February State Revenues Less Than Expected

Year-To-Date State Revenues Remain More Than Budgeted

Friday, March 16, 2018

Tennessee Department of Finance and Administration Commissioner Larry Martin announced Friday that Tennessee tax revenue fell short of budgeted estimates in February. Overall February revenues were $884.9 million, which is $38.2 million more than we received in February one year ago, but were $3.4 million less than the state budgeted. The overall growth rate for February was 4.51 percent. 

"The state experienced growth in sales tax revenues compared to last February and receipts exceeded the budgeted estimate," Commissioner Martin said. "However, franchise and excise revenues recorded negative growth for the month and were less than the estimate. All other revenues combined revealed healthy growth for the month, but were slightly less than our budgeted estimate.

“On a year-to-date basis, the total reported revenue growth is 3.88 percent and includes several one-time events. Removing those events, one-time franchise and excise receipts and pre-payments made for 2017 Hall income taxes, the underlying growth is 4.93 percent. Corporate tax revenues show a negative growth of 7.57 percent for the year, but after adjusting for the 2017 and 2018 one-time payments included in the receipts, the growth rate is a positive 3.72 percent. All other combined revenues, on a year-to-date basis, reflect a positive 13.21 percent, but after adjusting for the accelerated payments made in the Hall income tax the growth rate is 9.05 percent. 

“While we are satisfied with the overall growth in total revenues on a year-to-date basis, we realize that typically more than one half of our annual corporate revenues materialize in the months of April through June. We will remain cautiously optimistic in anticipation of revenues in the months ahead.” 

General fund revenues were less than the budgeted estimates in the amount of $1.2 million while the four other funds that share in state tax revenues were $2.2 million less than the estimates. 

Sales tax revenues were $13.0 million more than the estimate for February and were 5.07 percent more than February 2017. For seven months, revenues are $52.6 million higher than estimated. The year-to-date growth rate for seven months was 4.01 percent. 

Franchise and excise tax revenues combined were $14.5 million less than the budgeted estimate in February, and the growth rate compared to  February 2017 was negative 18.43 percent. For seven months, revenues are $45.0 million more than the estimate and the year-to-date growth rate is negative 7.57 percent. However, adjusting for the one-time payments received last fiscal year and the one received in this fiscal year reduces the year-to-date underlying growth rate to 3.72 percent. 

Gasoline and motor fuel revenues for February increased by 19.08 percent compared to February 2017 and were $6.4 million less than the budgeted estimate of $85.9 million.  For seven months revenues have exceeded estimates by $6.7 million. 

Motor vehicle registration revenues were $2.1 million more than the February estimate, and on a year-to-date basis they are $10.8 million more than estimated. 

Tobacco taxes were $2.3 million less than the February budgeted estimate of $20.8 million. For seven months, they are $4.8 million less than the budgeted estimate. 

Inheritance and estate taxes was $0.5 million less than the February estimate. On a year-to-date basis, revenues for seven months are $2.4 million less than the budgeted estimate.

Privilege taxes were $2.8 million more than the February estimate, and on a year-to-date basis, August through February, revenues are $9.7 million more than the estimate. 

Business taxes were $1.1 million less than the February estimate. For seven months, revenues are $0.9 million more than the budgeted estimate. 

Hall income tax revenues for the month were $1.9 million more than the budgeted estimate. Driven by the substantial pre-payment of 2017 taxes, revenues on a year-to-date basis are $63.5 million in excess of the estimate. 

All other tax receipts exceeded estimates by a net of $1.6 million.  

Year-to-date revenues for seven months were $181.7 million more than the budgeted estimate. The general fund recorded $135.0 million in excess of the budgeted estimates and the four other funds $46.7 million. 

The budgeted revenue estimates for 2017-2018 are based on the State Funding Board’s consensus recommendation of Nov. 29, 2016 and adopted by the first session of the 110th General Assembly in May 2017. Also incorporated in the estimates are any changes in revenue enacted during the 2017 session of the General Assembly. These estimates are available on the state’s website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.


Tennessee Supreme Court Rejects Request For New Trial 20 Years After Rape Conviction

In an appeal from Shelby County Criminal Court, the Tennessee Supreme Court affirmed the trial court’s dismissal of a prisoner’s request for a new trial more than 20 years after his original conviction for aggravated rape. In 1998, a Shelby County jury convicted Tommy Nunley of the aggravated rape of his thirteen-year-old cousin. In the years following the conviction, Mr. ... (click for more)

TDEC Releases Proposed Beneficiary Mitigation Plan For Volkswagen Environmental Mitigation Trust

The Tennessee Department of Environment and Conservation today released for public comment a proposed Beneficiary Mitigation Plan for implementing the State’s initial allocation of $45.7 million from the Volkswagen Diesel Settlement Environmental Mitigation Trust. “The proposed plan would reduce harmful air pollutants that negatively impact our environment, health and quality ... (click for more)

Rhonda Thurman "Astounded" At Low Performance By Hamilton County Schools On TNReady; Dr. Johnson Says Some Gaps "Closing" Between County And State

County School Board member Rhonda Thurman said Thursday she was "astounded" by low performance on TNReady scores that were just released.   Noting that the county schools are below state levels in many areas, she said, "I am blown away. I am just astounded. We spend millions and ten millions and this is what we get."   She said, "If people want to know why ... (click for more)

Senator Corker Calls Judge Kavanaugh "A Superb Nominee"

 Senator Bob Corker on Thursday called Judge Brett Kavanaugh "a superb nominee" for the U.S. Supreme Court.   He made the statement after meeting with President Donald Trump’s nominee for the U.S. Supreme Court.   Senator Corker said, “I had a great meeting today with Judge Kavanaugh and think he is a superb nominee. It is inspiring to me to see ... (click for more)

Employee Who Stole From East Ridge Should Be Prosecuted

Why has the East Ridge employee who was fired for theft not been charged with theft?    City Manager Scott Miller made the statement that the employee had problems and that the stolen items were returned.  What does that have to do with the employee stealing ?   He has had a history of abuse of city resources. Why is he not being prosecuted? ... (click for more)

Am I Alone? - And Response (6)

Am I alone seems to be quite apt as I begin to form sentences, thoughts and concerns regarding the state of this country. I feel like I am alone trying, somehow, to justify Trump and understand why he is constantly in the middle of chaos.  Now coined as the Liar-in-Chief, Chief Foreign Affairs Coordinator acting for his pal Russian Dictator, Putin.  The silence ... (click for more)