The office of State Budget Director announced on Friday that General Fund receipts in December 2024 increased 4.5 percent from a year ago and are up 1.7 percent year to date for the fiscal year that began July 1, 2024, while Road Fund receipts last month fell 5.4 percent compared to December 2023, but are up 0.2 percent year to date.
For the first six months of the fiscal year, there have been three months with increases over the prior year and three months with decreases over the prior year. The major business taxes contributed the most to the monthly gain.
The official revenue forecast calls for no General Fund revenue growth in FY25. Based on year-to-date collections, revenues can fall 1.6 percent over the final six months of the fiscal year and still meet the estimate.
State Budget Director John Hicks noted, “In both December and for the first half of the fiscal year, the major business taxes have increased by substantial amounts, 76 percent, to offset the declines in the individual income tax receipts. December presented an example of a month where a 6.1 percent decline in the individual income tax was more than offset by a $93.0 million increase in major business taxes compared to December 2023. This level of growth in business tax collections is a sign of a business-friendly economy that is experiencing profitable operations.”
Road Fund receipts for December totaled $138.6 million. The official revenue forecast calls for a revenue decline of 2.6 percent for the year. Given the year-to-date collections, receipts can fall 5.4 percent over the remainder of the fiscal year and still meet the estimate.
Among the accounts, motor fuels receipts declined 9.4 percent in December, and are down 5.0 percent for the first six months of the year. Motor vehicle usage revenue rose 5.4 percent in December and increased 6.4 percent year-to-date. License and privilege receipts fell 34.4 percent for the month and dropped 1.9 percent for the year.
