jane driskell

Kentucky Revenue Shortfall Nears $91 Million

Jul 11, 2014
Wikimedia Commons, Public Domain

Kentucky’s general fund is short $91 million, and one of the driving factors is a decline in a form of income primarily used by the nation’s wealthiest individuals.

In 2012, U.S. Congress was preparing to take the country over the “fiscal cliff” over rising debt, rising healthcare costs and spending on the wars in Iraq and Afghanistan. To reduce the deficit, President Obama proposed raising the federal capital gains tax, which largely impacted the nation's wealthiest, prompting a massive sell-off by 2013.

Chad Lampe

Kentucky Senate President Robert Stivers says a projected revenue shortfall of at least $28 million shouldn’t require state funded agencies to give money back to balance the state’s budget.

Recent state revenue receipts show that Kentucky’s real income is falling short of projections and will lead to a multi-million dollar budget shortfall.

Lower-than-predicted coal severance taxes, property taxes, road fund receipts and more have the state facing a nearly $28 million shortfall by the end of the fiscal year.

Kentucky Budget Facing $3.6 Billion Spending Gap

Jan 7, 2014
Daderot, Wikimedia Commons

As lawmakers kick off the inaugural day of the 2014 General Assembly, the scope of the state's dire budgetary situation is coming into focus: Legislators will have to find a way to come up with $3.6 billion to fully fund budget requests from state agencies.

An increase in tax collections in September has provided a needed boost to the Kentucky’s General Fund, which had been struggling with flat revenues in recent months.

State Budget Director Jane Driskell said yesterday that General Fund receipts were up 4% last month compared with a year ago. Revenue topped $920 million, compared with $885 million in September 2012.

Wikimedia Commons

State Budget Director Jane Driskell announced Friday that Kentucky closed the 2012-2013 fiscal year with a General Fund surplus of $70.6 million.

Officials attribute the surplus to slowed spending by cash-strapped state agencies, as well as a small bump in General Fund revenues. Driskell warns, however, that the fiscal year that just began July 1 extends the budget cuts that were in place last year, and state agencies will continue the challenges of delivering services with fewer dollars and higher costs.

Kentucky has ended the third consecutive fiscal year with General Fund revenue growth — continued good news for a state that had seen tax collections plummet during the economic recession.

Budget Director Jane Driskell said collections were up 2.8 percent to more than $9.3 billion for the 12-month period that ended June 30.

The state's top budget official is reporting an 8.3 percent increase in General Fund revenue in May, largely thanks to improved collections from the sales tax, individual income taxes and property taxes.

Budget Director Jane Driskell released a monthly revenue report on Monday. The report showed property tax collections increased by 75.2 percent in May. Individual income tax receipts rose by 8.3 percent. And sales tax receipts were up 5.2 percent.


Kentucky has huge declines in revenue from key tax sources despite a rebounding national economy. State Budget Director Jane Driskell released a monthly revenue report for April today showing corporate income tax revenue is down by nearly 90 percent.

Property tax collections fell 53.5 percent for the month. Cigarette tax revenue is down 22.2 percent. And collections from the all-important sales tax were off 7.3 percent. The two bright spots in the monthly report are a 5.5 percent increase in income tax revenue and an 18.6 percent rise in coal severance tax collections.


A tax amnesty program is being credited with pushing up General Fund revenue by 3.8 percent in January. State Budget Director Jane Driskell says individual income tax revenue rose by more than 35 percent and corporate income tax receipts rose nearly 83 percent as those who took advantage of the amnesty offer paid up.