State tax collections for May were less than budgeted, yet included positive growth in state sales tax collections. Finance and Administration Commissioner Dave Goetz reports that overall May revenues were $767.1 million, which is $18.6 million less than the state budgeted. May sales tax collections represent consumer spending that occurred in the month of April.
“May is the second consecutive month this fiscal year in which sales tax collections posted positive growth over the year before; and before April, we had not seen positive growth since May of 2008," Goetz said. “This is encouraging and we hope this marks the beginning of economic recovery for Tennessee. However, we will continue to closely monitor collections and do whatever is necessary to end this fiscal year with a balanced budget and leave the next governor with a balanced budget on a recurring basis.”
The general fund was under-collected by $16.5 million, and the four other funds were under-collected by $2.1 million. Sales tax collections were $6.1 million less than the estimate for May. The May growth rate was positive 3.70%. For ten months revenues are under-collected by $207.9 million. The year-to-date growth rate for ten months was negative 3.38%.
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