NASHVILLE – An increase in franchise and excise tax collections helped put state revenues above the budgeted estimate for March. Finance and Administration Commissioner Dave Goetz reported today that overall March revenues were $33.5 million more than the state budgeted.
“We normally see larger-than-usual franchise and excise tax collections in March, with 25 percent of F&E typically coming in during April of each year,” Goetz said. “The state’s conservative budget estimates serve to keep spending in check and help us avoid end-of-year red ink.”
On an accrual basis, March is the eighth month in the 2005-2006 fiscal year. Department of Revenue collections were $764.6 million.
The general fund was $35.6 million overcollected and the four other funds undercollected by $2.1 million.
Sales tax collections were $11.3 million more than the estimate for March. For eight months revenues were overcollected by $61.4 million.
Franchise and excise taxes were $20.8 million more than the estimate of $102.1 million. For eight months revenues were $8.2 million overcollected.
Gasoline and motor fuel collections increased by 3.63% and were $1.4 million less than the budgeted estimate of $57.9 million. For eight months, collections were $5.7 million more than the estimate.
Year-to-date collections for eight months were $108.8 million more than the budgeted estimate. The general fund was overcollected by $103.1 million and the four other funds were overcollected by $5.7 million.
The revised estimates presented in the new budget document assume an $86 million surplus in sales tax collections, a surplus of $61.6 million in franchise and excise taxes, and a general fund surplus of $177.4 million.The budgeted revenue estimates are based upon the State Funding Board’s consensus recommendation adopted by the first session of the 104th General Assembly in May of last year.