Finance time

Kentucky’s general fund revenue declined for the second consecutive year in fiscal 2010 — the first time the state has had consecutive declines since World War II, according to information release late Monday by the Kentucky Office of Employment and Training.

For the fiscal year, ended June 30, the state had total general fund receipts of $8.225 billion, down $201 million, or 2.4 percent, from fiscal 2009.

The revenue collection was at its lowest point in five years, according to the release. It is $439 million lower than fiscal 2008, $349 million lower than fiscal 2007 and $151 million lower than fiscal 2006.

However, the state’s revenue was $27.2 million higher than the revised estimate provided in December 2009 by the Consensus Forecasting Group, an independent group of Kentucky economists.

Because the $27.2 million was higher than the estimate, those funds can be used to increase Kentucky’s budget reserve trust fund, or to pay for designated “necessary” government expenses such as the state’s response to natural disasters, National Guard security details and legal judgments. Over the past four years, the state has spent an average of $49 million per year on those expenses, according to the release.

For the full fiscal year, individual income tax receipts fell $160.9 million, or 4.9 percent, from fiscal 2009 and sales and excise taxes declined $63.6 million, or 2.2 percent.

Corporate income tax collections declined by $30 payday loan.1 million, or 11.2 percent. State officials attributed the drop to the national economic downturn. The limited liability entity tax increased by $24.3 million, or 20 percent, over fiscal 2009.

Combined corporate income tax and limited liability entity tax receipts were $383.8 million, or $5.8 million lower than fiscal 2009.

Cigarette tax receipts increased by $75.4 million, or 37.1 percent, primarily due to an increase in the tax rate.

The coal severance tax, which is paid by coal operators that send their coal out of state, declined 7.1 percent from fiscal 2009, to $271.9 million.

Property tax receipts increased by $3 million, or 0.6 percent from fiscal 2009, and the state’s lottery receipts increased by $6.5 million, or 3.4 percent.

Kentucky’s road fund revenues for fiscal 2010 were $1.2 billion, up $14.6 million, or 1.2 percent, from fiscal 2009.

Receipts up for June

General fund receipts for June increased 4.6 percent, to $800 million, from $765.2 million in June 2009.

For the month of June, corporation income taxes were up 49 percent and individual income taxes were up 4 percent from June 2009.

The state’s road fund receipts for June were $107.5 million, down 1 percent from $108.6 million in June 2009.

Source

Filed under: money by John