the previous December, so strong growth in December 2010 was inevitable and expected in the budgeting process,” Lassiter said. “We are encouraged to see signs of recovery in the sales and income taxes, but expect growth in the balance of the fiscal year to be tempered.”
Road fund receipts for December were $96.6 million, an 11.8% increase over December 2009. Year-to-date receipts have increased 12.3% and are budgeted to grow by 5.3% for the fiscal year.
Lassiter noted that the road fund has posted near double-digit growth in every month of fiscal 2011 on the strength of the motor fuels and motor vehicle sales taxes.
“The motor vehicle usage tax will continue to post good growth in fiscal 2011, as we will be comparing current-year receipts to periods where the trade-in credit was applicable, making nominal growth appear higher than the underlying economic activity,” she said.
Sales and use tax revenue rose 10% in December, and are up 4.7% for the year, while corporate income-tax receipts fell 21.5% but are up 20.6% for the year.
Property tax collections rose 11.6% and are up 4.4% for the year. Cigarette tax receipts decreased 2.4% and collections for the first six months are down 3.9%. Coal severance tax receipts decreased 1.3% in December but have risen 10% for the year.
