Historic Miss as GRF Collections Tumble
J. Kevin Stitt
-- NEWS RELEASE --
For Immediate Release
Historic Miss as GRF Collections Tumble
OKLAHOMA CITY — General Revenue Fund collections in April were $529.1 million and came in at $416.2 million, or 44.0%, below the monthly estimate. This amount is $377.1 million, or 41.6%, below collections in April of 2019. Total GRF collections over the first 10 months of fiscal year 2020 were $486.8 million, or 8.5% below the estimate, and $388.5 million, or 6.9% below prior year collections for the same period.
“April is historically the month with the largest revenue collections," said OMES Director Steve Harpe. "This April is historic itself as collections were impacted by the by the postponed income tax deadline from April to July, the economic battering of the oil and gas industry and COVID-19 related shutdowns of many businesses and industries."
General Collections haven't missed the estimate by over 40% in recent history. February collections for FY 2009 missed the estimate by 30.4%, giving this month's report the lamentable distinction of being the most abrupt loss to the GRF in a single month this decade.
"Missing this month's estimate is not a surprise, but the magnitude is notable. These losses are, and will continue to have, a significant impact on revenue in the next month and into FY 2021. As agencies approach these next few months, many will be tasked with making difficult decisions as a result of this threefold economic gut punch," Harpe elaborated.
Major tax categories in April contributed the following amounts to the GRF:
- Total income tax collections of $230.6 million were $365.6 million, or 61.3%, below the estimate and $301.7 million, or 56.7%, below the prior year. Individual income tax collections of $223.9 million were $308.5 million, or 57.9%, below the estimate and $213.5, or 48.8%, below the prior year. Corporate income tax of $6.7 million were $57.1 million, or 89.5% below the estimate and $88.2 million, or 93.0%, below the prior year.
- Sales tax collections of $165.5 million were $36.4 million, or 18.0%, below the estimate and $25.4 million, or 13.3%, below the prior year.
- Gross production tax collections of $45.7 million were $12.2 million, or 21.1%, below the estimate and $15.2 million, or 24.9%, below the prior year. Natural gas collections of $11.8 million were $16.5 million, or 58.3%, below the estimate and $13.5 million, or 53.4%, below the prior year. Oil collections of $34.0 were $4.2 million, or 14.2%, above the estimate and $1.7 million, or 4.7%, below the prior year.
- Motor vehicle tax collections of $2.6 million were $0.5 million, or 23.4%, above the estimate and $16.0 million, or 86.1%, below the prior year.
- Other revenue collections of $84.6 million were $2.4 million, or 2.8%, below the estimate and $18.8 million, or 18.2%, 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/april-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.