State News
No surprise: state tax receipts down again
FRANKFORT — State tax receipts declined once again in October, according to Budget Director Mary Lassiter.
October receipts fell 4 percent over the same month a year ago. The state took in $652.4 million compared with $679.6 million in October 2009. For the year, receipts are down 5.2 percent and the state would have to manage a 0.2 percent increase for the remaining eight months of the year to meet budget projections.
The road fund receipts were also down 4 percent over October 2009 and are down 3.2 percent for the fiscal year which began July 1.
Lassiter said the poor revenue picture in October is in line with projections last month by the Consensus forecasting Group, a collection of private and university economists who advise the state on revenue projections.
The CFC’s preliminary estimate of revenues for the fiscal year projected a revenue shortfall of $161 million. That’s on top of more than $800 million which has been cut in the budget in the past 19 months.
Lassiter said she is “very concerned about the ability of revenues to meet budget levels” as the state endures a deep recession and high unemployment.
Both corporate income and individual income tax receipts fell, corporate taxes by 81.9 percent over the same month a year ago and individual income tax receipts by 9.5 percent. Corporate taxes are down 47 percent for the first four months of the year and individual income taxes are down 7.7 percent.
Also down are sales and use taxes which fell 4.3 percent in October and are down 6.8 percent for the year.
There was one predictable area of growth – cigarette taxes which the legislature boosted last spring. They’re up 53 percent over October 2009 and up 72.3 percent for the first four months. Lottery revenues are also up 3.2 percent for the month and 2.6 percent for the year.
Coal severance tax receipts fell 14 percent as coal prices continue to moderate and decline. Those taxes are down 9.5 percent for the year.
RONNIE ELLIS writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com. Follow CNHI News Service stories on Twitter at www.twitter.com/cnhifrankfort.
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