Exceeding expectations, Kentucky has a $165.4 million budget surplus and revenue into the state’s general fund rose for the fifth consecutive year. The surplus is primarily due to more money collected from income and sales taxes.
Gov. Steve Beshear applauded the news in a statement, saying that the growth was proof that Kentucky’s momentum continues to accelerate.
“In January I told lawmakers that Kentucky was back with a vengeance, and today’s news of the more than 5 percent growth in general fund revenues for FY 15 is further proof our momentum continues to accelerate. Over the last seven years, we have worked through the worst recession of our lifetime to grow Kentucky’s economy, and we get more and more good news every day. The excess revenues are broad based, led by growth in individual income and sales taxes, indicating that salaries and jobs are on the rise and consumer confidence is higher. Plus our hard work in economic development efforts is paying off with the growth in business taxes. This level of activity demonstrates that corporations continue to find the Commonwealth a favorable destination for business retention, expansion, and new business formation. Yes, we have some challenges, and more work to do, but we are seeing positive trends in almost all areas of the economy. Today’s revenue report certainly tells us that our economy continues to grow and, as a state, that we are moving in the right direction.” - Gov. Steve Beshear
The general fund grew by more than 5 percent for the first tim esince 2011, according to state budget officials.
Among the state's taxes, revenue from the income tax had the largest gain from the 2014 fiscal year, increasing by $320.2 million. Sales and use tax revenue grew by $136.2 million. However, revenue into the state’s road fund was $20 million less than expected, primarily due to the state reaping less money from the gas tax as a result of lower gas prices.
Last year Kentucky had a $91 million shortfall, which led to spending cuts.
