FRANKFORT — Gov. Andy Beshear announced Monday that Kentucky’s fiscal year 2022 General Fund receipts grew at the highest rate in 31 years.
The Office of State Budget Director reported 14.6% growth over last year and noted that General Fund receipts totaled $14.7 billion, exceeding the budgeted estimate by $945.4 million.
This is the second-highest revenue surplus ever surpassed only by last year’s record amount and the budget surplus is expected to be even higher once the books are closed on spending later this month.
“One of my most important jobs as governor is to ensure the financial strength and solvency of our great commonwealth, essentially to make sure our financial house is in order,” Beshear said.
“These receipts show that personal income, sales and business income are all going up significantly, and even our road fund is up. My administration has now delivered the highest and second-highest revenue surpluses in the history of Kentucky, thanks to strong fiscal management and a hot, record-breaking economy.”
Beshear also noted that once the books are closed later this month, the state’s Rainy Day fund is expected to reach almost $2.7 billion. When Beshear took office, that fund was at $129 million.
“We’re seeing more jobs and better wages for Kentuckians, which allow more people to put food on the table and live the lives they want and deserve,”
In the past year, the Beshear administration announced the two largest economic development projects in Kentucky’s history.
In September 2021, Beshear and leaders from Ford Motor Co. and SK Innovation celebrated a transformative $5.8 billion investment that will create 5,000 jobs in Hardin County.
And, in April of this year, Beshear was joined by leadership at Envision AESC to announce a $2 billion investment that will create 2,000 jobs in Warren County. These announcements solidify Kentucky as the EV battery production capital of the United States.
This strong economic momentum has carried over into 2022, with both S&P Global Ratings and Fitch Ratings upgrading Kentucky’s financial outlook from stable to positive in recognition of the commonwealth’s economy.
In April, the state reported a 3.9% unemployment rate, which was the lowest rate ever recorded. In May, the rate fell to a new record low of 3.8%.