September State Revenues Fall Below Budget Estimates

Friday, October 11, 2013

Overall September revenues were under the budgeted estimates in Tennessee, although sales taxes continue to show modest growth.  Finance and Administration Commissioner Larry Martin reported Friday that overall September revenues were $1.1 billion, which is 5.22 percent below the budgeted estimate.    

“The sales tax is the ‘bread and butter’ of revenue collections in Tennessee, and it’s our leading economic indicator,” Commissioner Martin said. “September sales tax collections continued to reflect modest growth consistent with a sluggish economy.

“With uncertainty surrounding resolution of the federal budget, and national economic indicators that continue to reflect mixed results, we are required to continue close scrutiny of revenues and expenditures for the balance of this fiscal year. We will maintain a balanced budget and conservatively manage the state’s spending.” 

September collections were $59.0 million less than the budgeted estimate.  The general fund was under collected by $62.1 million and the four other funds were over collected by $3.1 million.

Sales tax collections were $1.9 million less than the estimate for September.  The September growth rate was positive 3.50 percent.

Franchise and excise taxes combined were $65.6 million below the September budgeted estimate of $342.7 million.  The September growth rate was negative 10.37 percent.

Gasoline and motor fuel collections for September increased by 4.82 percent and were $2.2 million above the budgeted estimate of $69.6 million. 

Tobacco tax collections for the month were under collected by $1.7 million, and the growth rate was negative 4.97 percent.

Privilege tax collections were $0.3 million less than the budgeted estimate of $20.0 million. 

Inheritance and estate tax collections were $5.3 million above the budgeted estimate.

All other taxes were over collected by a net of $3.0 million. 

Year-to date collections for two months were $83.3 million less than the budgeted estimate. The general fund was under collected by $82.9 million and the four other funds were under collected by $0.4 million.

The budgeted revenue estimates for 2013-2014 are based on the State Funding Board’s consensus recommendation of Dec. 19, 2012 and adopted by the first session of the 108th General Assembly in April 2013. They are available on the state’s website at http://www.tn.gov/finance/bud/Revenues.shtml.


BlueCross Taps Lawrence As Director of Ancillary, Behavioral Contracting

BlueCross BlueShield of Tennessee selected Scot Lawrence as director of ancillary and behavioral health contracting. In this role, Mr. Lawrence is responsible for defining and directing state-wide contracting strategies and negotiations for ancillary providers, including lab, home health, skilled nursing, and dialysis providers, as well as behavioral health providers such ... (click for more)

Chattanooga Chamber Business Calendar Jan. 23-27

Here is the Chattanooga Chamber Business calendar for Jan. 23-27 Monday, Jan. 23  Get a Job - East Hamilton High School 7:15 a.m. - 2:15 p.m. East Hamilton High School: 2015 Ooltewah Ringgold Road The Chattanooga Chamber’s Get A Job program instructs 10th graders on interviewing, completing job applications, dressing for success and other topics of importance for ... (click for more)

School Board Turns Thumbs Down To Proposed Funding Of Central Track

County school board members on Thursday night expressed a number of concerns about a proposed $500,000 new track under consideration for funding by the County Commission at Central High School. The vote was 9-0 to table a motion to accept the money (if offered). Karitsa Mosley-Jones said, "We've got students at schools on a high priority list and you're going to give me a track?" ... (click for more)

School Board Approves 4-Year Contract Extension With Independent Bus Drivers, Who Say They Can Handle 100 Routes; Extension Given On Custodial Contract

The county school board on Thursday night extended the contract by four years of school bus owner operators, who said they could deliver on 100 bus routes. The board delayed until a special meeting at 12:30 p.m. on Saturday at Central High School the issue of whether to accept the offer of 100 contract routes. That would be handled by many of the current 49 owner operators taking ... (click for more)

Bikers Need To Have Licenses And Insurance - And Response

I am okay with Haslam’s idea of raising the gas tax and lowering the food tax.  But, I want to see a tax of bicycles since they have their own lanes now and they also have to be maintained. How much revenue would that bring in?  I would think if we have enough bike riders to have the lanes in the first place, there must be enough to generate some money for road improvements. ... (click for more)

Roy Exum: Just One Year Later…

If I hadn’t actually seen it happen, I would never have believed it. Not only did I wonder if it could ever happen, more often than not my disgust and dismay of such rampant disorder has filled me with more gloom and doom than you’ll find in a liberal Democrat on this, Donald Trump’s Inauguration Day. But I have got to proclaim that Thursday night I have never been as proud of the ... (click for more)