General Revenue Fund (GRF) collections came in 9.8 percent below projections in May, further signaling how state revenues are being affected by low oil prices and corresponding energy sector adjustments.
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.
May GRF collections of $402.7 million were $43.7 million, or 9.8 percent, below the official estimate upon which the Fiscal Year 2015 appropriated state budget is based and $46.3 million, or 10.3 percent, below prior year collections.
With one month remaining in FY 2015, total GRF collections stand at $5.2 billion, which is $48.1 million, or 0.9 percent, below the estimate and $153.2 million, or 3 percent, above the prior year.
“While there are certainly challenges, Oklahoma’s ongoing economic diversification is helping the state weather this latest oil price situation better than it has in the past. Not too long ago, an oil price collapse like this would have caused a more profound reduction in state revenues than it has today,” said Secretary of Finance, Administration and Information Technology Preston L. Doerflinger. “Oklahoma, including its state government, is better positioned to manage challenges like this than it has been traditionally, and we are doing so.”
Doerflinger is director of OMES, which issues the monthly GRF reports.
Major tax categories in May contributed the following amounts to the GRF:
- Total income tax collections of $141.8 million were $12.4 million, or 9.6 percent, above the estimate and $9.4 million, or 7.1 percent, above the prior year.Individual income tax collections of $123.3 million were $349,571, or 0.3 percent, above the estimate and $9.1 million, or 6.9 percent, below the prior year.
Corporate income tax collections of $18.5 were $12 million, or 185.2 percent, above the estimate. An unusually high amount of refunds last year eliminated any contribution to the GRF in May 2014.
- Sales tax collections of $160.5 million were $13.5 million, or 7.8 percent, below the estimate and $9.6 million, or 5.7 percent, below the prior year.
- Gross production tax collections of $15.4 million were $33.8 million, or 68.8 percent, below the estimate and $39.8 million, or 72.1 percent, below the prior year.Gas collections made no contribution to the GRF in May because of lower collections and refunds.
Oil collections of $15.4 million were $7.8 million, or 33.7 percent, below the estimate and $21.7 million, or 58.5 percent, below the prior year.
- Motor vehicle tax collections of $14.4 million were $2.9 million, or 16.9 percent, below the estimate and $3.4 million, or 19.3 percent, below the prior year.
- Other revenue collections of $70.6 million were $5.7 million, or 7.5 percent, below the estimate and $2.9 million, or 3.9 percent, below the prior year.
Monthly revenue tables are available on the OMES website: http://www.ok.gov/OSF/News/May_2015_Financial_Report_Data_Tables.html
