|FOR IMMEDIATE RELEASE
TUESDAY, APRIL 13, 2010
CONTACT: LOLA POTTER
NASHVILLE – Tennessee revenue collections continued to fall short of budgeted estimates in March. Finance and Administration Commissioner Dave Goetz reported today that overall March revenues were $776.5 million, which is $11.7 million less than the state budgeted.
“This marks the 22nd consecutive negative growth month for sales tax collections out of the last 27 months, starting with January 2008,” Goetz said. “Sales tax collections seem to reflect a degree of renewed consumer confidence, but revenues continue to lag below projections.
“Until we see clear signs that the economy is recovering we will continue to make budget decisions based on what we’re experiencing in Tennessee.”
On an accrual basis, March is the eighth month in the 2009-2010 fiscal year. The general fund was under collected by $8.7 million and the four other funds were under collected by $3.0 million.
Sales tax collections were $14.0 million less than the estimate for March. The March growth rate was negative 0.87%. For eight months revenues are under collected by $211.4 million. The year-to-date growth rate for eight months was negative 5.29%.
Franchise and excise taxes combined were $8.4 million above the budgeted estimate of $122.6 million. For eight months revenues are over collected by $15.7 million. The year-to-date growth rate for eight months was 6.64%.
Gasoline and motor fuel collections for March decreased by 1.70%. For eight months revenues are under collected by $16.9 million.
Tobacco taxes collections were $1.3 million over the budgeted estimate of $24.4 million. For eight months revenues are over collected in the amount of $1.6 million.
Year-to-date collections for eight months were $244.1 million less than the budgeted estimate. The general fund was under collected by $205.0 million and the four other funds were under collected by $39.1 million.
The budgeted revenue estimates for 2009-2010 are based on the State Funding Board’s consensus recommendation adopted by the first session of the 106th General Assembly in May of 2009, and are available on the state’s Web site at http//www.tn.gov/finance/bud/budget.html.
The State Funding Board met on December 18, 2009 and adopted mid-year revised revenue ranges for 2009-2010. The revised ranges reflect growth rates ranging from negative 1.50% to negative 0.25% in total taxes, and negative 2.35% to negative 0.85% in general fund taxes. Based on the consensus recommendation, the official budgeted estimates for 2009-2010 were revised in late December.
The revised estimates are reflected on pages A-70 and A-72 in the 2010-2011 Budget Document, and assumed an under collection in total taxes in the amount of $161.3 million, and an under collection of $153.2 million in the general fund.
The funding board met again in March of this year and adopted final revenue ranges for 2009-2010. The board’s consensus recommendation was to recognize lower growth rates than those adopted on December 18, 2009. The revised ranges reflect growth rates ranging from negative 1.77% to negative 1.29% for total taxes, and negative 2.31% to negative 1.78% in general fund taxes.
Based upon the funding board’s March recommendation the revised estimates for 2009-2010 now assume an under collection in total taxes in the amount of $258.9 million, and an under collection of $231.0 in general fund taxes.