June State Revenues $67.5 Million Less Than Budgeted

Friday, July 11, 2014

 Total tax collections for June were below budgeted expectations. Finance and Administration Commissioner Larry Martin reported today that June ended with a net negative growth of 0.45%, compared to collections in the same month one year ago. Overall June revenues were $1.2 billion, which is $67.5 million less than the state budgeted.

“June collections recorded stronger than anticipated sales tax growth, but continued to reflect weaker than anticipated collections from the corporate sector,” Commissioner Martin said.

“We continue to believe   the recent up-tick in retail activity is an indication of renewed consumer confidence, and an economy slowly on the mend.” All other tax sources, taken as a group, were below budgeted expectations in June.

“For the remainder of this year, we will continue to closely monitor collections and expenditures.”

The general fund was under collected by $67.6 million, and the four other funds were over collected by $0.1 million.

Sales tax collections were $13.5 million more than the estimate for June.  The June growth rate was positive 5.54%. For eleven months revenues are under collected by $15.5 million. The year-to-date growth rate for eleven months was positive 3.57%.

 Franchise and excise taxes combined were $54.1 million below the budgeted estimate of $383.2 million. The growth rate for June was negative 3.55%. For 11 months revenues are under collected by $278.3 million and the year-to-date growth rate was negative 8.81%.

 Privilege tax collections were $8.9 million below the June estimate. For eleven months collections are $23.0 million below the budgeted estimate.

 Business tax collections were $9 million less than the June estimate. Year-to-date collections for eleven months are $10.2 million below the budgeted estimate.

 Inheritance and estate tax collections were $0.7 million below the June estimate. For eleven months collections are $19.9 million above the budgeted estimate.

 Tobacco tax collections were $6.6 million below the budgeted estimate of $25.7 million. For eleven months revenues are under collected by $13.2 million.

 Gasoline and motor fuel collections for June were over collected by $3.1 million. For eleven months revenues are over collected by $4.8 million.

 All other taxes for June were under collected by a net of $4.8 million.

 Year-to-date collections for eleven months were $289.9 million less than the budgeted estimate. The general fund was under collected by $303.6 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 19, 2012 and adopted by the first session of the 108th General Assembly in April 2013. They are available at http://www.tn.gov/finance/bud/Revenues.shtml.

The Funding Board met on December 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.

 

 

 

 

 

 



Hamilton County Lawyer Placed On Disability Inactive Status

By Order of the Tennessee Supreme Court entered Tuesday, the law license of Matthew Jack Fitzharris was transferred to disability inactive status for an indefinite period of time pursuant to Section 27.3 of Tennessee Supreme Court Rule 9.  Mr. Fitzharris cannot practice law while on disability inactive status.   Pursuant to Tennessee Supreme Court Rule 9, Section ... (click for more)

Chattanooga Business Calendar Aug. 29-Sept. 2

MON/29 The Trans-Pacific Partnership Roundtable Discussion 10 a.m. – noon Baker Donelson: 633 Chestnut St. Speakers: Judy Rising Reinke, U.S. Commercial Service, U.S. Department of Commerce Paul Bonovich, Tennessee District Export Council Jim Frierson, Compass Innovation Tom Griffin, Miller Industries John M. Scannapieco, Baker Donelson Robert Leach, U.S. Department ... (click for more)

Jury Awards 25 City Police Personnel Total Of $562,000 On Claims That Pay Plan Was Not Followed

A Chancery Court jury on Wednesday gave a verdict totaling $562,000 for 25 city police personnel who filed suit almost five years ago alleging that the city never lived up to terms of a 2010 pay plan. Attorney Stevie Phillips, who tried the case along with Janie Parks Varnell, said, "The jury awarded each officer what we had asked for to the penny." She stated, "These 25 members ... (click for more)

TDEC Defends Its Operation Of Septic Permit Office In Bradley County; Backs Hank Thompson

The Tennessee Department of Environment and Conservation (TDEC) defended the operation of its septic permit office in Bradley County, including the work of manager Hank Thompson. The Bradley County Commission is studying whether to take over the operation of the office, saying there have been a number of complaints against Mr. Thompson and that he recently kicked Commissioner ... (click for more)

Alexander Should Do Something About The Affordable Health Care Act Price Increase - And Response (3)

Re:  Alexander's remarks about Tennesseans not affording "Affordable Health Care Act" prices Mr. Alexander,  Your message stated, Tennesseans can't afford a 44 percent to 62 percent increase in the Affordable Care prices.  I simply ask, as Senate Health Committee chairman, why don't you do something about it?  Don't tell us something most know already.  ... (click for more)

Roy Exum: 40 Questions About ‘Blue Bags’

No. 1 – Did you know that one in every five of the 42,000 children in the Hamilton County school district is what the experts call “food deprived?” No. 2 – Can you get your arms around the fact that a huge percentage of those 8,400 children get little, if nothing, to eat from Friday at lunch until they return to our schools on Monday? No. 3 -- Did you know that you – just ... (click for more)