Oklahoma Revenues Come Up Short for Fourth Straight Month

DALLAS - Oklahoma revenues fell below expectations in April for the fourth month in a row, raising concerns that the state might have to cut to balance the fiscal 2009 budget.

Collections for the year stand at 96.5% of the estimate used in developing the budget. Lawmakers are limited to appropriating 95% of expected revenues.

If May collections are as bad as April's and the fiscal year's revenues fall below 95% of predictions, agency budgets would be cut unless the Legislature draws on the state's $600 million budget stabilization fund.

General revenue fund collections in April totaled $513.4 million, which was $137 million less than expected, and $141.3 million less than collected in April 2008.

April is the third straight month in which revenues were at least 19% less than the previous year's collection and at least 15% below expectations. Revenues for the month were 21.1% less than estimated and 21.6% less than in April 2008.

"The April numbers were not particularly good," said Treasurer Scott Meacham.

"We experienced lower income tax, motor vehicle, and gross production collections that are reflective of the national recession and its continued effects in Oklahoma," Meacham said. "We did see some bright news this month as sales tax collections were higher than the same month last year."

The state sales tax produced $125.3 million in April, $14.6 million or 13.2% more than April 2008, but $7.1 million or 5.3% below the estimate.

Meacham said the trend with falling revenue collections now appears to be deeper than projections presented by the Tax Commission in February. The margin to avoid a revenue shortfall in the final month of fiscal 2009 has become thin, he said.

"Collections next month would have to fall more than 20.5% below the monthly estimate before we would face constitutionally mandated across-the-board cuts to state agencies," he said. "If it's another month like this month, it's going to be very difficult."

Sen. Mike Johnson, R-Kingfisher, chairman of the Senate Appropriations Committee, said lawmakers would try to avoid serious budget cuts.

"If the May revenue report reflects April's, we will be in a true budget crisis this year, and will be forced to make some difficult decisions," Johnson said. "These are real numbers reflecting the real world in which we live."

The decline in oil and gas prices is reflected in lower revenues from the state's gross production tax. Collections totaled $32.5 million, which is $60.1 million less than in April 2008 and $38.3 million less than predicted.

Personal and corporate income taxes totaled $281.9 million, $77.8 million less than expected and $78 million less than collected in April 2008.

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