Oklahoma General Revenues Fund (GRF) receipts flat in November, slightly less than prior year
Share this Article: Twitter Facebook Republish Print
YouTube Video

Published: 12-Dec-2014

OKLAHOMA CITY -- After four months of consistent growth, General Revenue Fund (GRF) receipts flattened somewhat in November, with collections totaling slightly less than the official estimate and prior year.

As state government’s main operating fund, the GRF is the key indicator of state government’s fiscal status and the predominant funding source for the annual state budget. GRF collections, reported by the Office of Management and Enterprise Services (OMES), are revenues that remain for the appropriated state budget after rebates, refunds and mandatory apportionment's. 

Gross collections, reported by the State Treasurer, are all revenues collected by the state prior to rebates, refunds and mandatory apportionment's.

November General Revenue Fund (GRF) collections of $382.5 million were $2.2 million, or 0.6 percent, below the official estimate upon which the FY 2015 appropriated state budget is based and $0.6 million, or 0.2 percent, below prior year collections.

GRF collections exceeded prior year collections in each of the four months of FY 15 before November and beat the official estimate in three of the four months prior to November.

“An accounting oddity contributed to softer collections in November, but we are also likely seeing preliminary effects of lower oil prices,” said Secretary of Finance, Administration and Information Technology Preston L. Doerflinger.

Total GRF collections for the first five months of FY 15 were $2.236 billion, which is $80.3 million, or 3.7 percent, above the estimate and $140.9 million, or 6.7 percent, above the prior year.

“Time will tell what effect the oil price environment has on state finances,” Doerflinger said. “There are tradeoffs for tax collections since lower prices at the pump can put more money in the hands of consumers to spend on other things, which could boost sales tax collections. But if oil prices cause the energy sector to shrink, Oklahoma’s economy will certainly feel that, and state finances will, too.”

The price of West Texas Intermediate Crude at Cushing closed Wednesday at $60.94 a barrel. By comparison, the FY 15 appropriated state budget was built using an assumed average oil price of $86.99 a barrel.

The state Board of Equalization meets Dec. 18 to make a preliminary estimate on revenues available for appropriation for the FY 16 appropriated budget.

“The meeting will provide a closer examination of the effect of oil prices on collections and the first real look at resources for the next state budget,” Doerflinger said.

Doerflinger is director of OMES, which issues the monthly GRF reports.

Major tax categories in November contributed the following amounts to the GRF:

•Total income tax collections of $120.9 million were $6.8 million, or 6 percent, above the estimate and $5.4 million, or 4.2 percent, below the prior year. 

Individual income tax collections of $120.9 million were $9.8 million, or 8.8 percent, above the estimate and $4.2 million, or 3.3 percent, below the prior year. 

Corporate income tax collections made no contribution to the GRF for the month due to more than $16 million in refunds.
 
•Sales tax collections of $174.1 million were $5.7 million, or 3.4 percent, above the estimate and $11.4 million, or 7 percent, above the prior year.

•Gross production tax collections of $23.6 million were $2.1 million, or 9.7 percent, above the estimate and $2.7 million, or 12.7 percent, above the prior year. 

Gas collections of contributed $8 million were $6.9 million, or 46.5 percent, below the estimate and $2.4 million, or 23.1 percent, below prior year collections. Oil collections of $15.6 million were $9 million, or 136.3 percent, above the estimate and $5.1 million, or 47.8 percent, above prior year. 

•Motor vehicle tax collections of $3.7 million were $19 million, or 83.8 percent, below the estimate and $26.8 million, or 87.9 percent, below the prior year. Motor vehicle collections were skewed because of an accounting adjustment made by the Oklahoma Tax Commission. Taking the adjustment into account, actual collections from motor vehicle taxes would have missed the estimate by $8.6 million, or 37.9 percent and been below the prior year by about $6.3 million, or 3 percent.

•Other revenue collections of $60.2 million were $2.3 million, or 4 percent, above the estimate and $17.4 million or 40.5 percent, above the prior year.

Monthly revenue tables are available on the OMES website

sign up for email updates

Steal Our Stuff