Office of State Budget Director 284 Capitol Annex, 702 Capitol Avenue Frankfort, Kentucky 40601 (502) 564-7300 FAX: (502) 564-6684 Internet: osbd.ky.gov Steven L. Beshear Governor Jane C. Driskell State Budget Director Governor’s Office for Policy and Management Governor’s Office for Economic Analysis Governor’s Office for Policy Research For Immediate Release January 12, 2015 Contact: Jane C. Driskell Greg Harkenrider 502-564-7300 GENERAL FUND AND ROAD FUND RECEIPTS FOR DECEMBER 2014 General Fund receipts rose 0.5 percent Road Fund receipts rose 2.0 percent FRANKFORT, Ky. (Monday, January 12, 2015) - The Office of State Budget Director reported today that December’s General Fund receipts rose 0.5 percent compared to December of last year, an increase of $5.0 million. Total revenues for the month were $917.6 million, compared to $912.6 million during December 2013. Receipts have increased 3.5 percent for the first six months of the fiscal year that ends June 30, 2015 (FY15). The official revenue forecast for FY15 calls for 3.6 percent revenue growth. Revenues would need to grow 3.7 percent for the last six months of the fiscal year to meet the budgeted estimate. State Budget Director Jane Driskell noted it is an encouraging sign that General Fund revenues increased in spite of declines in sales and property taxes and only moderate growth in individual income tax collections. “We recognized last month that some of November’s outstanding growth was likely attributable to timing issues and that has played out in December. If you look at General Fund growth from the November/December period in the current fiscal year compared to the same period in FY14, the combined period would have grown at a solid 6.3 percent. During that same combined period, individual income grew at 8.8 percent and sales at 5.2 percent. With half of the year on the books, the month-to-month variations are less important than the year-to-date totals. -more- KentuckyUnbridledSpirit.com An Equal Opportunity Employer M/F/D With the solid growth through the first six months, it appears we are more likely to meet the official revenue estimates,” said Driskell. Among the major accounts: • Individual income tax collections rose 4.3 percent in December. November receipts swelled 13.7 percent, so the timing of collections may be the culprit for the slower rate of growth -- as mentioned above. Year-to-date collections in this account have increased 6.4 percent due primarily to a 6.3 percent growth in withholding collections. • Corporation income tax receipts increased 22.0 percent but are down 9.4 percent for the year. December is an indicator for possible estimated-payment growth later in the fiscal year. • Sales and use tax receipts fell 0.7 percent in December but have increased 4.5 percent for the year. November growth was 11.8 percent, so a December slowdown was not surprising. • Property tax collections declined 13.4 percent but are up 2.3 percent for the year. • Cigarette tax receipts declined 0.5 percent in December and for the first six months are down 4.1 percent. • Coal severance tax receipts decreased 12.3 percent in December and have dropped 6.3 percent for the year. Road Fund receipts increased 2.0 percent in December with collections of $123.6 million and have grown 1.1 percent for the year. Official Road Fund estimates call for a decrease in revenues of 0.9 percent for the fiscal year. Based on year-to-date tax collections, revenues can decline 2.9 percent for the remainder of FY15 to meet the estimate. Driskell noted that even though Road Fund collections are slightly ahead of pace to meet the official estimate, receipts will slow in the second half of the year. “The motor fuels tax rate declined 4.3 cents per gallon for the period January – March and the effects of the drop will be felt beginning in February. Additionally, the Department of Revenue is currently determining the tax rate for the final quarter of the fiscal year and with gas prices at their current level, it is very likely that the tax rate will fall further.” Among the accounts, motor fuels receipts fell 1.1 percent in December, but are up 0.9 percent for the first six months. Motor vehicle usage revenue declined 0.9 percent in December and has decreased 0.7 percent year-to-date. License and privilege receipts increased 27.3 percent for the month and have grown 4.9 percent for the year. -30- Volume 54 Number 6 KENTUCKY STATE GOVERNMENT REVENUE 1. GENERAL FUND REVENUE 2014 DECEMBER 2013 % Change JULY THROUGH DECEMBER FY 2015 FY 2014 % Change $917,568,262 $890,998,043 $306,541,605 416,683 3,896,281 18,460,622 11,011 998,568 3,122,690 6,966 195,761 48,403 270,604,179 290,565 1,668,321 5,382,457 1,439,098 0 $912,645,057 $888,968,545 $308,880,934 510,959 4,749,665 18,545,894 10,119 933,445 2,723,226 25,000 175,411 2,072 272,414,569 161,732 1,399,339 5,412,554 1,818,357 (1,408) 0.5% 0.2% -0.8% -18.5% -18.0% -0.5% 8.8% 7.0% 14.7% -72.1% 11.6% 2235.6% -0.7% 79.7% 19.2% -0.6% -20.9% --- $4,877,338,778 $4,693,479,311 $1,893,971,565 3,113,203 29,642,833 112,315,711 65,634 6,166,887 17,825,011 44,704,759 1,379,775 145,963 1,626,908,119 1,472,455 8,055,116 31,442,383 10,732,714 1,001 $4,712,452,320 $4,540,308,446 $1,826,133,520 3,215,611 30,503,617 117,173,478 63,174 5,866,406 16,659,286 43,326,674 842,097 105,115 1,557,141,336 1,403,423 7,358,774 31,843,724 10,633,052 (2,246) 3.5% 3.4% 3.7% -3.2% -2.8% -4.1% 3.9% 5.1% 7.0% 3.2% 63.8% 38.9% 4.5% 4.9% 9.5% -1.3% 0.9% --- $40,207,983 25,950 16,546,798 21,138 24,850 7,992 802,648 107,575 123,132 45,745 669,475 1,545,786 20,286,894 $45,610,343 14,400 18,877,703 6,085 920 6,583 733,176 10,150 97,902 45,967 1,497,716 1,972,783 22,346,959 -11.8% 80.2% -12.3% 247.4% 2601.1% 21.4% 9.5% 959.9% 25.8% -0.5% -55.3% -21.6% -9.2% $206,269,750 220,430 97,550,789 303,930 37,591 72,907 6,563,078 238,350 (16,159) 351,707 8,575,460 9,343,509 83,028,158 $225,946,967 163,265 104,093,800 404,718 20,777 70,606 6,458,483 135,150 2,266,310 321,642 8,876,584 9,191,167 93,944,464 -8.7% 35.0% -6.3% -24.9% 80.9% 3.3% 1.6% 76.4% --9.3% -3.4% 1.7% -11.6% Income Corporation Individual $421,086,861 83,555,038 337,531,823 $391,960,176 68,459,711 323,500,465 7.4% 22.0% 4.3% $2,184,739,846 208,854,950 1,975,884,896 $2,087,219,438 230,645,842 1,856,573,595 4.7% -9.4% 6.4% Property Building & Loan Association General - Real General - Tangible Omitted & Delinquent Public Service Other $118,626,991 0 75,001,600 35,367,252 2,840,951 5,414,102 3,086 $136,959,467 0 71,810,305 59,987,711 2,642,756 2,518,694 1 -13.4% --4.4% -41.0% 7.5% 115.0% --- $362,031,669 5,753 180,119,270 121,606,849 11,015,249 44,058,575 5,225,972 2.3% --2.4% 7.9% -45.2% 9.8% -83.7% Inheritance $2,665,859 $3,442,454 -22.6% 25,785,961 24,076,572 7.1% Miscellaneous Legal Process T. V. A. In Lieu Payments Other $1,868,744 1,084,519 784,225 0 $2,115,171 1,136,388 978,784 0 -11.7% -4.6% -19.9% --- $12,282,111 7,531,125 4,747,082 3,904 $14,900,280 8,105,173 6,794,715 392 -17.6% -7.1% -30.1% 895.8% $26,708,018 1,724,934 50 1,588,755 (96,067) 19,500,000 0 3,990,346 $23,232,760 1,933,582 0 1,768,841 (43,048) 17,500,000 9,438 2,063,948 15.0% -10.8% ---10.2% --11.4% -100.0% 93.3% $182,960,060 7,164,730 14,671,653 11,119,926 (392,431) 109,500,000 27,594 40,868,589 $170,906,459 8,220,362 14,699,356 12,137,638 (698,437) 103,139,743 48,438 33,359,359 7.1% -12.8% -0.2% -8.4% --6.2% -43.0% 22.5% TOTAL GENERAL FUND Tax Receipts Sales and Gross Receipts Beer Consumption Beer Wholesale Cigarette Distilled Spirits Case Sales Distilled Spirits Consumption Distilled Spirits Wholesale Insurance Premium Pari-Mutuel Race Track Admission Sales and Use Wine Consumption Wine Wholesale Telecommunications Tax Other Tobacco Products Floor Stock Tax License and Privilege Alc. Bev. License Suspension Coal Severance Corporation License Corporation Organization Occupational Licenses Oil Production Race Track License Bank Franchise Tax Driver License Fees Minerals Severance Natural Gas Severance Limited Liability Entity Nontax Receipts Departmental Fees PSC Assessment Fee Fines & Forfeitures Income on Investments Lottery Sale of NOx Credits Miscellaneous Redeposit of State Funds ($137,798) $443,753 --- $370,430,077 (498,150) 184,469,693 131,191,308 6,033,049 48,380,070 854,106 899,407 1,237,415 -27.3% Volume 54 Number 6 2. ROAD FUND REVENUE 2014 DECEMBER 2013 JULY THROUGH DECEMBER % Change FY 2015 FY 2014 % Change $123,624,555 $121,145,867 2.0% $784,862,700 $776,002,756 1.1% 122,352,344 121,031,376 1.1% $772,292,319 $764,977,090 1.0% Sales and Gross Receipts Motor Fuels Taxes Motor Vehicle Usage $110,831,400 76,726,681 34,104,719 $111,978,060 77,571,793 34,406,267 -1.0% -1.1% -0.9% $677,920,036 462,437,983 215,482,053 $675,049,261 458,153,342 216,895,919 0.4% 0.9% -0.7% License and Privilege Motor Vehicles Motor Vehicle Operators Weight Distance Truck Decal Fees Other Special Fees $11,520,945 6,689,758 1,125,953 2,701,417 7,183 996,633 $9,053,316 6,187,325 1,135,119 796,583 1,632 932,656 27.3% 8.1% -0.8% 239.1% 340.1% 6.9% $94,372,283 40,598,310 8,138,558 40,546,877 31,460 5,057,078 $89,927,829 36,587,472 8,122,669 38,693,064 22,019 6,502,605 4.9% 11.0% 0.2% 4.8% 42.9% -22.2% TOTAL STATE ROAD FUND Tax Receipts- Nontax Receipts Departmental Fees In Lieu of Traffic Fines Income on Investments Miscellaneous $920,678 879,974 42,861 (258,236) 256,079 $71,648 797,718 38,966 (817,004) 51,969 1185.0% 10.3% 10.0% --392.8% $10,090,180 7,978,591 243,208 1,255,726 612,655 $9,251,799 7,695,325 265,354 870,877 420,242 9.1% 3.7% -8.3% 44.2% 45.8% Redeposit of State Funds 351,532 42,843 720.5% $2,480,201 $1,773,867 39.8% An electronic version of this report is available for viewing and downloading in PDF format at the Office of the State Budget Director's web site. To access this report, set your browser to http://www.osbd.ky.gov.