By John Cheves – email@example.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.