Local News Politics

In Light of Higher Reciepts, Beshear Says No Furloughs for Next Fiscal Year

It’s been another stellar month for state revenue receipts in Kentucky. And that means no furlough days for state workers next fiscal year.

General Fund receipts in May were $750 million, a whopping 18 percent increase over May 2010 receipts. Tax collections in the first 11 months of the current fiscal year have grown 6.7 percent.

The enacted budget required a growth rate of only 4.5 percent, so revenue receipts this month could decline 17 percent and the state would still meet its budget. Road Fund receipts are up more than 10 percent.

In response to the good economic news, Gov. Steve Beshear released a statement indicating he sees no need for state workers to be furloughed in the second year of the biennium. They’ve already taken six furlough days this fiscal year.

The governor’s announcement drew immediate praise from House Speaker Greg Stumbo.

Local News Politics

Tax Collections Improve Slightly In Kentucky

There’s encouraging economic news coming out of Frankfort, where Kentucky tax collections continue to show positive gains.

State tax receipts last month were nearly $750 million, an almost four percent increase over November of last year. In the first five months of the fiscal year, General Fund receipts have risen five percent.

Individual income tax receipts were up last month, as were sales and use tax receipts, property tax collections, coal severance tax receipts and lottery collections.

Corporate income and cigarette tax collections were off last month. The growth rate needed for the final seven months of Fiscal 2011 is 3.7 percent.

Road Fund receipts also rose last month, by almost 22 percent. Year-to-date growth in the Road Fund is almost eight percent.

State budget director Mary Lassiter calls the collections “encouraging,” but says the economy remains very volatile.