January GRF receipts miss estimate
Fiscal year collections nearly 3% below estimate
OKLAHOMA CITY — General Revenue Fund (GRF)
collections in January missed the official monthly estimate by 3.4 percent and
were 2.8 percent below the estimate for the first seven months of the fiscal
year as sales tax receipts fell below projections and corporate income tax
collections continued to show their volatility.
Although
gross collections showed a slight improvement in January, as reported earlier
this month by the State Treasurer, collections to the GRF still fell below the
estimate after rebates, refunds and mandatory apportionments. Despite January
historically being a good month for collections, GRF receipts nevertheless fell short
this year.
“What
these January numbers are showing us is that we are a ways from any significant
recovery,” said Secretary of Finance, Administration and Information Technology
Preston L. Doerflinger.
“There
will be little recovery to state coffers without an infusion of recurring
revenue,” Doerflinger said. “The Legislature has a comprehensive proposal from
the governor that can help lift us out of this hole and significantly improve
GRF collections as our economic recovery gains momentum. The time for action is
now.”
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 January totaled $505.1 million, which is $17.9 million, or 3.4
percent, below the official estimate upon which the fiscal year 2017
appropriated state budget was based and $2.5 million, or 0.5 percent, below
prior year collections. Total GRF collections through the first seven months of
FY 2017 are $2.9 billion, which is $83.9 million, or 2.8 percent, below the
estimate and $211.5 million, or 6.8 percent, below prior year collections.
January’s
collections mark the fourth consecutive month that corporate income collections
were consumed by refunds, underscoring the volatility of the GRF tax source.
Beginning in FY 14, there have been 13 months when corporate income tax
collections have failed to provide any revenue to the GRF.
“You
can’t rely on corporate income tax collections to provide stability,”
Doerflinger said. “Again, the governor has proposed eliminating this volatility
in a common sense move to add stability to budgeting and stimulate economic
development.”
Doerflinger
is director of OMES, which issues the monthly GRF reports.
Major
tax categories in January contributed the following amounts to the GRF:
-
Total income tax
collections of $236.6 million were $2.4 million, or 1 percent, above the
estimate and $2.9 million, or 1.3 percent, above the prior year.
Individual income tax collections of $236.6 million were $29.3 million, or
14.1 percent, above the estimate and $17.2 million, or 7.8 percent, above
the prior year.
Corporate income tax collections were entirely consumed by refunds and
contributed nothing to the General Revenue Fund. For the same month last
year, $14.3 million was deposited into the GRF.
- Sales tax collections of
$161.3 million were $10.7 million, or 6.2 percent, below the estimate and
$3.3 million, or 2 percent, below the prior year.
-
Gross production tax
collections of $11.5 million were $1.2 million, or 9.4 percent, below the
estimate and $4.3 million, or 59.3 percent, above the prior year.
Natural gas collections of $9.7 million were $2.4 million, or 19.9
percent, below the estimate and $2.9 million, or 43.7 percent, above the
prior year.
Oil collections of $1.9 million were $1.2 million, or 184.8 percent, above
the estimate and $1.4 million, or 265 percent, above the prior year.
- Motor vehicle tax
collections of $19.5 million were $705,000, or 3.8 percent, above the
estimate and $1.2 million, or 6.6 percent, above the prior year.
- Other revenue
collections of $76.2 million were $9.1 million, or 10.6 percent, below the
estimate and $7.5 million, or 9 percent, below the prior year.
Revenue
tables can be viewed on the OMES website: https://www.ok.gov/OSF/News/January_2017_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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