Categories
Press Releases

TN Unemployment Rate Up, Federal Rate Down

Press release from the Tennessee Department of Labor and Workforce Development; July 17, 2014:

NASHVILLE – Tennessee Labor & Workforce Development Commissioner Burns Phillips announced today the Tennessee preliminary unemployment rate for June was 6.6%, two tenths of one percentage point higher than the 6.4 May revised rate. The U.S. preliminary rate for June was 6.1%, down from 6.3% in May.

Economic Summary: 

  • Over the past year, Tennessee’s unemployment rate decreased from 8.4% to 6.6% while the national rate decreased from 7.5% to 6.1%.
  • Total nonfarm employment decreased 2,600 jobs from May to June. The largest decreases occurred in mining/logging/construction, government, and other services.

Over the year, nonfarm employment increased 53,600 jobs. The largest increases occurred in professional/business services, leisure/hospitality, and trade/transportation/utilities.

Categories
Press Releases

TN Revenues ‘Below Expectations’ in June

Press release from the Tennessee Department of Finance & Administration; July 11, 2014:

NASHVILLE, Tenn. – Total tax collections for June were below budgeted expectations. Finance and Administration Commissioner Larry Martin reported today that June ended with a net negative growth of 0.45%, compared to collections in the same month one year ago. Overall June revenues were $1.2 billion, which is $67.5 million less than the state budgeted.

“June collections recorded stronger than anticipated sales tax growth, but continued to reflect weaker than anticipated collections from the corporate sector,” Martin said. “We continue to believe the recent up-tick in retail activity is an indication of renewed consumer confidence, and an economy slowly on the mend.” All other tax sources, taken as a group, were below budgeted expectations in June.

“For the remainder of this year, we will continue to closely monitor collections and expenditures.”

On an accrual basis, June is the eleventh month in the 2013-2014 fiscal year.

The general fund was under collected by $67.6 million, and the four other funds were over collected by $0.1 million.

Sales tax collections were $13.5 million more than the estimate for June. The June growth rate was positive 5.54%. For eleven months revenues are under collected by $15.5 million. The year-to-date growth rate for eleven months was positive 3.57%.

Franchise and excise taxes combined were $54.1 million below the budgeted estimate of $383.2 million. The growth rate for June was negative 3.55%. For eleven months revenues are under collected by $278.3 million and the year-to-date growth rate was negative 8.81%.

Privilege tax collections were $8.9 million below the June estimate. For eleven months collections are $23.0 million below the budgeted estimate.

Business tax collections were $9.0 million less than the June estimate. Year-to-date collections for eleven months are $10.2 million below the budgeted estimate.

Inheritance and estate tax collections were $0.7 million below the June estimate. For eleven months collections are $19.9 million above the budgeted estimate.

Tobacco tax collections were $6.6 million below the budgeted estimate of $25.7 million. For eleven months revenues are under collected by $13.2 million.

Gasoline and motor fuel collections for June were over collected by $3.1 million. For eleven months revenues are over collected by $4.8 million.

All other taxes for June were under collected by a net of $4.8 million.

Year-to-date collections for eleven months were $289.9 million less than the budgeted estimate. The general fund was under collected by $303.6 million and the four other funds were over collected by $13.7 million.

The budgeted revenue estimates for 2013-2014 are based on the State Funding Board’s consensus recommendation of December 19, 2012 and adopted by the first session of the 108th General Assembly in April 2013. They are available at http://www.tn.gov/finance/bud/Revenues.shtml.

The Funding Board met on December 10, 2013 to hear updated revenue projections from the state’s various economists. The board met again on December 17 and adopted revised revenue ranges for 2013-2014. The revised ranges assume an under collection from the July 2013 budgeted estimate in the amount of $111.2 million to $134.5 million in total taxes and in the amount of $126.1 million to $145.6 million in general fund taxes for the current fiscal year.

Categories
Press Releases

June 11th Straight Month of ‘Positive Growth’ in TN Revenue Collections

Press release from the Tennessee Department of Finance & Administration; July 11, 2013:

NASHVILLE – Total Tennessee tax collections for June were weak, but exceeded budgeted expectations. Finance and Administration Commissioner Larry Martin reports that overall June revenues were $1.2 billion, which is $3.2 million more than the state budgeted. It marks the 11th consecutive month this year in which total collections have experienced positive growth.

Sales tax collections in June were flat, while corporate tax collections exceeded the budgeted estimate. All other tax sources, taken as a group, were above the budgeted estimates.

“The year-to-date growth rate for all taxes remains low and points to an economy that is still anemic and recovering slowly,” Martin said. “For the remainder of this year, we will continue to closely monitor collections and expenditures.”

On an accrual basis, June is the eleventh month in the 2012-2013 fiscal year.

The general fund was over collected by $8.9 million, and the four other funds were under collected by $5.7 million.

Sales tax collections were $0.1 million less than the estimate for June. The June growth rate was positive 1.18%. For eleven months revenues are under collected by $27.8 million. The year-to-date growth rate for eleven months was positive 1.67%.

Franchise and excise taxes combined were $2.3 million above the budgeted estimate of $338.9 million. The growth rate for June was negative 8.85%. For eleven months revenues are over collected by $278.9 million and the year-to-date growth rate was 8.76%.

Privilege tax collections were $0.9 million above the June estimate. For eleven months collections are $30.1 million above the budgeted estimate.

Business tax collections were $1.2 million more than the June estimate. Year-to-date collections for eleven months are $1.4 million above the budgeted estimate.

Inheritance and estate tax collections were $7.9 million above the June estimate. For eleven months collections are $35.4 million above the budgeted estimate.

Tobacco tax collections were $2.4 million below the budgeted estimate of $27.8 million. For eleven months revenues are under collected by $11.0 million.

Gasoline and motor fuel collections for June were under collected by $4.0 million. For eleven months revenues are under collected by $22.5 million.

All other taxes for June were under collected by a net of $2.6 million.

Year-to-date collections for eleven months were $322.8 million more than the budgeted estimate. The general fund was over collected by $328.6 million and the four other funds were under collected by $5.8 million. The FY 2013 revised budget assumed an over collection of $305.9 million in General Fund Taxes. Therefore, the amount of over collection, August through June, compared to what’s in the revised FY 2013 budget is $16.9 million ($322.8 million minus $305.9 million).

The budgeted revenue estimates for 2012-2013 are based on the State Funding Board’s consensus recommendation of December 19th, 2011 and adopted by the second session of the 107th General Assembly in April 2012. They are available on the state’s website at http://www.tn.gov/finance/bud/budget.html.

The State Funding Board met on December 14, 2012 to hear updated revenue projections from the state’s various economists. The board met again on December 19th and adopted revised revenue ranges for 2012-2013. The revised ranges assume an over collection from the July 2012 budgeted estimate in the amount of $203.0 million to $287.3 million in total taxes and in the amount of $224.2 million to $305.9 million in general fund taxes for the current fiscal year.

Categories
Press Releases

TNGOP: ‘Economic Drought’ Continues

Statement from the Tennessee Republican Party; July 6, 2012:  

NASHVILLE, TN – Tennessee Republican Party Chairman Chris Devaney released the following statement on the June unemployment report, which shows the unemployment rate remaining at 8.2%-

“Today’s jobs report shows that we remain in an economic drought, and it’s clear that Obama’s destructive policies have failed to provide much-needed relief for so many families.

“As President Obama’s first term winds down, the choice becomes more clear- either month after month of 8% or higher unemployment with President Obama or a real jobs plan with Mitt Romney that will get people back to work.”