Greg Harkenrider, Deputy Executive Director for Economic Analysis at the Office of State Budget Director, testified before the Interim Joint Committee on Appropriations and Revenue Friday on the current financial state of Kentucky.
Harkenrider presented a report from the Consensus Forecasting Group (CFG), which met in mid-August to continue its work on economic projections regarding the next four fiscal years.
The August meeting of the CFG began the process of revising the FY22 budget, and members of the group concluded that the current estimate for FY22 Total General Fund receipts will reach approximately $12.94 billion, an increase of .9 percent from the prior fiscal year. Estimates for FY23 through FY26 continue to show a year over year increase, of approximately 2.9 percent each year.
Along with general fund totals, Harkenrider noted an increase in the estimated total Road Fund for the upcoming fiscal years.
The largest estimated jump is a 3.9 percent increase from FY21 to FY22, in which an estimated $1.71 billion will be held by the road fund at the close of the fiscal year.
Similar to the state general fund, estimates for FY23 through FY26 show a steady, though admittedly smaller, increase in funding, of approximately 1 percent each year.
Counties directly benefit from just one of the revenue streams that make up the road fund, motor fuels tax. The CFG report predicts a 5.7 percent positive increase in motor fuels tax revenue for FY22 and a 3 percent positive increase in this revenue across FY22 to FY26.
Counties own and maintain half of Kentucky roads and a third of all bridges. Sustainable, adequate funding is a vital need as counties continue to improve their communities and meet the needs of a growing Kentucky.
