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.

 

 

 

 

 

 



GKH Announces Honors For Brittany Faith

Brittany Thomas Faith, of the law firm of Grant, Konvalinka & Harrison, P.C., has been elected by her peers as secretary of the American Immigration Lawyers Association Mid-South Chapter and as a   member of the Association’s executive committee. The Mid-South chapter is a sub-chapter of the national Association that consists of lawyers in Tennessee, Arkansas, Mississippi, ... (click for more)

HHM CPA Firm Adds Lowe To Dealership Services Group

Chattanooga CPA firm Henderson Hutcherson & McCullough announces Scott Lowe has joined its Dealership Services Group, bringing over 20 years of experience. “Scott’s experience working as the chief financial officer for a large automotive group equips him with a unique skillset,” said HHM partner Travis Horton. “This experience coupled with his public accounting background ... (click for more)

Blakemore, Corbett, Rachels Charged In Red Bank Heroin Death

Three Chattanooga residents have been charged with distribution of heroin that led to the death of an individual in Red Bank in February. Authorities have cited a recent rise in heroin abuse in the Chattanooga area, causing several overdose deaths, including three in one recent weekend.   A federal grand jury on Tuesday returned a superseding indictment charging ... (click for more)

Teen Shot Multiple Times On 4th Avenue; 2nd Youth Shot Twice On Pinewood Avenue; Woman Shot Twice On 25th Street

A teen was shot multiple times on 4th Avenue on Monday night. The victim was 19-year-old JaMarcus Davis. A second teen, 18-year-old Jaylain Ballard, was shot twice early Tuesday morning on Pinewood Avenue. Marion Heard, 45, was shot twice early Tuesday morning on 25th Street. In the first incident, Chattanooga Police responded at 7:20 p.m. to the area of the 2600 block ... (click for more)

General Bell: Chattanooga Needs The Coolidge Medal Of Honor Heritage Center - And Response (7)

I'm pleased and indeed compelled to let you know a bit more about the exciting and most honorable "Charles H. Coolidge Medal of Honor Heritage Center" planned for Coolidge Park.     Here's what the Heritage Center will be:  It will be a fitting capstone for Chattanooga's Coolidge Park on Northshore in downtown Chattanooga.  While this exceptional Chattanooga ... (click for more)

Roy Exum: Pat Summitt’s Dash

In 1996 a woman named Linda Ellis wrote one of life’s most beautiful poems. Called “The Dash,” its first two verses read like this: “I read of a man who stood to speak at the funeral of a friend. He referred to the dates on the tombstone from the beginning…to the end. “He noted that first came the date of birth and spoke the following date with tears, but he said what ... (click for more)