|FOR IMMEDIATE RELEASE
THURSDAY MAY 7, 2009
CONTACT: LOLA POTTER
NASHVILLE - Tennessee revenue collections continued to decline in April, once again falling short of budgeted estimates. Finance and Administration Commissioner Dave Goetz reported today that overall April revenues were $1.216 billion, which is $189.6 million less than the state budgeted.
"April is the ninth consecutive month this fiscal year that we've seen negative growth in sales taxes and corporate income taxes compared to a year ago." Goetz said. "In fact, we've seen negative growth in sales tax collections for 14 of the past 16 months - since January 2008."
On an accrual basis, April is the ninth month in the 2008-2009 fiscal year.
The general fund was under collected by $164.3 million, and the four other funds were under collected by $25.3 million.
Sales tax collections were $74.5 million less than the estimate for April. The April growth rate was negative 9.94%. For nine months revenues are under collected by $466.9 million. The year-to-date growth rate for nine months was negative 6.73%.
Franchise and excise taxes combined were $56.6 million below the budgeted estimate of $387.8 million. For nine months revenues are under collected by $258.0 million.
Hall Income tax collections for April were $32.2 million less than the estimate. For nine months collections are $36.2 million less than the budgeted estimate. The growth rate for the nine month period was negative 23.27%.
Inheritance and estate tax collections were $3.8 million below the April estimate. For nine months collections are $10.8 million under the budgeted estimate.
Gasoline and motor fuel collections for April increased by 0.77%. For nine months revenues are negative 6.22%, and $37.0 million below the budgeted estimate of $641.5 million.
Tobacco tax collections were $11.6 million under the budgeted estimate of $30.2 million. For nine months revenues are under collected in the amount of $20.4 million.
Year-to-date collections for nine months were $887.6 million less than the budgeted estimate. The general fund was under collected by $807.9 million and the four other funds were under collected by $79.7 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.
The revised estimates for this fiscal year as presented in the 2009-2010 Budget Document assume an under collection in total taxes in the amount of $1.1 billion. The general fund under collection is projected to be $1.06 billion.
By tax source the assumed under collections are: Sales tax $544.2 million; F&E taxes $336.1 million; privilege taxes $80.6 million; hall income tax $58.0 million; highway fund road user taxes $48.6 million; and a net under collection of$40.0 million from all other tax sources.