A revenue shortfall is likely to occur for state government during the 2010 fiscal year, state Treasurer Scott Meacham said today.
“It appears very likely at this point that fiscal year 2010 revenues will be less than originally estimated by the Tax Commission,” Meacham said. “That means a revenue shortfall is probable.”
Meacham said he will be meeting with state finance officials and Gov. Brad Henry to determine if it will be necessary to begin reducing allocations to state agencies to meet the anticipated revenue shortfall.
June collections were sufficient to fund appropriated obligations for July, the first month of the 2010 fiscal year, but action may be required in coming months, he said.
Preliminary revenue reports released today show general revenue fund collections for the 2009 fiscal year that ended June 30 totaled $5.5 billion. That amount was $434.7 million, or 7.3 percent, below the previous year and $427.8 million, or 7.2 percent, below the estimate.
The recession started significantly affecting Oklahoma during the past six months, or the last half of the 2009 fiscal year, Meacham said. During the first half of the fiscal year, July through December, collections exceeded the estimate by $189.5 million or 6.6 percent. During the final six months, January through June, collections were below the estimate by $617.3 million, or 20.1 percent.
“We are seeing a slowdown in every revenue source. Only sales tax collections were higher than collections in the prior fiscal year, but they failed to meet the estimate,” Meacham said.