GRF receipts beat estimate by 6.1% in first quarter
Gains seen in all major categories except corporate income tax
OKLAHOMA CITY — General Revenue
Fund (GRF) collections in the first quarter of fiscal year 2015 saw growth in
nearly all major revenue categories and exceeded the official estimate by 6.1
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. GRF collections, reported by the Office of
Management and Enterprise Services (OMES), are revenues that remain for the appropriated
state budget after rebates, refunds and mandatory apportionments. Gross
collections, reported by the State Treasurer, are all revenues collected by the
state prior to rebates, refunds and mandatory apportionments.
September GRF collections of $561.1 million were $28
million, or 5.2 percent, above the official estimate upon which the FY 2015
appropriated state budget is based and $55.2 million, or 10.9 percent, above
prior year collections.
First
quarter FY 15 GRF collections total $1.382 billion, which is $79 million, or 6.1
percent, above the estimate and $118.2 million, or 9.4 percent, above prior
year.
“A solid first quarter like this provides a nice cushion
for the rest of the year,” said Secretary of Finance, Administration and
Information Technology Preston L. Doerflinger. “For now, revenues are on track
to keep the appropriated budget intact and a potential Rainy Day Fund deposit
is back in play.”
When annual GRF collections exceed the official estimate,
the excess is deposited in the Rainy Day Fund at the end of the fiscal year. The
Rainy Day Fund, which had just two dollars in it when Gov. Mary Fallin took
office in January 2011, has a current balance is $535.2 million. The last
deposit was made at the end of FY 13.
The GRF’s first quarter performance this year is an
improvement over FY 14. After the first quarter of FY 14, GRF collections were 8.3
percent below the estimate and 4.1 percent below prior year collections due to
a variety of noneconomic revenue factors. FY 14 GRF collections ended the year 4.8
percent below the estimate, preventing a Rainy Day Fund deposit.
“Compared to last year, we are far better positioned to
absorb noneconomic budgetary revenue declines over the next three quarters if
they occur, which remains a possibility even in a strong economy like ours,”
Doerflinger said. “I must caution that one strong quarter does not diminish the
state’s need to continue improving its fiscal policies. Dilemmas like last
year, when state government collected more money than ever but had less available
for the budget than the year before, are still possible without fiscal reform
in areas like off-the-top apportionments and the overall tax code.”
September GRF collections exceeded the estimate and prior
year collections in nearly all major revenue categories. Personal income tax
collections saw some of the strongest growth, generating $248 million, which is
$44.1 million, or 21.6 percent,
above the estimate and $50.4 million, or 25.5 percent, above the prior year.
For the first quarter of FY 15, personal income tax collections are 22.3
percent above the estimate and 18.3 percent above the prior year.
The only major category
that did not exceed prior year collections in September was the always volatile
corporate income tax, which generated $44.2 million. That figure
was $14.5 million, or 24.7 percent, below the prior year and $19.1 million, or
30.1 percent, below the estimate.
“If not for another large, unexpected refund to one
entity, September’s corporate collections would also have exceeded the estimate
and prior year,” Doerflinger said. “All in all, government revenues are robust because
our state economy remains robust.”
Doerflinger is director of OMES, which issues the monthly
GRF reports.
Major tax categories in September contributed
the following amounts to the GRF:
-
Total
income tax collections of $292.2 million
were $25.1 million, or 9.4 percent, above the estimate and $36 million, or
14 percent, above the prior year.
Individual income tax collections of $248 million were $44.1
million, or 21.6 percent, above the estimate and $50.4 million, or 25.5
percent, above the prior year.
Corporate
income tax collections of $44.2 million were $19.1 million, or 30.1 percent,
below the estimate and $14.5 million, or 24.7 percent, below the prior year.
-
Sales
tax collections of $171.9 million
were $4.6 million, or 2.7 percent, above the estimate and $11.6 million,
or 7.2 percent, above the prior year.
-
Gross
production tax collections of $13.3 million
were $2.2 million, or 14.5 percent, below the estimate and $3.3 million, or
33.4 percent, above the prior year.
Natural gas collections constituted the full deposit to the GRF. No oil
collections were received or expected because of statutory requirements
directing the first $150 million in oil collections to designated funds,
mostly for education.
-
Motor
vehicle tax collections of $19.7 million
were $3.1 million, or 19 percent, above the estimate and $4.1 million, or 26.7
percent, above the prior year.
-
Other revenue
collections of $63.9 million were $2.6 million, or 3.9 percent, below the
estimate and $179,268, or 0.3 percent, above the prior year.
Monthly revenue tables are available on the OMES website:
http://www.ok.gov/OSF/News/September_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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