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GRF receipts miss estimate by 8.1% in February

-- 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

March 11, 2014

GRF receipts miss estimate by 8.1% in February

YTD collections now 4.8% below projections

OKLAHOMA CITY — General Revenue Fund (GRF) collections in February fell 8.1 percent below the official estimate due in large part to another month of abnormally large corporate income tax refunds.

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 nearly 70 revenue sources, the GRF is where all taxes flow except those dedicated to specific programs.

February collections to the GRF totaled $270.7 million, which is $16.1 million, or 6.3 percent, more than collections for February 2013 and $23.7 million, or 8.1 percent, below the official revenue estimate upon which the Fiscal Year 2014 appropriated state budget is based.

“Even though the estimate wasn’t met, getting any growth in February is a good thing since it is almost always the weakest month of the fiscal year,” said Secretary of Finance, Administration and Information Technology Preston L. Doerflinger. “Big picture, not much has changed. Revenues are sufficient to maintain the current year while agencies continue planning for flat or slightly reduced appropriations next year.”

For the first eight months of FY 14, GRF collections totaled $3.5 billion, which is $8.3 million, or 0.2 percent, above prior year collections and $174 million, or 4.8 percent, below the official estimate.

“We had some rough waters early in the fiscal year, but we’re sailing smoother now, as expected,” Doerflinger said.

Corporate income tax receipts continued to decline in February, with no corporate income tax receipts being apportioned to the GRF after another month of unusually large refunds, according to the Oklahoma Tax Commission.

“The continued decline in the corporate category is a real quagmire because, by and large, Oklahoma companies are going strong and growing our economy. The catch is that isn't always directly reflected in corporate income tax revenues,” Doerflinger said. “The big reason for the decline isn’t decreased corporate income, but increased refunds on corporate tax returns. Other likely factors are the recent expiration of a moratorium on several business tax credits and new trends in business organizational decisions.”

Corporate income tax refunds in February totaled $21 million while corporate income collections totaled $8.3 million. More than 75 percent of the corporate income tax refund amount was attributed to one entity for a refund due on a tax year 2012 corporate return, according to the Oklahoma Tax Commission.

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

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

  • Total income tax collections of $31 million were all collected from individual income tax due to the large amount of corporate refunds processed during the month. Total income tax collections of $31 million were $11.8 million, or 61.7 percent, more than prior year collections and $1 million, or 3.2 percent, above the estimate.

    Individual income tax collections alone were $12.7 million, or 69.5 percent, more than prior year collections and $7.7 million, or 32.9 percent, above the estimate. The large discrepancy between February 2013 and February 2014 individual income tax collections is largely due to the fact that February 2013 saw unusually low income tax collections due to a remittance anomaly caused by repercussions from the federal government’s “fiscal cliff” aversion in January 2013.
  • Sales tax collections of $151.7 million were $390,547, or 0.3 percent, more than prior year collections and $9.6 million, or 6 percent, below the estimate.
  • Gross production tax collections of $34.9 million were $1.2 million, or 3.5 percent, less than prior year collections and $1.9 million, or 5.1 percent, below the estimate.

    Natural gas collections of $4.2 million were $6.2 million, or 59.7 percent, less than prior year collections and $12.9 million, or 75.4 percent, below the estimate.

    Oil collections of $30.7 million were $5 million, or 19.3 percent, more than prior year collections and $11 million, or 56 percent, above the estimate. Higher than expected oil prices continue to push revenue from this source above the estimate.
  • Motor vehicle tax collections of $17.1 million were $4.5 million, or 35.4 percent, more than prior year collections and $1.8 million, or 11.9 percent, above the estimate.
  • Other revenue collections of $36 million were $632,822, or 1.8 percent, more than prior year collections and $15 million, or 29.4 percent, below the estimate.

Monthly revenue tables are available on the OMES website: http://www.ok.gov/OSF/News/February_2014_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.