General fund revenues fall $138.5 million short of estimates for fiscal year

07/10/2017 04:40 PM

Despite rising growth in General Fund receipts for the seventh consecutive year, the fiscal year fell short of budgeted predictions.

Final fiscal year revenue is $138.5 million shy of budgeted predictions, falling 1.3 percent short of official estimates for the fiscal year, according to the Office of the State Budget Director. Analysts had predicted 2.7 percent growth over the fiscal year.

“While I am pleased with the sustained growth, collections for FY17 were below forecasted levels by 1.3 percent,” State Budget Director John Chilton said. “Looking back to February, General Fund revenues were right on pace to hit the estimate with year-to-date growth of 2.8 percent. However, the period between March and June saw nominal revenues decline by $50.2 million, due in large part to March’s plunge in corporate revenues.”

“The forecasting challenge going forward will be predicting when revenues will reverse the current four-month slide and resume collections more closely aligned with underlying economic growth.”

At the end of May Kentucky state agencies were asked to cut 1 percent from their budgets to help avoid the shortfall then predicted to be $113 million.

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