Tuesday, June 15, 2004
For immediate release

MAY REVENUE COLLECTIONS
ABOVE PRIOR YEAR AND ESTIMATE

(OKLAHOMA CITY) General Revenue Fund collections for the month of May 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 May totaled $324.5 million. That amount was:

• $10.4 million or 3.3 percent above the prior year; and
• $13.2 million or 4.2 percent above the estimate.

“Revenue collections once again outperformed the prior year and the estimate in May,” Scott Meacham, Director of the Office of State Finance, said. “This is further evidence our state’s economy has rebounded from its low points over the prior two years.”

Revenue from the gross production tax on natural gas came in below the prior year for the second month in a row, but those collections did exceed the estimate in May. “This was not a surprise,” Meacham said. “Prices were higher one year ago than they were during the same period this year. Over the next few months, I anticipate collections will rise above those of a year ago and the estimate as prices have trended higher than those of 2003.”

Year-to-date collections are now $199.0 million over the estimate to-date. “That means,” Meacham said, “a deposit in the state’s Rainy Day Fund hopefully in the $200 million range.”

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.

“It is very important that we build up that fund balance to deal with any future emergencies,” Meacham said. “The current Rainy Day Fund balance stands at just over $136,000.That means we have very limited reserves on-hand to deal with any unforeseen circumstances that may arise.”

Net income taxes produced $121.8 million, which was $17.2 million or 16.5 percent above the prior year and $2.9million or 2.4 percent above the estimate.

Individual returns produced $121.0 million, which was $22.1 million or 22.3 percent above the prior year and $5.4 million or 4.7 percent above the estimate. Corporate income tax receipts totaled $0.8 million, which was $4.8 million or 85.7percent below the prior year and $2.6 million or 76.2 percent below the estimate.

Meacham noted that the decrease in corporate income tax collections appears to be a timing issue when compared to the same period in the prior fiscal year.

The state sales tax produced $112.1 million for the month, which was $9.5 million or 9.3 percent above the prior year and $9.4 million or 9.2 percent above the estimate.

The gross production taxes on natural gas yielded 39.6 million for the month, which was $4.5 million or 10.2 percent below the prior year but $2.9 million or 8.0 percent above the estimate.

Motor vehicle taxes produced $13.5 million, which was even with those of the prior year but $3.9 million or 22.4 percent below the estimate.

Other revenue produced $37.5 million for the month of May. This was $11.9 million or 24.0 percent below the prior year but $1.8 million or 5.2 percent above the estimate.