Final FY 2019 Revenues Come In 5.5% Above Estimate

-- NEWS RELEASE --

For Immediate Release

June collections at 1.5% below estimate

OKLAHOMA CITY — General Revenue Fund collections in June were $679.4 million and came in at $10.0 million, or 1.5%, below the monthly estimate. This amount is $52.5 million, or 8.4%, above collections in June of 2018. Total collections for the 2019 fiscal year were $6.86 billion and came in at $354.6 million, or 5.5%, above the 2019 fiscal year estimate and $1.0 billion, or 17.2%, above prior year collections.

“For the first time in state history, the Rainy Day Fund has exceeded $800 million. While a significant milestone, we must remember that these dollars represent only slightly more than one month’s worth of expenses, which is why I have set a goal of $2 billion in savings to be prepared for the next inevitable economic downtown,” said Gov. Kevin Stitt. “Oklahoma’s economy continues to grow at a moderate pace and our Commerce Department is hitting significant milestones in job recruitment. We are also actively monitoring the effects of a drastic decline in rig count and other economic factors that give risk to a slowdown which could impact state revenue in the near future."

Total GRF collections for FY 2019 came in at $6,859,924,395, which is the largest deposit the state has made into the General Revenue Fund. Additionally, while all major tax categories exceeded the estimate for the fiscal year, total collections from sales tax came in at 1.4% below the estimate.

"This fiscal year has certainly been better than others the state has seen, but next year will most likely present some challenges," said John Budd, director of OMES. "With a slowing global economy and fluctuation in the energy sector, we will need to keep our focus on leveling out the boom-bust cycle the state has been on for decades. By making fiscally responsible decisions now, we can serve the state well in the future." 

For June, total income tax collections came in 1.4%, or $3.5 million, above the estimate and 1.0% above prior year. Other revenue collections of $143.8 million were $18.5 million, or 14.8%, above the estimate and was the only other tax collection category to exceed the estimate for the last month of FY 2019. Gross production, sales tax and motor vehicle tax collections all came in below estimates for June. 

Major tax categories in June contributed the following amounts to the GRF:

• Total income tax collections of $251.6 million were $3.5 million, or 1.4%, above the estimate and $2.4 million, or 1.0%, above the prior year.
  Individual income tax collections of $197.3 million were $16.7 million, or 7.8%, below the estimate and $5.9 million, or 3.1%, above the prior year.
  Corporate income tax collections of $54.3 million were $20.2 million, or 59.4%, above the estimate and $3.5 million, or 6.1%, below the prior year.
• Sales tax collections of $185.3 million were $17.8 million, or 8.7%, below the estimate and $10.7 million, or 5.4%, below the prior year.
• Gross production tax collections of $69.8 million were $12.6 million, or 15.3%, below the estimate and $20.7 million, or 42.2%, above the prior year.
  Natural gas collections of $22.9 million were $2.4 million, or 9.4%, below the estimate and $3.9 million, or 20.8%, above the prior year.
  Oil collections of $46.9 million were $10.2 million, or 17.9%, below the estimate and $16.8 million, or 55.6%, above the prior year.
• Motor vehicle tax collections of $28.9 million were $1.7 million, or 5.5%, below the estimate and $0.6 million, or 1.9%, below the prior year.
• Other revenue collections of $143.8 million were $18.5 million, or 14.8%, above the estimate and $40.6 million, or 39.4%, above the prior year.

Collections to the GRF for the full fiscal year from major tax sources were:

• Total income tax collections of $2.6 billion were $197.0 million, or 8.2%, above the estimate and $240.7 million, or 10.2%, above the prior year.
  Individual income tax collections of $2.3 billion were $91.8 million, or 4.1%, above the estimate and $191.6 million, or 8.9%, above the prior year.
  Corporate income tax collections of $241.9 million were $105.2 million, or 76.9%, above the estimate and $49.1 million, or 25.4%, above the prior year.
• Sales tax collections of $2.1 billion were $30.8 million, or 1.4%, below the estimate and $0.5 million, or less than 1.0%, below the prior year.
• Gross production tax collections of $725.9 million were $171.2 million, or 30.9%, above the estimate and $372.5 million, or 105.4%, above the prior year.
  Natural gas collections of $369.2 million were $35.7 million, or 10.7%, above the estimate and $125.3 million, or 51.4%, above the prior year.
  Oil collections of $356.7 million were $135.5 million, or 61.2%, above the estimate and $247.2 million, or 225.7%, above the prior year.
• Motor vehicle tax collections of $223.8 million were $2.9 million, or 1.3%, above the estimate and $8.3 million, or 3.8%, above the prior year.
• Other revenue collections of $1.2 billion were $14.3 million, or 1.2%, above the estimate and $383.6 million, or 48.0%, above the prior year. 

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, other mandatory apportionments and after sales and use taxes are remitted back to municipalities. In contrast, gross collections, reported by the State Treasurer, are all revenues remitted to the Oklahoma Tax Commission.  

Revenue tables can be viewed on the OMES website: https://omes.ok.gov/pages/june-2019-financial-data-tables

Shelley Zumwalt
Director of Public Affairs
405-535-5198 | [email protected]

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:  Provide excellent service, expert guidance and continuous improvement in support of our partners’ goals. For more information, visit OMES.OK.gov.