April GRF receipts miss estimate by 1.6%
YTD collections sufficient to avoid mandatory budget cuts
OKLAHOMA CITY — General Revenue
Fund (GRF) collections in April totaled enough to push year-to-date collections
back within levels needed to avoid mandatory agency budget reductions.
“It was a make-or-break month and we just barely made it,”
said Secretary of Finance, Administration and Information Technology Preston L.
Doerflinger. “April collections needed to be within 95 percent of the estimate
or agencies would have had mandatory across-the-board budget reductions. April GRF
collections were down, but came in at 98.4 percent of the estimate and are
sufficient to avoid forced budget reductions this month.”
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.
April GRF collections of $690.5 million were $10.5
million, or 1.5 percent, below prior year collections and $11.2 million, or 1.6
percent, below the official estimate upon which the Fiscal Year 2014 appropriated
state budget is based. FY 14 year-to-date GRF collections totaled $4.6 billion,
which is $3.3 million, or 0.1 percent, below prior year collections and $226.5
million, or 4.7 percent, below the estimate.
YTD GRF collections were 5.2 percent below the estimate
following March collections, which put the state in a position of needing April
GRF collections to be sufficient to avoid mandatory agency budget reductions.
Mandatory budget reductions occur if the state declares revenue failure, which occurs
when YTD revenues are below the estimate by more than five percent and cash
flows are insufficient to make full monthly allocations to agencies for the
entire fiscal year.
“While we’re in the clear for now, an extremely weak May
or June could still force a revenue failure later since our reserves are
exhausted after operating below the estimate for much of the year. We still
need a strong finish to the year to keep the appropriated budget intact,”
Doerflinger said.
Doerflinger is director of the Office of Management and
Enterprise Services, which issues the monthly GRF reports.
Major tax categories in April contributed the
following amounts to the GRF:
-
Total income tax collections
of $397.2 million were $30.4 million, or 7.1 percent, less than prior year
collections and $17 million, or 4.1 percent, below the estimate.
Individual income tax collections of $346.1 million were $0.4 million, or
0.1 percent, less than prior year collections and $15.5 million, or 4.7
percent, above the estimate.
Corporate income tax collections of $51.1 million were $30 million, or 37
percent, below prior year collections and $32.5 million, or 38.9 percent,
below the estimate.
-
Sales tax collections
of $164.9 million were $11.6 million, or 7.5 percent, more than prior year
collections and $2.9 million, or 1.7 percent, below the estimate.
-
Gross production tax
collections of $37.9 million were $3.5 million, or 10 percent, more than
prior year collections and $4.3 million, or 12.8 percent, above the
estimate.
Natural gas collections of $9.5 million were $1.3 million, or 15.4
percent, more than prior year collections and $4 million, or 29.6 percent,
below the estimate.
Oil collections of $28.4 million were $2.2 million, or 8.3 percent, more
than prior year collections and $8.3 million, or 41.5 percent, above the
estimate.
-
Motor vehicle tax
collections of $24.2 million were $7.3 million, or 43.4 percent, more than
prior year collections and $5.4 million, or 28.6 percent, above the
estimate.
-
Other
revenue collections of $66.3 million
were $2.4 million, or 3.4 percent, less than prior year collections and
$0.9 million, or 1.3 percent, below the estimate.
Monthly
revenue tables are available on the OMES website: http://www.ok.gov/OSF/News/April_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.
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