Kentucky budget surplus for 2022 totals nearly $1 billion

LOUISVILLE, Ky. (WDRB) -- Kentucky ends the 2022 fiscal year with nearly a billion dollar surplus.

General fund receipts totaled $14.7 billion, exceeding estimates by more than $900 million, the state budget director John Hicks said. Receipts grew by 14.6% over last year, making it the highest growth rate in 31 years, the statement said.

The final budget surplus will be figured when final numbers are tallied later this month.

This past session lawmakers passed a giant budget bill that encompasses the next two fiscal years and a lot of talk was about what to do with the state's projected leftover money.

"We're hurting right now, paying more for gas and paying more for groceries," Sen. Morgan McGarvey, Minority Floor Leader said.

The Democratic party wanted to see a temporary reduction in Kentucky's sales tax.

"That would benefit all Kentuckians during this kind of tough times," Sen. McGarvey said.

Instead, the republican super majority passed a trigger law to incrementally lower the state's income tax over the next few years, as long as the state reaches financial benchmarks along the way.

Sen. Chris McDaniel, R-Ryland Heights, sat as the Senate Budget chairman last session. He said the surplus should be a sign to Kentucky taxpayers they will likely see a reduction in the state income tax from 5% to 4.5% come January 2023.

"When there are surpluses, we do not need to be in a rush to find ways to expand government. We need to have a disciplined and methodical approach to make Kentucky a more attractive place to be," said McDaniel.

McGarvey argues that lowering income taxes disproportionately benefits the rich.

"I think as we're in still some uncertain economic times. That's not the type of relief we need and Kentucky that's why we propose a temporary reduction in the sales tax something that benefits everybody," McGarvey said.

Indiana lawmakers have also seen state revenue come in above budget projection.

Unlike Kentucky though, Hoosiers saw a tax rebate check of $125. And now, Indiana lawmakers are considering another check.

Senator McDaniel tried to get Kentucky lawmakers to pass a tax rebate check in Kentucky.

"My gut was the best place for that was an immediate reinvestment to the taxpayer. But you know, legislation is about making compromises about getting the best policy, and we settled on a more long term approach," McDaniel said.

Lawmakers are in charge of deciding where the state's money goes, and since they're not in session until January, the surplus money likely won't be going anywhere anytime soon.

WDRB News asked Governor Beshear if he is considering calling lawmakers into a special session to appropriate more funds. On Thursday morning, Scottie Ellis, the governor's deputy communications director, issued a statement:

"There are currently no plans for a special session, nor has one been requested. Since February, Gov. Beshear has taken numerous steps to help keep more dollars in the hands of hard-working Kentuckians, including freezing the rate on vehicle property taxes; supporting legislation to cut the state sales tax, which would have saved Kentuckians $873 million in relief had the General Assembly passed the measure; requesting a federal sales tax holiday from Congressional leadership; freezing the state gas tax to prevent a 2-cents-per-gallon increase; requesting the U.S. Environmental Protection Agency grant a waiver removing a requirement that more costly, 'reformulated' fuel be sold in urban areas and asking for a waiver to allow cheaper butane to be used as an additive blend for gasoline; and declaring a state or emergency activating price-gouging laws in regards to gas prices."