KY General Fund and Road Fund receipts for May 2026

Frankfort, KY - The Office of State Budget Director reported on Wednesday, June 10, 2026, that May's General Fund receipts fell 3.0 percent. Total revenues for the month were $1,163.9 million, compared to $1,200.3 million during May 2025. Receipts have now grown 1.3 percent for the first eleven months of FY26. The official General Fund estimate is $15,498.9 million, which is 1.3 percent less than what was collected last year. With one month remaining in the fiscal year, collections can decline 27.2 percent in June and still hit the estimate and can decline by 16.2 percent to avoid the forecasted $156 million General Fund revenue shortfall.

State Budget Director John Hicks remarked that "Despite General Fund receipts falling 3.0 percent in May, receipts are on pace to exceed the official revenue estimate, in part due to 6.0 percent year-to-date growth in the sales and use tax. May's growth of 7.9 percent signals strength in the Kentucky economy, especially considering that the spike in gasoline prices has crowded out household income available for other purchases. Receipts from payroll withholding from the individual income tax are strong with just a 5.2 percent drop in collections while the tax rate dropped 12.5 percent from 4 percent to 3.5 percent in January, indicating that wage, salary, and employment growth have offset more than half of rate-lowering effect."

Among the major accounts:

• Individual income tax collections were down 12.9 percent, or $52.3 million. Of the major components of the tax, only estimated payments brought in more money than was collected last May. Receipts have now increased 5.1 percent through the first eleven months of FY26.


• Corporation income and the limited liability entity tax (LLET) receipts fell 20.2 percent in May and have declined 27.6 percent year-to-date. For the month, receipts were $73.4 million.


• Sales and use tax receipts had one of the largest rates of growth this year, increasing 7.9 percent for the month. Year-to-date collections are up 6.0 percent.


• Property tax collections grew 2.8 percent in May on collections of $33.7 million. Year-to-date receipts are up 0.6 percent.


• Cigarette tax receipts grew 16.5 percent in May and are up 2.2 percent year-to-date. Cigarette revenues are on pace to have their first annual increase since Fiscal Year 2020, due in large part to the rebalancing of cross-border sales as Indiana's cigarette tax increased from $0.98 per pack to $2.98 last July.


• Coal severance tax receipts fell 10.4 percent to $4.1 million in May. Collections have increased 9.3 percent through the first eleven months of the fiscal year.


• Income on investments fell $5.6 million, with $18.6 million posted in May 2026 compared to $24.2 million in May 2025.

Road Fund receipts fell 3.9 percent in May with collections of $159.2 million. Year-to-date collections have decreased by 1.1 percent. The official Road Fund revenue estimate calls for a 1.0 percent decrease in revenues for the fiscal year. Based on year-to-date tax collections, revenues can fall 0.1 percent in June and still meet the estimate. Among the accounts, motor fuels revenue declined 0.7 percent, motor vehicle usage collections dropped 7.8 percent, and license and privilege revenues grew 7.0 percent.

To access the report: http://www.osbd.ky.gov

This story was posted on 2026-06-11 08:39:53.
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