RSS

State tax collection hits five-year low

July 13, 2010 | | Comments 14
State Budget Director Mary Lassiter and Gov. Steve Beshear

State Budget Director Mary Lassiter and Gov. Steve Beshear

By John Cheves – jcheves@herald-leader.com

Tax collection for Kentucky’s General Fund hit its lowest point in five years in fiscal year 2010, which ended June 30, according to state budget director Mary Lassiter. This is the first time the state has suffered a consecutive decline in receipts since World War II, Lassiter said.

General Fund receipts totaled $8.2 billion for the year, or 2.4 percent less than 2009, Lassiter said. The General Fund pays for much of state government other than road projects, which have their own fund. The Road Fund collected $1.2 billion, which was up 1 percent from the previous year.

Although General Fund receipts declined in the just-concluded fiscal year, revenues were $27.2 million, or 0.3 percent, above the official projection, which called for a 2.7 percent drop in revenues.

“We have reduced the state’s budget seven times over the past two and a half years and are now in the process of cutting again,” Lassiter said in a prepared statement. On Friday, Gov. Steve Beshear announced plans for six days of unpaid furlough for state workers during the current fiscal year.

The largest sources of revenue for the General Fund declined from 2009 to 2010, including individual income taxes ($3.1 billion, down 5 percent), sales and use taxes ($2.7 billion, down 2 percent) and corporate income taxes ($238 million, down 11 percent).

A handful of Democratic and Republican lawmakers called for comprehensive tax reform during the legislative session that concluded in April, but the General Assembly did not address the issue.

Filed Under: State BudgetState GovernmentSteve Beshear

About the Author:

RSSComments (14)

Leave a Reply | Trackback URL

  1. mike says:

    It all goes back to Bush’s tax cuts. The state taxes based on Federal adjusted income. with bush’s tax cuts it reduce the adjusted income for married folks were the lazy wife sets at home. Ultimatly stripping the states of tax money along with the fedral goverment. so the greed of the married population is causing a ripple affect thru out the country. so you state worker who are loosing your income you only have the greed of the married folks to think for your lost wages.

  2. bingcherries says:

    yeah, Mike, it obviously does not have anything to do with economic activity (which generates taxes), or the impact that taxes have on said activity, or the BS red tape and crap that business owners have to go through that impacts business activity.

    BTW, I’d be all for a flat tax that does not penalize or subsidize any particular group (i.e., married people)

  3. bingcherries says:

    Oh, Mike, I almost forgot:

    If you earn income, your taxes are about to go up. If Congress does not act to preserve current law, even the lowest 10 percent bracket will rise to 15 percent. Throw in tax hikes on capital gains, dividends and other tax code fixes, and the American economy is staring straight down the barrel of $3.2 trillion tax hike over the next ten years.

  4. Don says:

    I’m not surprised and it has little to do with the economy. Just wondering how much is on the “books” to be collected, billed, processed, settled etc. How much money is sitting uncollected in Revenue one would be surprised. Curious to department by department the revenue loss. Let’s collect what is there before cutting employees. Maybe the legislators should start asking questions.

  5. daniel says:

    If you think it is bad now- just wait until the Obama Health Care kicks in -in 3 1/2 years . Companies will layoff and taxes will increase. KY will add 150,000 to medicaid at a cost of $4,000 per person. Our portion will only be 20% , but that is $120 million (we don’t have). This is the great health care plan and 18 million+ will still be uninsured. We have got to get use to furloughs and other cost cutting of state government services. The great ride is over and the Tea Party will make it happen. Congress is spending our children into bankruptsy..

  6. Wills says:

    They cut their own throat not legalizing gambling.

    Nevada has no state income tax because gambing there brings in so much tax revenue.

  7. Sharon says:

    Just curious – what will the Tea Party make happen? I have been waiting to find out since it started. They do a lot of moaning and groaning and talk about how much they hate Obama, but what is the plan to improve things?

  8. serah says:

    Just maybe you should check into the horse industry, that let their illegal workers work tax free. Keeneland Training track, Paris Pike training center in Lexington are prime examples !!!!!!!!! And the farms, ie where the illegal that killed the Nurse worked for. These people seem to be exempt to following the laws.

  9. kykooky says:

    Mike, it’s obvious that you didn’t get the schooling you needed, because the lazy wife (most certainly married to a man working in private industry because public employees cannot be greedy by definition) didn’t work to pay taxes to employ good teachers to teach you. What you are saying is that people should all work hard so that we can pay as many public employees as want jobs. That is the perfect definition of “economy” as seen by the left.

  10. CleanUP says:

    If the legislature would pull funding on the new bloated ERP system for the Personnel Cabinet the state would save $20 million immediately. If the legislature realized the wasteful spending ($40 million to date) that goes into the Revenue Cabinets Comprehensive Tax System the legislature would stop funding it. Yes $40 million has been spent over the past few years to only roll out one tax system – coal tax the easiest one of all.
    This administration and legislature is all about eTransparency but they are not transparent when it comes to wasting the taxpayers money.

  11. inspector says:

    With the gov’s plan to furlough state employees revenue will go down some more. People that are looking at seeing 6 days without pay will cutback on spending even more to make up for lose in pay to help make the ends meet on their monthly bills.

  12. daniel says:

    Thier collective votes with independents will take out many incumbents this November. Write it down.

  13. Gator says:

    Get smart, business is leaving the Commonwealth. I did, Florida is open for business. No state income tax, no state inheritance tax, come on down here and make some money. More importantly, keep what you make in the sunshine state. I tried making a difference in Kentucky. I donated my time and money to political pursuits, all to no avail. The Commonwealth is stuck in the past of union power and big government. There is a reason Kentucky is the second poorest state per capita. It is called “failed government.”

  14. Chris says:

    Get rid of Personnel Income Tax/vehicle tax, raise the State Sales Tax to 8%. Then we can re-evaluate after a couple of years. The Inheritance Tax makes me so mad I want to scream! That is just another way for the Government to legally steal from you and your family. It should be the first Tax to be permanently abolished……..talk about being Un-American!