General Revenue Fund (GRF) collections came in 11.4% below projections in April, sending yearly collections below the official estimate upon which the Fiscal Year 2015 appropriated state budget is based.
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 state budget. GRF collections, reported by the Office of Management and Enterprise Services (OMES), 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 prior to rebates, refunds and mandatory apportionments.
April GRF collections of $673.3 million were $87 million, or 11.4 percent, below the estimate and $17.2 million, or 2.5 percent, below prior year collections.
Total GRF collections for the first ten months of FY 2015 of $4.8 billion were $4.5 million, or 0.1 percent, below the estimate and $199.5 million, or 4.3 percent, above the prior year.
This marks the first time in FY 2015 that year-to-date collections have fallen below the official estimate (for budgetary purposes, the estimate is a more important number than prior year collections because annual appropriations are based on the estimate). The reduction can be attributed largely to the effect low oil prices are having on tax collections.
“We’ve been waving the caution flag all year and it appears April may mark the beginning of the temporary revenue downturn we’ve been expecting,” said Secretary of Finance, Administration and Information Technology Preston L. Doerflinger. “It’s going to require agencies to continue tightening up their ships, and there’s certainly still room to do that in some areas.”
Doerflinger, who serves as Gov. Mary Fallin’s lead budget negotiator with the Legislature, said the soon-to-be-announced FY 2016 appropriated state budget will reflect the anticipated revenue downturn.
“Any day now we expect to reach agreement with the Legislature on a budget that makes the responsible spending reductions necessary to preserve funding for core services,” Doerflinger said. “It’s going to be a smaller budget than this year’s, but the real world effect on the services government provides should be minimal to nonexistent. Rest assured, the government cheese will still be served.”
Doerflinger is director of OMES, which issues the monthly GRF reports.
Major tax categories in April contributed the following amounts to the GRF:
- Total income tax collections of $413 million were $48.8 million, or 10.6 percent, below the estimate and $15.8 million, or 4 percent, above the prior year.
Individual income tax collections of $387.5 million were $9.7 million, or 2.4 percent, below the estimate and $41.4 million, or 12 percent, above the prior year.
Corporate income tax collections of $25.5 were $39.1 million, or 60.6 percent, below the estimate and $25.6 million, or 50.2 percent, below the prior year.
- Sales tax collections of $164.6 million were $5.9 million, or 3.5 percent, below the estimate and $305,572, or 0.2 percent, below the prior year.
- Gross production tax collections of $8.9 million were $28.5 million, or 76.1 percent, below the estimate and $29 million, or 76.4 percent, below the prior year.
Gas collections of $216,794 were $19.4 million, or 98.9 percent, below the estimate and $9.3 million, or 97.7 percent, below the prior year.
Oil collections of $8.7 million were $9 million, or 50.8 percent, below the estimate and $19.6 million, or 69.2 percent, below the prior year.
- Motor vehicle tax collections of $17.1 million were $3.2 million 15.6 percent, below the estimate and $7.1 million, or 29.2 percent, below the prior year.
- Other revenue collections of $69.7 million were $660,702, or 0.9 percent, below the estimate and $3.3 million or 5 percent, above the prior year.
Monthly revenue tables are available on the OMES website: http://www.ok.gov/OSF/News/April_2015_Financial_Report_Data_Tables.html
Tax collections are DOWN, there is gonna be a shortage of money ($611,000,000 short) for appropriations, yet all the leadership can do is introduce MORE projects needing MORE MONEY and HIGHER DEBT!!!! What is wrong with this picture?
Museums are not the business of the government! Building museums should be done by the private sector WITHOUT tax dollars or tax credits! If it is a worthwhile project, the money can be found in the private sector. Going further into debt is NOT THE ANSWER!!!!
I hope, and pray, that wisdom and sanity will prevail and both of these stupid ideas (bills) to go further into debt to build/finish any more museums will be shot down by the legislators in both houses. No more debt! No more money into any more museums or “wish lists” projects! Stop spending money that isn’t there and putting a bigger burden on the taxpayer.
Reason and sanity must prevail!!!!
Thank you Edmond voter, I couldn’t agree more. I tried arguing that yesterday with Senator Bingman who got his,”Pop Museum” passed out of committee yesterday by a vote of 27 to 13. This comes with a $25 million bond. The bill is SB 839. Please get on your elected officials to vote against this once again. Eliminate debt, don’t create more of it.