Tennessee's Finance and Administration Commissioner Dave Goetz reported today that overall March revenues were $866.7 million or $65.0 million less than the state budgeted.
"The current year budget was based on sales tax growth of just over four percent, but the actual growth rate has been below two percent," Goetz said. "Given that, and a corporate tax shortfall of $86 million so far this fiscal year, we anticipate having to make some difficult decisions to keep state spending within the limits for the remainder of the current year and into next year."
Here's the data from the state as to where things fell short:
On an accrual basis, March is the eighth month in the 2007-2008 fiscal year.
The general fund was under collected by $64.3 million and the four other funds were under collected by $700,000.
Sales tax collections were $13.2 million less than the estimate for March. The March growth rate was 0.60%. For eight months revenues are under collected by $117.7 million. The year-to-date growth rate for eight months was 1.81%.
Franchise and excise taxes combined were $44.9 million below the budgeted estimate of $206.6 million. For eight months revenues are under collected by $86.5 million.
Gasoline and motor fuel collections for March decreased by 5.49%. For eight months revenues are over collected by $10.2 million.
Tobacco taxes collections were $5.5 million under the budgeted estimate of $30.1 million. For eight months revenues are under collected in the amount of $52.0 million.
Year-to-date collections for eight months were $268.1 million less than the budgeted estimate. The general fund was under collected by $275.8 million and the four other funds were over collected by $7.7 million.
The budgeted revenue estimates for 2007-2008 are based on the State Funding Board's consensus recommendation adopted by the first session of the 105th. General Assembly in June of 2007.
The revised estimates for this fiscal year as presented in the 2008-2009 Budget Document assumes an under collection in total taxes in the amount of $165.4 million. By tax source the assumed under collections are: Sales tax $62.8 million; F&E taxes $54.8 million; tobacco taxes $30.0 million; privilege taxes $27.6 million; and, a net over collection of $9.8 million from all other tax sources. The General Fund under collection is projected to be $180.0 million.
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