|FOR IMMEDIATE RELEASE
FRIDAY, FEBRUARY 6, 2009
CONTACT: LOLA POTTER
NASHVILLE, Tenn. - Overall January revenues were $936.4 million, which is $114.3 less than the state budgeted, reflecting dismal holiday retail sales for Tennessee as well as continued weakness in consumer confidence.
“January is the sixth consecutive month this fiscal year in which sales taxes and corporate income taxes have recorded negative growth over a year ago.” Finance and Administration Commissioner Dave Goetz said. “January is also historic in that it represents the eleventh negative growth month in sales tax collections out of the last thirteen months, starting with January 2008.
“We will continue to be diligent in monitoring our spending in order to end the fiscal year with a balanced budget as required by the state’s constitution,” Goetz said.
On an accrual basis, January is the sixth month in the 2008-2009 fiscal year.
The general fund was under collected by $102.7 million and the four other funds were under collected by $11.6 million.
Sales tax collections were $68.4 million less than the estimate for January. The January growth rate was negative 6.87%. For six months revenues are under collected by $280.9 million. The year-to-date growth rate for six months was negative 5.72 %.
Franchise and excise taxes combined were $26.6 million below the budgeted estimate of $150.3 million. For six months revenues are under collected by $162.3 million.
Gasoline and motor fuel collections for January decreased by 11.2 % and were $8.9 below the budgeted estimate of $72.2 million. For six months revenues are under collected by $33.7 million.
Tobacco tax collections were $3.3 million below the budgeted estimate of $24.8 million, and for six months they are $5.7 million under the budgeted estimate.
Year-to-date collections for six months were $522.1 million less than the budgeted estimate. The general fund was under collected by $482.1 million and the four other funds were under collected by $40.0 million.
The budgeted revenue estimates for 2008-2009 are based on the State Funding Board’s consensus recommendation adopted by the second session of the 105th General Assembly in May of 2008.