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Kentucky revenue increased in November

Kentucky tax revenues grew for the first time in 11 months in November, increasing by 2.4 percent compared with November 2008, according to The Courier-Journal.

However, Budget Director Mary Lassiter says there still are concerns that state revenues will continue to erode as a result of the recession. In fact, the combined collections of Kentucky's two largest revenue sources—sales and income taxes—dropped 0.7 percent in November.

November revenue was $722 million compared with $705 million in November 2008. However, revenue is $3.3 billion during the first five months of the fiscal year, which is 3.6 percent less than during the same period in 2008.

The General Assembly passed legislation earlier this year to handle an anticipated $1 billion revenue shortage, allocating about $800 million in federal stimulus money toward replacing the lost revenue.

The Consensus Forecasting Group, a team of economic experts, will meet Dec. 21 to revise the current year’s forecast and make projections for the future. When the group met in October, it predicted an additional $161 million shortfall for this fiscal year, as well as modest growth for 2010-2012.

12/17/2009