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State Tax Collections Down in October

Press release from the Tennessee Department of Finance & Administration; November 8, 2013:

NASHVILLE – Tennessee revenue collections for October fell below the previous year, and below the budgeted estimate. Finance and Administration Commissioner Larry Martin reported today that collections for October were $827.1 million, which is 1.16% below October 2012.

“We are very disappointed with the negative growth rates reported in corporate tax collections for October and the preceding two months,” Martin said. “However, the sales tax is our best economic indicator, and it reflects modest growth for the month and first quarter of 2013-2014.

“The national and state leading economic indicators continue to indicate a very slow recovery is in progress, and it calls on us to continue to be diligent in monitoring our spending and revenue patterns for the remainder of this year. We are committed to keeping Tennessee´s budget balanced”.

On an accrual basis, October is the third month in the 2013-2014 fiscal year.

October collections were $17.8 million less than the budgeted estimate. The general fund was under collected by $13.7 million and the four other funds were under collected by $4.1 million.

Sales tax collections were $8.3 million less than the estimate for October. The October growth rate was 2.91%. The year-to-date growth rate was positive 3.38%.

Franchise and excise combined collections for October were $43.2 million, and $6.7 million below the budgeted estimate of $49.9 million.

Gasoline and motor fuel collections decreased by 10.83% and they were $4.6 million below the budgeted estimate of $72.5 million.

Tobacco tax collections for the month were under collected by $190,000.

Privilege tax collections were $341,000 below than the budgeted estimate of $24.8 million.

Inheritance and Estate taxes were over collected by $4.6 million for the month.

Business tax collections were $1.8 million below the October estimate.

All other taxes were under collected by a net of $0.5 million.

Year-to date collections for three months were $101.2 million less than the budgeted estimate. The general fund was under collected by $96.6 million and the four other funds were under collected by $4.6 million.

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

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Martin Named Head of Finance & Administration

Press release from the Office of Tennessee Gov. Bill Haslam; August 13, 2013:

NASHVILLE – Tennessee Gov. Bill Haslam today announced Larry Martin as commissioner of the state Department of Finance and Administration (F&A).

Martin has been the interim commissioner since June 1 after former commissioner Mark Emkes’ retirement.

“I want to thank Larry for continuing to serve Tennesseans as the F&A commissioner,” Haslam said. “Putting together the budget is one of the most important things we do, and Larry’s skills and experience with complex systems and organizations is unmatched.”

Last year, he joined the governor’s staff as a special assistant to the governor, working alongside Human Resources Commissioner Rebecca Hunter to oversee the implementation of Haslam’s civil service reform, the Tennessee Excellence, Accountability and Management (TEAM) Act; and reviewing state employee compensation.

From September 2006 to December 2011, Martin, 65, served as deputy to the mayor in Knoxville for both Haslam and Mayor Daniel Brown. He was responsible for Finance, Public Works, Community Development, Information Systems, Purchasing and Risk Management for the City of Knoxville.

Prior to joining city government, Martin was an executive of First Horizon/First Tennessee Bank, joining the company in 1969 and serving in various capacities before retiring as the chief operating officer for First Tennessee Financial Services with responsibility for all Tennessee Regional Bank Markets; Merchant Services Processing; Hickory Venture Capital; and the Commercial, Corporate and Middle Market Divisions of the bank. A native of Jackson, Tenn., Martin received his bachelor of science from the University of Tennessee’s College of Business.

“I look forward to continuing the good work of the governor and applying his thoughtful and comprehensive approach to the budgeting process,” Martin said.

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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.

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May Revenue Collection Continues Upward Growth Trend

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

NASHVILLE, Tenn. – Tennessee revenue collections continued an upward growth trend in May with a net positive growth of 3.92% over collections made in the same month last year. Finance and Administration Commissioner Larry Martin reported today that overall May revenues were $905.3 million or $31.5 million more than the state budgeted. It’s the tenth consecutive month this fiscal year in which total collections have reflected positive growth.

“The sales tax growth rate rebounded in May compared to earlier months, mainly because of building materials sales and purchases of new automobiles,” Martin said. “Corporate tax collections continued to show strong growth, exceeding budgeted expectations.

“Tennessee’s sales tax collections suggest that we are continuing to slowly recover from the worst recession on record. Slow recovery coupled with national and global economic concerns call for us to closely monitor collections and expenditures for the remainder of the year.”

On an accrual basis, May is the tenth month in the 2012-2013 fiscal year.

The general fund was over collected by $35.3 million, and the four other funds were under collected by $3.8 million.

Sales tax collections were $11.2 million more than the budgeted estimate for May. The May growth rate was positive 3.97%. For ten months revenues are under collected by $27.7 million. The year-to-date growth rate for ten months was positive 1.72%.

Franchise and excise taxes combined were $8.8 million above the budgeted estimate of $45.3 million. For ten months revenues are $276.6 million over the budgeted estimate.

Inheritance and estate tax collections were $17.0 million above the May estimate. For ten months collections are $27.5 million above the budgeted estimate.

Privilege tax collections were $3.5 million more the May budgeted estimate, and for ten months collections are $29.2 million above the budgeted estimate.

Gasoline and motor fuel collections for May decreased by 7.26%, and were $3.9 million less than the budgeted estimate. For ten months revenues are negative 2.63%, and $18.5 million below the budgeted estimate of $702.5 million.

Business tax collections were $2.0 million less than the May estimate and year to date for ten months collections are $0.2 million above the budgeted estimate.

Tobacco tax collections were $1.7 million below the budgeted estimate of $23.0 million. For ten months revenues are under collected in the amount of $8.6 million.

All other taxes for May were under collected by a net of $1.4 million.

Year-to-date collections for ten months were $319.6 million more than the budgeted estimate. The general fund was over collected by $319.7 million and the four other funds were under collected by $0.1 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 May, compared to what’s in the revised FY 2013 budget is $13.8 million ($319.7 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.

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Larry Martin Announced Interim Finance Commissioner

Press release from the Office of Tennessee Gov. Bill Haslam; May 28, 2013:

NASHVILLE – Tennessee Gov. Bill Haslam today announced Larry Martin will become the interim commissioner of the state Department of Finance and Administration (F&A) when Commissioner Mark Emkes retires at the end of the month.

Martin becomes interim commissioner at F&A June 1 after Emkes’ retires effective May 31.

A year ago, he joined the governor’s staff as a special assistant to the governor, working alongside Human Resources Commissioner Rebecca Hunter to oversee the implementation of Haslam’s civil service reform, the Tennessee Excellence, Accountability and Management (TEAM) Act; and reviewing state employee compensation.

“I am grateful that Larry has agreed to step into this position and serve Tennessee taxpayers in this capacity,” Haslam said. “He has been critically important in helping us establish the systems and organizational structure to begin recruiting, attracting and retaining the best and brightest to serve in state government, and I look forward to continuing to work with him as interim commissioner of F&A.”

From September 2006 to December 2011, Martin, 65, served as deputy to the mayor in Knoxville for both Haslam and Mayor Daniel Brown. He was responsible for Finance, Public Works, Community Development, Information Systems, Purchasing and Risk Management for the City of Knoxville.

Prior to joining city government, Martin was an executive of First Horizon/First Tennessee Bank, joining the company in 1969 and serving in various capacities before retiring as the chief operating officer for First Tennessee Financial Services with responsibility for all Tennessee Regional Bank Markets; Merchant Services Processing; Hickory Venture Capital; and the Commercial, Corporate, and Middle Market Divisions of the bank. A native of Jackson, Tenn., Martin received his bachelor of science from the University of Tennessee’s College of Business.

“Under Gov. Haslam, Tennessee has taken incredible steps toward making state government more responsive to its customers, the taxpayers, and I want to thank him for this new opportunity to serve the state,” Martin said.

The search for a permanent replacement is ongoing.

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Haslam Announces New Staff Position to Oversee TEAM Act Implementation

Press release from the office of Governor Bill Haslam; May 14, 2012:

NASHVILLE – Tennessee Gov. Bill Haslam today announced that Larry Martin will join his staff to oversee implementation of the Tennessee Excellence and Accountability Management (TEAM) Act

His responsibilities will include coordinating and collaborating throughout state government agencies to effectively begin recruiting new employees on all levels, updating performance evaluations in all departments, and a review of employee compensation that includes the salary study funded in the governor’s FY 2013-2014 budget.

“Getting the TEAM Act passed into law was only the beginning of our work,” Haslam said. “Now we must make sure it is implemented effectively, which includes creating meaningful performance evaluations, truly getting a full picture of employee compensation, and changing the culture now that we can recruit the best and brightest to serve. I am grateful that Larry has agreed to take on this challenge for the taxpayers of Tennessee. Our goal is to build a state workforce that is dedicated to and focused on customer service, efficiency and effectiveness.”

“This is a wonderful opportunity to work for Bill Haslam again and to be part of the implementation of the TEAM Act of 2012, which will be good for our state and our employees,” Martin said.

From September 2006 to December 2011, Martin, 64, served as deputy to the mayor for both Haslam and Mayor Daniel Brown. He was responsible for Finance, Public Works, Community Development, Information Systems, Purchasing and Risk Management for the City of Knoxville.

Prior to joining city government, Martin was an executive of First Horizon/First Tennessee Bank. He joined the company in 1969 and served in various capacities. He moved to Knoxville in 1987 when he was named president of First Tennessee Bank Knoxville. When he retired, he was serving as chief operating officer for First Tennessee Financial Services with responsibility for all Tennessee Regional Bank Markets; Merchant Services Processing; Hickory Venture Capital; and the Commercial, Corporate, and Middle Market Divisions of the bank.

A native of Jackson, Tenn., Martin received his bachelor of science from the University of Tennessee’s College of Business. Throughout the years, he has been involved in several community activities. In 1995, he chaired the Knoxville United Way campaign. He served as chairman of Covenant Health System, Leadership Knoxville, the Knoxville Chamber of Commerce, United Way of Greater Knoxville, and as president of the Great Smoky Mountain Council Boy Scouts of America. Currently, he is chairman of First Tennessee Bank Knoxville Advisory Board and serves on the boards of East Tennessee Children’s Hospital, Project Grad, Emerald Youth Foundation, and University of Tennessee Foundation.

He and his wife, Jane, have two adult daughters, Hope and Meg, and have attended Church Street United Methodist Church in Knoxville for 24 years.

Martin will assume his new role as special assistant to the governor on May 23.