FY 15 GRF receipts end year 2.2% below estimate
Annual collections above prior year despite missing estimate
OKLAHOMA CITY — Final 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country’s outdated, prohibitive oil export ban and let energy states like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
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.
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