DALLAS – Oklahoma’s tax receipts for March were the lowest in four years, according to state Treasurer Ken Miller.
“This month’s numbers show the economic contraction is ongoing and will likely continue in the near term,” Miller said. “However, we’ve seen this cycle before and know Oklahoma will recover – hopefully having learned lessons on how to better weather the storm the next time.”
The bad news comes as Oklahoma legislators seek spending cuts and additional revenue to close a $1.3 billion budget gap.
The latest report, showing $940.4 million of gross receipts for March, marked the 11th straight month of falling revenues, Miller said.
The March receipts were $17 million or 1.8% those of the same month last year.
For the 12-month period, receipts of $11.4 billion are $679 million or 5.6% below the previous period.
Monthly collections from oil and natural gas production taxes have been lower than the same month of the prior year for 15 consecutive months, Miller said. March gross production collections are more than 40% lower than last March.
Monthly receipts are based on oil field activity from January when the average price of benchmark West Texas Intermediate crude oil was $31.68 per barrel. Average oil prices were below that level in February, but recovered in March. Oil futures were trading above $40 per barrel on Monday.
Total March collections also show contraction in income tax revenues, but slight increases in sales and motor vehicle tax receipts. For the 12-month report, all revenue streams are smaller than one year ago, Miller said.
Gross receipts to the Treasury provide a broad look at the Oklahoma economy, but are not a direct reflection of state government funding. Gross receipts include total collections before payment of income tax refunds, sales tax remittance to cities and counties, and allocation of motor vehicle collections to school districts, among others.
After monthly apportionment is complete, the Office of Management and Enterprise Services will report the funded status of the General Revenue Fund. Due to a constitutional revenue failure, monthly allocations to appropriated agencies have been reduced by 18% for the remainder of the fiscal year.
The Oklahoma’s Business Conditions Index remained below growth neutral for an 11th consecutive month, Miller said. However, the index from a monthly survey of supply managers rose to 49.7 in March from 39.4 in February. Numbers below 50 indicate economic contraction is expected during the next three to six month.
Oklahoma’s seasonally-adjusted unemployment rate was set at 4.2% in February, up by one-tenth of one percentage point from January, according to the Oklahoma Employment Security Commission. The national unemployment rate was set at 4.9% in February.
