By Beth Musgrave
FRANKFORT — Kentucky finished its fiscal year on June 30 with $83 million more than originally expected.
Overall, revenue increased 3.8 percent from the previous year, according to information released Tuesday by the Office of the State Budget Director. That’s the second year of increases after more than two years of revenue declines.
How much of that money will wind up in the state’s rainy-day fund will depend on how much the state spent on non-budgeted emergency spending, known as necessary government expenses. Mary Lassiter, the state budget director, said books on the state’s expenditures will not be closed until later this month.
Legislators will probably learn at a July 26 budget committee meeting how much money will be deposited in the state’s rainy-day fund, which now has $122 million.
“We have now closed the books on the revenues and will close the books on the expenditure side later this month,” Lassiter said. “The determination of a budget surplus will be made at that time.”
Total receipts for the 2011-2012 fiscal year were $9 billion, or 0.9 percent better than the original revenue estimate. A group of independent economists predicts how much the state will generate in revenue each year. The General Assembly uses that number to develop a budget.
Overall, the Kentucky economy is showing signs of improvement, according to data released by the Office of State Budget Director. Sales and use taxes rose a total of 5.4 percent from the previous year while corporation income taxes were up 24.5 percent. Individual income taxes showed a gain of 2.8 percent from the previous year.
Kentucky’s revenue grew in all four quarters. The final quarter of the fiscal year was buoyed by a strong June, which helped offset declines in receipts in April and May.
Road Fund receipts — which pay for transportation projects — also performed better than expected, finishing the fiscal year with a $31 million surplus. Total revenues for the Road Fund were $1.4 billion, an increase of 7.8 percent from the previous fiscal year.