FRANKFORT, Ky. (WMDJ) — Kentucky ended the 2026 fiscal year with a budget surplus after General Fund revenues exceeded expectations, according to a report released Friday by the Office of the State Budget Director.
The report shows General Fund receipts totaled $15.98 billion during fiscal year 2026, a 1.7% increase from the previous year. State officials had projected a $156 million revenue shortfall when the official budget estimate was issued in December 2025.
Instead, General Fund revenues finished approximately $320.6 million above the enacted budget and $476.6 million higher than the December revenue estimate.
The report also found Road Fund collections totaled $1.82 billion during the fiscal year.
Among the state's largest revenue sources, individual income tax collections increased 4.6% over the previous fiscal year, while sales and use tax receipts rose 6.4%.
State Budget Director John Hicks said stronger-than-expected collections from income, sales and business taxes reflected continued growth in earnings for Kentucky workers and businesses.
The budget surplus marks the seventh consecutive year Kentucky has ended the fiscal year with General Fund revenues exceeding expectations.
Following the release of the report, the Beshear administration said the additional revenue could allow lawmakers to revisit funding for programs that were reduced in the current state budget, including Medicaid, behavioral health services and senior meal programs.
