February 11, 2013

Kentucky General Fund Revenues Jump 3.8 Percent over Last January

State Budget Director Jane Driskell said tax revenues for the Kentucky General Fund climbed 3.8 percent in January over January 2012.

For the first seven months of the fiscal year, revenue growth for the General Fund has grown at the same 3.8 percent that January grew at. Allegedly the current budget requires a growth rate of 2.4 percent to be kept in balance.

Driskell said, “January receipts are consistent with the latest internal revenue projections.”

The state income tax itself, which is the largest source of revenue, has soared 8.8 percent in the first seven months of the fiscal year.

Unsurprisingly, the revenues from the Road Fund grew at a 2.1 percent rate in January, as higher gas prices kept travelers closer to home. The road fund could fall short if it continues at the 3.2 percent pace it's at for the first seven months of the fiscal year, as projections are it needs about 3.9 percent growth to meet project demands. Of course that's not hard to deal with as all that has to be done is for the projects to be put on hold if the money isn't there.

Also related to the economy are the weaker sales and use tax receipts, which are flat so far this year.

These numbers are somewhat disingenuous because of the refusal of Kentucky lawmakers to require government employees, who are paid and given benefits far above the market and private sector, to pay more into their own pensions and benefit packages. Until that happens, it won't matter what pace the tax revenues grow at, which are already too high.

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