Tennessee Revenue Collections in March

Tennessee revenue collections continued to fall short of budgeted estimates in March. Finance and Administration Commissioner Dave Goetz reported today that overall March revenues were $776.5 million, which is $11.7 million less than the state budgeted.

“This marks the 22nd consecutive negative growth month for sales tax collections out of the last 27 months, starting with January 2008,” Goetz said. “Sales tax collections seem to reflect a degree of renewed consumer confidence, but revenues continue to lag below projections.

“Until we see clear signs that the economy is recovering we will continue to make budget decisions based on what we’re experiencing in Tennessee.”

On an accrual basis, March is the eighth month in the 2009-2010 fiscal year. The general fund was under collected by $8.7 million and the four other funds were under collected by $3.0 million.

Sales tax collections were $14.0 million less than the estimate for March. The March growth rate was negative 0.87%. For eight months revenues are under collected by $211.4 million. The year-to-date growth rate for eight months was negative 5.29%.

Franchise and excise taxes combined were $8.4 million above the budgeted estimate of $122.6 million. For eight months revenues are over collected by $15.7 million. The year-to-date growth rate for eight months was 6.64%.

Gasoline and motor fuel collections for March decreased by 1.70%. For eight months revenues are under collected by $16.9 million.

Tobacco taxes collections were $1.3 million over the budgeted estimate of $24.4 million. For eight months revenues are over collected in the amount of $1.6 million.

Year-to-date collections for eight months were $244.1 million less than the budgeted estimate. The general fund was under collected by $205.0 million and the four other funds were under collected by $39.1 million.