NASHVILLE – State revenue collections for May continued strong, in line with revised estimates in April that predicted greater growth to close the Fiscal Year. Finance and Administration Commissioner Dave Goetz reported today that overall May revenues were $23.2 million more than the state budgeted.
“The state’s economy continues a strong showing – with clear indications of confidence in the state’s outlook from the business sector as well as consumers,” Goetz said. “It’s equally important that we’ve managed our resources by setting our priorities within economic projections so that Tennessee meets its goals in education, jobs and health care, even if economic growth slows down a bit, as we think it will.”
On an accrual basis, May is the tenth month in the 2005-2006 fiscal year. Department of Revenue collections were $783.0 million.
The general fund was $25.4 million overcollected and the four other funds undercollected by $2.2 million.
Sales tax collections were $15.3 million more than the estimate for May. For ten months revenues were overcollected by $103.3 million.
Franchise and excise taxes were $14.2 million more than the estimate of $43.3 million. For ten months revenues were $76.3 million overcollected.
Gasoline and motor fuel collections increased by 3.86% million above the budgeted estimate of $73.5 million. For ten months, collections were $11.4 million more than the estimate.
Year-to-date collections for ten months were $249.8 million more than the budgeted estimate. The general fund was overcollected by $231.3 million and the four other funds were overcollected by $18.5 million.
The revised estimates adopted by the second session of the 104th General Assembly in May of this year assume a surplus of $169.0 million in sales tax collections, $61.6 million in franchise and excise taxes, and a general fund surplus of $ 283.9 million.
The revised revenue estimates are based on the State Funding Board’s consensus recommendation presented to the General Assembly prior to passage of the General Appropriations Act.