No indication current trend to yield significant growth in next fiscal year
OKLAHOMA CITY — General Revenue Fund collections in October were $436.4 million and came $2.5 million, 0.6 percent, above the monthly estimate. Coincidentally, the year-to-date estimate also came in above by 0.6 percent. There was improvement in nearly every category from last year, as expected.
"A revenue failure does not seem to be in the forecast, but neither does a healthy surplus, so maintaining FY 18 levels of funding to core services will require continued discussion, cooperation and effort," said Secretary of Finance, Administration and Information Technology Preston L. Doerflinger. "If the Legislature desires a different path forward, I urge them to begin putting those plans together now so they can be discussed during the next regular session."
Sales tax improved $26.5 million year-over-year with a large portion of that coming from the $9.5 million collected from motor vehicle sales tax. Gross production continued to gain with an improvement of $9.8 million, or 75.7 percent, above year-over-year estimates, corporate income tax contributed nothing to the GRF this month.
"As we look ahead to the 2018 regular session with a structural deficit likely over $650 million, anyone who thinks we can somehow overcome that before the December Board of Equalization meeting is mistaken," said Doerflinger. "No one at 23rd and Lincoln should take their foot off the gas in looking for solutions to funding core services."
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 and mandatory apportionments. Gross collections, reported by the State Treasurer, are all revenues collected by the state before rebates, refunds and mandatory apportionments.
Doerflinger is Secretary of Finance, Revenue and Information Technology and is currently serving as interim commissioner of the Oklahoma State Department of Health. Denise Northrup is the interim director of OMES which issues the monthly GRF reports.
Major tax categories in October contributed the following amounts to the GRF:
Total income tax collections of $162.6 million were $12.0 million, or 8.0 percent, above the estimate and $1.8 million, or 1.1 percent, above the prior year.
Individual income tax collections of $162.6 million were $12.0 million, or 8.0 percent, above the estimate and $1.8 million, or 1.1 percent, above the prior year.
Corporate income tax collections were a net zero.
Sales tax collections of $175.7 million were $7.3 million, or 4.3 percent, above the estimate and $26.5 million, or 17.8 percent, above the prior year.
Gross production tax collections of $22.7 million were $3.7 million, or 13.9 percent, below the estimate and $9.8 million, or 75.7 percent, above the prior year.
Natural gas collections of $19.5 million were $4.6 million, or 19.2 percent, below the estimate and $8.1 million, or 72 percent, above the prior year.
Oil collections of $3.2 million were $987,000, or 44.5 percent, above the estimate and $1.6 million, or 102.5 percent, above the prior year.
Motor vehicle tax collections of $16.7 million were $364,243, or 2.1 percent, below the estimate and $985,000, or 6.3 percent, above the prior year.
Other revenue collections of $58.7 million were $12.8 million, or 18.0 percent, below the estimate and $6.4 million, or 12.1 percent, above the prior year.
Revenue tables can be viewed on the OMES website: https://www.ok.gov/OSF/News/October_2017_Financial_Report_Data_Tables.html
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