August State Revenues Fall Short

Friday, September 13, 2013

Tennessee revenue collections fell short of budgeted estimates for the first month of the state’s fiscal year.  Finance and Administration Commissioner Larry Martin Friday reported that overall August revenues were $838.9 million, which is $24.1 million above August 2012 collections, but falls below the estimate made earlier this year when the budget was approved for fiscal year 2013-14.  The growth rate for August was 2.96 percent.

“For some time, we’ve been very concerned about the slow economic recovery at the national level, and August collections indicate that Tennessee’s recovery also continues at a very slow pace,” Commissioner Martin said. “Sales tax collections for August reflect modest growth over the same time period one year ago but corporate tax collections recorded negative growth for the month, all of which kept us below the budgeted estimate for August.

“Due to federal budget uncertainties and national economic indicators, it will be necessary for us to closely monitor the state’s spending and revenue patterns each month through the fiscal year.” 

On an accrual basis, August is the first month in the 2013-2014 fiscal year.

August collections were $24.3 million less than the budgeted estimate. The general fund was under collected by $20.8 million and the four other funds that share in state tax collections were under collected by $3.5 million.

Sales tax collections were $9.2 million less than the estimate for August.  The August growth rate was positive 3.75 percent.

Franchise and excise taxes combined were $15.1 million below the budgeted estimate of $46.8 million, and the growth rate was negative 10.69 percent.  

Gasoline and motor fuel collections increased by 0.09 percent from August of 2012, but were $4.6 million below the budgeted estimate of $71.7 million. 

Inheritance tax collections were $0.7 million above the budgeted estimate.

Privilege tax collections were $4.2 million more than the budgeted estimate of $20.0 million 

Business tax collections were $0.6 million above the August estimate. 

Tobacco tax collections for the month were under collected by $0.5 million. 

All other taxes were under collected by a net of $0.4 million.

The budgeted revenue estimates for 2013-2014 are based on the State Funding Board’s consensus recommendation of December 19th, 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.


Tennessee's Unemployment Rate For August Increased To 7.4%

Tennessee Labor & Workforce Development Commissioner Burns Phillips announced the Tennessee preliminary unemployment rate for August was 7.4 percent, three tenths of one percentage point higher than the 7.1 July revised rate. The U.S. preliminary rate for August was 6.1 percent, down from 6.2 percent in July. Economic Summary • Over the past year, Tennessee's unemployment ... (click for more)

Tennessee American Water Announces Fall Drug-Take Back Day In Hamilton County

In partnership with several organizations, Tennessee American Water announces the fall  2014 Drug Take-Back event on Saturday, Sept. 27 from 10 a.m.–2 p.m.  "The purpose of this event is to keep drugs out of the environment and off of our streets," officials said.  Local residents are encouraged to simply drive up and drop off their unused, unwanted or expired medications ... (click for more)

EPB Officials Huddle With Attorneys Over City Street Lighting Issue

EPB board members huddled with attorneys on the issue of billing for city street lights on Friday morning. EPB Chairman Joe Ferguson asked for the private session with attorneys Rick Hitchcock and Tom Greenholtz of Chambliss Bahner. Don Lepard, owner of Global Green Lighting, earlier filed a $10 million "whistle blower" lawsuit, claiming overbilling by EPB on street lighting. ... (click for more)

City Council Taking Applications From Those Interested In Serving On City IDB

The City Council is taking applications from those interested in serving on the city industrial Development Board (IDB).   There are four vacancies on the board that has been in the news for its controversial approval and re-approval of $9 million in Tax Increment Financing (TIF) for developers of Aetna Mountain. Resumes are due by Sept. 29.   ... (click for more)

Walking Among Memories, The USS LST-325

I have walked among the head stones at Flanders Fields and have seen the entrenchment of soldiers with only bayonet tips sticking out of the earth. Later I traveled to Normandy where I stood on the sand and made scuff marks with my shoes on Omaha Beach and climbed the hill to the magnificent American Cemetery there. I again walked among the many, many tomb stones so neatly and ... (click for more)

Roy Exum: Troubling Jameis Winston

One of the greatest things about the American legal system is that each and every crime is judged on its own merits. Just because Arizona Cardinals running back Jonathan Dwyer and Carolina Panthers defensive end Greg Hardy were each arrested for domestic abuse earlier this week, each National Football League football hero will be given an independent hearing and trial, if need be, ... (click for more)