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GRF collections rise 2.1 percent in October

-- MEDIA RELEASE --

For Immediate Release

PRESTON L. DOERFLINGER
Director and Secretary
of Finance, Administration and Information Technology

MARY FALLIN
Governor

State of Oklahoma
Office of Management and Enterprise Services

Nov. 12, 2013

GRF collections rise 2.1 percent in October

Total annual revenues remain below projections

OKLAHOMA CITY — State General Revenue Fund (GRF) collections increased by 2.1 percent in October compared to the same month last year, pushing year-to-date collections closer to projected levels.

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. Made up of almost 70 revenue sources, the GRF is where all taxes and fees flow that are not dedicated to specific programs.

For the first four months of Fiscal Year 2014, GRF collections total $1.7 billion, which is $44.7 million or 2.5 percent below prior year collections and $114.1 million or 6.2 percent below the official revenue estimate upon which the FY 14 state budget is based. October’s revenues moved total yearly collections closer to the official estimate than at the end of September, when year-to-date collections were 8.3 percent below the estimate.

“Collections are still off a bit, but they’re trending back in the right direction and remain sufficient to continue current fiscal year funding without interruption,” said Secretary of Finance, Administration and Information Technology Preston L. Doerflinger.

GRF collections for October totaled $448.3 million, which is $9.4 million or 2.1 percent above October 2012 collections and $285,835 or 0.1 percent below the official estimate. October’s revenues reflect the 16-day federal government shutdown that caused many federal workers in Oklahoma to be temporarily furloughed and a host of federal service interruptions across the state.

“It was a solid state revenue month that would have been stronger if the federal government shutdown hadn’t taken a slice of the pie away,” Doerflinger said. “Everyone would feel a lot better if D.C. demonstrated an ability to address fiscal issues without the economically reckless, job-killing stalemates we’ve seen of late.”

Combined individual and corporate income tax collections in October were down 2.9 percent from last year, while beating the estimate by 8 percent. For the year, net income tax collections are 5.2 percent below the estimate upon which the current state budget is based.

October sales tax collections were up 3.5 percent over last year, but were 2.9 percent below the estimate for the month. For the year, sales tax collections are 3.5 percent below the estimate.

“We still expect modest revenue growth in the months ahead, but likely not enough to produce a big pot of new money for state government. Agencies should stay frugal this year and plan for the same next year, as flat budgets remain possible for most areas of state government,” Doerflinger said.

Doerflinger is director of the Office of Management and Enterprise Services (OMES), which issues the monthly GRF reports.

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

  • Income tax – Individual and corporate income tax collections of $198 million were $5.9 million or 2.9 percent less than prior year collections and $14.7 million or 8 percent above the estimate.

    Individual income tax collections of $194 million were $8.1 million or 4.3 percent more than the prior year and $29.4 million or 17.9 percent above the estimate. Corporate income tax collections of $4 million were $14 million or 77.9 percent less than prior year collections and $14.8 million or 78.8 percent below the estimate.
  • Sales tax – The Tax Commission apportionment of $159 million in sales taxes was $5.4 million or 3.5 percent more than the prior year and $4.8 million or 2.9 percent below the estimate.
  • Gross production tax – Gross production tax collections contributed $11 million, entirely from natural gas production. That amount was $6.1 million or 126.1 percent more than was collected in October of 2012, but fell below the monthly estimate by $3.7 million or 25.3 percent. Total Gross production tax collections for the first four months of the fiscal year are running ahead of the prior year by $34 million, but below the estimate by $18.7 million or 31.4 percent. No oil production revenue was received and none was expected due to the statutory direction of the first $150 million in oil production revenue to specified funds, mostly for education.
  • Motor vehicle taxes – Motor vehicle taxes of $16.6 million were $2.1 million or 11.2 percent less than prior year collections and $2.7 million or 14 percent below the estimate.
  • Other revenue – Other revenue collections of $63.7 million were $5.9 million or 10.1 percent more than prior year collections and $3.8 million or 5.6 percent below the estimate.

Monthly revenue tables are available on the OMES website: http://www.ok.gov/OSF/News/October_2013_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: To lead, support, and serve. For more information, visit OMES.OK.gov.