NEWS RELEASE

Tuesday, May 11, 2004
For immediate release

APRIL REVENUE COLLECTIONS ABOVE PRIOR YEAR AND ESTIMATE

(OKLAHOMA CITY) General Revenue Fund collections for the month of April were above prior year receipts and the Office of State Finance’s estimate, state finance officials reported today.

Preliminary reports show General Revenue Fund collections for April totaled $526.0 million. That amount was:

• $33.6 million or 6.8 percent above the prior year; and
• $19.0 million or 3.7 percent above the estimate

Revenue collections continued to outperform the prior year and the estimate in April,” Scott Meacham, Director of the Office of State Finance, said, “providing further evidence our state’s economy has rebounded from its low points over the prior two years.”

Only one revenue source, the gross production tax on natural gas, came in below the prior year and estimate in April. “This did not come as a surprise,” Meacham said. “Prices a year ago were higher than they were during this year’s first-quarter. So, it only makes sense that our collections would drop below those of a year ago. Over the next few months, I anticipate collections will rise above those of a year ago and the estimate as prices have once again trended higher.”

Year-to-date collections are now $185 million over the estimate to-date. “That,” Meacham said, “means the likelihood of a deposit in the state’s Rainy Day Fund continues to increase. Our current Rainy Day Fund balance stands at just over $136,000. As a result, we have very limited reserves on-hand to deal with any unforeseen circumstances that may arise. Therefore, it is very important that we build up that fund balance to deal with any future emergencies.”

Deposits to the Constitutional Reserve or Rainy Day Fund occur at the end of the fiscal year when collections exceed the estimate. The state last made a deposit to the fund at the conclusion of FY-01.

Net income taxes produced $321.4 million, which was $36.1 million or 12.7 percent above the prior year and $15.3 million or 5.0 percent above the estimate.

Individual returns produced $297.8 million, which was $30.6 million or 11.5 percent above the prior year and $7.5 million or 2.6 percent above the estimate. Corporate income tax receipts totaled $23.5 million, which was $5.5 million or 30.7 percent more than the prior year and $7.8 million or 49.8 percent over the estimate.

The state sales tax produced $110.6 million for the month, which was $8.2 million or 8.0 percent above the prior year and $5.1 million or 4.8 percent above the estimate.

The gross production taxes on natural gas yielded 36.2 million for the month, which was $17.7 million or 32.9 percent below the prior year and $4.8 million or 11.6 percent below the estimate.

Motor vehicle taxes produced $19.5 million, which was $1.9 million or 10.9 percent above the prior year and $2.5 million or 14.6 percent above the estimate.

Other revenue produced $38.4 million for the month of April. This was $5.1 million or 15.3 percent above the prior year and $0.8 million or 2.1 percent above the estimate.