Tennessee State Collections Had Record Growth In July, But Less Than Budgeted

Thursday, August 14, 2014

Tennessee revenue collections recorded positive growth in July, but still came in less than the state budgeted. Finance and Administration Commissioner Larry Martin Thursday announced a net positive growth of 2.39 percent over July collections of one year ago. Overall July revenues were $941.8 million, which is $3.2 million less than budgeted.

“We've recorded positive sales tax collection growth every month in this fiscal year, but the economic recovery is slow,” Commissioner Martin said.  “We’ll begin to close out the fiscal year next month, when we report sales tax collections for August, which will reflect spending that occurred in July.

“Although July is a relatively small month for corporate taxes, we saw slight growth over prior year collections.  We’ll continue to closely examine corporate collections as we transition into a new fiscal year.” 

The general fund was over collected by $1.2 million, and the four other funds were under collected by $4.4 million.

Sales tax collections were $1.3 million more than the estimate for July.  The July growth rate was 3.17 percent. For 12 months revenues are under collected by $14.2 million. The year-to-date growth rate for twelve months was positive 3.53 percent.

Franchise and excise taxes combined were $2.2 million below the budgeted estimate of $70.7 million. The growth rate for July was positive 2.92 percent. For 12 months revenues are under collected by $280.5 million and the year-to-date growth rate was negative 8.42 percent.

Inheritance and estate tax collections were $2.0 million above the July estimate. For 12 months collections are $21.9 million above the budgeted estimate.

Privilege tax collections were $0.7 million below the July budgeted estimate. For 12 months collections are $23.7 million less than the budgeted estimate, and the year-to date growth rate was positive 1.64 percent.

Business tax collections were $0.6 million less than the July estimate. Year-to-date collections for 12 months are $10.8 million below the budgeted estimate.

Tobacco tax collections were $0.6 million above the budgeted estimate of $24.3 million. For 12 months revenues are under collected by $12.7 million.

Gasoline and motor fuel tax collections for July were over collected by $0.1 million. For 12 months revenues are over collected by $4.9 million, and the growth rate is positive 0.78 percent.

All other taxes for July were under collected by a net of $3.7 million. 

Year-to-date collections for 12 months were $293.1 million less than the budgeted estimate. The general fund was under collected by $302.4 million and the four other funds were over collected by $9.3 million.

The budgeted revenue estimates for 2013-2014 are based on the State Funding Board’s consensus recommendation of Dec. 19, 2012 and adopted by the first session of the 108th General Assembly in April 2013. They are available on the state’s website athttp://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 Dec. 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.

Year-to-date collections for 2013-2014 are subject to final accrual adjustments.

Airnet Group Named Microsoft 2016 U.S. Education Rising Star Partner Of The Year

Airnet Group, Inc. announced it has been named the 2016 U.S. Education Rising Star Partner of the Year by Microsoft.  The U.S. Public Sector Partner of the Year awards were presented during Microsoft’s US Public Sector Industry Solution University yearly event, where Microsoft’s Public Sector executive team was on site to congratulate Airnet for its achievements. Winners ... (click for more)

Red Bank Chamber Council Hosts Local Heroes Event Tuesday

The Red Bank Council of the Chattanooga Area Chamber of Commerce will host a Local Heroes event at their monthly meeting on Tuesday, from noon-1 p.m.  Members of police, firefighting and emergency medical services agencies that impact the Council’s footprint (Red Bank, West Hamilton County, North Chattanooga and Signal Mountain ) will be recognized for their exceptional ... (click for more)

Boyd Says He Is Not On Witch Hunt Against CVB, But Intends To Seek Full Audit Of Agency; Graham Backs Visitors Bureau 100%

County Commission Finance Chairman Tim Boyd has told Chattanooga Visitors Bureau President Bob Doak that he is "not on a witch hunt" against the CVB, but he said he intends to seek a full audit of the agency. He said he was inspired to "take an even closer look" at the Visitors Bureau after he said Mr. Doak "unleashing a fire storm of emails condemning my accusations." ... (click for more)

Man, Child Killed In Crash On Highway 136 In Walker County; 2nd Child Who Was Seriously Injured Dies On Monday

A man and an unrestrained five-year-old child were killed when a vehicle went out of control on Highway 136 in Walker County on Saturday. A 10-year-old in the car was seriously injured, and later died on Monday. The driver was thrown from the van and was dead at the scene. The five-year-old was trapped in the vehicle and also died at the wreck site at Ponder Creek Road. ... (click for more)

Judge Doug Meyer Lived A Full Life Helping Many

I was sadden to learn of the death of Judge Doug Meyer.  Judge Meyer retired from the Criminal Court bench here in 2006.  Prior to that he had been the Chattanooga city judge for several years.  As a young attorney I tried many cases in front of Judge Meyer.  Also while I was awaiting my case to be tried, I would observe him on the bench.  Judge Meyer ... (click for more)

Roy Exum: Blackburn Good As Gone

I didn’t know until I read John Adams’ column in the Knoxville News-Sentinel that one person who doesn't personally know UTC Athletic Director David Blackburn said he heard he has a drinking problem. I also didn’t know that “the best thing to ever happen to UTC athletics” had health problems, according to a second person who does not personally know him. It is also being said David ... (click for more)