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Recession hits Oklahoma’s revenue collections

MICHAEL MCNUTT Modified: July 14, 2009 at 1:02 pm •  Published: July 14, 2009
/> 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.

The fall-off in gross production taxes on oil and gas was particularly steep.

While total fiscal year gross production collections were 5.5 percent below the estimate, in the month of June they were off the estimate by 81.7 percent “reflecting the current low prices of these commodities,” Meacham said.

Net income taxes, a combination of personal and corporate income taxes, for the 2009 fiscal year produced $2.279 billion, which was $238.9 million, or 9.5 percent, below the prior year and $174.8 million, or 7.1 percent, below the estimate.

Gross production taxes on oil and natural gas yielded $718.5 million for the 2009 fiscal year, which was $106.7 million, or 12.9 percent, below prior year collections and $41.8 million, or 5.5 percent, below the estimate.

The state sales tax produced $1.647 billion for the year, which was $34.8 million, or 2.2, percent above the prior year, but $54.8 million, or 3.2 percent, below the estimate.

Preliminary reports for collections in the month of June, the last month of the fiscal year, show general revenue fund collections totaled $441.2 million, which was $190.3 million, or 30.1 percent, below the prior year and $156.7 million, or 26.2 percent, below the estimate.


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