February 2023 GRF collections nearly 21 percent above estimate
OKLAHOMA CITY —General Revenue Fund collections in February totaled $501.4 million, which is $100.1 million, or 24.9%, above the monthly estimate. This is $58.8 million, or 13.3%, above collections in February 2022. Total GRF collections for the first eight months of fiscal year 2023 are $5.7 billion, which is $968.7 million, or 20.7%, above the estimate, and $569.9 million, or 11.2%, above prior year collections for the same period.
"February GRF numbers show the state to be in a good position for a significant contribution to the Rainy Day Fund at the end of fiscal year 2023," said state Chief Operating Officer and Interim OMES Director John Suter. "The exact contribution amount is still being determined and will rely heavily on key revenue factors during the remainder of the fiscal year, such as natural gas prices that have recently declined. Regardless, it has been a record setting first eight months of collections for the state."
Release note: Because Gross Production and Corporate Income Taxes are so volatile, the Legislature and previous administration passed the Revenue Stabilization Act in 2017, which created the Revenue Stabilization Fund (RSF). The RSF is the second major state savings fund after the Constitutional Reserve (Rainy Day) Fund. According to state statute, if annual revenues from Gross Production Taxes on Oil and Gas or Corporate Income Taxes exceed the 5-year average, the excess gets apportioned into the RSF instead of the GRF. This automatic apportionment stops once the RSF balance is equal to 3% of the estimated balance of the GRF certified for that fiscal year. The 5-year average is certified every year at the Board of Equalization’s February meeting, as is the cap on the RSF deposit (3% of the GRF). As of December 2022, this cap has been reached with a maximum deposit of $230 million into the RSF.
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.