FRANKFORT, KY (Monday, May 11, 2009) - The Office of State Budget Director
reported today that April's General Fund receipts were down 12.1 percent compared to April of last year. Total revenues for the month were $826.7 million, compared to $940.6 million during April 2008. Through the first 10 months of the fiscal year, receipts are down 1.6 percent.
Through the first 9 months of the fiscal year, receipts were flat compared to a year earlier.
The November 2008 revised revenue forecast by the Commonwealth's Consensus
Revenue Forecasting Group, as modified by legislation, called for a 2.1 percent decline for the entire fiscal year. Receipts can decline only 4.6 percent over the last two months of the fiscal year in order to hit the official estimate.
Road Fund receipts for April totaled $108.7 million, a 4.2 percent decrease from April
2008 levels. Year-to-date receipts are down 6.5 percent.
State Budget Director Mary Lassiter noted how quickly the revenue situation has
changed. "While the 12.1 percent decline in April General Fund collections is significant, it was anticipated that the fourth fiscal quarter of FY09 would be negative due to the significant growth in the same quarter last year. The General Fund went from essentially flat in March to an overall year-to-date rate of decline of 1.6 percent in a single month.

This volatility highlights the seriousness of the overall budget situation and how consequential receipts will be in the remaining two months of the fiscal year."
Among the major accounts:
• Sales and use tax receipts were up 1.1 percent for the month and are up 0.2 percent
for the year.
• Corporation income tax receipts were off 12.2 percent for the month and are down
36.6 percent for the year.
• Individual income tax collections fell 23.7 percent in April and are down 3.5 percent
thus far in FY09.
• Property tax collections decreased 16.1 percent for the month and are up 2.1 percent
through the first 10 months of the fiscal year.
• Cigarette tax receipts increased 46.1 percent in April but are down 1.3 percent for the
year. The floor stocks tax that was part of the law changes in tobacco products
brought in an additional $7.3 million in April.
• Coal severance tax receipts increased 18.7 percent in April and 29.3 percent year-todate.
Road Fund receipts fell 4.2 percent in April with collections of $108.7 million. The officially revised Road Fund estimates, as modified by legislation, call for a decline in revenues of 2.7 percent for the fiscal year. Based on year-to-date tax collections, revenues would need to increase 16.6 percent for the remainder of FY09 to meet the estimate. April was the fourteenth consecutive month that the Road Fund has declined as motor vehicle usage tax receipts continue to hamper Road Fund growth. Year-to-date receipts in that account, the 6 percent tax on the sale of vehicles, are $61.9 million less than at this time a year ago.
Among the accounts, motor fuels increased 7.1 percent and has posted annual growth of 1.6 percent in the first 10 months of FY09. Motor vehicle usage revenue was off 26.4 percent in April and has fallen 18.3 percent this year. License and privilege receipts grew 4.8 percent in April but have fallen 4.1 percent through the first 10 months of the fiscal year.
Lassiter commented that a request has been issued to the Consensus Forecasting Group for an official revision of FY 10 General Fund and Road Fund revenue estimates, and that planning estimates have been requested for both funds for FY 11 and FY 12. The meeting dates for the Consensus Forecasting Group have been set by the Legislative Research Commission for May 18 and 29.