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.


Drunk Driving Charge Reinstated By State Supreme Court After Finding That Police Acted Reasonably

The Tennessee Supreme Court has reinstated charges of driving under the influence and violating the open container law against Williamson County resident Mechelle Montgomery in an opinion that restores evidence gained during a search. In February of 2012, two officers with the Williamson County Sheriff’s Office were dispatched to the residence of a woman named Corey Brown, who ... (click for more)

State Supreme Court Rules That Employee Does Not Qualify As Whistleblower

The Tennessee Supreme Court has affirmed the dismissal of a whistleblower claim by Charles Haynes, a former employee of Formac Stables, Inc., in Obion County. Mr. Haynes worked as a groom at Formac Stables. In April of 2010, hesuffered an injury to the head when kicked by a Tennessee Walking Horse named “Bruce Pearl.” Mr. Haynes claimed that Formac’s owner refused to allow him ... (click for more)

Hard Freeze Predicted In The Area For Saturday Night

Temperatures are expected to drop Saturday night to 28 degrees or less. Here is the latest report from the National Weather Service:  HARD FREEZE WARNING REMAINS IN EFFECT FROM MIDNIGHT EDT /11 PM CDT/ TONIGHT TO 11 AM EDT /10 AM CDT/ SUNDAY... * EVENT... A HARD FREEZE EXPECTED WITH LOWS FROM THE TEENS NORTH TO THE UPPER 20S SOUTH LATE TONIGHT AND SUNDAY MORNING. ... (click for more)

Man Charged In Shooting On Sixth Avenue Had Been Shot Himself Last Week; Police Say Incident "Part Of Gang War"

A man charged with attempted first-degree murder on Sixth Avenue Court on Thursday afternoon was shot himself earlier this month. O'Shae Kadaris Smith, 20, of 2114 E. 12th St., is also charged with reckless endangerment, aggravated assault and possessing a firearm during the commission of a crime. He was one of two people shot on Rawlings Street on March 16. Kendre Allen, ... (click for more)

Finley Stadium Needs To Grow Up - And Response

RE:  Finley Stadium Financial Picture Rosy; Beer And Alcohol Sales Approved; AstroTurf Almost Ready and City, County Pitching In $250,000 Each For New Finley Stadium AstroTurf I read a story here five days ago about a rosy future for Finley stadium. It lead me to believe that the stadium was making money and even improvements with donations.  Then we get a short ... (click for more)

Roy Exum: The Sunday Funnies

They say March roars in like a lion and leaves like a lamb. So as you reach for your lambs-wool sweater on this last Sunday of the month, allow me to lighten up a bit with a new edition of my Sunday Funnies. I have a delightful crowd that keeps me supplied in jokes and these are some of the best that have come my way: A WOMAN'S PERFECT BREAKFAST -- She's sitting at the table ... (click for more)