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Kentucky tax receipts drop for second consecutive year

Kentucky's general fund tax receipts fell for the second straight year in fiscal year 2010, which ended June 30, hitting their lowest point in five years, according to The Courier-Journal.

Receipts dropped 2.4 percent for fiscal year 2010 compared with fiscal year 2009, totaling $8.225 billion. Final fiscal year 2010 revenue was $27.2 million, which was 0.3 percent more than estimated by the Consensus Forecasting Group. This means Gov. Steve Beshear (D-Ky.) and lawmakers don't need to make additional cuts; the state's budget has been cut seven times during the past two and a half years.

"Serious budgetary challenges lie ahead, but achieving the fiscal year 2010 revenue estimates in the general fund and road fund certainly is a welcomed sign that we are beginning to see some signs of economic recovery," says State Budget Director Mary Lassiter.

Revenue in June increased 5.2 percent compared with June 2009, which helped receipts. The biggest percentage decline in revenue was in corporate income tax, which dropped 11.2 percent; the biggest percentage increase was in cigarette taxes, which climbed 37.1 percent.

7/27/2010