May State Revenues $40 Million Below Projections

Wednesday, June 11, 2014

Tennessee revenue collections recorded negative growth in May, largely due to a legal change in the timing of business tax payments. Finance and Administration Commissioner Larry Martin reported  that May ended with a net negative growth of 2.96 percent over collections made in the same month last year. Overall May revenues were $878.6 million, which is $40 million less than the state budgeted. May sales tax collections reflect business activity that occurred during April.

“May collections were significantly skewed due to the business tax change, along with the payment of a large sales tax settlement,” Commissioner Martin said.

“Tennessee’s sales tax collections continue to reflect a slow recovery from the recession, and require us to closely monitor collections and expenditures for the remainder of this year to end with a balanced budget.”

The general fund was under collected by $42 million, and the four other funds were over collected by $2 million.

Sales tax collections were $10.5 million less than the budgeted estimate for May.  The May growth rate was positive 0.93 percent. For 10 months revenues are under collected by $29.1 million. The year-to-date growth rate for ten months was positive 3.36 percent.

Franchise and excise taxes combined were $2.2 million below the budgeted estimate of $48.7 million. For 10 months revenues are $224.2 million less than the budgeted estimate.

Inheritance and estate tax collections were $1.5 million above the May estimate. For 10 months collections are $20.6 million above the budgeted estimate.

Privilege tax collections were $3.7 million less than the May budgeted estimate, and for 10 months collections are $14.1 million below the budgeted estimate.

Gasoline and motor fuel collections for May increased by 8.33 percent and were $3 million more than the budgeted estimate. For 10 months revenues are positive 0.85 percent and $1.6 million above the budgeted estimate of $688.2 million.

Business tax collections were $28.5 million less than the May estimate, and year-to-date collections for ten months are $1.2 million below the budgeted estimate.

Tobacco tax collections were $0.4 million above the budgeted estimate of $21.2 million. For 10 months revenues are under collected in the amount of $6.7 million.

All other taxes in total were equal to the budgeted estimates for May.

Year-to-date collections for 10 months were $222.3 million less than the budgeted estimate. The general fund was under collected by $236.0 million and the four other funds were over collected by $13.7 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.

The Funding Board met on Dec. 10, 2013 to hear updated revenue projections from the state’s various economists. The board met again on December 17 and adopted revised revenue ranges for 2013-2014. The revised ranges assume an under collection from the July 2013 budgeted estimate in the amount of $111.2 million to $134.5 million in total taxes and in the amount of $126.1 million to $145.6 million in general fund taxes for the current fiscal year.


Kevin Harrington To Be Keynote Speaker At Entrepreneur Power Luncheon May 26

The keynote speaker for Urban League of Greater Chattanooga’s third annual Entrepreneur Power Luncheon will be Kevin Harrington, i nventor of the infomercial, original shark on Shark Tank and as seen on TV Pioneer. Officials said, "Kevin is one of the most successful entrepreneurs of our time."    The luncheon will be on  Tuesday, May 26, from 11:30 a.m.–1 ... (click for more)

Krystal Teams Up With Lookouts Offering Contests And VIP Experiences

The Krystal Company is headed to the ballpark with the Chattanooga Lookouts to offer in-game activities.   Throughout this baseball season, fans may take part in a frozen T-shirt contest, where whoever can break open a frozen shirt the fastest will be able to keep the shirt and win additional Krystal prizes, including branded merchandise and meal certificates.  “We ... (click for more)

Mayor Berke Announces Plan To Provide High-Speed Internet At A Discount Price To Those With Low Incomes

Mayor Andy Berke, in his annual State of the City Address, on Monday announced the creation of the Netbridge Student Discount program. In the partnership with EPB, he said any family of a child eligible for Free and Reduced Lunch in schools can receive 100 megabits per second Internet at a cost of $26.99 per month." Mayor Berke said, "Think about it. Our low income families will ... (click for more)

DA Tells Dalton Jury Cell Phone Of Skyy Mims Was Found At Murder Scene

District Attorney Bert Poston told a jury in Dalton on Monday that the cell phone of Skyy Mims was found at the scene of the murder of convenience store clerk DK Chaudhari. He said Ms. Mims carried out the robbery in order to get Lotto tickets that she hoped would bring her money to finance her budding musical career. He said she took 80 "$500 A Week For Life" tickets. The ... (click for more)

The Heart Of A Teacher Makes A Difference - And Response (2)

In less than four weeks, I expect to be one of 216 graduating seniors from East Hamilton School. One could say all possible variables help a student rise to the highest levels in school; but a student is more than his environment or genetic code. He is a mixture of his own propensity and dedication to academics, coupled with a systemic team of mentors who give their all as a student’s ... (click for more)

Roy Exum: Who Is This Barbarian?

The Tennessee Supreme Court upheld a curious decision on what defines a “whistleblower” last month, saying you can’t blow the whistle on your employer if he’s the only one who hears the whistle. No, you’ve got to go to someone other than the perpetrator which not only makes sense, but appears to heighten one’s chance of success. What is much more curious is why somebody didn’t ... (click for more)