January Revenues

Nashville – On an accrual basis January is the sixth month in the 2004-2005 fiscal year. Department of Revenue tax collections were $929.3 million.

January revenues were $59.5 million more than the budgeted estimate, Finance and Administration Commissioner Dave Goetz announced today. The general fund had a $57.9 million overcollection and the four other funds overcollected by $1.6 million.

Sales tax collections were $1.9 million less than the estimate in January. For six months revenues are undercollected by $89.3 million. The January growth rate was 6% and year-to-date growth was 3.9% or 1% less than the budgeted estimate.

Franchise and excise taxes combined were $56.1 million more than the estimate of $93.4 million. For six months revenues are $120.6 million overcollected, which may be overstated. An alternative estimating model indicates year-to-date overcollections of $63.6 million. The two models come together in April and that will be a more accurate indicator of overcollections.

Gasoline taxes and motor vehicle registrations were $2.3 million more than the budgeted estimate of $84.9 million.

Year-to-date collections for six months are $34.7 million more than the budgeted estimate. The general fund, because of franchise and excise tax collections, is overcollected by $39.7 million and the four other funds are undercollected by $5 million.

The budgeted revenue estimates and the revised estimates presented in the new budget document are the same in total revenue and general fund revenue. The individual estimates are different. The revised estimates assume a $65 million shortfall in sales tax collections, a surplus of $60.4 million in franchise and excise taxes, and a surplus of $4.6 million in all other taxes when compared with budgeted estimates for the full fiscal year.

The budgeted revenue estimates are based upon the State Funding Board’s consensus recommendation adopted by the second session of the 103rd General Assembly in May of last year.

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