Road Funds Continue to Rise

The Office of State Budget Director (OSBD) reported that Road Fund receipts rose 7.2% compared to December 2022. Year-to-date receipts have increased 8.8 percent, according to OSBD.

The official Road Fund revenue estimate, which was revised in December, calls for revenue growth of 7.3 percent for FY24, which is $202 million more than the current budget relies on.  Given the year-to-date collections, receipts must increase 6.0 percent over the remainder of the fiscal year to meet the estimate.

Motor fuels receipts grew 9.3 percent in December and are up 13.1 percent for the first six months of the year.  Motor vehicle usage revenue rose 2.1 percent in December and has increased 4.9 percent year-to-date.  License and privilege receipts rose 10.5 percent for the month due in large part to a timing issue in the collection of some fees.

The Office of State Budget Director also reported General Fund receipts totaled $1.5 million, a 5.1 percent increase in collections over December 2022.  The largest increases were from the new pass-through entity tax (PTE), sales and gross receipts taxes, property tax collections, and interest income.  The December receipts were boosted by the new (PTE) tax, which creates a dollar-for-dollar refundable credit on upcoming individual income tax returns.

Individual income tax receipts have increased 2.7 percent for the first six months of the fiscal year that ends June 30, 2024. 

The official FY24 General Fund revenue forecast, which was revised by the Consensus Forecasting Group on December 8, 2023, calls for 2.7 percent revenue growth.  Revenues must increase by 1.3 percent over the final six months of the fiscal year to meet the estimate.