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Location: Nashville, Tennessee, United States

10/12/2002

Good News From F&A
The Sundquist Administration says the state has a revenue surplus. Yes, you read it right. Two months into the fiscal year revenue collections, Tennessee has a surplus.

According to the administration's Department of Finance & Administration, the state now has a surplus in all funds two months into the fiscal year, thanks to strong growth in revenue from the sales tax and the franchise & excise tax. The sales tax even showed strong growth with the recent tax increase excluded, indicating the state's economy is rebounding.

Here is the text of their press release, issued today:

On an accrual basis September is the second month in the 2002-2003 fiscal year. Department of Revenue tax collections were $771.2 million. The collections include new revenue collected under the Tax Reform Act of 2002.

September revenues were $14 million more than the budgeted estimates, Finance and Administration Commissioner C. Warren Neel announced today. The general fund had a $13.3 million overcollection and the four other funds overcollected by $700,000.

Sales tax collections were $6.7 million more than the estimate. Adjusted for the rate change and the single article cap, the growth in sales tax collections was 3.52% for the month.

Franchise and excise taxes combined were $9.6 million more than the estimate of $156.2 million. For two months revenues are $11.5 million overcollected.

Gasoline taxes and motor vehicle registrations were $1.3 million more than the budgeted estimate of $82.4 million.

Year-to-date collections for two months are $10.4 million more than the budgeted estimates for all funds and $7.4 million more than the general fund estimate.

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