FRANKFORT, KY – (Tuesday, June 11, 2024) – The Office of State Budget Director reported today that May’s General Fund receipts fell 5%. Total revenues for the month were $1,088.9 million, compared to $1,146.0 million during May 2023. Receipts have now grown 2.9% for the first 11 months of FY24. The official estimate of $15,554.5 million corresponds to growth of 2.7% over FY23 totals. With one month remaining in FY24, collections need to increase 0.2% in June to meet the estimate.
The individual income tax declined with collections $100 million less than last May. Most of the decline was the result of an accounting correction from prior months. Without the correction, General Fund receipts would have grown 2.5%. Individual income tax withholding fell only 6.3% despite the 11.1% reduction in the tax rate in 2024.
State Budget Director John Hicks had the following remarks: “Growth in receipts is expected to slow given the reduction in the individual income tax rate from 4.5 to 4%, and the long string of high sales tax growth. May’s sales tax receipts grew at a subdued pace of 0.3%. The remaining 25% of the General Fund accounts collectively posted growth of $41.8 million, or 16.7%. We are still on pace to meet the official revenue estimate for FY24.”
Among the major accounts:
- Sales and use tax receipts increased by 0.3%. Collections have grown 4.6%year-to-date.
- Individual income tax collections were down 23%, or $100.5 million. Receipts have decreased 0.8% through the first 11 months of FY24.
- Corporation income and LLET tax receipts grew 85.9% on a small base and have grown 0.9% year-to-date. For the month, combined receipts were $57.3 million.
- Property tax collections grew 28.5% in May on collections of $34.4 million. The revenue growth was spread fairly evenly among all accounts. Year-to-date receipts are up 4.1%.
- Cigarette tax receipts fell 33.1% in May. Receipts have decreased 8.7% through the first 11 months of FY24.
- Coal severance tax receipts fell 28.6% to $6.1 million. Collections have decreased 20.2% through the first 11 months of the fiscal year.
- Interest income from investments posted receipts of $30.2 million, the highest month of interest income ever posted.
Road Fund receipts rose 3.2% in May with collections of $170.6 million. Year-to-date collections have increased 7.2%. Among the accounts, motor fuels revenue rose 9.2% while motor vehicle usage collections fell 2.0%. The official Road Fund revenue estimate calls for a 7.3% increase in revenues for the fiscal year. Based on year-to-date tax collections, revenues must increase 8.8% in June to meet the estimate.
