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April GRF receipts miss estimate by 1.6%

-- 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

May 13, 2014

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.