Politics & Government

Kentucky revenue continues growing slightly faster than predicted

FRANKFORT — Kentucky's finances continue to improve.

General Fund revenue receipts for February grew 3.8 percent in February compared with February 2011, according to figures released Monday by the Office of the State Budget Director.

Total receipts were $574.1 million, compared with $552.9 million in February 2011. The $21.2 million increase was largely fueled by sales and use taxes, state budget director Mary Lassiter said.

"Sales tax collections were $15.2 million more than what we received last February, which was important since most of the other major accounts were either flat or declined," Lassiter said.

Lassiter said February is historically the smallest revenue-collection month for the state.

The state is on target to meet revenue projections set by the Consensus Forecasting Group, a group of independent economists who forecast the state's revenues. The group had predicted overall revenue growth of 2.8 percent in fiscal year 2012, which ends June 30. To meet that projection, the state's revenues must grow 1.0 percent for the remaining months of the fiscal year.

The Road Fund, which pays for road projects and other transportation needs, also continued to perform better than in 2011. Road Fund receipts were up 5.4 percent in February over February 2011.