By Tom Latek/Kentucky Today | Originally published Jul 11, 2025
FRANKFORT, Ky. (KT) – The State Budget Director’s Office said receipts for both the General Fund and Road Fund exceeded the Consensus Forecasting Group’s official estimate for Kentucky state government’s 2025 Fiscal Year (FY25), which ended on June 30.
General Fund receipts for FY25 totaled $15,703.2 million, exceeding FY24 total revenue by $131.9 million, or 0.8 percent. General Fund revenues exceeded the official revenue estimates by a nearly identical amount, $131.3 million.
Road Fund revenues totaled $1,863.5 million, 0.6 percent less than the FY24 total. Compared to the official FY25 Road Fund estimate of $1,825.0 million, actual revenues exceeded the estimate by $38.5 million.
State Budget Director John Hicks stated, “Both funds produced revenues in excess of the enacted estimates. Major business taxes far exceeded the official estimates offsetting lower than forecasted income and sales tax receipts. Strength in business taxes demonstrates that Kentucky businesses are producing at a profitable level. On the Road Fund ledger, the use tax paid on the sales price of new and used vehicles provided the collections needed to surpass the official estimate by $38.5 million. Car and truck sales are evidence that Kentucky consumers are earning working wages sufficient to finance these purchases.”
Of the eight accounts that are part of the General Fund, four accounts had differences that were within $10 million of the actual amounts. The other four accounts had variations ranging from $125 million to $500 million. The larger differences cancelled each other out so that, in total, General Fund estimates were within one percent of the actual receipts.
Looking at the seven accounts make up the Road Fund, three accounts finished below the estimated amount while four accounts exceeded the official estimate. The forecasting differences ranged in magnitude from -$30.4 million to $69.4 million. Among the accounts, motor vehicle usage tax was $69.4 million over the official estimate while motor fuels revenues came in $30.4 million under the estimate. All other accounts, taken together, were $0.5 million below forecasted levels.
The final budget surplus amount for FY25 will be known once the accounting records for expenditures are completed later this month.
