Politics & Government

State revenue shows slight growth in April, but shortfall is likely

Kentucky’s tax collections rebounded in April after a disappointing March, but a budget shortfall of $100 million or more remains likely.

State budget director John Chilton reported Wednesday that state tax receipts in April for the General Fund, which pays for most state programs, grew 1.7 percent compared to April 2016, an increase of $18.7 million. (Receipts fell 11.4 percent in March compared to a year earlier.)

Total revenue for April was $1.095 billion.

Receipts have now grown 1.3 percent for the first 10 months of this fiscal year, which ends June 30, but the state budget calls for 2.7 percent revenue growth for the entire fiscal year.

To meet the official revenue estimate, receipts must increase 9.7 percent over the last two months of the fiscal year, which is unlikely.

In April, state economists released an interim revenue estimate, predicting a shortfall of $113.2 million.

The Kentucky Constitution requires a balanced budget. Depending on the size of any shortfall, either Gov. Matt Bevin or the legislature would have to balance the budget, by either cutting spending or tapping reserve funds.

Road Fund receipts for April totaled $123.9 million, a 5 percent decrease over April 2016 levels. Year-to-date receipts for this fiscal year are up 1.1 percent.

Jack Brammer: 502-227-1198, @BGPolitics

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