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November GRF receipts climb 3.8 percent over last year

-- 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

Dec. 11, 2013

November GRF receipts climb 3.8 percent over last year

Total collections remain below projection for fiscal year

OKLAHOMA CITY General Revenue Fund (GRF) collections beat last year’s receipts by 3.8 percent in November, but unusually large income tax refunds caused revenues to miss the official estimate upon which the current state budget is based by 7.9 percent.

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.

GRF collections for November totaled $383.2 million, which is $14.1 million or 3.8 percent above November 2012 collections and $32.7 million or 7.9 percent below the official estimate.

For the first five months of Fiscal Year 2014, GRF collections total $2.1 billion, which is $30.6 million or 1.4 percent below prior year collections and $146.8 million or 6.5 percent below the official estimate.

“Noneconomic issues continue to diminish general revenue collections. This has been the trend so far this year,” said Secretary of Finance, Administration and Information Technology Preston L. Doerflinger. “We’re still seeing encouraging economic expansion as a state even though revenue for government appropriations is trailing somewhat. The next few months will say a lot about what the state budget picture looks like for the near future.”

According to the Oklahoma Tax Commission, the $25.1 million decline in individual income tax collections in November was largely caused by $23.5 million in monthly refunds, compared to $12.8 million a year ago, and a $9.1 million drop in withholding collections tied mostly to Thanksgiving Day being celebrated six days later than it was in 2012. Much of that withholding collections revenue is expected to be captured in December.

The state Board of Equalization meets Dec. 19 to consider certification of revenue estimates for FY 15, which will be the first look at funds available for the next state budget.

“Next week’s meeting gives us a number to start building the next budget with,” Doerflinger said. “There won’t be much new government cheese for agencies to nibble on next year. Agencies need to be realistic and prepare to make due with what they already have.”

Doerflinger is director of the Office of Management and Enterprise services, which issues the monthly GRF reports.

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

  • Income tax – Individual and corporate income tax collections of $126.3 million were $25.9 million or 17 percent less than prior year collections and $35.8 million or 22.1 percent below the estimate.

    Individual income tax collections of $125.1 million were $25.1 million or 16.7 percent less than prior year collections and $31.7 million or 20.2 percent below the estimate. Corporate income tax collections of $1.2 million were $875,147 or 42.4 percent less than prior year collections and $4.1 million or 77.7 percent below the estimate.

  • Sales tax – The Tax Commission apportionment of $162.6 million in sales taxes was $3.3 million or 2 percent more than the prior year and $5.4 million or 3.2 percent below the estimate.
  • Gross production tax – Gross production tax collections contributed $20.9 million in November. That amount was $10.5 million and 100.5 percent more than the monthly estimate since natural gas collections contributed nothing to the GRF last year at this time and nothing was anticipated from oil collections for the current year.

    Total gross production tax collections for the first five months of the fiscal year are running ahead of the prior year by $55 million, but below the estimate by $8.2 million or 11.7 percent.

  • Motor vehicle taxes – Motor vehicle tax collections of $30.5 million were $13.9 million or 83.9 percent more than prior year collections and $13 million or 74.3 percent above the estimate. Approximately $11 million of the increase is linked to a Tax Commission apportionment error that resulted in these funds not being apportioned in prior months.
  • Other revenue – Other revenue collections of $42.9 million were $2 million or 4.9 percent more than prior year collections and $15 million or 26 percent below the estimate.

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