NEWS RELEASE

Tuesday, April 13, 2004
For immediate release

MARCH REVENUE COLLECTIONS
ABOVE PRIOR YEAR AND ESTIMATE

(OKLAHOMA CITY) General Revenue Fund collections for the month of March 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 March totaled $336.6 million. That amount was:

• $46.2 million or 15.9 percent above the prior year; and
• $34.8 million or 11.5 percent above the estimate.

“Revenue collections remain strong,” said Scott Meacham, Director of the Office of State Finance. “While March typically is one of our worst months for individual income tax collections because of the high level of refunds, receipts from that source were above both the prior year and the estimate. Continued strength also was evident in our other major tax revenue sources – gross production tax on natural gas, sales tax and motor vehicle taxes.”

Meacham added, “Year-to-date, collections are $375.0 million above the prior year. This shows that our economy has definitely recovered from its low point last fiscal year. It also means budget cuts are extremely unlikely and the likelihood of a Rainy Day Fund deposit is increasing.

“After the revenue shortfalls we have faced over the past several years, 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 our Rainy Day Fund.”

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. The fund currently has a balance of just over $136,000.

Net income taxes produced $131.9 million, which was $26.4 million or 25.0 percent above the prior year and $14.6 million or 12.5 percent above the estimate.

Individual returns produced $101.2 million, which was $12.9 million or 14.6 percent above the prior year and $4.7 million or 4.8 percent above the estimate. Corporate income tax receipts totaled $30.7 million, which was $13.6 million or 78.9 percent more than the prior year and $10.0 million or 48.4 percent over the estimate.

The state sales tax produced $100.2 million for the month, which was $12.0 million or 13.7 percent above the prior year and $8.1 million or 8.8 percent above the estimate.

The gross production taxes on natural gas yielded 37.5 million for the month, which was $0.9 million or 2.3 percent below the prior year but $4.3 million or 13.0 percent above the estimate.

Motor vehicle taxes produced $18.0 million, which was $5.7 million or 46.6 percent above the prior year and roughly even with the estimate.

Other revenue produced $48.9 million for the month of March. This was $2.9 million or 6.3 percent above the prior year and $7.8 million or 18.9 percent above the estimate.