State revenues down again in October
FRANKFORT — Kentucky’s revenues continued to decline in October, dipping 4 percent compared to last year, according to figures released Tuesday.
The state’s General Fund receipts have declined 5.2 percent during the first four months of the fiscal year, according to the Office of State Budget Director. To meet the state’s official revenue estimate, receipts must increase 0.2 percent over the remaining eight months of the fiscal year.
October’s poor performance was expected by the Consensus Forecasting Group, a group of independent economists who help the state predict how much revenue it will receive each year, State Budget Director Mary Lassiter said in a written release that
In October, the Consensus Forecasting Group projected that there could be a revenue shortfall of $161 million in the current fiscal year, which ends June 30. The group will return in December to make official predictions for this fiscal year and the next two years.
“While the ($161 million shortfall) is unofficial at this time, we are very concerned about the ability of revenues to meet budgeted levels,” Lassiter said. “The Beshear administration remains committed to tight fiscal management as the commonwealth endures what we hope is the tail end of this persistent economic downturn.”
The state receives most of its money through sales and income taxes. Sales and use tax receipts were down 4.3 percent in October over the previous year, figures show.
One bright spot: cigarette taxes grew 53 percent from October 2008 because of a 30 cent tax increase the Kentucky legislature approved earlier this year. For the first four months of the fiscal year, taxes from cigarettes were up 72.3 percent.
– Beth Musgrave
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Xstateworker | Nov 10, 2009 | Reply
Fire every non-merit Commonwealth employee, it is time for the Governor to do something about the structural imbalance of revenue to expenses. Next, cut all cabinets 10%, including the sacred cows, social programs, prisons and law enforcement. Last, consolidate the counties into regional governments. 120 counties, with duplicate government services amounts to mountains of waste.
Xstateworker | Nov 10, 2009 | Reply
We also need to utilize technology better. We need to use video hearings in all courts for criminal motions and preliminary hearings. That way we can save the gas and law enforcement hours of transporting prisoners to courthouses. Consolidate the jails to save money in a regional system. Get rid of 2/3′s of the Judges by making regional courts.
KyShark | Nov 10, 2009 | Reply
Xstate, I think you hit the nail on your head with your last point. Two many local fiefdoms filled with corruption. Sure it’s just a little (driveway) here and a little (formerly gravel road to nowhere) there, but multiplied by 100 too many counties and you’re starting to talk about some real money, as they say.
unemployed person | Nov 10, 2009 | Reply
Make the unemployment offices more efficient with modern technology. Install scanners to file routing slips. This will make date retreival more efficient.
Hire local people to perform unemployment appeals instead of using out of state services.
Xstateworker | Nov 10, 2009 | Reply
I bet that the citizens of this Commonwealth do not have a clue that there are more than 30,000 state workers and over 250,000 state, county and city workers that are attached to the government retirement system. That makes the government the largest employer in the Commonwealth of Kentucky. That is not what our founding fathers set up, they set up a limited government which were to have part-time senators and representatives without pay. It is time for the people to standup and say NO to big government.
nic | Nov 10, 2009 | Reply
Fletcher was earning the state money finally b4 you dumb Dem’s pinned those allagations on him that were left over from the last Gov.
Dem’s have controlled the gov. seat for 40 years except the short 2 years Fletcher was in office.
funny thing was, all i heard out of these poor, uneducated Dem’s was ” I felt it was time for a change”. ARE you kidding me!!!!!
A change would be to keep a Rep. in office for more than 2 years out of every40years so they can reload all the hard earned money that you Dem. lovers hold your hand out for.
just makes me sick to see all these people think that Dem’s create money for you for free.
Vote Republican so we can fix this budget that are state Dem. leaders keep digging us into.
Jeff | Nov 10, 2009 | Reply
Local Unemployment offices utilize the most efficient system in the US– the state uses a combination of mainframe and internet based system that out-performs indusrty norms for most major corporations. ALL unemployment appeals hearings are held by employees of the Commonwealth of Kentucky and are conducted in the Commonwealth either in person or via teleconference. In addition the UI program is funded 100% by federal dollars and has NO effect on the general fund (Kentucky tax dollars). The funds that operate the UI Program are paid by employer taxes to the federal government. Benefits are paid by contributions by employers to the UI trust fund.