Thursday, February 12, 2015

Kentucky revenue dips, but officials remain optimistic

Tax collections fell slightly in January, but Kentucky's budget director said it is no reason to worry the state will end the year with a deficit.

The state collected $828.9 million in fees and income and sales taxes in January, down 0.3 percent from last year. So far this year, Kentucky's revenue has increased 2.9 percent. State officials had predicted it would increase 3.6 percent. To make up the difference, revenues need to increase by 4.5 percent during the next five months.

State Budget Director Jane Driskell said officials expected the decline because the deadline for withholding payroll taxes was on a weekend. Driskell said she is confident the state is on track to reach its goal. Gas tax collections increased 2.9 percent. The state uses the money to pay for roads.