More Mid-Year Budget Cuts Unlikely
OKLAHOMA CITY — Although April General Revenue Fund (GRF) collections missed the estimate by 12.8 percent, further midyear reductions to agencies remain unlikely.
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 appropriated state budget. GRF collections are revenues that remain for the appropriated state budget after rebates, refunds and mandatory apportionments. Gross collections, reported by the State Treasurer, are all revenues collected by the state before rebates, refunds and mandatory apportionments.
April GRF collections of $611 million were $89.4 million, or 12.8 percent, below the official estimate upon which the Fiscal Year 2016 appropriated state budget was based, and $62.3 million, or 9.2 percent, below prior year collections.
Most state agencies have seen monthly general revenue allocations for FY 2016 reduced by seven percent due to a midyear revenue failure in the GRF. The reductions were required to maintain a balanced budget amid declining revenue collections caused by sustained low oil prices.
“April was weak, but it will not cause further midyear general revenue allocation reductions to agencies,” said Secretary of Finance, Administration and Information Technology Preston L. Doerflinger. “Current agency allocation levels projected and accounted for down months like April for the remainder of the fiscal year. Barring something drastic, the General Revenue Fund should finish the year without additional across-the-board reductions to agencies.”
Total GRF collections for the first ten months of FY 2016 were $4.3 billion, which is $413.2 million, or 8.7 percent, below the official estimate and $448.8 million, or 9.4 percent, below prior year collections.
Doerflinger is director of OMES, which issues the monthly GRF reports.
Major tax categories in April contributed the following amounts to the GRF:
- Total income tax collections of $370.3 million were $48.4 million, or 11.6 percent, below the estimate and $42.7 million, or 10.3 percent, below the prior year.
Individual income tax collections of $317.8 million were $71.1 million, or 18.3 percent, below the estimate and $69.7 million, or 18 percent, below the prior year.
Corporate income tax collections of $52.5 million were $22.7 million, or 76 percent, above the estimate and $27.1 million, or 106.2 percent, above the prior year.
- Sales tax collections of $159.3 million were $17.7 million, or 10 percent, below the estimate and $5.2 million, or 3.2 percent, below the prior year.
- Gross production tax collections of $6.5 million were $11.5 million, or 63.8 percent, below the estimate and $2.4 million, or 27.1 percent, below the prior year.
Natural gas collections of $6.3 million were $932,452, or 12.9 percent, below the estimate and $6.1 million, or 2,805 percent above the prior year.
Oil collections of $223,615 were $10.5 million, or 97.9 percent, below the estimate and $8.5 million, or 97.4 percent, below the prior year.
- Motor vehicle tax collections of $16.6 million were $5.8 million, or 25.9 percent, below the estimate and $0.6 million, or 3.2 percent, below the prior year.
- Other revenue collections of $58.3 million were $5.9 million, or 9.3 percent, below the estimate and $11.4 million, or 16.3 percent, below the prior year.