FRANKFORT — Kentucky's General Fund, which pays for most state programs, grew at a modest pace in August, while the state Road Fund dipped slightly.
General Fund receipts increased 1.2 percent in August compared with the same month last year, state Budget Director Jane C. Driskell said Wednesday.
Total revenue for the month was $671.9 million, compared with $663.7 million during August 2013.
General Fund receipts have increased 1.7 percent so far this fiscal year, which began July 1.
The official revenue estimate for the fiscal year calls for revenue to increase 3.6 percent. General Fund revenue must grow 3.9 percent for the remainder of the fiscal year to meet the official estimate, which lawmakers used to create the state budget.
Despite the low rate of growth, there were some encouraging undertones reflected in the monthly numbers, Driskell said.
She said she was "pleased to see two solid performances from our largest revenue sources, the individual income tax and year-to-date sales tax revenues."
Individual income taxes increased 9 percent, mostly because of growth in withholding payments (payroll taxes).
The growth rate on sales-tax receipts was 1.1 percent for the month, but 4.4 percent year to date.
Driskell said potential weakness in the corporate income tax continues to be a concern. "September corporate income receipts will be a more appropriate barometer, as it is the first month in fiscal year 2015 where estimated quarterly payments are due," she said. "We'll be in a better position to re-examine the fiscal year projections once the first quarter is complete."
Receipts for the Road Fund, which pays for most transportation projects, fell 0.1 percent in August, with revenue of $141.1 million.
The official Road Fund revenue estimate calls for a 0.9 percent decline in receipts for the entire fiscal year. Based on year-to-date collections, revenue can decrease 1.5 percent for the remainder of the fiscal year and still meet the estimate.