NASHVILLE – Tennessee revenue collections continued to decline in February. Finance and Administration Commissioner Dave Goetz today announced that overall February revenues, representing January sales, were $668.4 million, which is $69.7 million less than the amount budgeted for the month.
“February becomes the seventh consecutive month this fiscal year in which sales taxes and corporate income taxes experienced negative growth over a year ago,” Goetz said. “February also marks the twelfth negative growth month for sales tax collections out of the last fourteen months, reflecting a continued weakness in consumer confidence and the state’s overall economy.
“In spite of the severe revenue shortfall, the governor and the General Assembly will work together to end this fiscal year with a balanced budget as constitutionally required.”
On an accrual basis, February is the seventh month in the 2008-2009 fiscal year.
The general fund was under collected by $61.1 million and the four other funds were under collected by $8.6 million.
Sales tax collections were $53.8 million less than the estimate for February. The February growth rate was negative 7.88%. The year-to-date growth rate for seven months is negative 5.99%.
Franchise and excise taxes combined were $4.3 million below the budgeted estimate of $37.7 million. For seven months revenues are under collected by $166.6 million. The year-to-date growth rate for seven months is negative 23.35%.
Gasoline and motor fuel collections for February decreased by 5.75%, but were $293,000 above the budgeted estimate of $70.9 million. For seven months revenues are under collected by $33.4 million.
Tobacco tax collections were $1.2 million over the budgeted estimate of $23.6 million. For seven months revenues are under collected in the amount of $4.6 million.
Year-to-date collections for seven months were $591.8 million less than the budgeted estimate. The general fund was under collected by $543.2 million and the four other funds were under collected by $48.6 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.