NASHVILLE – Tennessee revenue collections continued a predicted steady growth trend in May. Finance and Administration Commissioner Mark Emkes today reported a net positive growth of 9.82% over May 2010 collections. Overall May revenues were $842.5 million, which is $63.5 million more than the state budgeted.
“May marks the ninth consecutive month this year in which total collections have exceeded the budgeted estimates,” Emkes said. “Sales tax collections recorded the 14th consecutive month of positive growth, and corporate tax collections were also above the estimate.
“Although Tennessee’s revenue collections continue to show a positive growth trend, the national leading economic indicators are causing us concern and require us to continue to closely monitor expenditures for the remainder of this year so that we end the fiscal year with a balanced budget.”
The general fund was over collected by $61.7 million, and the four other funds were over collected by $1.8 million.
Sales tax collections were $26.2 million more than the estimate for May. The May growth rate was positive 5.17%. For ten months revenues are over collected by $166.8 million. The year-to-date growth rate for ten months was positive 4.42%…
Franchise and excise taxes combined were $17.9 million above the budgeted estimate of $29.6 million. The growth rate for May was positive 107.74%. For ten months revenues are over collected by $18.3 million and the year-to-date growth rate was 5.61%.
Privilege tax collections were $7.1 million above the May estimate. For ten months collections are $5.9 million below the budgeted estimate.
Tobacco tax collections were $1.7 million under the budgeted estimate of $24.2 million. For ten months revenues are under collected in the amount of $5.6 million.
Gasoline and motor fuel collections for May increased by 2.33%, and they were $2.1 million over the budgeted estimate. For ten months revenues are over collected by $9.9 million and the ten month year-to-date growth rate was 3.46%.
Business tax collections were $13.8 million over the budgeted estimate for May. Year-to date collections for ten months collections are $18.5 million below the budgeted estimate.
All other taxes for May were under collected by a net of $1.9 million.
Year-to-date collections for ten months were $217.8 million more than the budgeted estimate. The general fund was over collected by $188.0 million and the four other funds were over collected by $29.8 million.
The budgeted revenue estimates for 2010-2011 are based on the State Funding Board’s consensus recommendation of April 7, 2010 and adopted by the second session of the 106th. General Assembly in June. They are available on the state’s website at http//www.tn.gov/finance/bud/budget.html.
The State Funding Board met on the 8th and 14th of December 2010, and again on February 7, 2011. As a result of these meetings, the board adopted mid-year revised revenue ranges for 2010-2011. The board issued a formal letter addressed to the governor and chairmen of the House and Senate Finance Ways and Means Committees dated February 25, 2011, detailing the board’s actions.
The 2010-2011 revised ranges adopted by the board reflect growth rates ranging from 3.60% to 4.00% in total taxes, and 3.95% to 4.45% in general fund taxes. Based on the board’s consensus recommendation, the official budgeted estimates for 2010-11 were revised in March of 2011.
The revised estimates are reflected on pages A-72 and A-74 in the 2011-2012 Budget document and assume an over collection in total taxes in the amount of $198.5 million, and an over collection of $161.3 million in general fund taxes.
Year-to-date collections through May compared to the February revision are $54.7 million above the total estimate, and $45.7 million above the general fund estimate. The four other funds that share in state tax collections are $9.0 million above the revised estimate.
The funding board met again on April 12, 2011 to hear updated revenue estimates and near-term economic forecasts for fiscal years 2010-2011 and 2011-2012, taking final action on April 15th to revise the February ranges.
The action taken by the board in April recognized an increase at the top of the range for 2010-2011 from 4.00% to 4.15% in total taxes and from 4.45% to 4.50% in general fund taxes. This increased projections for total taxes by $15.1 million and general fund taxes by $15.2 million for the current fiscal year. This increase was recognized in the administration’s budget amendment and adopted by the General Assembly on Saturday May 21, 2011.
Year-to –date collections through May compared to the final action taken by the board and approved by the General Assembly are $39.6 million above the total estimate, and $30.5 million above the general fund estimate.