Kentucky just posted its seventh straight budget surplus, and this one is big.
This week, the General Fund receipts for the fiscal year that just ended came in roughly $320 million more than what was originally forecasted and budgeted. Seven years running, Kentucky has taken in more than it planned to spend.
That’s not luck. That’s a trend. And at a time when our federal government is broken and there is debt as far as the eye can see, this shows our state legislature is working and that conservative, responsible budgeting matters.
What’s especially encouraging is where the growth came from. Sales tax collections rose 6.4%, and individual income tax receipts grew 4.6%, even after this year’s income tax rate cut took effect. Kentuckians are working, spending, and earning, and the Commonwealth’s finances are healthier for it.
This comes on the heels of a few other milestones. First, Kentucky just posted its best first quarter for economic investment in state history, with more than $7 billion in new projects announced, part of a run that has now topped $50 billion and 70,000 new jobs in recent years. Average wages on these projects have climbed to $31.50 an hour. Second, every county in Kentucky lowered its unemployment rate last year—all 120 of them. Third, there are now more than 2 million Kentuckians in the workforce for the first time ever.
Strong revenue, a growing economy, and record investment . . . all while reducing income taxes: That’s a good combination for Kentucky families, and it’s a trend worth celebrating.
The sun shines bright on our old Kentucky home.
