Total GRF collections for 2020 slightly below the estimate
J. Kevin Stitt
-- NEWS RELEASE --
For Immediate Release
GRF collections for February miss estimate by 6.7%
OKLAHOMA CITY — General Revenue Fund collections in February were $327.3 million and came in at $23.5 million, or 6.7%, below the monthly estimate. This amount is $57.9 million, or 15.0%, below collections in February of 2019.
Total GRF collections over the first eight months of fiscal year 2020 were $52.3 million, or 1.2% below the estimate, and $2.9 million, or 0.1% above prior year collections for the same period.
“While the total collections for the year are only slightly below the estimate, conventional wisdom dictates that this gap will widen with the downturn in the energy sector,” said Steven Harpe, director of the Office of Management and Enterprise Services. “Low oil prices will continue to impact the monthly GRF collections, and we are actively monitoring the situation and will make adjustments when necessary.”
Major tax categories in February contributed the following amounts to the GRF:
- Total income tax collections of $49.1 million were $38.1 million, or 346.9%, above the estimate and $2.0 million, or 4.0%, below the prior year.
Individual income tax collections of $49.1 million were $39.2 million, or 395.9%, above the estimate and $330,000, or 0.7%, below the prior year.
Corporate income tax collections were zero. Last February, corporate income tax collections were $1.7 million.
- Sales tax collections of $159.0 million were $17.8 million, or 10.0%, below the estimate and $9.8 million, or 5.8%, below the prior year.
- Gross production tax collections of $64.5 million were $24.8 million, or 27.8%, below the estimate and $17.6 million, or 21.5%, below the prior year.
Natural gas collections of $19.3 million were $31.7 million, or 62.2%, below the estimate and $26.4 million, or 57.8%, below the prior year.
Oil collections of $45.2 million were $6.9 million, or 18.0%, above the estimate and $8.8 million, or 24.1%, above the prior year.
- Motor vehicle tax collections of $2.7 million were $1.0 million, or 57.1%, above the estimate and $12.5 million, or 82.0%, below the prior year.
- Other revenue collections of $51.9 million were $20.0 million, or 27.8%, below the estimate and $15.9 million, or 23.5%, below 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/february-2020-financial-data-tables
Note on Individual Income Tax and Motor Vehicle Collections: Every month of fiscal year 2020, contributions to the GRF from individual income tax collections and motor vehicle collections will be impacted by changes made by HB1014XX allocating specific motor vehicle and motor fuels tax collections to the ROADS fund and offsetting the distribution from this GR source by an equal amount. This new process will not directly impact revenues, but will cause anomalies in the prior year comparisons presenting as an increase in individual income tax and a decrease in motor vehicle contributions. Additionally, for the first year of these changes, we will experience a disrupted collection pattern in both sources when compared to estimated revenues.
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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.