RELEASE: FY 15 GRF receipts end year 2.2% below estimate

-- NEWS RELEASE --

For Immediate Release

PRESTON L. DOERFLINGER
Secretary
Finance, Administration
and Information Technology

MARY FALLIN
Governor

July 28, 2015

FY 15 GRF receipts end year 2.2% below estimate

Annual collections above prior year despite missing estimate

OKLAHOMA CITYFinal Fiscal Year 2015 revenue figures show General Revenue Fund (GRF) collections were 2.2 percent below the official estimate upon which the FY 2015 appropriated state budget was based.

As state government’s main operating fund, the GRF is the key indicator of state government’s fiscal status and the predominant funding source for the annual state budget. GRF collections, reported by the Office of Management and Enterprise Services (OMES), are revenues that remain for the appropriated state budget after rebates, refunds and mandatory apportionments. Gross collections, reported by the State Treasurer, are all revenues collected by the state prior to rebates, refunds and mandatory apportionments.

June GRF collections of $535.8 million were $81.8 million, or 13.2 percent, below the estimate and $54.6 million, or 9.3 percent, below prior year collections.

Total FY 2015 GRF collections of $5.7 billion were $129.9 million, or 2.2 percent, below the estimate and $98.5 million, or 1.8 percent, above the prior year.

“The full year’s collections beat the prior year, but missed the estimate and fell steadily during the final quarter as the effects of low oil prices became more fully realized," said Secretary of Finance, Administration and Information Technology Preston L. Doerflinger.

State revenue is expected to see continued challenges in the near future due to low oil prices largely caused by international energy market factors beyond state control.

"The oil price war OPEC waged on U.S. energy producers is already squeezing government revenues in energy states like Oklahoma, and it’s not looking like it gets much better anytime soon,” Doerflinger said. “On top of OPEC’s actions last year, we’re now looking at more oil price pain this year with Iran potentially rejoining the oil export market and causing further oil price depression as a result. Forgive us Oklahomans if we feel sucker punched when hostile nations like Iran get permission to export oil while American energy leaders like Oklahoma are prevented from doing the same. It’s well past time to end our country’s outdated, prohibitive oil export ban and let energy states like Oklahoma compete in the international market. If Iran gets to do it, why can’t we?”

Oklahoma state government builds a five percent cushion into every appropriated state budget to prevent mandatory budget reductions if revenues fall below the official estimate by five percent or less. The five percent cushion protected the state from having to enact mandatory budget reductions in FY 15.

“If there was a silver lining last year, it was staying within that cushion despite a major oil price collapse. It speaks highly of the state’s improved revenue forecasting process and how our more diversified state economy helps us weather energy sector downturns better than in the past,” Doerflinger said. “That said, the more pronounced effects of the oil price situation will be felt this fiscal year and most agencies have already received reduced appropriations in anticipation of that challenge.”

Because total FY 2015 collections fell short of the estimate, there will be no Rainy Day Fund deposit for FY 2015, which ended June 30.

Doerflinger is director of OMES, which issues the monthly GRF reports.

Major tax categories in June contributed the following amounts to the GRF:

  • Total income tax collections for the month of $252.2 million were $56.8 million, or 18.4 percent, below the estimate and $25.6 million, or 9.2 percent, below the prior year. 

    Individual income tax collections of $179.9 million were $66.8 million, or 27.1 percent, below the estimate and $37.8 million, or 17.4 percent, below the prior year.

    Corporate income tax collections of $72.4 were $10.1 million, or 16.2 percent, above the estimate and $12.3 million, or 20.4 percent, above the prior year.
  • Sales tax collections of $163.3 million were $14.1 million, or 7.9 percent, below the estimate and $7.3 million, or 4.3 percent, below the prior year.
  • Gross production tax collections of $6.5 million were $26.6 million, or 80.4 percent, below the estimate and $35 million, or 84.4 percent, below the prior year.

    Gas collections made no contribution to the GRF in June.

    Oil collections of $6.5 million were $16 million, or 71.2 percent, below the estimate and $29.4 million, or 82 percent, below the prior year. 

  • Motor vehicle tax collections of $18.3 million were $1 million, or 5.8 percent, above the estimate and $1.8 million, or 8.8 percent, below the prior year.
  • Other revenue collections of $95.5 million were $14.6 million, or 18.1 percent, above the estimate and $15 million, or 18.6 percent, above the prior year.

Major tax categories in FY 2015 contributed the following amounts to the GRF:

  • Total income tax collections of $2.5 billion were $17 million, or 0.7 percent, above the estimate and $129.7 million, or 5.4 percent, above the prior year. 

    Individual income tax collections of $2.2 billion were $88.7 million, or 4.2 percent, above the estimate and $132.8 million, or 6.4 percent, above the prior year.

    Corporate income tax collections of $303.5 were $71.7 million, or 19.1 percent, below the estimate and $3.1 million, or 1 percent, below the prior year.
  • Sales tax collections of $2 billion were $14 million, or 0.7 percent, below the estimate and $60.3 million, or 3.1 percent, above the prior year.
  • Gross production tax collections of $213.4 million were $110.2 million, or 34.1 percent, below the estimate and $119.9 million, or 36 percent, below the prior year.

    Gas collections of $80.8 million were $95 million, or 54 percent, below the estimate and $16.4 million, or 16.8 percent, below the prior year.

    Oil collections of $132.5 million were $15.2 million, or 10.3 percent, below the estimate and $103.5 million, or 43.9 percent, below the prior year. 

  • Motor vehicle tax collections of $194.6 million were $13.8 million, or 6.6 percent, below the estimate and $33.4 million, or 14.7 percent, below the prior year.
  • Other revenue collections of $777.8 million were $9 million, or 1.1 percent, below the estimate and $61.8 million, or 8.6 percent, above the prior year.

Monthly revenue tables are available on the OMES website: http://www.ok.gov/OSF/News/June_2015_Financial_Report_Data_Tables.html


Media Contact

JOHN ESTUS
Director of Public Affairs
(405) 521-3097 | john.estus@omes.ok.gov


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About the Office of Management and Enterprise Services

The Office of Management and Enterprise Services provides financial, property, purchasing, human resources and information technology services to all state agencies, and assists the Governor’s Office on budgetary policy matters. Our mission: Supporting our partners through unified business services. For more information, visit OMES.OK.gov.