GRF Collections Climb 5.3 Percent in July Over Last Year
Doerflinger Announces $2.7 Million Rainy Day Fund Deposit
OKLAHOMA CITY — Secretary of Finance, Administration and Information Technology Preston L. Doerflinger announced Wednesday that $2.7 million will be deposited into the constitutional Rainy Day Fund, while also reporting that General Revenue Fund (GRF) collections in July surpassed receipts for the same month a year ago by 5.3 percent.
“Good news on two fronts,” Doerflinger said. “We’re still adding to our healthy state savings account and we're off to a good start in the first month of Fiscal Year 2014, thanks to continued growth in income tax receipts.”
The $2.7 million deposit will raise the amount in the Rainy Day Fund to $535.2 million. When Gov. Mary Fallin took office in January 2011, the fund had been reduced to about $2 because of budget problems tied to the Great Recession. During Fallin’s first two years in office, the fund was built back up to $577.5 million before it was tapped for $45 million this year for emergency tornado relief.
Preliminary GRF figures for June, the final month of FY-13, indicated a Rainy Day deposit was unlikely. After reconciling late deposits, GRF collections for FY-13 totaled just over $5.6 billion, or $2.7 million more than the estimate upon which last year’s budget was based. The Rainy Day Fund deposit will be made in the coming days. Updated revenue tables will be posted to the website of the Office of Management and Enterprise Services (OMES), which generates the monthly GRF reports.
The General Revenue Fund collections for July, the first month of the new fiscal year, totaled $409.8 million, an increase of $20.7 million or 5.3 percent from a year ago and $14.3 million or 3.6 percent above the estimate for the month. Combined corporate and individual income taxes were up 3.1 percent over last year and were 18.2 percent higher than the estimate. Corporate income taxes were up 103.5 percent from a year ago and were 84.7 percent higher than the estimate. Sales taxes beat figures from a year ago by 2.7 percent, while missing the estimate by 2.4 percent. Motor vehicle sales were up for the first time since January, while gross production taxes again fell below the estimate, this time by 21.3 percent.
“July’s collections provide evidence that Oklahoma’s economy remains on solid ground,” said Doerflinger, who is also director of OMES. “The rise in corporate income taxes in July comes after a 31.5 percent growth rate from that revenue source last fiscal year. We may be leveling off from the heights of our recovery, but our economy is still strong, still growing and still the envy of most states. Our businesses are thriving and consumer confidence is holding high even in the face of challenges like federal furloughs.”
Oklahoma recorded a 5.2 percent unemployment rate in June, up from 5.1 percent in May. Oklahoma’s jobless rate is still far below the national unemployment rate of 7.6 percent and is lower than six bordering state, such as Arkansas (7.3 percent) and Texas (6.5 percent).
The OMES projects state GRF collections will grow again in FY-14. If that happens, it would mark the third consecutive year of revenue growth over prior year GRF collections.
“We’ll likely see more growth, although it may not be at the level we’ve seen the past two years. Even though the economy remains strong, there are a variety of potential revenue-reducing factors out there this year,” Doerflinger said. “Under current law, there could be continued gross production tax collection reductions due to energy policy changes made in 2010, plus diversion of $60 million in income taxes for Capitol building repairs. Those dynamics coupled with federal furloughs and ongoing fiscal uncertainty in Washington, D.C. present us with some wild cards. State agencies should continue to keep the belts tight and find efficiencies.”
The GRF is the state’s main operating fund and receives receipts from about 70 revenue sources. It is where all taxes and fees flow, except those earmarked or dedicated to specific programs.
Major tax categories in July contributed the following amounts to the General Revenue Fund:
Income tax – The total collected from individual and corporate income taxes in the month of July was $165.9 million, which was $5 million or 3.1 percent above prior year collections and $25 million or 18.2 percent above the estimate.
Individual income tax receipts of $158.6 million were $1.3 million or 0.8 percent more than the prior year and $22.2 million or 16.3 percent above the estimate.
Corporate tax collections in July contributed $7.3 million to the GRF, which was $3.7 million or 103.5 percent above collections for the same month of 2013 and $3.3 million or 84.7 percent above the estimate.
Sales tax – The Tax Commission apportioned $168.8 million in sales tax collections to the GRF from July collections, which was $4.4 million or 2.7 percent more than the prior year and $4.1 million or 2.4 percent below the estimate.
Gross production tax – Gross production tax collections from July contributed $11.7 million to the General Revenue Fund, entirely from natural gas production. However, that amount was $3.1 million or 21.3 percent below the estimate. The GRF received no oil taxes in July and none was expected due to the statutory direction of the first $150 million of gross production receipts from oil to specified funds, mostly for education.
Motor vehicle taxes – Motor vehicle taxes produced $18.7 million from July collections, which was $1.6 million or 9.2 percent above prior year collections and $1.5 million or 8.6 percent above the estimate.
Other revenue – Other revenue produced $44.6 million for the GRF in July. This amount was $1.9 million or 4.2 percent less than the prior year and $5.4 million or 10.8 percent below the estimate.The monthly revenue tables are attached below:
The monthly revenue tables are available online.
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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: To lead, support, and serve. For more information, visit OMES.OK.gov.