October GRF receipts below estimate
Collections fall 1.8 percent below estimate for
the year
OKLAHOMA CITY – General
Revenue Fund (GRF) collections in October missed the official estimate by 10.8
percent and fell below the estimate for the first four months of the fiscal
year as oil prices remain low and sales tax collections continue to slide.
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 appropriated state budget. GRF collections 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 before rebates, refunds and mandatory
apportionments.
GRF collections in October totaled $390.9 million, which is
$47.3 million, or 10.8 percent, below the official estimate upon which the
Fiscal Year 2017 appropriated state budget was based and $24.1 million, or 5.8
percent, below prior year collections.
Total GRF collections through the first four months of FY 2017
are $1.6 billion, which is $30.5 million, or 1.8 percent, below the estimate
and $154.3 million, or 8.7 percent, below prior year collections.
At this time last year, receipts were 2.8 percent below the estimate for the
first four months of FY 2016.
“While we’re not in as bad of shape as we were at this time last
year, there are still some troubling trends, such as oil prices remaining low
and sales tax collections continuing to be down,” said Secretary of Finance,
Administration and Information Technology Preston L. Doerflinger. “While it’s
not time to jump to conclusions, we do want to be ready to tackle the
challenges ahead.”
October sales tax collections were $10.8 million, or 6.8
percent, below the estimate and $11.3 million, or 7 percent, below the previous
year. Sales tax collections have remained below the estimate for 20 of the last
21 months and below the prior year for 19 of the last 21 months. Sales tax
makes up about 35 percent of the GRF’s annual collections and a large portion
of city service budgets.
Doerflinger, who is Gov. Mary Fallin’s lead budget negotiator
with the Legislature, has already been holding meetings with lawmakers well in
advance of the legislative session starting in February.
Low oil prices have also contributed to a creeping unemployment
rate that saw Oklahoma tied with Wyoming for the biggest increase in
unemployment over the past year, according to U.S. Department of Labor numbers.
Up by 1 percent for the year ending in September, the state’s unemployment rate
stood at 5.2 percent, up one-tenth of a percent from August.
“Such numbers show that Oklahoma’s economic turnaround has not
yet begun,” Doerflinger said. “While the state can’t control all facets of the
economy, such as oil prices, we can be proactive and prepare.”
Doerflinger is director of OMES, which issues the monthly GRF
reports.
Major tax categories in October contributed the following
amounts to the GRF:
-
Total income tax collections of
$160.8 million were $15.1 million, or 8.6 percent, below the estimate and
$17.2 million, or 9.7 percent, below the prior year.
Individual income tax collections of $160.8 million were $12.1 million, or
7 percent, below the estimate and $17.2 million, or 9.7 percent, below the
prior year.
Corporate income tax collections were entirely consumed by refunds and
contributed nothing to the General Revenue Fund. This was the case for the
same month last year, as well.
- Sales tax collections of $149.2
million were $10.8 million, or 6.8 percent, below the estimate and $11.3
million, or 7 percent, below the prior year.
-
Gross production tax
collections of $12.9 million were $4 million, or 23.6 percent, below the
estimate and $1.9 million, or 17.6 percent, above the prior year.
Natural gas collections of $11.3 million were $5.6 million, or 32.9
percent, below the estimate and $578,000, or 5.4 percent, above the prior
year.
Oil collections of $1.6 million were almost entirely above the estimate
and prior year. Since the GRF received only minimal contributions from oil
tax collections in October 2015, a very small amount was estimated for
current month collections.
- Motor vehicle tax collections
of $15.7 million were $1.5 million, or 8.5 percent, below the estimate and
$1.1 million, or 6.3 percent, below the prior year.
- Other revenue collections of
$52.4 million were $16 million, or 23.4 percent, below the estimate and
$3.5 million, or 7.1 percent, above the prior year.
Revenue tables can be
viewed on the OMES website: https://www.ok.gov/OSF/News/October_2016_Financial_Report_Data_Tables.html.
Media Contact
MICHAEL BAKER Director of Public Affairs (405) 522-4265 | michael.baker@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: Supporting our partners through unified business services. For more information, visit OMES.OK.gov.
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