NEWS RELEASE
Tuesday, March 9, 2004
For immediate release

FEBRUARY REVENUE COLLECTIONS ABOVE PRIOR YEAR AND ESTIMATE

(OKLAHOMA CITY) General Revenue Fund collections for the month of February 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 February totaled $261.4 million. That amount was:

• $29.9 million or 12.9 percent above the prior year; and
• $17.3 million or 7.1 percent above the estimate.

“State revenue collections remain strong,” said Scott Meacham, Director of the Office of State Finance. “February is typically our worst month for individual income tax collections. However, collections were above both the prior year and estimate. Strength also was evident in our other major tax revenue sources – gross production tax on natural gas, sales tax and motor vehicle taxes.

“For the year-to-date, collections are $135.6 million above the estimate,” Meacham added. “That means budget cuts are very unlikely, while the likelihood of a Rainy Day Fund deposit is increasing. It is very important that we build up our Rainy Day Fund since we currently have very limited reserves to deal with any unforeseen circumstances that may arise.”

Deposits to the Constitutional Reserve or Rainy Day Fund are made when collections exceed the estimate at the fiscal year’s end. The state last made a deposit to the fund at the conclusion of FY-01. The fund currently has a balance of just over $136,000.

Net income taxes produced $63.1 million, which was $11.8 million or 22.9 percent above the prior year and $0.8 million or 1.2 percent above the estimate. Individual returns produced all of that revenue. Corporate income tax refunds exceeded collections by $2.7 million. Refunds in excess of collections historically are not uncommon in February. Individual income tax collections were up 7.3 million or 13.2 percent over the prior year and $0.8 million and 1.3 percent over the estimate for that revenue source.

The state sales tax produced $100.1 million for the month, which was $7.8 million or 8.4 percent above the prior year and $7.6 million or 8.2 percent above the estimate.

The gross production taxes on natural gas yielded $41.1 million for the month, which was $6.3 million or 18.1 percent above the prior year and $7.0 million or 20.7 percent above the estimate.

Motor vehicle taxes produced $18.3 million, which was $4.7 million or 34.8 percent above the prior year and $1.4 million or 8.1 percent above the estimate.

Other revenue produced $38.7 million for the month of February. This was $0.7 million or 1.8 percent below the prior year but $0.5 million or 1.4 percent above the estimate.