First month's collections for FY 2019 leave room for improvement
OKLAHOMA CITY — General Revenue Fund collections in July were $449.1 million and came in at $9.6 million, or 2.1 percent, below the monthly estimate. This amount is $37.8 million, or 9.2 percent, above collections in July of 2017.
"Historically, July isn't the strongest month for collections, but we expected to make the estimate," said Office of Management and Enterprise Services Director Denise Northrup. "While I'm not overly concerned by the July receipts, there are still some hurdles that we need to clear before we see numbers that are in line with where we were before the economic downturn."
Sales tax collections came in just above the estimate at $161.7 million and were $3.7 million, or 2.4 percent, above the estimate and $11.6 million, or 6.7 percent, below the prior year. Gross production tax collections of $26.1 million missed this month's estimate and were $1.6 million, or 5.7 percent, below the estimate and $8.5 million, or 48.1 percent, above the prior year. Additionally, revenues from tax sources other than reported major streams continued to be below the estimate in July by 32 percent.
"Drawing comparisons to reports that do not outline the same data is risky," stated Northrup. "Policy makers must be cognizant of the difference between the Gross Receipts to the Treasury report issued earlier this month and this report, as these numbers are the only ones directly applicable to the state budgeting process. Structural differences such as off the top apportionments contribute to the disparity between the numbers in the two reports."
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.
Denise Northrup is the director of OMES, which issues the monthly GRF reports.
Major tax categories in July contributed the following amounts to the GRF:
- Total income tax collections of $190.8 million were $11.7 million, or 6.5 percent, above the estimate and $35.9 million, or 23.2 percent, above the prior year.
- Individual income tax collections of $180.8 million were $4.1 million, or 2.3 percent, above the estimate and $25.9 million, or 16.7 percent, above the prior year.
- Corporate income tax collections of $10.0 million were $7.5 million, or 303.9 percent, above the estimate. Corporate taxes were zero last July.
- Sales tax collections of $161.7 million were $3.7 million, or 2.4 percent, above the estimate and $11.6 million, or 6.7 percent, below the prior year.
- Gross production tax collections of $26.1 million were $1.6 million, or 5.7 percent, below the estimate and $8.5 million, or 48.1 percent, above the prior year.
- Natural gas collections of $19.3 million were $2.4 million, or 11.2 percent, below the estimate and $4.2 million, or 27.7 percent, above the prior year.
- Oil collections of $6.8 million were $850,000, or 14.2 percent, above the estimate and $4.3 million, or 168.5 percent, above the prior year.
- Motor vehicle tax collections of $18.4 million were $1.2 million, or 6.7 percent, above the estimate and $1.7 million, or 9.9 percent, above the prior year.
- Other revenue collections of $52.1 million were $24.5 million, or 32.0 percent, below the estimate and $3.3 million, or 6.8 percent, above the prior year.
Revenue tables can be viewed on the OMES website: http://omes.ok.gov/content/july-2018-financial-data-tables
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