Tue August 12, 2014
Kentucky Revenue Receipts Increase 2.2 Percent Over Last Year
New data released this week by the state’s budget office suggest that Kentucky’s General Fund isn’t growing fast enough, leaving open the possibility of another budget shortfall.
Kentucky brought in about $706 million in revenue receipts in July, a 2.2 increase over last year, according to the budget office.
Jason Bailey, director for the nonpartisan Kentucky Center for Economic Policy, says that the growth won’t be enough to meet official revenue projections.
He said: “2.2 percent growth for July, which is better than zero, but still lower than what we need for the year, which is about 3.6 percent to avoid another budget shortfall.”
The data shows that while income and sale tax receipts grew by single digits, returns on corporate and property taxes were down 64 and 45 percent, respectively.
Gov. Steve Beshear recently plugged a $90.9 million shortfall in the previous year’s budget. The shortfall chiefly caused by a sharp decline in individual income tax receipts.