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June revenue collections miss estimate

 | August 8, 2019

OKLAHOMA CITY (JR) – General Revenue Fund collections in June were $679.4 million, $10 million, or 1.5%, less than the monthly estimate.

Collections were $52.5 million, or 8.4%, more than collections in June 2018.

Total collections for the fiscal year ended June 30 were $6.86 billion, $354.6 million, or 5.5%, more than the estimate and $1 billion, or 17.2%, above collections for the previous fiscal year.

“For the first time in state history, the Rainy Day Fund has exceeded $800 million,” said Gov. Kevin Stitt. “While a significant milestone, we must remember that these dollars represent only slightly more than one month’s worth of expenses, which is why I have set a goal of $2 billion in savings to be prepared for the next inevitable economic downturn.”

While almost all major tax categories exceeded the estimate for the fiscal year, total collections from sales tax were 1.4% less than the estimate.

“Oklahoma’s economy continues to grow at a moderate pace and our Commerce Department is hitting significant milestones in job recruitment,” Stitt said. “We are also actively monitoring the effects of a drastic decline in rig count and other economic factors that give risk to a slowdown which could impact state revenue in the near future.”

Income tax collections for June totaled $251.6 million, $3.5 million, or 1.4% more than the estimate and $2.4 million, or 1 percent, more than the previous fiscal year.

June individual income tax collections of $197.3 million were $16.7 million, or 7.8%, below the estimate and $5.9 million, or 3.1%, above the prior year.

Corporate income tax collections for June totaled $54.3 million, $20.2 million, or 59.4%, above the estimate and $3.5 million, or 6.1%, below the prior year.

June sales tax collections of $185.3 million were $17.8 million, or 8.7%, below the estimate and $10.7 million, or 5.4%, below the prior year.

Gross production tax collections for June of $69.8 million were $12.6 million, or 15.3%, below the estimate and $20.7 million, or 42.2%, above the prior year.

June’s natural gas collections of $22.9 million were $2.4 million, or 9.4%, less than the estimate and $3.9 million, or 20.8%, above the prior year.

Oil collections for the month of $46.9 million were $10.2 million, or 17.9%, below the estimate and $16.8 million, or 55.6%, above the prior year.

Motor vehicle tax collections in June of $28.9 million were $1.7 million, or 5.5%, below the estimate and $0.6 million, or 1.9%, less than June 2018.

Other revenue collections of $143.8 million in June were $18.5 million, or 14.8%, above the estimate and $40.6 million, or 39.4%, more than a year earlier.

“This fiscal year has certainly been better than others the state has seen, but next year will most likely present some challenges,” said John Budd, director of the Office of Management and Enterprise Services. “With a slowing global economy and fluctuation in the energy sector, we will need to keep our focus on leveling out the boom-bust cycle the state has been on for decades. By making fiscally responsible decisions now, we can serve the state well in the future.”

As state government’s main operating fund, the GRF is a major indicator of state government’s fiscal status and the predominant funding source for the annual appropriated state budget. General Revenue Fund collections are revenue that remains 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 revenue remitted to the Oklahoma Tax Commission.

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